Top 10 Challenges Faced by E-Commerce Brands in Delivery Apps

Top 10 Challenges Faced by E-Commerce Brands in Delivery Apps

India’s e-commerce market is expected to reach US $200 billion by 2026.

The E-commerce industry is one of the main pillars of India’s economy and it has also helped create employment. By 2040, it is estimated that 95% of purchases will be made online, Now shopping is a relaxed experience because you can shop from anywhere so it is the right time for retailers to face e-commerce challenges & find solutions for them. 

In this blog, we explore the top 10 difficulties that e-commerce brands face in managing delivery applications, and the significance of machine learning and artificial intelligence.

1. Data Analytics and Customer Insights

E-commerce success is largely dependent on data, yet many firms find it difficult to collect real-time information from delivery apps. Limited access to consumer data, order trends, and delivery performance metrics can make it difficult to make well-informed decisions. Businesses also find it challenging to anticipate demand, manage routes, and improve customer experiences without strong data analytics. Without a thorough data analysis strategy, e-commerce companies find it challenging to improve their customer experience, leading to inefficiencies, delays, or unhappy customers. 

2. Order Management System (OMS) Failures 

 Managing large order quantities requires a well-integrated Order Management System (OMS).  However, keeping real-time inventory alignment across several platforms is a struggle for numerous companies. Inaccurate stock levels, order processing delays, and communication breakdowns between warehouses and delivery partners are often the cause of delivery failures and customer dissatisfaction.

3. Real-Time Tracking and Transparency

In the modern world, consumers anticipate openness and immediate monitoring of their purchases. However many delivery apps currently provide tracking functionalities, and difficulties persist in ensuring that this tracking information is precise and accessible consistently. Many e-commerce brands face challenges in delivering real-time updates and precise tracking because of disjointed data sources and insufficient integration between their delivery applications and logistics collaborators.

4. The Problem Of Cart Abandonment

In the e-commerce sector, this is probably one of the most difficult problems. People frequently visit a website, add a lot of items to their carts, and then leave them there for weeks. This can vary from shopper to shopper and has a variety of causes. Therefore, they might put thousands of dollars worth of goods in their cart yet only purchase one or two of them.

5. Managing Multiple Delivery Channels

E-commerce companies often depend on various delivery methods, such as their fleets, third-party logistics providers (3PLs), and courier services. Handling these various channels through a single delivery app can be a logistical challenge. Challenges involve sustaining uniform service standards among different providers, ensuring that accurate order information is communicated to each provider, and addressing irregular delivery times or tracking problems.

6. Handling Returns and Reverse Logistics

Returns are an unavoidable aspect of e-commerce, but handling returns effectively through delivery apps introduces its unique challenges. Reverse logistics (the process of managing returned items) is often more complex and costly than the original delivery process. However, brands face challenges in discovering a practical and economical method for handling returns through their delivery applications, mainly when dealing with high return rates or difficult product categories.

7. Security and Fraud Prevention

With the increase in online transactions, the risk of fraud also rises. E-commerce companies must ensure their delivery applications are safe and able to deal with fraudulent actions, including false reports of undelivered items or theft. Difficulties emerge in maintaining secure payment processing and confirming that delivery addresses are real and validated. Delivery applications need to incorporate strong fraud detection systems, such as identity verification and GPS tracking, to avert fraudulent activities, ensuring a smooth customer experience at the same time.

8. Retention & Customer Experience 

Brand control over consumer interactions is frequently restricted by third-party delivery applications, which makes it more difficult to foster client loyalty and guarantee a flawless experience.  Packing difficulties, a lack of personalized contact, and variable service quality can all reduce repeat business. Despite outsourcing their delivery services, brands need to figure out how to keep their relationships with their customers healthy.

9. Scalability and Flexibility

As e-commerce businesses expand, the challenges of handling deliveries also increase. Scalability represents a significant challenge for brands, as they require delivery applications capable of managing higher order volumes while maintaining performance and customer satisfaction. This encompasses overseeing additional delivery partners, extending into new geographic areas, and adjusting to varying demands during busy seasons. E-commerce businesses need adaptable delivery systems that can grow alongside their expansion, but many struggle to ensure their infrastructure can match the required speed.

10. Environmental Sustainability

As the desire for sustainable practices increases among consumers, e-commerce brands face pressure to reduce their carbon emissions. Logistics related to delivery, such as emissions from transportation and waste from packaging, play a major role in environmental issues. Brands encounter the dual challenge of fulfilling customer demands for quicker delivery alongside maintaining sustainability objectives. Improving delivery routes, minimizing packaging waste, and using eco-friendly delivery methods are important approaches, but the execution of these strategies demands significant investment and meticulous planning.

Conclusion

Navigating the complexities of e-commerce delivery apps can be daunting, but the right strategies and technology can make all the difference. At Markup Designs, we specialize in custom e-commerce solutions that optimize logistics, enhance multi-channel capabilities, and improve user experience. Our expertise in app development, digital marketing, and seamless integration helps brands overcome hurdles like cart abandonment, order processing inefficiencies, and customer engagement.