E-Commerce & Logistics
An absence of online verification-
When a visitor signs up on an e-commerce website the portal is unaware whether the customer information is genuine. Cash on Delivery purchases using an invalid on fake address can lead to huge revenue losses.
Shopping Cart Abandonment-
The tedious process of checkout causes customers to leave the website. 3 out of 10 online consumers abandon their shopping cart when they are forced to create an account. Develop a user-friendly model by solving the issue and also maintaining the accountability of customers.
When a product is returned, the business suffers due to a dissatisfied customer or damaged product there is a huge loss in shipment. Logistics and shipping costs have always been a major problem during refunds. A survey by comScore and UPS, showed 63% of American consumers check the return policy before making a purchase and 48% would shop more with retailers offering hassle-free returns. Develop a viable solution to address the problem.
Problem of data security-
The processing of purchases requires the sending of sensitive consumer information, which must be protected. Ecommerce sites record important customer data which is directly linked to their bank accounts. Develop a model that will ensure protected data.
Last mile delivery-
This is considered the most expensive and time-consuming part of shipping process. The main problem is inefficiency and transparency as it involves multiple stops with low drop sizes. Create a business concept to resolve the issue.
There are many ways to get a product form the distribution centre to the customer’s doorstep. The main challenge is to find the most effective and efficient transportation for timely delivery without raising the logistic costs. Mathematical concepts such as Operations Research can be employed using software models.
One major challenge is to determine and track the value of a returned unit. A lot of loss is suffered by the company in case a damaged product is sent back but the defective system is not worthless. It is important to apply reverse logistics so that the company can change one little subcomponent and make a useful unit to minimize losses.
Harmful effects on human health due to the hazardous food colour and pesticides in food like anaemia, kidney and liver disease, lead poisoning. Develop a sensor to help the customers to detect the presence of these.
Problem of Plenty-
In an online world there are too many options and it can be overwhelming for the customer to select. There is an absence of support which most customers are used to in-store experience
Customers today want full transparency into where the delivery is at all times. They are no longer satisfied with tracking codes and want to have a full real-time visibility over these deliveries.
Come up with a logistical solution to the problem raised.
With rising fuel prices, increased wages and peak inflation the transportation cost is increasing daily. A strategic approach is needed to eliminate or reduce transportation costs. Refer mathematical models to solve the issue.
Safety in Transportation-
Security is growing in logistics industry due to goods being passed from provider to provider. There is a lot of precision required for the supply chain to function properly.
Slow Loading Times-
Most consumers search for several minutes in a single category before selecting more products for purchase. Slow navigations lead to a customer leaving an abandoned shopping cart. Amazon estimated in 2012 that every second of loading caused them to lose 1.6 billion dollars, which signifies the need of faster loading ecommerce websites.
Another challenge is to find a payment gateway that is smooth as it is risky as sometimes when the customers are directed to the payment page their money is deducted and the page shuts off and the customer looking for a refund faces a difficult challenge.
Unclear website policies-
Many shopping websites do not even have clear and concise website policies for return and refund. Consumers get confused due to vague stipulations about a refund and return. When the policies section is not defined properly, sellers reject a consumer’s claim to return or get a refund.