Top 5 Challenges of e-commerce and Solutions

challenges of e commerce
(Last Updated On: October 27, 2019)

Challenges of e-commerce|The world of e-commerce is a highly competitive arena. In the past, you could make lots of money by selling almost any and everything.

The competition was almost non-existent and technology was not so affordable and there used to be limited access to products.

Today, Amazon is proving to be a huge competition for every business and China has made cutting-edge technology available and really affordable.Thus the challenges of running a successful e-commerce business has become huge these days.

Today whenever a consumer is looking for something, he would first search the Internet. E-commerce transactions have shot up at an incredible pace.

Online shopping has been gaining phenomenal popularity. However, there is immense competition for placing your product strategically on top and making steady sales.

Even though e-commerce businesses are doing great and are successful in finding their niche, they do encounter certain challenges that prove to be a major hurdle to achieving their goals and aspirations. Let us examine some of the most common and frequently encountered challenges of e-commerce business and their solutions.

Major Challenges of e-commerce and Solutions

Identifying the Perfect Products to Sell

Shopping cart platforms such as Shopify have actually eliminated several barriers of entry. Today anybody could come up with an online store in a matter of a few days and sell all kinds of products.

Amazon today is becoming a leader of the e-commerce world thanks to their incredibly exhaustive online product catalog. Their marketplaces, as well as, their fulfillment services have actually made it possible for sellers from across the globe to reach paying customers easily.

We simply cannot ignore the success story of Aliexpress. They have actually simplified the entire product sourcing process by allowing full access to manufacturers from China within just two clicks. Because of all these reasons, today it has become really problematic for retailers to find innovative or unique products unless they think of producing their own authentic stuff.

Grabbing the Attention of the Perfect Client

Online shoppers no longer shop the way they used to years back. Today, they would be searching for products on Amazon and not just Google like before. They would be seeking recommendations on their various social media platforms.

They are constantly using their smartphones for reading product reviews while they are in-store and they make use of a variety of payment methods for paying for the products bought. There has been a dramatic or revolutionary change in the e-commerce scenario over the years.

There has been a radical change in the way potential customers consume online content and communicate here. They are easily distracted and often lose their focus and dedication because of social media and technology.

Retails are faced with a pretty tough job of figuring out precisely where their target audience is and effective ways of grabbing their attention without exploiting the entire marketing budget.

Read Also:5 SEO Mistakes You Should Always Avoid for your e-Commerce Business

No Online Identity Verification

As per, “When a visitor visits an e-commerce website and signs up, the portal is unaware of the customer except for the information he/she entered.

The customer is genuine or not is questionable. It creates huge revenue losses for a company when a customer makes a Cash-On-Delivery (COD) purchase and the information entered like phone number, the address is invalid or fake.”

This particular challenge could be solved by taking certain proactive steps for verifying the information provided by the customer. You must at once recognize signals of highly suspicious activities such as when some customer is placing excessively large orders or high-priced orders.

Read Also:Top 10 Cheap Shopping Websites for Clothes

You must be competent enough to have your own strategies in place to effectively detect fraud email address or fake phone numbers. You need to examine the zip code carefully and find out if it is actually matching with the particular city or state mentioned by the customer.

Moreover, whenever a customer is signing up, it is a safe practice to send at once a verification link or code via an email or text message for validating the authenticity of the customer.

Moreover, when an online customer places a COD order, the e-commerce site could consider making a COD purchase automated telephone call to the concerned customer and request him to confirm the order or validate the already mentioned delivery address.

Competitor Analysis

Accurate competitor analysis is crucial for achieving success in the e-commerce landscape. Steve Jobs had rightly said “You can’t look at the competition and say you’re going to do it better. You have to look at the competition and say you’re going to do it differently.”

In this highly competitive era, there are an excessive number of competitors out there who would be providing the same services or the same products just as you. If you do not chalk out the most effective stratagem that helps you stand out from the rest, you would eventually find it tough to survive.

All e-commerce businesses must conduct deep and effective research and studies related to their competitors.

Put in your 100% dedication and endeavors to come up with a superlative strategy that helps you to stay well ahead of the competition and stand tall among the rest. Consider making the most of blogs and versatile and vibrant social media platforms to effectively promote and market your products.

You must consider seriously investing in promotional offers that would boost your overall web presence and the customer base.

Identify innovative products that are gaining traction currently and eliminate unwanted and old products that are no longer in demand. By providing amazing customer services that exceed all customer expectations you could stay well ahead of the competition.

Making Positive Conversions

It is a major challenge in today’s competitive online marketing scenario to successfully convert shoppers or casual visitors into paying customers.

Conversions are the real proof that your business is doing good. If you are determined about closing the sale, you need to drive quality traffic and nurture leads with equal seriousness and dedication.

You would be required to successfully convert the leads for paying your marketing campaigns. Retailers need to go on optimizing their endeavors in consistently converting both website visitors and email leads into loyal customers. You need to understand the fact that conversion optimization is surely a consistent and continuous process.


Finally, a serious challenge faced by an e-commerce organization is retaining customers. Always pay attention to retaining your existing customers for your business to emerge successful in the long run.

In this context, it pays to remember that it would be surely a far more expensive process to attract all-new customers as compared to retaining the present ones you are having already. Retailers are expected to implement wise techniques for exploiting their customer base to the maximum for boosting customer lifetime value.

Author bio- 

Marina Thomas is a marketing and communication expert. She also serves as a content developer with many years of experience. She helps clients in long-term wealth plans. She has previously covered an extensive range of topics in her posts, including Money Saving, Budgeting, Cryptocurrency, Finance, Business debt consolidation, Business, and Start-ups.

Soumik Ghosh

About Soumik Ghosh

Hello Readers,I am Soumik Ghosh,founder of Tekkibytes. In this blog I write about buzzing Technology news Tips,Internet Marketing etc.By profession, I am an SEO expert involved in Digital Marketing for more than 8+ years now. I am personally Google analytics certified and also Yoast certified SEO expert. Blogging I believe, is my passion and a way to express my knowledge with others.Despite blogging in Tekkibytes I often write as as a Guest Blogger for reputed Blogs like Atish Ranjan.If you want to know more about me feel free to explore my LinkedIn profile. You can also connect with me via the contact us form or via the email specified, I will be more than happy to connect with you. Recently I have also started a hindi blog Hindikhabri. specifically for those who loves hindi and want to know more in Hindi.Stay Connected!

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