Challenges to Start an E-commerce Business

challenges to E-commerce

challenges to an E-commerce business
With the growing use of ICT, the taste and preferences of people have changed over time. Nowadays, people trust online shopping across the globe. According to the study, more than 60% of people in the USA prefer online shopping. This data clearly suggests us that ‘click business’ are surpassing over ‘brick business’. Simply put, all the physical stores need to convert themselves into online stores. Consequently, we see online business is growing like mushrooms. At the same time, we have also seen that more than 90% of online business fails at the startup. There are many evolving challenges to an e-commerce business. Here we will discuss the major challenges to an e-commerce business:

Over-saturated niche:

Selecting a good niche for your business is the very first challenges to an e-commerce business entrepreneur. If your niche is over saturated, then you have to struggle from the very beginning. However, e-commerce entrepreneurs select their niche without conducting research which cannot draw the targeted consumer. As a result, the new entrepreneurs fail to compete with giant business entrepreneurs and they are at a great loss.

Poor content management system (CMS):

Having a good CMS is another challenge to an e-commerce business. When visitors land on your website, they should get stuck to it. Means they shouldn’t check out your website without buying your products. Most of the online stores ignore this fact. Their homepage is lacking the proper banner or categories displaying the main products. Similarly, they are also lacking basic information like colors, size, pricing, etc. This increases the exit rates and decreases the conversion rate which ultimately leads to failure.

Lengthy checkout process:

Once your guest selects the item they want to buy, there should have a one-page checkout process. When a visitor has to fill up much unnecessary information from pages to pages, they are likely to leave the page. So, all online entrepreneurs need to be aware of it. The lengthy, complex and insecure checkout process may irritate the customers and hence they leave without buying your product.

Expensive delivery mechanism:

A good delivery mechanism is the backbone of the e-commerce business. Most of the e-commerce business entrepreneurs are reluctant towards this issue. Whatever the customer has chosen they want it delivered safe, fast and time-bound. We see many online stores don’t have multiple options for the delivery. If the consumers are compelled to choose the option which is expensive or slow then they lose the trust upon the business. As a result, people go for another online shopping option.

Limitations of e-commerce:

Despite the fact that people want to buy things online, in many cases, people want to buy them physically. They don’t totally believe in online presentations. For example, people want to have a test drive before they buy a car. They want to know their specific features by experiencing it physically. However, if the online features don’t match with their personal experience, they tend to divert their mind to the next option. This limitation in some cases is the major

challenges to an e-commerce business.

Summing up:

Although it seems lucrative, there are many challenges to an e-commerce business. It’s not an easy task to set up your online business and survive in the competitive market. Nevertheless, if you avoid the above challenges it can pave an easy path for your business. Still confused on how to start an e-commerce business? Let me clear the air at
things to consider while starting an E-commerce business.

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