9 most common Challenges faced by eCommerce businesses

In this digital era, the popularity of the eCommerce industry is growing day by day. Moreover, this pandemic is having a great impact on eCommerce businesses. There seem to be a huge shift from offline (brick and mortar) stores to online stores. But an online marketplace has its own challenges to survive in business. This blog gives a brief overview of the most common eCommerce business challenges.

challenges of ecommerce websites

Here are the 9 common challenges faced by eCommerce businesses.

1. High Competition
2. Finding the right product to sell
3. Attracting relevant traffic
4. Converting visitors into customers
5. Customer Retention
6. Customer Service
7. Consistency in Sales
8. Return and Refund Policy
9. Data Security

Read on to get deeper insights.

1. High Competition

As per this study, the eCommerce market size value in the world today is 7,152.12 Million USD.

When you take a look around, you’ll see that there are lots of businesses offering the same types of products and services.

What makes you stand out from your rival competitors?

Find out that one USP (unique selling point) and leverage it for your business.

This process of finding the USP won’t go easy. It requires a lot of competitor analysis. To stay in business, a proper strategy to apply that USP is a must.

2. Finding the right product to sell

Amazon has taken over the market with the help of their product catalog.

In an eCommerce industry, the first step while setting up a business is finding the right products to sell.

As per the market demand, the product can be chosen. Carry out market research for the same.

Once you finalize the list of products to sell, the next challenge is finding sellers.

You can either find sellers by reaching out physically or via relevant social media networks.

3. Attracting relevant traffic

When you’re selling products, your aim is not just getting traffic. However, your interests should lie in attracting relevant traffic.

Times have changed. 

Users don’t just rely on Google to look up a product. They also use social networks like Quora, Facebook, Instagram, and so on. Invest in targeted advertising accordingly. Research where your potential customers are spending most of their time. And leverage those platforms for your business.

4. Converting visitors into paying customers

After getting relevant traffic to your eCommerce site, your work doesn’t stop there. With the rapid enhancement in technology, there are so many factors that may distract customers from completing a purchase.

Some of them include

  • The page load speed of more than 4 seconds
  • Poor User Interface
  • Negative Customer reviews
  • Complex Checkout Process

And so on…

These factors play a major role in converting a transaction. Work on optimizing your website accordingly.

5. Customer Retention

Rather than just focusing on getting new leads, invest in retaining your existing customers.

E-mail outreach to your existing customer database and announce your new product arrivals.

Offer them special discounts for being your loyal customer.

6. Customer Service

“We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.” – Jeff Bezos, Founder of Amazon.

Amazon’s great customer service has helped them in capturing the eCommerce market.

Great customer service is one of the major challenges in ecommerce industry.

Users expect to be treated better online as compared to offline. Satisfying customer needs without meeting them is quite a challenge.

What qualifies as great customer service?

Well, below are a few things that count when it comes to providing customer support.

Solving customer’s queries promptly, updating them regularly regarding their product shipping details, and so on.

Implement it in your business and analyze the results.

7. Consistency in Sales

With rapid innovation taking place, eCommerce businesses find it hard to achieve consistency in their growth.

To beat your rivals, you need to be updated about the latest technology that you can leverage in your business.

Choosing the right technology solution can help you overcome this challenge.

By effective marketing tactics, eCommerce businesses can remain consistent in their sales.

After all, it’s all about adapting to change. Rather than only relying on traditional business strategies.

8. Return and Refund Policy

A good return and refund policy make a lot of difference in a company’s growth.

Why does a product gets returned? When customer satisfaction is not met, then a refund for that product is requested.

Even though the product is working fine and is exactly the way it is shown online, still there can be cases of product returns


Because customers have a change of plans sometimes in cases of unavoidable circumstances.

So in such cases, a good return and refund policy is a must.

9. Data Security

While dealing online, every customer’s major concern is data privacy. And it’s a challenge for eCommerce businesses to maintain the same.

Make sure your website is secure enough. To keep confidential data safe, implement the appropriate cybersecurity framework.

Have backups ready in case of cyberattacks. 

Customer data privacy must be your top priority.

Final Takeaway

Sure, these eCommerce challenges are many. But with the right business strategy, one can overcome them without much difficulty.

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