The Top Common Struggles E-commerce Businesses Face [Updated 2024]

The e-commerce industry is continuously growing. In retail sales growth, the sector reached $5.8 trillion in sales in 2023 and may surpass $8 trillion by 2027.

Yet, as it grows exponentially, more challenges arise for e-commerce business owners. Competition is high, and access to products is unlimited. Plus, e-commerce owners must consider optimizing their websites to create better customer experiences and connect with audiences.

To achieve your business goals online, it helps to understand the common struggles that e-commerce businesses face and how to overcome them.

1. Customer Attraction

Online shopping has changed significantly over the years. Today, consumers use Amazon to search for products and utilize Google to find brands and read product reviews. People also go on social media to ask for product recommendations. 

Since the internet has changed how people consume content and communicate with each other, it’s easy for them to get distracted. 

However, online retailers can reach their audiences by determining where they like to hang out online and researching their needs. Efficiently taking action will help e-commerce businesses stay within their marketing budgets.

2. More Competition

Many e-commerce businesses struggle to compete online. The market is saturated, so it’s becoming challenging to stand out. One way to differentiate yourself is by offering a unique product with customized packaging.

You can use branding colors to clearly distinguish your products and business from competitors. If pricing concerns you, create a unique value proposition (UVP) to attract more customers. 

A UVP statement communicates what sets your brand apart from the rest. What does your online store offer that competitors do not? This could be anything from high-quality products to an exceptional customer experience.

Clearly define your UVP and integrate it into your marketing strategy to give potential shoppers a compelling reason to choose your business over others. While this method works to attract new customers, it also makes your brand more memorable in a crowded marketplace.

3. Customer Experience

E-commerce businesses may find offering the same experience as a brick-and-mortar store challenging. Since you’re conducting business online, you must meet customer expectations successfully.

Offer a better customer experience by clarifying product offerings, loyalty programs, pricing and more. Research shows that 36% of customers consider the consistency between the product information on a website and the product they receive crucial. Therefore, accurate data is a must to gain their satisfaction and trust. It can lead to increased return shoppers and more positive reviews.

Customers expect the same treatment online as they do in person. They may look for the same thing elsewhere if it’s hard to find a price or product. Keep the experience seamless across your site to encourage repeat business.

4. Website Traffic and Conversions

Creating and running an e-commerce website is complex. However, generating traffic and conversions is also more challenging. 

Online retailers should consider omnichannel marketing to drive traffic to their stores. Search engine optimization, pay-per-click ads, display ads, retargeting, email and social media are needed to drive quality traffic to online stores. 

To successfully convert customers, e-commerce owners should have a clean, user-friendly website to build trust with their audiences. 

Understanding your audience is the first step. You must know what they are paying attention to and what channels they use and have a website that resonates with them to drive traffic and convert.

5. Long-Term Profitable Growth

Increasing sales is one way to grow your business online. However, online retailers must consider how to keep their business growing in the long term. 

You may need to find ways to control business growth to help you save money in the long run. For instance, it helps to determine how to reduce shipping costs and manage buyer returns. A return policy communicating expectations can help create a hassle-free experience and minimize product returns.

Other ways include cutting inventory costs, reducing overhead and improving marketing efforts to increase efficiency.

6. Customer Loyalty

With more options than ever before, customers can easily switch to a competitor to ensure they find what meets their needs. However, online shopping has become increasingly popular, and this rise has also led to heightened expectations. People now demand faster shipping, personalized experiences and seamless checkout processes.

According to a survey by IBM, 60% of professionals have reported that customer expectations have grown increasingly since the pandemic. Meeting higher demands can be challenging, but e-commerce businesses must adapt to keep up. 

This means delivering personalized recommendations and loyalty programs to keep customers. Use data analytics and feedback to understand their needs and ensure your offerings continue to evolve.

Use E-Commerce Struggles as Opportunities

In a world of fierce competition and high customer expectations, e-commerce businesses must make careful preparations. Consider addressing the common problems you face in an online market and focus on creating a customer-centric culture.

Doing so is essential to providing a high-end online experience and achieving success in e-commerce.