5 Challenges of Starting and Running an Ecommerce Business
The interest in starting an eCommerce business is quite common. More and more people are discovering the benefits of shopping on the Internet. E-commerce has been growing for a while, but the recent pandemic increased the growth even further.
Having access to different goods and services online makes lives more manageable. Add the fact that new businesses are popping up to accommodate the needs of consumers, and you have a model that scales and grows, attracting new aspiring entrepreneurs.
Unfortunately, starting an eCommerce venture is not that easy. There are specific challenges that you can expect to encounter. On the other hand, obstacles that stand in your way should not be the reason to give up without even trying.
5 Main Challenges In Starting an Ecommerce Business
Virtually everyone who starts from scratch encounters the same problems. Those who overcome the challenges end up succeeding. Knowing what to expect is the first step to dealing with these challenges.
Picking Your Niche
The first step is thoroughly researching the niche you want to work on. Ideally, it should be something you are passionate about and have a decent amount of knowledge about. That is because it is easier to work with something you are already familiar with, particularly when understanding the niche trends and how you can translate your knowledge into content used for advertising.
After getting a general idea of what your niche should be, consider how you can narrow down the competition. For instance, if you pick custom merchandise, do not focus just on unique designs. Selecting specific products that are not as popular as let’s say, t-shirts would help with encountering less competition.
You could offer baseball jerseys, low-top sneakers, stickers, and other merchandise that is less popular than T-shirts. By combining a less saturated niche with your unique design approach, you should be in a decent spot as far as your niche goes.
Of course, that is only one example. Finding what works in your situation varies, and finding the right solution is a significant obstacle.
Managing Logistics
Logistics is another factor that plays a prominent role in the overall success of your eCommerce business.
Most newcomers tend to stick to the dropshipping method because it is not as risky as manufacturing and storing the goods yourself. However, dropshipping comes with its own challenges. One notable example is finding the right supplier.
Since you depend on your supplier a lot, you must look for one that can ensure a steady supply of goods and quality.
Returns and refunds are also a headache. It can be pretty demotivating to finally make a few sales and refund the money to the customer.
Problems with deliveries happen as well. Damaged goods and delays are to be expected, but if you use the dropshipping business model, the supplier usually has to solve these problems.
Coming Up With a Marketing Budget
Aspiring entrepreneurs tend to have low budgets for their marketing campaigns. Starting an online business comes with certain costs, most of which go to marketing campaigns.
Influencer marketing and long-term SEO investment are among the best methods to promote a business. However, if you lack the budget, you cannot strike a partnership with an A-tier influencer on social media.
Similarly, ranking higher on search engines will become a significant problem if you cannot invest heavily in SEO.
Cutting corners is not an option. If you seek cheaper alternatives to promote your eCommerce venture, consider your chosen methods. Do thorough research so you do not waste your money.
Taking Care of Security
A small online business is less likely to become a cyberattack target because it does not pose a real threat to already established stores. Nevertheless, random attacks are still a nuisance.
At the very least, a new online business should take the necessary steps to handle the basics.
You can expect to encounter more frequent cyber attacks if and when your venture grows. A more prominent presence on the Internet puts a bigger target on your back.
Working on Sustainability
Sustainability is the last challenge to mention. Once your business picks up, you will want to scale it and create a sustainable venture that can help you make money for years to come.
Sustainability is a very broad term, and it can be affected by different factors. During the time you spend developing the business, you will need to make adjustments depending on the most recent trends. Adapting to the latest innovations and ensuring an excellent customer experience while also offering great goods or services will be key aspects of achieving sustainability and long-term success.
