Top 7 Challenges Modern E-commerce is Facing Today – Must read For Entrepreneurs
E-commerce is one of the fastest growing industries today. This particular industry has risen trillions in the recent few years and it is expected that the industry will make more in forthcoming years. It’s a rapidly growing market that has a great future ahead. But, despite a number of successful stories of e-commerce businesses, there are many businesses that failed to establish their identity in the e-commerce sector and vanished from the scene in just few months and years. They failed to sustain their respective businesses because they could not successfully face the challenges that the e-commerce sector is suffering from.
If you are also running an e-commerce business or willing to enter into this industry, you must be prepared to face the challenges that you may come across. If you effectively overcome the challenges and run your business with proper business plans, there will not be anyone or anything to stop you from standing with the leading e-commerce brands across the world.
You may come across with plenty of different challenges in your journey into the e-commerce world. However, for your ease, I have listed the top 7 challenges that the Modern E-commerce is facing today. You must read all of these to successfully pass them in your e-commerce exams.
- High Competition:
The competition level is really high in the industry of e-commerce and a business has to work really hard to win the race of competition. The e-commerce sector is growing quite fast and a lot of companies are coming to make their first place in the market. Since the industry is fully open to everyone, a lot of new companies are being built to give a tough competition to the old and established giant companies. You can also see the rising competition in Google Adwords in which the amount ranges from $1 to $50 per click while the average conversion rate is just 1%. Only giant e-commerce stores can afford this costly advertisement while for new or small online stores, social network ads, RTB, and others are affordable, but they don’t deliver as Google Adwords does.
- Internal Management
Whether e-commerce or any other business, internal management is a challenge that every company has to face at the time of start-up and also when their company has established. The more managed you remain in your internal affairs, the more success you will get in your e-commerce business.
- Borderless Economies:
Globalization has reached to a new level with the inventions of latest and advanced mobile technology and through the access of consumers to the digital economy. Today, there are thousands of online stores that are offering their products or services even beyond the borders. On the internet, you can go through thousands of online stores that offers online delivery in all the major countries of the world.
This causes a real challenge for a number of small e-commerce stores. For example, a local online store has to struggle a lot to maintain its sales under a tight competition by other local sellers. In the meanwhile, if a foreign seller also enters into the market and offers the same products in lower prices for its publicity, the local sellers will suffer a lot because of it and few of them will even bear the loss as well.
- Data Storage and Management
Another issue that startup companies face is of data storage and its management. Being an e-commerce business, you need to store and consistently protect your data by all means. Though it’s a challenging task to do to protect the long details or products, orders, customer information, and other things, a company must have a systemized system to deal with all these things effectively. Otherwise, many companies fail to protect their data from stealers and bear huge losses in the result.
- Localization and Shipping:
It’s really important for a local store to create strong local connections to build up its perfect identity among the local sellers. A local e-commerce store also needs to give its website an option to get translated into the local language so that the local people could easily understand whatever is written on the site. One more element that matters a lot is ‘shipping’.
- Brand Identity Protection:
There are millions of brands you can go through on the internet that are striving to make their unique place in their respective markets. In this hotchpotch, a serious challenge that a company (specially a famous or international company) has to face is to protect its brand identity. You spend a number of dollars to on logo design companies to get a perfect logo identity of your business and what happens, a small company from a different country steals your idea and makes a similar logo like you to misguide the audience. Same is the case with web design. You work for months to give your business website a perfect design and layout. But, what happens that a stealer steals your design and makes a similar website like you. To deal with this case, the best thing is to sue anyone you find copying any of your identities. There are strict international laws about copying someone other’s identity or property without notifying them. If the court finds you at the right side, the other side will not only be ordered to remove the similarities, but will also be fined by the court.
- Fear to Fail
There comes a time in every e-commerce business when it gets a fear to fail when it sees a difficult time in business. E-commerce is the only industry where a business can reach to heights in few minutes and can experience a downfall in seconds. So, a business that beats the fear of falling, will be able to achieve its desired goals otherwise it will also be standing with those e-commerce businesses that couldn’t survive in difficult times and disappear from the scene!