Common Problems Faced by Startup in eCommerce – Most Common Problems Faced by Startup eCommerce Websites

Blog Overview

The eCommerce market continues to soar high, and it will hit 1 trillion US dollars in 2025. Giant companies dominate in the eCommerce marketplace, and it is a challenge for everyone to be a part of the competition. Some online merchants promote their brands on social media platforms, but this is not enough to attract potential buyers. For startups, it is essential to build an eCommerce website other than the popular platforms they are using to sell their brands. Lacking experience and exposure, online merchants have to face common challenges in their newly-built eCommerce websites. 

Continue reading to find out the problems faced by startup eCommerce websites:

How Important are Startup eCommerce Websites?

The competition in the eCommerce business is getting stiff as people are now joining the trend in selling their products on various platforms. One of the effective methods of improving sales is to build a startup eCommerce website. Your startup website is the foundation to where your marketing strategies revolve, which translates into conversions. Build your startup website that does not only look attractive but optimizes itself for conversions.

Learning the Common Problems Faced by Startup eCommerce Websites

The eCommerce industry provides convenience to people who want to shop wherever they go without commuting to the malls. Nearly 81 percent of shoppers start their online search to find the products they want to buy. About 71 percent say that an eCommerce website can ease their search to enjoy a happy shopping journey. Joining the digital business is not an easy journey. 

Study the common challenges faced by startup eCommerce websites:

• It’s Competing with the Giants

            Your entry into the eCommerce industry may not be too late, but you clash with the eCommerce giants. Your startup website faces this challenge not to outdo the giant eCommerce but to carve your brand in the eCommerce platform. You can still compete with the eCommerce giants like eBay, Flipkart, Walmart, and Amazon. Start the competition low or avoid direct competition with them. Choose a niche that is not highly competitive than what the giants offer to customers. According to studies, Amazon continues to beat new eCommerce players.

• It Competes with Websites with Similar Offers

            It could be frustrating to find out that your startup website competes with many sites with the same services, offers, and products to customers. To counter this problem, you should map out your plan on how to face your competitors. Competitor analysis helps find how your business fares with your competitors and what they do to make their business profits. 

Take a peek at the following questions when making competitor analysis: 

• Are they selling original brands?
• Are these products best sellers?
• Are there prices lower or higher than yours?
• What eCommerce platforms do they use to connect with their shoppers?
• What are their techniques for getting leads?
• What promos, discounts, or freebies do they offer?

            You will realize what customers are looking for once you have found out about your competitor’s business activities. Look for items that are best sellers and focus on them. Providing incomparable customer services to shoppers will bring you in the right direction in the eCommerce industry.

• Fulfillment, Shipping, and Returns

            Your startup eCommerce business may find fulfillment, shipping, and returns are difficult to handle, especially if you do not have experience in the industry. The problem arises when customers start complaining about your brand’s quality after sending the payment. To prevent this scenario, you need to sell products that are high quality and made of durable materials. Customers who find your products in top condition cannot find a reason to complain and ask for a refund. You start to build your business and don’t tarnish it with low-quality products. Select a business model that can optimize the productivity of your startup website.

• Building Customer Loyalty

             At the start of your business, it is a challenge to draw new customers to replace your current customer. You will spend more dollars to get a new shopper than retaining a regular customer. According to studies, selling to a current customer has a success rate of 60 to 70 percent than selling to a new shopper with a success rate of only 5 to 20 percent. Maintaining your shopper’s loyalty is vital to gain more conversion.

The problem is your competitor is ahead of you in the eCommerce arena, and you’ve got to find ways to get loyal customers who will provide you seamless profits. The best that you can do is to offer them unique customer service that can satisfy their needs. Once they are pleased with your service, they keep coming back to buy your products.

• Difficulty in Driving the Traffic

             Popular and stable eCommerce websites are getting internet support through algorithms. For your startup website, it is a long journey before you can source traffic to your site. You need to optimize your website using keywords relevant to the products that shoppers would want to buy. Ask for help from professionals who are experts in providing analytical tools and search engine optimization features.

• Lacking Trust for Payment Gateways

            Customers are hesitant to give their payment details for startup eCommerce sites for security reasons. As a startup business, you have to secure the services of a platform that backup the payment gateways to gain customers’ trust. The payment gateway refers to the mediator between the merchant and the shopper to process the payment transaction. It also handles the payment card information of the seller and the customer.

• Freebies, Discounts & Promos

            Competitors in the eCommerce business use different methods of winning customer’s attention. For startup websites, it is not easy to offer discounts, promos, and freebies because they don’t have a budget. Offering a discount and promos is a small amount compared to the profits from conversion.  You can use tools to add offers and discounts to your customers.

You also might want to check out What are the Common Problems eCommerce Sellers Face in their Day-to-Day Routine? to know more.

Frequently Asked Questions

Can I earn a good profit margin for a cheap product I sell on my startup eCommerce website?

Cheap, knockoff, and imitation products do not give you large profit margins. Customers will end up returning the items because of their low quality. Your conversion and seller performance will be affected too.

How to boost traffics for my startup eCommerce website without an advertising campaign?

There are easy ways to drive traffic to your site. Optimizing it has a high percentage of customers to visit your site. Use promotional emails to build customer loyalty and make them feel comfortable doing business with you.

Can I use WordPress or a bespoke website to create a startup eCommerce website?

WordPress is a good site, to begin with, your startup eCommerce website as long as you know how to use the plugin. If you are using a bespoke website, you should be familiar with the features.

Conclusion

Learning the common problems faced by startup eCommerce websites helps prepare to find ways to solve them. Even large eCommerce websites have also experienced difficulty at the beginning of their business. Don’t get discouraged. By getting ready for the challenges, you can manage and achieve success in your journey.