Major Challenges Your Online Business Might Face

Some issues can prevent you from meeting customer expectations in terms of quality, product performance, or overall experience.

While your online business is likely to explore many growth avenues, challenges are a part of any business. In the course of your business venture, you may face issues that can prevent you from meeting customer expectations in terms of quality, product performance, response time, or overall experience.
Major Challenges Your Online Business Might Face
In order to effectively overcome these inevitable hurdles and ensure smooth business operations, it is important to be aware of potential roadblocks so that you can be prepared for them.

Here are the top 10 challenges for an online business.

1. Online Identity Verification

Since the internet is a place where millions of users browse content on a daily basis, it is difficult to know if a user is genuinely interested in your products or services. What if they are entering fake details about their name, number, and location?
Online identity verificaton
Without electronic identification authentication, it is hard to differentiate between a genuine customer and a fake one. The threat of cyber-attacks and hackers is also a major concern for online businesses. The best online identity verification and authentication solutions are the ones that are simple to use, efficient, and reliable without being too invasive.

One of the ways to solve the identification authentication issue during a purchase is by sending the customer a text or email message to validate their identity. In cash-on-delivery cases, an automated call to the customer can be sent to validate the delivery address.

2. Generating Leads

Generating hot leads requires SEO pages, keyword planning, and paid search advertising. This can turn out to be an online business challenge for any SMB owner. Here is how you can go about it: Once you have created your customer personas, you can predict the key search terms that your personas are likely to use to find solutions to their problems. Leads powered by SEO are relatively low in cost compared to leads collected by other channels. When you know what type of leads you are pursuing, you can create content that is relatable to them. A significant part of SEO lead generation requires positive interactions with prospective customers. This may be achieved through creating pages on social media networks and writing blogs, which can attract the interest of prospective leads.
Generating Leads

3. Resolving Customer Complaints

If you want to differentiate yourself in the competitive and dynamic e-commerce sector, you need to provide excellent customer service. Offering a good shopping experience to your users requires a lot of time, investment, and effort. Tackling customer complaints is an important aspect of this. Customers that reach out to your brand with problems or complaints must be dealt with empathetically and politely. This is the only way to preserve their brand loyalty. Maintaining customer loyalty can be one of the challenges of e-business. Because if a brand fails to provide its customers with a satisfactory experience in the event of a conflict, those customers may avoid doing business with the brand in the future. Conversely, positive experiences with customers lead to stronger business relations.
Resolve customer complaints
Place customer satisfaction at the heart of your approach and show your optimistic outlook to customers who are interacting with your customer service staff. Ensure that customers have to follow a simple, transparent, and open way to connect with you whether through a live chat, telephone, or in person. Have resources dedicated to customer service, so that your services remain available when your customers need help. A good emotional connection can bring in more online traffic and may improve your conversion rates.

4. Dealing with Product Returns

Online shopping provides customers with tremendous flexibility by giving them the option to return or exchange the products purchased. However, returns made without a fair reason can be a major challenge for businesses. Excessive product returns can have a strong negative effect on profit margins and may require the deployment of additional resources to handle large volumes of returns. To help reduce the number of online shopping returns for your business, you can follow these guidelines:
  • Provide detailed descriptions of the product size and dimensions.
  • Provide clear images of the product.
  • Provide accurate descriptions of the product and any other additional information that may be helpful.
  • Have optimal return policies.

5. Providing Fast Shipping

Customers today expect speedy deliveries with no shipping costs. But this can be one of the biggest e-commerce business challenges owing to the costs of logistics that brands have to bear? Fortunately, there are a few, effective ways to ensure speedy and cost-effective deliveries.
  • The product packaging done by sellers can significantly raise e-commerce shipping costs. Although custom packaging might be suitable for brand building, a thorough analysis should be undertaken to study its implications on margins before a decision is made on it.
  • Determine the shipping option that is most appropriate for your brand. Ensure that the mode of shipping you choose is aligned with the type of product you offer as well as your overall business goals. Don’t blindly follow what other brands do.

6. Determining Competitive Pricing

For an e-commerce company to thrive in today's competitive market, optimal pricing is necessary. Keeping up with competitor rates as well as maintaining a good profit margin is a major problem that online retailers face. If many vendors offer a similar product, pricing may be the only differentiating factor affecting a customer’s choice.

Price wars can be challenging and time-consuming for small and medium e-commerce retail stores. That is because they have to compete on price with big retailers as well as with other e-commerce stores. Sellers need to conduct a deep analysis of the market trends before pricing their products. They need to then arrive at a pricing strategy that covers all costs, generates a profit, and at the same time is appealing to buyers.
Pricing strategy for Amazon

7. Ensuring Data Security

A secure online shop that offers the best and safest consumer experience naturally sees a rise in its revenue. Without robust e-commerce security infrastructure, you can become vulnerable to data breaches. E-commerce security is your defense against cybersecurity threats and attacks, as well as the unauthorized use of your data. It entails a set of security measures for consumers and stores. These include:
  • Installing a firewall
  • Deploying multi-layer security
  • Utilizing secure passwords
  • Use of antivirus and anti-malware software
  • Installing an SSL certificate
  • Securing servers
  • Ensuring payment gateway security
online data security

8. Lead Nurturing

Lead nurturing is a crucial aspect of business-to-business (B2B) marketing as it is a primary tool for guiding prospective consumers to make purchase decisions. If done properly, it can gradually transform your prospective customers into loyal customers. Your efforts to nurture leads down the selling funnel will play a major role in shaping buyer experience. Lead nurturing requires you to gather regular feedback and engagement data from your customers.

Once you define your target lead, spend some effort in understanding the buyer persona’s unique qualities and characteristics. Understanding the buyer’s journey can help you create content that caters to his or her requirements, thereby generating more traffic and leads. Keep your leads engaged throughout their buyer journey by:
  • Offering great content
  • Optimizing your product pages for SEO
  • Offering discounts
  • Using ad retargeting tactics

9. Stagnant or Reduced Conversion Rates

Consumers are inundated with choices. Thus, getting traffic to your website can be an uphill task. To achieve your business goals, the right online product marketing strategy will help you convert leads into buyers. Optimize your marketing strategy for different types of buyers, since different customers can have widely divergent preferences and buying patterns. Here are some points to consider:
  • Focus on conversions by accurately segmenting your customers
  • Customize the experience for all segments
  • Track activity on other platforms

10. No Repeat Sales

Repeat purchases are the lifeblood of your e-commerce business. Remember, repeat customers tend to buy more from you as they have had a seamless buying experience in your store previously. They feel confident about making purchases in your store. If your online store is not striking enough repeat transactions, it is a matter of some concern. This is because finding a new customer is twice as difficult as selling to an existing one. To fix this, as a first step, examine and correct any customer experience issues in your store. If the buying experience is not pleasant or seamless, a former customer will prefer other sellers over you for their next purchase. Make sure you have the right filters, accurate product descriptions, transparent return policies, and a seamless checkout process. Next, introduce customer loyalty programs so that your customers feel proud of the products they bought from your store and rewarded for their patronage. Reach out for feedback and send out personalized thank you notes.
Customer loyalty


Customer expectations are growing, but there are myriad ways in which e-commerce sellers can ensure customer satisfaction. Considering the above points may help you maximizing the positive results you are looking for.
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