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Top Starter E-commerce Business challenges in 2023

You will agree that terms like digital marketing, e-commerce, and social media marketing are current terms in the business parlance. But even with the fact that they are recent, they look like they are overturning the status quo, and taking over the face of business.

But as prospective as it seems, dealing in E-commerce is not an all-sweet experience. Pundits have it that the rate of failure in startup e-commerce businesses within their first 120 days of enterprise is an alarming 90% rate. Nine out of ten e-commerce businesses die within the first four months of establishment.


The e-commerce market is enormous, and it runs a free entry and exit system and has a ready market. The fact that it is in line with present technological trends has led to its popularity. But research shows that without strategic and well-thought-out pricing, marketing, and branding plan, most E-commerce businesses will keep hitting the ground. But not just that, you have to familiarize yourself with the industry, understand what obtains, and doesn’t.

Small E-commerce Business Challenges

Talking about familiarizing yourself with the industry, it is pertinent that you understand the challenges that always beset startup E-commerce businesses within the 2020before, even setting out. So Before setting out to own your E-commerce business, you should understand the challenges that characterize the E-commerce scene. Below is a list

  • Managing Shipping, Delivery, and Returns. 

At first, when you start, invest time into finding a reliable delivery service company whose services are dependable, punctual, and excellent. Do not be deceived, and it is easy for these delivery services to prove secure once you are still running small orders. But the moment you begin to grow, and orders are now extensive; you’ll have to put in extra efforts in monitoring the activities of your delivery service provider. You can speak to other prominent players in the industry to know how they deal with their delivery and returns issues.

  • Lack of online search visibility.

Most E-commerce businesses run into the mistake of thinking that it is just enough that they have a storefront online. While setting up the site for your business is only one of the numerous sacrifices you need to make, creating online visibility is another. The lack of online visibility is one of the top starter challenges that small businesses face in 2020. It hinders the growth level of startup companies and eventually brings many of them to a close. To promote your online business, and scale through this problem that almost always plagues e-commerce startups, you have to invest in Search engine optimization tools.

Improve your brand awareness and online visibility; that’s the only way to push your online store. Several tools prove useful in increasing online brand awareness, and in only a matter of weeks, you’ll record a high rate of customer engagement and clicks.

  • Competition with the big players

Regardless of how large and relatively untapped the market seems, competition in the market is one of the ecommerce business challenges 2020. The few big players seem to have a significant share of the market, and competing against them isn’t one of the most straightforward tasks. But one easy way to work around this is to first find a niche for yourself, invest in things that distinguish your product within the market, and pay your dues in terms of Product information management (PIM). The importance of PIM cannot get overemphasized. It is one of the trends in 2020 that is helping businesses maximize their marketing strengths.

Competition in the E-commerce industry has led several startups to exit the market. The system in the market, just like any other market, put startups at the mercy of the more prominent players, most of the time.

With all that is said, It is essential that before you start trading, you strategize through thorough research to ascertain what methods you’ll take up to immune your business from all of these itches and hence, optimize your productivity.

Alf Alferez
Alf Alferez
Dedicated writer with a strong track record of developing customer loyalty and managing general office operations. Enjoy being a part of a company where my skills and creative ideas will benefit the overall productivity of the organization. I have a strong desire to work in helping make the world a better place. Please reach out to me on alf@ecommercenext.org

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