ECommerce is a boom and is facing a wave of new entrants who want to explore the industry’s milk and honey and create a name for themselves . Access to a wide range of consumers without geographical limits. Millions of consumers who manufacture their mobile devices as the first option when the need to shop arises, it is not surprising that entrepreneurs are digging into traditional retail in online retail. In the year 2019 global ecommerce sales reached to $21.00 trillion. What does that say to you?
There are still attractive emerging markets that can be explored and companies are diving to take advantage of what the sector has to offer. However, the problems are looking to the future! Abdul Fares , the brainer of renowned e-commerce businesses, is equipped with the knowledge and experience to explain the ecommerce challenges that newcomers may face.
Let’s take a look at the ecommerce challenges for startups in 2021!
1. Struggling to survive in a highly competitive environment
Competition with e-commerce giants like Amazon, eBay and Walmart will present major problems. These giants have the largest market share and have already won the hearts and trust of many consumers around the world. They have what it takes in terms of finances, advertisements and promotions, brand credibility and reputation to take down any new entrant without a solid foundation. Not just the big brands, there are still billions of e-commerce companies competing with their product or service worldwide and it is the biggest e-commerce challenge for startups.
Unless an ecommerce startup has gone beyond the standard product, with good financial backing, thriving in this environment can be challenging.
2. Consumers are unlikely to trust new e-commerce businesses
As security issues increase, consumer and business startups and online retail items experience a “downturn”. The fear of online fraud and cash transactions is the driving force for most people, from online retail to offline. In addition, consumers who shop online are likely to buy from major brands with good credibility than those who are just getting started.
The good thing is that there has been a breakthrough in e-commerce technology to provide security and ensure that consumer data is safeguarded.
3. Marketing and advertising to obtain and retain customers is expensive
Marketing and advertising are a powerful tool for success in an e-commerce business. However, digital marketing is always getting expensive. After most of the capital has been spent on web development to showcase your product, what remains may not be enough to continue with the ads.
An efficient marketing strategy must be prioritized and companies must include it in their initial plan and budget. In addition, you can offer discounts, coupons and attract consumers and increase sales.
4. Keeping track of trends
With the growing e-commerce business, innovations, technologies and trends appear that shake the entire space. Newcomers who are still trying to create a niche and make a profit may find this new addition frightening. These trends, if not sometimes expensive, require knowledge.
Industry agitators are also providing consumers with multichannel channels to easily make a purchase and increase sales. Mobile apps and other multichannel sales are the thing of the day when new entrants may find it expensive. Companies can partner with the right technological advancements to reap the benefits. Keeping up with trends is one way to stay in the game.