Ecommerce business owners have plenty of opportunities for growth today due to the explosion of e-commerce but this does come with some unforeseen challenges. While it is not difficult to set up an ecommerce website or add an ecommerce component to an existing site, there are a number of issues that can pose a challenge. 

Getting and keeping customers, pricing correctly, fulfilling orders on time, dealing with cybersecurity threats and problems with payment processors are common and can affect the ability to achieve and maintain success.

Pricing products

In the online world, customers tend to know more about prices, competitors, and products than when they shop in person. It is easy for them to make comparisons online in order to choose the best deals. This is why setting prices and customer segmentation are so important for ecommerce businesses. 

If you price products too low and customers may question their quality. Price them too high and they may choose to buy a competitor’s products. Consistent and profitable pricing is essential for success. 

Fulfilling orders on time

Demand modeling, managing inventory, optimizing the supply chain and logistics planning are just some of the common challenges when fulfilling orders.

Many ecommerce companies outsource order fulfillment to a third party because it is a complex process. This means they can increase their efficiency and prevent being overwhelmed when facing more orders than they can handle on their own. Customers expect to receive orders on time and when they do so, it increases their trust and loyalty.

Dealing with cybersecurity risks

A strong cybersecurity framework is essential for owners operating businesses in ecommerce today. It is easy for hackers to use stolen passwords from other sites to retrieve data and downtime due to a cyber attack could wipe out a small business. 

Credit card fraud, bad bots, malware, phishing scams etc., can plague e-commerce websites. Shoppers tend to avoid retailers who they know have been affected by security breaches.

Customers expect ecommerce businesses to keep their data safe and secure. Encryption-based internet security protocols ensure privacy, data integrity, and authentication in web communications. Employees need the training to implement cybersecurity policies and technology.

Winning and retaining customers

Competition is fierce in the ecommerce space and ecommerce companies have to find ways to stand out from the competition if they want to win over customers. Some successful companies increase the domain authority of their websites by offering a unique product or service that targets a smaller demographic. Finding ways to retain customers is extremely important as this is easier than constantly having to find new customers. 

Ecommerce businesses often invest in the latest technology to give them a competitive edge. Company audits, for example, are more critical than ever with the need for compliance and, more importantly, a way to differentiate a business and take strategic initiatives.

Problems with payment processors

The livelihood of an ecommerce business can be in the hands of a payment processor. When money is digital, it can be frightening for business owners when anything gets in the way of accessing capital. 

When choosing a payment processor, it is important to find one that supports the products being sold and involves minimal risk of funds being frozen or the account being closed. 

Businesses that anticipate fast growth need to work with full-service credit card processors and communicate with them regularly as processing changes. Volume spikes could raise red flags and they may put a hold on money until their concerns are addressed. 

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