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Key challenges for e-commerce: 12 Steps to navigate these obstacles

Written by Editor

July 25, 2023

By Raine St.Claire

The e-commerce sector has experienced exponential growth, with total sales projected to reach a staggering $1.065-trillion by 2023.

As the e-commerce industry continues to expand, retailers are encountering a series of new technological advancements and obstacles to overcome. 

Among these challenges, the emergence of augmented reality and IoT (Internet of Things) commerce has presented even more complexities for e-commerce businesses to contend with. 

The slim margins of e-commerce conversion underscore the crucial importance of driving relevant traffic to their websites. Additionally, the rapid growth of e-commerce has intensified competition, making order fulfilment overwhelming and the formulation of effective return policies critical.

Moreover, e-commerce business owners encounter unique challenges in contrast to traditional brick-and-mortar shop owners. They must adhere to distinct rules and regulations governing online transactions and prioritise cybersecurity to safeguard all data stored on their platforms.

Industry experts analysed 12 of the most prevalent challenges and provided strategies for overcoming these hurdles currently faced by e-commerce business owners:



For small e-commerce sites, implementing proper cybersecurity practices and tools is essential. Downtime in operations and sales must be minimised, as each transaction represents a crucial financial success upon which the business relies. Measures such as tighter access control and data security software are imperative to fortify defences against vulnerabilities and enhance cybersecurity risk management. Furthermore, businesses must establish incident response plans to effectively handle potential cyberattacks.



Fierce competition is ubiquitous for small e-commerce businesses, necessitating strategies to maintain competitive pricing, products, and services to capture their target customers. To stand out in the saturated e-commerce landscape, it is essential to establish a clear and unique company value proposition that distinguishes the business from its competitors. Optimising websites and offering specialised products or services can also attract a more targeted demographic, bolstering domain authority.


Order fulfilment

Overwhelming order volumes can become burdensome for small business owners. To alleviate this challenge, outsourcing order fulfilment and e-commerce shipping to third-party companies can improve efficiency and streamline the customer experience.

Customer experience

Transitioning from brick-and-mortar to e-commerce requires precise management of pricing, analytics, and customer segmentation to ensure a seamless customer experience. Meeting customer expectations is paramount, as they anticipate the same level of service online as they would receive in-person.


Quality website traffic and visitor conversion

Generating quality website traffic and converting visitors into customers pose significant difficulties. Modern, user-friendly, trustworthy, and virus-free websites are essential to facilitate conversions. Employing SEO strategies, conducting extensive keyword research, and understanding the target audience are crucial steps to driving relevant traffic.



E-commerce businesses must prioritise search engine visibility to attract customers. Investing in SEO, implementing on-page best practices, and building high-authority links are effective strategies to enhance search visibility and optimise lead generation.


Return and refund policies

A transparent and efficient return and refund policy plays a pivotal role in customer satisfaction and trust. Creating a smooth and easy return process fosters positive customer experiences and minimises potential negative perceptions of the brand.


Finding the right market

Identifying the right market fit for products is crucial. Conducting market research, making assumptions about the target audience, and running targeted advertisements can aid in discovering the ideal customer base.


Making and increasing sales

Developing a sales plan and implementing effective marketing strategies are essential for making and increasing sales. Ensuring the right product, competitive pricing, and customer engagement are key components of a successful sales strategy.


Borderless e-commerce

The global nature of e-commerce necessitates catering to diverse customer bases, requiring information in multiple languages and currencies to accommodate international shoppers.


Augmented reality

Leveraging augmented reality can enhance the customer experience by allowing them to visualise products in their environment, boosting confidence in purchasing decisions.


IoT commerce

As the Internet of Things (IoT) commerce gains popularity, businesses must adapt to selling through IoT devices. Focusing on Product Information Management (PIM) to respond to API requests and sell through unconventional channels becomes vital.By understanding and addressing these challenges, e-commerce SMBs can position themselves for success in a highly competitive and ever-evolving digital landscape.

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