Biggest Problems with Online Business & How To Fix Them

Gone are the days when people had to visit the stores to buy essentials and products. It is because of the internet, an improved version of the technology that you can buy whatever you need online. Instead of going to nearby malls, people are now used to shopping online from the comfort zone of their homes. Now, because of the Covid-19 restrictions, online shopping and e-stores have become the ultimate market for purchasers and retailers. Hence, online business has skyrocketed in all places, making it a trending industry in the e-commerce business. Although it may be a success, it is facing makeup challenges in its journey. 

There are many problems with an online business that one has to look for while starting an ecommerce business. Also, e-commerce is the future of business, and if one has to succeed, they have to adopt new trends in this thriving industry and overcome obstacles they encounter. 

So, let’s look into some challenges that e-commerce encounters and its solutions:

  1. Online identity Verification:

When buyers enter your website, you have to know whether they are entering the correct details, so that they introduce verification strategies. To verify the customer information and ensure that they didn’t enter false information, buyers have to take steps. 

There are software solutions like LexisNexis to identify bogus attempts. This software quickly verifies and identifies, then uses complicated authentication for bogus control. There are many features to identify. Some features include electronic recognition, SSN confirmation, instant verification, and recognition checks. This will help the sellers control bogus attempts without sacrificing trusted customers. 

  1. Competitor Analysis:

Many competitors sell products and services alike in this competitive world. So, it forced the sellers to stand out from the competition in this e-commerce business. 

The seller has to look out for thorough competitor analysis, and find out what and how many products the competitors are offering. They have to understand on which platforms they are trying to sell to the customers. Do they also have to check how they are generating leads?

Based on that the seller has to check which product is high in demand so that they can remove or give priority to the ones that aren’t. They can give discounts to get the attention of the customers. 

  1. Customer Loyalty:

A study shows that in the business world, getting a new customer cost about 5 times more than retaining the existing one. So, it is important to get customer loyalty, to run a business. 

For maintaining customer loyalty, they should provide excellent customer service. A seller has to give a positive experience so that the customer can trust you. Only if the customers are happy then they come back for more purchases. 

By being transparent, blogging regularly, and sending emails, the seller can keep the customers. 

  1. Price and Shipping:

When you are a known brand like Amazon, then you can offer the products at a similar price and free shipping as they can afford for it. But when you are a beginner and new to the business, then you can’t afford the cost of shipping and you have to fix a price for it with the delivery company. 

A new seller can get innovative and look further at the renowned carriers. He can locate a local delivery or courier company that will deliver the products fast and be efficient so that they can earn the trust of the customers. 

Recently they have created apps for this like Roadie, that can deliver on a low budget.

  1. Data Security:

One of the most challenging issues in the e-commerce business is overcoming technical problems. If data security then it is a horror. Not only can fraudsters attack with viruses but also can expose confidential data. One such example will be the recent Facebook breach. The attackers have exposed upto 50 million users’ personal information.

The solution for this is a regular back up your data so that you are safe even if it is stolen. Whenever necessary install security plugins so that you can prevent your website from being hacked. 

Some common security plugins you can find are WordPress, Bulletproof security, and Firewall. 

  1. Retailers and Manufacturers: 

Many online businesses run by buying their products from retailers and manufacturers. Sadly, these retailers and manufacturers sell the same products directly to the customers. 

So, the sellers have to restrict the manufacturers and retailers by signing a contract not to sell directly to customers. Another prospect will identify the particular manufacturers and retailers who don’t sell directly to customers and sign a partnership with them. This will make the manufacturers not be a competitor. 

Thus, as you have seen there are multiple challenges faced by online businesses, you also can find solutions for these issues and can focus on business instead. 

Although it is frustrating to deal with e-commerce businesses, with a positive perspective, you can overcome all the obstacles and grow your business. In this digital world, you can find smart solutions and fresh opportunities to grow, succeed, and overcome your business.   

I, Priya Nagarajan, is a past Assistant Professor, mentor, tutor, counselor. Writing has always been a passion of mine and so changed my path to my passion. I believe language is the best way to convey your thoughts and dreams to get the results. I believe it takes a personal approach to reach individual success. I write with a flair for creativity and a keen eye for the professional.

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