As people get to know this industry, many aspire to create a niche for themselves

January
3, 2020

4 min of reading

Opinions described by entrepreneur associates are their own.


You are reading Entrepreneur India, an international Entrepreneurial Media franchise.

The e-commerce industry is a fast-growing sector and demand is going through the roof and more people are embracing this stress-free shopping method. In 2015, e-commerce retail sales totaled more than $ 340 billion, and by 2019, total sales are projected to double that amount. This means that more and more people are becoming familiar with the industry and many more are also seeking to create a niche for themselves by opening online outlets. As a new user, the e-commerce industry has to face certain challenges, from the economic to the technological to the social sphere.

These are the four major challenges that start-ups in the e-commerce industry face.

Also read: Trends in 2020 to keep an eye on in digital marketing

Direct competition to major brands

Big brands are the first and one of the biggest challenges newcomers will face in this business. Companies like Walmart, Amazon and eBay, giants in the online retail sector, will easily knock start-ups off the market. Statistics show that Amazon is improving every year, outpacing every other online retailer both in sales and in popularity.

The solution to this particular problem will be to avoid direct competition with the giants in the business, we advise you to choose a less competitive niche and grow your business one by one.

Also read: Entrepreneurs must look at the top Fintech trends in 2020

Manage shipping, shipping and returns

Newcomers or newcomers to the e-commerce industry face many challenges when it comes to inappropriate transaction flow after orders have been placed and paid, shipping costs, on-time delivery or return rules can pose a serious threat to your business. Most customers also complain about the quality of the products they provide after payment is made, and in order to stay in business, businesses will have to go out of their way to provide their customers with the best services they can.

Different order fulfillment models are attached to the shipment of the product, thorough research is needed to determine which is most relevant to your business and increase productivity.

Also read: Five food trends that will define 2020

Expensive marketing and advertising

With increasing competition, digital marketing and advertising are becoming more expensive every day. Most start-up companies made the mistake of spending their entire budget on website design and neglected the marketing aspect. Before you get started, all your business expenses should be documented and properly certified to ensure its need; you also don’t want to spend too much on your web development. To save your budget, you can start with free ecommerce platforms, such as fast e-commerce. In addition to regular digital marketing activities, you should also try other means to prevent your customers from returning, such as rewarding customers with points that can be redeemed and used in your business; discounts will also go a long way in keeping customers retained.

Also read: 5 security trends to follow in 2020

How to keep up to date

Trend models are big brands, they are the ones who bring innovation, create new ideas, then small businesses have to catch up on things that are often capital intensive or just out of reach. A new company looking to withstand the test of time in the e-commerce industry will need to do whatever it takes to catch up with and keep up with the latest technological advances, such as mobile apps, multi-channel sales and automation, among others.

One way to tackle this challenge will be to partner with the right technologically advanced partners who share the same vision as your new start-up company, who will equally work to stay current.

Also read: 5 hit business trends to keep an eye on for 2020

conclusion

With all that said, we all agree that challenges must be faced by start-ups and established businesses in the e-commerce industry, but how you manage to overcome these challenges says a lot about your competence and willingness to take on and run a business that is making millions.

Also read: 7 technical trends you should keep an eye on in 2020

.



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here