E-commerce Business Challenges

by splendour | February 17, 2020 | blog

E-commerce refers to purchasing and selling products and services online through a website or social media shopping page. E-commerce is still in primitive stages in some underdeveloped countries, but for countries like USA, Australia, and India, it’s thriving day by day. E-commerce has made it simpler to purchase various products and get them delivered directly to your doorstep.


Searching, comparing, evaluating, and buying products and services has never been simpler. E-commerce is not just a circulation channel, yet additionally, a way for organizations and brands to reach targeted clients. The possibility to organize E-commerce with social media marketing brings about more outstanding customer reach, more focused market segmentation, and deeper relationships with customers

e-commerce in nepal


As the entire world is roaming towards the era of digital marketing where shopping is possible through the internet, eCommerce is also progressing and has become a widely accepted approach, where smaller startups are trying to earn their place. Your business could miss out on many growth opportunities if you do not transfer your business to the e-commerce platform yet. 


The present leaders of e-commerce globally are eBay, Amazon, Target Daraz, AJIO, Alibaba, and many more small businesses following these patterns. However, e-commerce is a tricky and highly competitive space, and the challenges in e-commerce must be addressed. 


Challenges for E-commerce


Poor Internet Access


The internet is a major part of e-Commerce is a major part of the internet. It includes buying and selling goods and services through the internet. The main issue with the e-commerce sector is poor internet access.  

An internet connection with good connectivity plays a vital role in customer purchase habits. When the page loads and responds slowly due to connectivity issue, the user tend to abandon the page, thus not going through with their purchase as it leads to user frustration.  



Traditional Shopping Habit


People still shop traditionally, and they are not brand-centric. People prefer going to the store physically, inspecting the article they’re out to purchase, and bargaining if possible. Especially people older and not friendly with technology do not choose online shopping. 

Traditional shopping, where one gets to see and feel the goods before buying them, gives people the assurance that they’re getting a quality product. Even though e-commerce is an easy-buy solution in Western countries, many people are not able to see this because of the lack of professional service.



e-commerce business in Nepal



Lack of trust



The significant challenge most e-commerce businesses face is convincing people that they can be trusted. There is one thing an online business still needs to achieve at large; the inability to develop trust among the people. 

Due to poor management systems, people strongly believe that they don’t get the actual qualitative product they see on the internet. Imagine purchasing shoes that look marvelous in the photo however actually dull when delivered; it will not give a nice sentiment. 



Lack of an Effective Payment Gateway


For a very long time, online shopping always meant paying with cash on delivery. Although some online retailers have teamed up with certain banks for online digital installments, it is still not as systematic as one might want.

However, most people still follow cash on delivery for the payment of the products because of the fear that their payment will not be processed or some complication with online payment. 

eCommerce business challenges


Customer Interaction


Customer interaction is a very challenging factor in the e-commerce business. In many cases, customers avoid the interaction. Also, it takes work to get customer reviews and ratings. No doubt, some e-commerce websites now offer minimal delivery tracking but still lack the proper tracking system. Customers and delivery persons could benefit from a more interactive delivery tracking system, like using Google Maps to track the exact location and details of the delivery person and the product. 



Lack of Proper Address System


The fundamental goal of the e-commerce business is to get the products delivered to the doorsteps. With a complex and incomplete address structure, this is beyond the area of imagination. Due to the address issue, or incorrect address, there have been many instances of packages getting lost in delivery which leaves a negative impression on the customers. 


Lack of Availability of the Product in the Warehouse


Most e-commerce websites fail to manage the product’s stock. They sell the same products in physical stores as well. Sometimes it’s hard to manage the product if it is already sold in-store. Due to a lack of integration, sometimes products that are out of stock still show available on the websites. Lack of availability of the products in the warehouse may create trust issues for the online customer. Additionally, there is a confusing return policy as most online businesses don’t accept the return of products which discourages customers to purchase online. 


Budding Competition


The addition of competitors doesn’t always mean that the quality of products and services is going to increase in a similar proportion. Many startups are also failing because the competition is getting fierce. Numerous businesses need help to discover and set their objectives, and each online business attempts to provide a wide range of products. It’s a game of price, where the most reduced one can sustain in the market, due to which product quality can be compromised to sell at a low price. 


In conclusion,

All things considered, these are our perspectives regarding the challenges in the online shopping scene. E-commerce has begun to develop from its origin and requires a ton of support before it can truly enter the gigantic population using the internet. Careful research and determination will definitely pay off as the country is finally over its transition phase. If you have any remarkable thoughts of your own, make certain to drop them in the comments below.





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