Rise to the Top: Conquering E-Commerce Challenges in 2024
Updated April 2024
The Evolving E-Commerce Landscape
In 2024, the e-commerce landscape continues evolving, presenting opportunities and challenges for business owners and entrepreneurs. To thrive in this ever-changing market, it is crucial to understand and overcome the e-commerce challenges that lie ahead.
This blog post will explore key strategies and insights to help you tackle these obstacles and ensure success in the digital marketplace. Get ready to navigate the e-commerce challenges of 2024 and emerge as a formidable player in the online business realm.
Adapting to a changing online marketplace
There’s no beating around the bush: the online store market constantly changes. With them come shifting e-commerce challenges that you will need to address. Estimates show that by 2040, 95% of purchases will be online, so now is the time for retailers to face e-commerce challenges & find solutions.
With consumers increasingly relying on online shopping, e-commerce is opening doors of opportunity to many entrepreneurs.
E-commerce sales are expected to grow 8.8% in 2024.
Forbes
Without concrete plans to overcome them, you risk being overtaken by your competitors this year. To help you avoid that, I want to share a few simple tips for meeting e-commerce challenges in 2024.
This post outlines a few of the most significant e-commerce challenges you will face this year. And I provide simple solutions and suggestions to meet these challenges head-on and get you back on track for business growth.
How You Can Overcome E-Commerce Challenges in 2024
Attracting the Perfect Customer
One of the biggest e-commerce challenges is attracting your target consumer. These days, mobile shoppers have a myriad of options. They research all options before deciding whether to buy an item.
If consumers have several options, how do you ensure they pick you? How do you find the perfect customer who wants your product at your rate and to the places where you can ship it?
Solution:
Partner with companies that help you target your customers. Online marketing is preferred over traditional marketing because it focuses on your target audience. While this might not happen overnight, with A/B testing, fine-tuning, and analysis, your products could show up to potential customers on different social media platforms.
Customer Experience
Another e-commerce challenge you must overcome is providing the best possible user experience. Customer experience or user experience is critical to a successful e-commerce website.
Shoppers expect a similar, if not the same, experience as one they would get in a brick-and-mortar store. The website’s flow, the segmentation of the website, and the personalization of products based on the shopper’s preferences are imperative.
Solution:
There are several ways to improve the user experience. The most important is to have a clean and simple website so shoppers can navigate it quickly. The next point is to have clear CTAs (calls to action) so the shopper knows what to do.
Increased Competition
Increased competition is another of the biggest e-commerce challenges online retailers face in 2024. According to Forbes, e-commerce sales will grow 8.8% in 2024. The entire e-commerce business is booming, not just retail sales. With nearly 9% growth projected for this year, there are plenty of opportunities to dive in.
This increased competition will make it harder for existing online stores to stand out and acquire new customers. Additionally, e-commerce backend expenses such as media, fulfillment, and tech will rise.
Help your business stand out by staying ahead of online payment technologies and creating an easy-to-navigate website. The competition will be fierce this year, and brands that don’t take steps now will be left behind.
Solution:
To stand out from your closest competitors, you want to return to the KISS principle basics (Keep it Simple, Stupid). Keeping it simple means ensuring your products are easy to find and buy and backed by top-notch customer service.
Brand Recognition
It shouldn’t surprise you to find brand recognition on this list of e-commerce challenges. Shopper retention will be one of the biggest challenges you will face this year as you navigate a saturated market. With so many new stores online, customer options have increased.
Price isn’t going to get your product brand to stand out; your brand identity is. Customers are looking for relatable brands. You must invest big in brand equity this year to turn first-time customers into loyal shoppers.
Solution:
You need to create a compelling brand to build strong brand recognition. It would be best to understand who your customers are and what they want clearly and regularly engage with them. This effort also means investing in a brand voice and image, creating content that gets shared to drive awareness of what your brand stands for, and rewarding loyalty.
Sustainable E-Commerce
Consumers are becoming increasingly aware of the environmental impact of their actions, including purchases they make on e-commerce platforms. With the convenience and speed of the e-commerce sector also comes a significant contribution to carbon emissions, energy consumption, and packaging waste.
As consumers become more aware of environmental issues facilitated by the e-commerce industry, they demand that e-commerce businesses adopt more sustainable practices. Some consumers even go as far as supporting only companies that promise sustainability and ethical practices.
Solution:
Communicating your sustainability efforts to consumers is vital in showcasing your commitment to environmental stewardship. Always aim for transparency in your business by providing accessible information about your processes and products.
Aim to get recognized sustainability certifications, such as Fair Trade, Organic, or Rainforest Alliance, to provide consumers with a credible third-party verification of your sustainability efforts. Communicating your sustainability and ethical practices can help you build consumer trust and loyalty.
Omnichannel E-Commerce
Omnichannel e-commerce is a retail strategy that provides customers with seamless shopping experiences across multiple online channels. It combines all available channels, such as online stores, marketplaces, websites, mobile apps, social media, and even phone and email, to make shopping as easy as possible.
If the concept sounds familiar, it’s because omnichannel e-commerce shares its foundations with omnichannel retail. However, it hones in on the burgeoning e-commerce market. While this strategy primarily focuses on online channels, it can also accommodate a physical store or offline presence, showcasing its adaptability.
Solution:
An omnichannel customer journey can span social media channels, mobile browsers, and messaging.
Start thinking about where people interact with you at each stage. For instance, they might discover your products on social media, do research on your website, buy via your mobile app, and then get post-purchase help via email.
Understanding these touchpoints helps tailor your omnichannel strategy to improve their experience and make them more likely to convert.
Converting Shoppers into Paying Customers
One of the biggest e-commerce challenges is converting visitors into paying customers. Your e-commerce website might get a lot of traffic, clicks, and impressions, but you are not making the sales you anticipated. What can you do to generate more e-commerce sales?
Solution:
First and foremost, understand why your shoppers aren’t converting. Are you targeting the right audience? Maybe your site is not mobile-first or has other technical issues. Does your customer base trust you? Do you personalize your website for your customers? Always think from a shopper’s perspective and see if you are doing everything possible to convert them into paying customers.
Customer Loyalty
Another of the significant e-commerce challenges in 2024 is retaining your customers. Here are two facts you need to keep in mind. It can cost up to 5 times more to acquire a new customer than to retain an existing one. The success rate of selling to a current customer is 60-70% compared to a success rate of only 5-20% of selling to a new customer.
The above two facts testify to how vital customer retention or loyalty is. Once a customer makes a purchase or utilizes a service from a retailer, they must keep this customer for life. But what is the best way to retain existing consumers?
Solution:
These are a few different methods to retain customers. The first is to provide excellent customer service. Consumers are always happy to purchase a great product. But they are ecstatic when customer service is equally outstanding.
Another strategy is to contact the customer via their preferred method. That method can be email, SMS, or blog posts. Find out what works best for your target consumer. Be sure to let them know about new products, sales promotions, and special coupon codes for being such loyal customers.
Meeting Consumers’ Expectations
As more people shop online for a wider variety of products in the coming year, managing expectations will become even more critical. Managing user expectations is vital for increased retention and decreased return rates.
If you’re not upfront about price, product details, and expected delivery dates — and following through by meeting those expectations — you risk losing customers to your competitors. And when so many new competitors enter the fray, it’s too big of a threat.
Solution:
Online shoppers expect full product information, including styles, colors, and sizes. This information will help reduce the risk of returns or negative feedback. You want to make the shopping experience as smooth as possible. You must be upfront about pricing and shipping costs, build trust, avoid common e-commerce design mistakes, and go above and beyond regarding customer service.
Cyber & Data Security
Many online store owners also face the challenge of providing a secure online shopping experience. One of the biggest challenges in e-commerce is security breaches. A lot of information/data is involved in e-commerce, and a technical issue with data can cause severe damage to the retailer’s daily operations and brand image.
Solution:
Be vigilant and always back up your data. Also, you should install security plugins on your website to prevent it from getting hacked. There are several plugins out there. Pick one that works best for your e-commerce website. That way, you can quickly restore your e-commerce site if it does get penetrated.
Online Identity Verification
When a shopper visits an e-commerce site, how does the retailer know if the shopper is who they say they are? Is the shopper entering accurate information? Is the shopper genuinely interested in your e-commerce products?
Correctly identifying your users is one of the significant e-commerce challenges online retailers need to overcome in 2024. How do you proceed if you do not have accurate details or information? The simplest solution is to invest in online identity verification.
Solution:
There are different ways to incorporate online identity verification. Some examples include biometrics, AI, single sign-on, one-time password, and two-factor authentication.
Competition & Competitor Analysis
Most online retailers overlook this fact: The fewer choices you offer customers, the more likely they are to purchase something. Many consumers are overwhelmed by all the options available. A simple search for something like headphones will give you thousands of options. How are you supposed to pick the best one?
From a retailer’s standpoint, how do you stand out? How do you attract online consumers to your website instead of buying a similar product from your competitors?
Solution:
Always do a thorough analysis of your competitors. Find out what products they sell, how they generate leads, and how they keep in touch with their customers. The next step is to stand out from the digital noise. Everything must be first-class and fit together, from branding to e-commerce functionality. Finally, offer services or products that are unique and relevant to your customer base.
Price & Shipping
Another critical e-commerce challenge many online retailers face is shipping costs. We have all heard of customers who prefer purchasing products from places with free shipping. E-commerce giants like Amazon provide attractive shipping deals that customers seldom want to look at other sites. But how can a small online retailer like you reduce shipping costs?
Solution:
While not all e-commerce sites can eliminate shipping costs, always look for options that work for your customer base. Would a subscription reduce the cost of shipping? Would a specific time of the month give them lower shipping costs? Or is there a reliable carrier that offers a cheaper rate? Be sure to research and find the best possible solution for your shoppers.
Product Return & Refund Policies
According to Convertedin, 60% of online shoppers will check the store’s return policy before placing an order. When an e-commerce site says “no returns or refunds,” it makes a shopper nervous and less likely to trust the retailer. When shopping online, customers want the flexibility of making a mistake that doesn’t cost them.
Solution:
Customer satisfaction is the most crucial factor for any retailer. Therefore, having a flexible return and refund policy helps with customer satisfaction. A simple return and refund policy also helps convince first-time or leery customers to complete their purchases.
Increased Acquisition Costs
This year, e-commerce brands will face even greater challenges in attracting new shoppers through PPC campaigns and media platforms. With the rise in competition, big brands expect to increase their advertising budgets throughout the year, forcing more online retailers to join the party.
Current estimations suggest as much as a 20%+ increase in acquisition cost. This increase in expenses presents a significant challenge for many smaller online retailers.
An influx of businesses is entering online, injecting money into digital ads. Undoubtedly, you will need to deal with increased budgets to ensure you can stay competitive. Managing these ads in real-time is also more critical than ever.
Solution:
You must implement a system that optimizes your campaigns in real-time. This should include campaign types, targeting methods, and even customizing incentives to get you the required returns. You must also invest in a multi-channel advertising strategy powered by AI technology.
Meeting E-Commerce Challenges
2024 will be an exciting yet complicated year for e-commerce. While there is no doubt that online sales will grow, manufacturers and retailers will need to work hard to create an optimal shopping experience.
According to eMarketer, e-commerce sales will cross the $6 trillion mark this year, and 20.1% of all retail sales will be conducted digitally. According to Statista, revenue in the e-commerce market is projected to reach US $3,178.00bn in 2024. Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.47%, resulting in a projected market volume of US $4,997.00bn by 2029.
Around 2.77 billion people are expected to shop online by 2025.
Hostinger
E-commerce is flourishing, and overcoming online retailers’ challenges in 2024 is crucial. Without concrete plans, you risk falling behind your competition. Implementing these tips will ensure your ability to meet the expectations of your target consumers.
Be alert to change and improvisation and open to new tools and methods. By meeting these e-commerce challenges, you can maximize consumer satisfaction and conversions. We are here to help. Contact us for more information.
Are E-Commerce Challenges Impacting Your Online Business?
Of course, we would be happy to help you meet any of these e-commerce challenges. We are experts at carefully crafting custom mobile-first websites and online stores to meet (almost) any budget. But first, look at our portfolio and read our case studies.
Then, if you believe we are a good fit for your e-commerce web design needs, reach out to us! We offer a full range of consulting and design solutions for businesses and product brands.
Why not get started by requesting your free estimate?
If you are unsure how to meet these e-commerce challenges, don’t worry! Contact us. Our expert team will listen to you, answer your questions, and determine the best way for you to attract, convert, and retain loyal online consumers. That is one of our specialties, after all!
How Are You Meeting E-Commerce Challenges?
We would love to hear your feedback regarding your e-commerce challenges in 2024. Are you selling online? Have you encountered any of the challenges listed above? If so, how are you dealing with them? Do you have any other tips or e-commerce challenges you would like to share?
Please leave your comments below so our audience can benefit. Grab our feed so you don’t miss our next post! Share this post with your friends and associates to help them meet the challenges of running their own e-commerce business.
For more content relevant to your business or product brand – check out the range of articles on our web design blog. (This one, outlining how to enhance e-commerce user experience, is an excellent place to start!)
Thank you! We appreciate your help to end bad business websites, one pixel at a time!
By Gregor Saita
Co-Founder / CXO
@gregorsaita