As the digital age progresses, e-commerce is looking to become the default shopping method for consumers worldwide. Data from Sponsorpulse, for instance, reveals that as many as 85% of global consumers do at least some of their shopping online, particularly in regions like Asia and South America. All told, recent forecasts project that e-commerce retail sales worldwide could reach USD 7.4 trillion in 2025—a 74% boost from the USD 4.2 trillion in sales recorded in 2020. This development makes the sector an especially exciting space for both aspiring entrepreneurs and those looking to grow an existing venture.
It's easy to see why e-commerce businesses have become especially enticing in recent years, considering their accessible startup costs, wide reach, and immense potential for profitability. However, business owners need to be aware that the many lucrative opportunities the sector presents also come with a range of hidden challenges. It’s in any entrepreneur’s best interest to read up on common pitfalls and prepare for them so they’ll be ready to transform potential setbacks into opportunities for growth.
At Maya Business, we’ve built our reputation on empowering SMEs and startups with the resources they need to thrive in competitive markets. We’re packing plenty of expert business advice and innovative tools to help you tackle the unexpected. In this article, we’ll explore some of the most surprising challenges you may encounter as an e-commerce entrepreneur—and how to address them head-on.
Technical Issues
The last thing you want is for your customers to be filling their carts excitedly, only to encounter a sudden website crash at checkout. There’s a good reason this is a nightmare scenario for many e-commerce businesses—it’s all too common. Technical hiccups may crop up without warning at any online store, in the form of slow page load times, unresponsive payment gateways, or unexpected downtime. Whatever the cause, they can result in lost sales and damaged trust.
Addressing technical issues requires a proactive approach. Invest in reliable hosting services to ensure your website can handle big spikes in traffic, particularly during peak shopping periods. You can also utilize monitoring tools to detect and resolve performance problems quickly. Even if you can’t fully avoid disruptions, preparing for them ahead of time can minimize their impact and reassure your customers that they can rely on your business no matter what happens.
The payment process is one area where it pays to be especially vigilant about potential technical hiccups. It never hurts to have an alternative solution ready for when your default payment gateway fails, such as an invoice payment tool you can use to create and send invoices directly to your customers. Maya Invoice Payments, for instance, is rapidly becoming a favorite solution for Philippine e-commerce businesses that need to do invoice payment online. This enterprise-grade online invoice payment tool allows your business to accept a wide range of payment methods, from traditional card payments to e-wallet and QR Ph payments. You can also send the invoices you create to your customers through their choice of platform, whether it’s email or a particular instant messaging app. All told, Maya Invoice Payments is one of the best invoice payment solutions you can leverage in the face of technical setbacks.
Logistics and Fulfillment Issues
Behind every successful e-commerce order lies a complex web of logistics involving aspects like inventory management and last-mile delivery. Unfortunately, this system isn’t always seamless. A delayed shipment or an out-of-stock item can quickly turn a satisfied customer into a frustrated one. For growing businesses, scaling fulfillment operations to meet increasing demand poses an even greater challenge.
Your business can mitigate these risks ahead of time by making organization and operational efficiency major priorities. Partnerships with dependable logistics providers can help guarantee timely and accurate deliveries. Inventory management software, meanwhile, gives you access to real-time insights that enable you to predict demand and avoid stockouts. Lastly, streamlining your shipping processes—such as through optimized routes or automated systems—can make all the difference in meeting customer expectations.
Cybersecurity Threats
Trust is the e-commerce sector’s most valuable currency, and nothing erodes it faster than a data breach or fraudulent transaction. The digital nature of online businesses makes them prime targets for cyberattacks, with hackers constantly looking for vulnerabilities to exploit. A single incident can compromise customer data, result in costly chargebacks, and damage your brand's reputation in ways that can be difficult to recover from.
Robust security measures have thus become a must for any online business to invest in. Start with PCI-DSS-compliant payment solutions to safeguard customer transactions and tools like 3D Secure (3DS) authentication to insulate your business against fraud. Cybersecurity awareness training for your team ensures that they form a solid line of defense against potential threats and can also utilize your security tools to the fullest. Focus on current best practices like identifying phishing attempts and maintaining strong password protocols, and don’t skip out on providing refreshers or supplementary training sessions to keep everyone’s skills sharp.
Marketing and Branding Challenges
Building genuine brand loyalty amidst extreme saturation is one of the trickiest hurdles for e-commerce entrepreneurs. Every day, online shoppers are bombarded with ads and promotions, which can make it increasingly difficult for smaller businesses to capture attention. Don’t make the mistake of over-relying on paid ads, as doing so can lead to diminishing returns if audiences grow weary of seeing the same messages.
Creativity and consistency are your best tickets to success when it comes to marketing. Diversify your marketing strategy by exploring channels beyond traditional ads, such as social media collaborations, email campaigns, and content marketing that offers real value to your audience. Analyze customer data to understand preferences and tailor your approach to resonate with their needs. From there, focus on delivering a memorable brand experience. You might accomplish this through unique packaging, personalized messages, or superior customer service.
Seasonal Demand Fluctuations
Few things test the resilience of an e-commerce business like the highs and lows of seasonal demand. Don’t let a holiday shopping surge or an unexpected sales spike catch you unawares and leave you scrambling to meet orders—or stuck with excess inventory. The unpredictability of consumer behavior during these periods makes planning all the more crucial.
To prepare, start by leveraging historical data and market trends to forecast demand accurately. Use this information to stock up appropriately and avoid the pitfalls of over- or under-buying inventory. Flexible staffing solutions, such as temporary hires or cross-training existing employees, can help you scale operations during peak times.
Overcome Any Setback with Help from Maya Business Solutions
No business partner can completely eliminate any challenges and difficulties in your way, but the right ones will help you make the best of them and come back strong. Sign up for Maya Business today for instant access to our full suite of digital solutions, which you can use to handle disbursements, business banking, and both online and in-store payments with ease.
Setting up a Maya Business account lets you open a Maya Business Deposit account and use it as your settlement account. With an industry-leading 2.5% per annum interest rate, you’ll earn PHP 25,000 in interest per year on a PHP 1 million deposit. You’ll also get to send money to your partners and suppliers for free via InstaPay and PESONet, which can boost your savings by eliminating troublesome transfer fees.
Signing up also qualifies you for a no-collateral Maya Flexi Loan offer of up to PHP 2 million in just 3 months, so you have a ready funding source in the event of a crisis. Just use Maya as your primary processor for all wallet and card payments. The more you use our solutions, the better the loan offer will be.
Sign up for Maya Business today to enjoy the benefits of Maya Business solutions.
