Few things are more exhilarating than starting an eCommerce business. You have an opportunity to be your own boss, and the whole world is your potential audience. Best of all, you can work on your schedule from almost anywhere.
However, the world economy is still bouncing back from the pandemic. Although businesses are opening back up, we’re still in a state of uncertainty about what the future holds. The good news is that, although there may be challenges to face, you can future-proof your eCommerce company in such a way that you’ll be able to weather whatever lies ahead with confidence.
Read on for some tips to help you thrive as an online business despite the uncertainties.
Challenges facing eCommerce in 2024
Maybe you’re filled with optimism now that the pandemic seems to be getting under control. Companies are re-opening, and there’s a whole new market for web-based businesses. In fact, new industries and opportunities have come about because of the uncertainty of the past year and a half.
However, there is still a multitude of challenges facing startups today. Not only do you have the typical roadblocks that can derail a business in the best of times, but a whole new crop of possible setbacks comes with operating fully online.
What are some of the biggest challenges an eCommerce company faces in the year 2024 and beyond?
It’s getting harder to find your audience
The expanse of marketing channels and digital platforms has become a double-edged sword. You’re able to get your brand in front of more eyes, but casting such a wide net makes it more difficult to cater to a specific persona. You can find them, but it’s getting harder to make the kind of personal connection customers crave.
Segment and refine your leads according to where they are in their journey. Once you have a grasp of what motivates them at each stage, make an effort to explore new ways of connecting with customers and empower your team to do the same without spreading yourself too thin. Choose one or two platforms that mesh well with the image you’re trying to create.
Consumers have more options
Another drawback of having so many digital platforms and eMerchants to choose from is that you may suffer from small fish, big pond syndrome and struggle to stand out among the competition. These days, consumers are exposed to such a variety of products, services, and providers that they’re no longer willing to settle for subpar service. If you can’t give them what they want, there are any number of other companies that will.
Find a niche like people looking for a long handle grout brush or an underserved segment and serve it. This will require research about the behaviors and preferences of your target audience and your competition. What do they do well, and how can you do it better? What are they failing to do? When the market is saturated in your local area, explore new markets beyond your borders – lack of geo-restrictions is one of the beautiful things about eCommerce.
Expectations are higher than ever
More choices bring higher expectations. People expect fast, free delivery, personalization and customized services, consistency, reliability, security, and 24/7 access. You may not have the deep pockets and market share of Amazon, but there are some things you can do to meet the needs of increasingly demanding consumers. Investing in a Voice over IP system is also a good idea because it works through a virtual phone number and improves customer service quality, and VoIP pricing is much lower than landlines.
Study trends, but also refine your approach to weed out any outmoded platforms and marketing methods. Does your website look sleek and easy to navigate or does it look like a holdover from a 90s storefront? Are your customer care details transparent and easy to understand?
Customers like to know what to expect if they have to return an item, and they want a consistent, reliable experience. If offering free shipping isn’t financially viable for you, what other incentives can you offer to your customers? Create repeat business with subscription services or bundle products and services that complement each other.
Technology can be difficult and confusing
Most of the trends and benefits eMerchants enjoy are due in part to advanced technology. However, there can be a steep learning curve attached.
It’s worth the investment to acquire the most advanced technology you can afford, provided it actually improves service and efficiency. For example, virtual assistants and chatbots that are powered by artificial intelligence are able to learn from the past to refine their approach. They can handle the small, repetitive tasks and free you to focus on branding and outreach.
You should investigate different technologies to determine which ones will work to improve efficiency and service at your company. You needn’t automate everything just because you can, but assess your needs, goals, and problems, and then choose a tech solution that most effectively relieves your pain points. For example, if you’re an avid excel user, implementing gantt chart excel solutions another integrations can help you get the best out of it without overcomplicating things.
The economy can be unpredictable
You can learn how to serve your customers more efficiently and incorporate new technologies, but there is little you can do to uncomplicate society or grow the economy. The fact is, the nature of business is changing and you need to change with it or get left behind.
Agility is the keyword. You should be able to pivot and deal with the world as it is. Successful manufacturers were able to change their production model to create new products to help us cope during the pandemic. A notable example is distilleries that began producing hand sanitizer to ease shortages. You can apply the same outside-the-box thinking to your own offerings.
How to survive anything as a business
Forewarned is forearmed. Now that you’re aware of some of the challenges you might face, here are some other things you need to know if you want to give your business the best chance for success over the long haul.
Create a safety net
No one knows what tomorrow will bring. Many businesses were caught off guard by the closures and uncertainty that the pandemic created. The smart, agile business leaders were able to find their footing and rebound, while those who couldn’t disappear.
There’s no guarantee that there will be PPPs and business bailouts in the face of future calamities, so do what you can now to put something away for a rainy day in the future. One way to create financial security and peace of mind is by purchasing adequate insurance coverage insurance such as auto, business, etc. This includes not only liability and property protection, but also life insurance, disability, and hardship policies to make sure that the bills still get paid regardless of your circumstances.
So, if you have not incorporated formally as LLC or any other limited liability structure, it is high time to do so. Nowadays, you can do it in a cost-effective way via popular legal services such as ZenBusiness or Northwest.
Marketing is your main motivator
You could have the best product in the world and it wouldn’t matter if no one ever knew about it. Strong marketing is the key to everything in business, and we’re lucky to live at a time when innovative marketing campaigns can be easily launched by creating a digital buzz.
All it takes is a little effort in the right places. Make sure to study your audience, and create a clear, consistent message that’s designed to reach them where they live. If you engage in B2B marketing, emphasize authoritative solutions, efficiency, and cost-effectiveness.
When you’re dealing with consumers in a B2C relationship, appeal to their emotions. Create a story that draws them in, Show them how your product will make their life better in some way.
You don’t need to be a major brand to be a good one
Chances are that you won’t be able to keep up with the multi-billion dollar, multinational corporations – and that’s okay. Would you rather go to the fancy, overpriced barista or the local mom-and-pop shop where they know your name and favorite brand? You could be the digital version of that shop.
Going small also applies to the people you do business with. For example, when it comes to web design, you could go with a faceless corporation that offers generic, one-size service. But, how much better would it be if you chose a talented freelance web designer who will take the time to get to know you?
According to one study, 57% of internet users say they would leave a site that is poorly designed, so you can’t afford to skimp here. As a small business owner, you can work one-on-one with a freelancer to build a website that showcases your strengths as a business and stay ahead of eCommerce trends.
A little creativity goes a long way
There are lots of creative ways that you can generate buzz. Most internet platforms are free, and their nature encourages creative thinking and sharing. What do members of your audience like to do, where do they hang out online, and how can you use a creative approach to get their attention? Think critically about how you can set yourself apart from the competition.
Don’t overlook the importance of good packaging
Your packaging is part of your branding. It should be sturdy, functional, and immediately identifiable with your company. Those blue Tiffany’s boxes alone are enough to elicit excitement in the hearts of their recipients. When that Amazon box hits a front porch, the whole neighborhood knows it, and your business can be the same.
Finding reliable suppliers is essential
No matter your eCommerce business model, locating consistent, reliable suppliers and shipping are critical to order fulfillment and customer satisfaction. Your customers need to know that you fulfill your obligations in a timely manner and with as little expense as possible.
You also need to make sure that you don’t rely on a single provider to carry your commitments. Always have a backup plan or several options for the customer to work with.
Invest in scalability
In order for an eCommerce shop to remain viable, scalability is an important consideration for your platform and business model. You need to be able to ramp operations up or down on a dime in response to market conditions. Subscribing to investment newsletters can help you stay on top of economic trends and plan accordingly.
Does your hosting plan offer the resources to handle a sudden surge in traffic, yet remain affordable enough to cover you when business is no longer booming? Can your suppliers handle a heavy delivery schedule? Are your staff members prepared? These are the questions to consider in order to weather economic uncertainties.
Never give up
Lastly, no successful business was ever helmed by someone who gives up too easily. If something isn’t working or a product is slow to launch, try to look at the situation from a new angle. Is there a target demographic or marketing channel you hadn’t considered? Test to learn about the effectiveness of various approaches, and don’t be afraid to fail.
Final thoughts
It’s challenging to become a successful entrepreneur, and events over the past year have tested the determination and patience of even the most seasoned retailers. Even as the uncertainty continues, consumers will still continue to demand that businesses like yours rise to meet their expectations. Whether you’re someone who thrives on challenges or you’re looking for new ways to remain viable, our goal is to provide you with actionable tips that will help you weather almost any economy.