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E-Commerce Business Challenges for Online Sellers in India

E-Commerce Business Challenges for Online Sellers in India

Wednesday February 26, 2020,

6 min Read

It is tough for online selling businesses to sell their product. But as an online seller, you ought to aware of the challenges for e-commerce stores in India. Apart from the development in the area of e-commerce problems and solution PDF, the merchants are facing a lot of challenges related to their business and work hard to deal with all that. 

These are not a kind of discouragement for sellers but a sort of proper guide so that you can avoid mistakes and prepare some powerful strategies for the establishment of evergreen online business problems and solutions. The humongous potential is required in the e-commerce companies to deal with all such challenges. However, we have a look at all these challenges as faced by online sellers. Let us begin.

  • Bad Market Research:

When they launch their business without any preparations, then the chances are more that they may lead to making mistakes and they do not have sufficient knowledge about the market through Magento tutorial.

An ongoing procedure ought to be market research and learning. You can learn various types of tips and tricks for great seller training and it is good if you are selling your products on the marketplace. You can upgrade your knowledge to a great extent for being a successful seller.

  • Pick up the right product:

The first and foremost difficulty face by the online seller is to pick up the best and hot product that is prevalent in the market and is demanded by the customers.

It needs a lot of brainstorming and deep research to choose the best product ever. 

There is a huge competition in every category of the product and the profit margin is gradually increasing. You need to work hard to get the best and unique product to earn some genuine profit and hire a freelancer for proper advice.

  • Profitability:

More problems arise when the online seller has to pay extra deductions such as a market commission of at least 40 per cent on the selling price. Newbie seller goes wrong while taking an estimated selling value of the product to cover up all the associated expenses such as packaging, cataloging charges, managing and shipping through Magento certified developer.

Most of the sellers reduce the prices of the product in order to survive in the market and on the other hand, it minimizes the profit margin of the product. Things become worse when the products get returned. A low amount of selling products, as well as a small amount of profit, leads to close down the online store and discourage the online seller too.

  • Inventory:

It is a must to maintain the inventory as when the customer place an order, then they cannot delay as the order is received. When the list of unavailable products are shown on the website, then the buyer looks over on other website and it leads to a kind of loss due to unavailability of the products.

The buyer wants the product quickly and does not want any sort of delay as in case of delay, there are more chances for cancellation of the order. The working capital is low and it may lead to difficulty in the management of inventory.

  • Returns and cancellations:

This thing is annoying for online sellers. On average, one out of 100 orders is returned by the buyers due to some valid reasons. However, the buyers are sometimes fake but some are genuine too. Learn Magento development step by step.  

Moreover, there is no evolution of return logistics in India and it is a kind of problem for the customers as well as online retailers.

  • Promotion:

With the help of different e-commerce SAAS platforms, it becomes easier for any person to get online and open their store without any sufficient technical knowledge. But the original challenge lies in the advertising and promotion of the store to grab the attention of potential buyers. 

It is a daunting task to make the product visible in front of the customers as it never comes on their own. You have required marketing the creative online store as well as products aggressively both over the web and offline too.

  • Logistics challenges:

For the better customer experience, the online seller ensures the proper delivery of the products but they get into trouble when there is a delay by the partner courier services. In addition to this, there is a huge risk of product damage during transit, selecting the wrong shipping service provider will become a big loss for the business.

  • Packaging:

The first impression is the last impression. So, when the customer gets a very good packaging of the product then they get attracted to the services of the company. A poorly packed product gives a low grade to the products and also dissatisfies the customer as the company is not concerned about the safe delivery of the product by packing it in a proper way. 

The packaging is the biggest challenge for the e-commerce companies and it is in the hands of the seller to maintain a professional image.

  • Working Capital:

Another biggest hurdle in the path of e-commerce companies is the lack of investment and the seller always need to purchase inventory day by day. There is a need for a regular flow of cash as it leads to generate sales.

  • Legal Barriers:

The reason behind the closing down of the e-business benefits and challenges is the violation of legal rules and regulations. The online seller must aware of the legal perspective in India as the rapid growth of the e-commerce sector raises many problems. 

The laws of customer protection also prevent the interest of online shoppers from fraudulent sellers. As fake selling is increasing to a great extent and strict laws are needed to deal with these prevalent issues.

Despite all the issues and challenges in the world of e-commerce in India, online sellers can give a new phase to the successful startup of the business by overcoming these challenges. These challenges of e-commerce are a kind of opportunity for the sellers to improve their performance as an entrepreneur.