5 common struggles for ecommerce start-ups – and how to solve them

Ecommerce sales are booming and it’s one of the most popular types of business to start up. But how can you make sure you get off on the right foot?

Running an ecommerce start-up comes up a lot on the UKBF forums, so we’ve got plenty of examples and advice to help you develop your plan. Here are our top five challenges to help you prepare.

Challenge 1: Selecting the right platforms​

Deciding which platforms to operate your business from is your first task. This can feel overwhelming when you’re starting out – especially if you’re not from a technical background.

Most ecommerce start-ups run a branded website that hosts all their products and allows customers to buy directly from them. There are many options to consider – the following are regularly mentioned on our forums:

WooCommerce​

makeusvisible explains that WooCommerce – or Woo as it’s known to its users – is a bolt-on to WordPress. “It is comprehensive and suitable for most ecom stores. On [the] last count I believe it can handle upwards of 100k SKUs,” they say.

They also go on to add that, “The beauty of its popularity is the developer base, which is constantly releasing plugins. It’s well supported by third-party systems; from everything like Mailchimp for email marketing to Stripe as a payment gateway.”

It’s important to build the website properly and choose your plugins carefully though – overloading your site can cause loading times to drag.

Shopify​

“Shopify is a good choice because it has an easy-to-use interface and provides you with a lot like built-in payment processing and fairly effective marketing tools,” says fantheflames.

Shopify doesn’t have the same level of customisation as other options, but it’s a good choice if you’re not using Wordpress and you’re new to managing websites.

Magento​

ValenDigital says it’s worth looking at Magento if you have a bigger inventory. “It’s a brilliant platform. There is an open source (free version) which has all the basics. Plenty of themes and absolutely loads of plugins to bridge any gaps in functionality.”

But they warn that there are a few downsides too. “It’s a huge learning curve. You need the right server setup and someone experienced enough to deploy everything in the correct way.”

Other options​

There are plenty of other platforms to consider, including Bigcommerce, Wix, SquareSpace ShopWired and OpenCart. Read the full thread on ecommerce platforms to hear more about what UKBF members think about these options.

Online marketplaces​

Online marketplaces like Amazon, Etsy, Ebay and shops on Facebook and Instagram are also worth considering. While you will have to pay seller’s fees, it can be a great way to build your brand and connect with customers.

See our guide on building a high-performing eBay business for some top tips to get you started.

Challenge 2: Driving traffic to your platforms​

“The biggest challenge facing any new ecommerce store is driving traffic to your website,” says ecommerce84 on the thread about being new to ecommerce. “You could well need a huge chunk of cash to spend on marketing before you start to establish yourself.”

Utilising SEO and social media in your marketing efforts is a must here. Read our four tricks to drive ecommerce traffic from social media and our guide on how to boost your website SEO to help you.

Challenge 3: Establishing yourself among the competition​

Beating the competition is your next hurdle. While it’s a pretty tough one to tackle, it’s not insurmountable. The trick? According to ecommerce84 it’s all about building trust with the people that buy from you.

“We basically use a handful of suppliers that we trust. I know the order will arrive the next day, I know they have procedures in place to ensure that I will receive what I order and in one piece. For me, this is more important than the supplier being the absolute cheapest, if an order is delivered late or incorrect it could potentially cost me hundreds of pounds.”

One way to build trust is through online reviews. Start building these early on – not only will they instil confidence in your buyers, they also help to boost your SEO rankings.

Challenge 4: Making sure customers are happy with the timing and delivery of goods​

A watertight delivery system is crucial for online businesses. If you’re running a business to consumer (B2C) model, there are plenty of competitors your customers can turn to if they are dissatisfied. And if it's business to business (B2B) you’re an integral part of the supply chain, so speed and accuracy of delivery is a top priority for your customers.

Use these tips to get it right:

Tip 1: Choose your delivery provider wisely​

Talk to other business owners about their experiences – both from the point of view of sending and receiving deliveries.

Tip 2: Understand what your customers need​

Is cost the biggest decider for them? Then a service where they pay less to go to a local pick-up point could be the best option. If speed and timing are more important, a door-to-door service would be more suitable.

Tip 3: Scrutinise the system​

Think through every step of the delivery journey. For example, how will you know that deliveries have arrived safely? Signifyd’s report on the state of UK commerce found a 35% increase in false claims that an item never arrived, so make sure they will provide the evidence you need to deal with issues like this.

An easy-to-use tracking system is another must-have. It will help to reduce your time spent on customer service enquiries and give customers peace of mind about the status of their item.

Tip 4: Map out your costs​

It’s ideal if you can outline set costs for delivery. This makes it quicker for your business to process sales and gives customers a transparent pricing system that they can rely on.

Of course, if you’re running a bespoke service, this might not be possible. In this case, clear communication is key. Explain why delivery costs vary and what they include, with contact details if they want to discuss it in person.

Challenge 5: Getting your returns in order​

The pandemic has made consumers more comfortable with returns – so much so that they now see it as a natural part of the shopping process.

As a result, some larger retailers like Zara and Boohoo now charge fees for online returns. This can cause a real headache for small ecommerce businesses – especially if you’re new to the marketplace. Free returns can be costly for a small business, but charging fees can put potential customers off.

So what do you do? Think through your user journey and build in as much information about your products as possible to make sure that customers are buying exactly what they need. For example, size guides and charts, how to videos and lots of opportunities to contact you for advice before ordering.

The UKBF forum is a great place to talk to other ecommerce founders and find out about the challenges they have faced. Join UKBF here if you aren’t already a member and start tapping into our wonderfully supportive community!​