What are the main problems faced in E-commerce?

Global Competition

With internet and E-commerce hosting services like shopify, opening up an e-commerce store today is not very difficult. And by very nature of "e"-commerce, you're not only competing with your neighbors, but with the entire world. Unless your product is extremely unique and one-of-a-kind, consumers will easily be targeted by gazillion other brands.

Shipment

This depends on your area of service, but shipping eats up a huge chunk of your cost. Shipping cost will decrease with volume, but that's kind of like chicken and egg situation. You won't reach high volume to start with but you may need that lower price to reach that high volume. I'm sure there's a way around it, but shipping is one of the main obstacles to many e-commerce companies.

Driving traffic

You may think, once people know about it, people will buy it! I AGREE. I believe there are tons of products out there that people need. But getting there is rather difficult. At my e-commerce site (Urbane Conviction), our conversion rate is quite high (around 10%!), but our traffic is low. Driving traffic can cost a lot of money and lots of creativity. It's not impossible, but certainly a headache.

Some other challenges, which pricing managers of e-commerce retail face every day.

1. Form online store price for products caring for customer’s price perception.2. Decide either better to hold the prices down or try to gain margin with dynamic pricing. 3. How to design more attractive discount schedule for customer’s eye and not to lose a potential gain?4. How to bit competitors, making the own price more profitable?5. Which pricing instrument can bring a winning pricing strategy optimization?

Cart Abandonment According to Forrester Research, when it comes to online shopping, 22% of consumers do not want to make a phone call to have their questions answered. Even in the event that all of the information a customer needs is provided on the site, they often don’t have the time or patience to search for it. Instead, they desire the convenience of having their questions—regardless of complexity—answered concisely and instantaneously. If an answer to their question isn’t found quickly, 57% of customers will abandon their purchase. Luckily for companies wishing to keep in touch with and aid their evolving clientele, there’s a surprisingly simple solution- “Proactive Chat “ . To know more read this article :Implementing a Proactive Chat System to Solve Ecommerce Challenges

Read these whitepapers to gain more understanding

Implementing a Proactive Chat System to Solve Ecommerce Challenges

Cart Abandonment: How to Avoid Losing over Half of Your Potential Sales

Streamlining Magento Development Flow with AJA