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Top 5 Challenges Every E-Commerce Startups Face 
Biztech IT Consultancy Pvt. Ltd. | sales@biztechconsultancy.com | +91-987-962-2024
E-Commerce Startups 
E-Commerce could ideally be a daunting task to start with for many. But transacting online is a great and innovative experience. Businesses earning decent revenues from online transactions are going to stay here for long and will grow massively. As per estimation, the Global e-Commerce market is predicted to hit a whopping 1 trillion dollars in the next few years. 
In spite several eCommerce giants sharing huge chunk of the current market in India, there is still ample room in this wide market for new ventures to come through and grab the market. These startups are going to face some vital challenges in some areas of functioning. Under mentioned are 5 key challenges that every eCommerce startups is going to face. 
Biztech IT Consultancy Pvt. Ltd. | sales@biztechconsultancy.com | +91-987-962-2024
1. Selecting a Niche 
In today market selecting a niche in e-Commerce means searching people who will be ready to transact over the internet for a particular product. It could ideally be an assortment of products and have everything under the sun on their online catalog, which may require large amount of funding – a nightmare to startups. 
There are myriad of niche e-Commerce giants in the market already enjoying decent share of market, searching a wide audience willing to purchase online is going to be the most primary and foremost challenge that any startup is going to face. 
Biztech IT Consultancy Pvt. Ltd. | sales@biztechconsultancy.com | +91-987-962-2024
2. Customer Acquisition 
Attracting people to come on your site and purchase products will warrant heavy cost on advertisement and online marketing. Nonetheless, improved sales may bring down the cost per customer. As per market experts, the average investment for this metric in the present eCommerce ecosystem revolve around INR 500 – 1000 per customer, which isn’t sustainable for medium sized firms, leave alone early stage ones. 
This could pose a huge challenge before the early stage e- Commerce startups. 
Biztech IT Consultancy Pvt. Ltd. | sales@biztechconsultancy.com | +91-987-962-2024
3. Strong and Reliable Supply Chain 
This is not a small problem to deal with. There are online transactions going to happen on online portal, and facing problems with respect to logistics and supply chain may ruin the online reputation of timely delivery. Failure in this area may lead to a detrimental damage to a startup’s future. On an average every customer poses great faith on the company for eCommerce transactions and its failure may hurt the brand overall. 
Getting this right can be a real and next big challenge to the startups. 
Biztech IT Consultancy Pvt. Ltd. | sales@biztechconsultancy.com | +91-987-962-2024
4. Professional Customer Service 
In this highly populated eCommerce global market, professional customer support can be a great differentiator. Assuring customers of the present situation or informing them about the status of a process is sometime that is required to keep the customer from pushing the panic button and going to public media. 
Getting right customer support oriented resources can be the challenge startup may face. 
Biztech IT Consultancy Pvt. Ltd. | sales@biztechconsultancy.com | +91-987-962-2024
5. Fund Raising 
Once an online business has gained its traction, branding right its services is the next quintessential. Branding is time, money and effort consuming initiative that every startup has to perform for getting their branding right. 
This, however, will need huge chunk of funds. Although there are funding bodies but it’s not easy to get funds for a startup. An e- Commerce company may bootstrap for some time and to certain extent, but scaling may require funds. It has been witnessed that most often a majority of them fail in this phase. 
Biztech IT Consultancy Pvt. Ltd. | sales@biztechconsultancy.com | +91-987-962-2024
Conclusion 
So even if you have stepped the right foot forward, past record in the ecommerce industry is working against the startups and you would be facing great deal of challenges before gaining momentum and success. 
Biztech IT Consultancy Pvt. Ltd. | sales@biztechconsultancy.com | +91-987-962-2024
Thanks for sparing your valuable time to read this piece of document! 
Biztech IT Consultancy Pvt. Ltd. | sales@biztechconsultancy.com | +91-987-962-2024 
www.biztechconsultancy.com

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Top 5 challenges every e commerce startups face

  • 1. Top 5 Challenges Every E-Commerce Startups Face Biztech IT Consultancy Pvt. Ltd. | sales@biztechconsultancy.com | +91-987-962-2024
  • 2. E-Commerce Startups E-Commerce could ideally be a daunting task to start with for many. But transacting online is a great and innovative experience. Businesses earning decent revenues from online transactions are going to stay here for long and will grow massively. As per estimation, the Global e-Commerce market is predicted to hit a whopping 1 trillion dollars in the next few years. In spite several eCommerce giants sharing huge chunk of the current market in India, there is still ample room in this wide market for new ventures to come through and grab the market. These startups are going to face some vital challenges in some areas of functioning. Under mentioned are 5 key challenges that every eCommerce startups is going to face. Biztech IT Consultancy Pvt. Ltd. | sales@biztechconsultancy.com | +91-987-962-2024
  • 3. 1. Selecting a Niche In today market selecting a niche in e-Commerce means searching people who will be ready to transact over the internet for a particular product. It could ideally be an assortment of products and have everything under the sun on their online catalog, which may require large amount of funding – a nightmare to startups. There are myriad of niche e-Commerce giants in the market already enjoying decent share of market, searching a wide audience willing to purchase online is going to be the most primary and foremost challenge that any startup is going to face. Biztech IT Consultancy Pvt. Ltd. | sales@biztechconsultancy.com | +91-987-962-2024
  • 4. 2. Customer Acquisition Attracting people to come on your site and purchase products will warrant heavy cost on advertisement and online marketing. Nonetheless, improved sales may bring down the cost per customer. As per market experts, the average investment for this metric in the present eCommerce ecosystem revolve around INR 500 – 1000 per customer, which isn’t sustainable for medium sized firms, leave alone early stage ones. This could pose a huge challenge before the early stage e- Commerce startups. Biztech IT Consultancy Pvt. Ltd. | sales@biztechconsultancy.com | +91-987-962-2024
  • 5. 3. Strong and Reliable Supply Chain This is not a small problem to deal with. There are online transactions going to happen on online portal, and facing problems with respect to logistics and supply chain may ruin the online reputation of timely delivery. Failure in this area may lead to a detrimental damage to a startup’s future. On an average every customer poses great faith on the company for eCommerce transactions and its failure may hurt the brand overall. Getting this right can be a real and next big challenge to the startups. Biztech IT Consultancy Pvt. Ltd. | sales@biztechconsultancy.com | +91-987-962-2024
  • 6. 4. Professional Customer Service In this highly populated eCommerce global market, professional customer support can be a great differentiator. Assuring customers of the present situation or informing them about the status of a process is sometime that is required to keep the customer from pushing the panic button and going to public media. Getting right customer support oriented resources can be the challenge startup may face. Biztech IT Consultancy Pvt. Ltd. | sales@biztechconsultancy.com | +91-987-962-2024
  • 7. 5. Fund Raising Once an online business has gained its traction, branding right its services is the next quintessential. Branding is time, money and effort consuming initiative that every startup has to perform for getting their branding right. This, however, will need huge chunk of funds. Although there are funding bodies but it’s not easy to get funds for a startup. An e- Commerce company may bootstrap for some time and to certain extent, but scaling may require funds. It has been witnessed that most often a majority of them fail in this phase. Biztech IT Consultancy Pvt. Ltd. | sales@biztechconsultancy.com | +91-987-962-2024
  • 8. Conclusion So even if you have stepped the right foot forward, past record in the ecommerce industry is working against the startups and you would be facing great deal of challenges before gaining momentum and success. Biztech IT Consultancy Pvt. Ltd. | sales@biztechconsultancy.com | +91-987-962-2024
  • 9. Thanks for sparing your valuable time to read this piece of document! Biztech IT Consultancy Pvt. Ltd. | sales@biztechconsultancy.com | +91-987-962-2024 www.biztechconsultancy.com