Barriers to e-commerce growth and how to overcome them

E-commerce startups, while filled with potential, often encounter significant barriers to growth that can hinder their entry into the market, progress, and sustainability. These challenges include limited market research, not using multi-channel marketing, mobile commerce and more. Overcoming these obstacles is crucial for ensuring long-term success and scalability in a rapidly shifting digital environment. 

Addressing these issues helps in getting a competitive edge and encouraging a robust business model that can adapt and thrive. In this blog, we will discuss common barriers faced by e-commerce startups and explore strategic solutions to navigate and deal with these challenges, paving the way for sustainable growth and success.

1. Not conducting comprehensive market research

You’ve developed an innovative product with the potential to make a significant impact. However, before you run a high-budget ad campaign, it’s crucial to conduct thorough market research to validate your idea.

Even if your product feels unique, in-depth research is necessary to understand your target customers and ensure that there is a genuine demand. 

Start by identifying who your ideal customers are, where they are, and what they are willing to pay for your product. Additionally, analyze their current alternatives and how they’re likely to perceive your brand and message. Understanding customer pain points, preferences, and purchasing behavior is critical for tailoring your product and marketing strategies effectively.

To effectively gather this information, use tools such as surveys, and focus groups to obtain direct feedback. Use platforms like Google Trends to track search behavior and market analysis software to identify industry trends and competitor strategies.  Combining these insights will not only guide product development but also help you create targeted marketing campaigns that resonate with the target audience of your e-commerce business.

Relying solely on intuition can lead to significant pitfalls, contributing to the high failure rate of new businesses. This is one of the reasons why up to 80%  of new businesses fail within the first 18 months.

2. Assuming traffic will come without multi-channel marketing

Assuming traffic will flow naturally to your store without a strategic marketing plan is a common misconception. To drive traffic effectively, you need to use multiple marketing channels, including SEO, PPC, email, social media, display ads, retargeting, mobile, shopping engines, and more. Each of these channels plays a crucial role in reaching potential customers at different stages of their buying journey.

Tailoring your message for each platform is equally important. What works well on Instagram may not resonate with Twitter audiences, and a completely different approach will undoubtedly be needed for email marketing. Crafting channel-specific content ensures that your message resonates with your audience, maximizing engagement.

To convert visitors into customers, focus on best practices such as optimizing your e-commerce website for a seamless user experience, employing effective call-to-actions, and addressing common reasons for cart abandonment. Additionally, nurturing existing customers through targeted campaigns can boost repeat business. By employing a multi-channel marketing strategy and refining your approach for each platform, you can enhance traffic generation and drive sustained growth.

3. Not building a strong team and company culture

In e-commerce, the success of your business depends on the talent and culture you build. Hiring the right people is crucial, as they contribute to achieving your goals and shape the overall dynamics of your company. Moreover, a strong team drives innovation, enhances productivity, and fosters a positive work environment.

To build a cohesive team and a strong company culture, start by clearly defining your business values and ensuring they align with your hiring practices. Encourage open communication, provide opportunities for professional growth, and recognize achievements to maintain high morale. Implementing team-building activities and promoting a collaborative work environment can also strengthen relationships among team members.

For effective hiring and team management, consider using specialized resources such as e-commerce hiring platforms, team management software, and industry-specific job boards. These tools can help you find qualified candidates and streamline the onboarding process. 

Additionally, investing in employee training and development ensures that your team remains skilled and motivated. By prioritizing team-building and cultivating a positive company culture, you lay the foundation for sustainable growth and long-term success in the e-commerce landscape.

4. Failing to craft effective communication strategies

Effective communication is crucial in e-commerce businesses, as it directly influences sales and customer satisfaction. To start, crafting compelling product descriptions involves highlighting the benefits and unique features of your product, and using persuasive language that resonates with your target audience. 

Furthermore, when it comes to emails, ensure they are personalized and concise, with a clear call to action that encourages immediate response. Similarly, your social content should be engaging and consistent with your brand’s voice, fostering interaction and sharing.

Also, to avoid common pitfalls, avoid using terms that might confuse your customers and ensure your communication is free from errors that could damage your credibility. By always considering the customer’s perspective, you can make your messages more relatable and impactful. Finally, regularly review and refine your communication strategies based on feedback and performance metrics to continually enhance your communication effectiveness.

5. Ignoring the shift to mobile commerce

In today’s digital landscape, mobile commerce has become increasingly crucial. Consumers are now more likely to browse and shop on smartphones and tablets rather than desktops. 

The latest figures show that visits to retail websites via mobile devices have overtaken desktop traffic for the first time, with smartphones and tablets accounting for more than 26% of conversions. That figure is headed in one direction only.

To stay competitive, it's essential to optimize your online store for mobile devices. Ensure your website loads quickly, as 46% of mobile shoppers will abandon a website if it doesn’t load within 20 seconds, while 16% won’t give it more than five seconds before looking elsewhere. Additionally, design a user-friendly mobile experience with intuitive navigation, easy-to-click buttons, and streamlined checkout processes. By prioritizing mobile optimization, you can enhance customer satisfaction and capitalize on the growing trend of mobile shopping for your e-commerce business.

6. Underestimating the power of social proof and customer reviews

Social proof plays a critical role in building trust and driving sales. Just as people are more inclined to choose a busy restaurant over a deserted one, potential customers are more likely to purchase from brands with visible, positive reviews. Seeing that other people have bought and are satisfied with your products gives new customers the confidence to try it for themselves.

To use social proof effectively, start by actively collecting and showcasing customer reviews across various platforms—your website, third-party review sites, social media, and blogs. Encourage satisfied customers to leave feedback for your e-commerce and ensure these reviews are prominently displayed on your site. Additionally, integrate social proof into your marketing strategy by featuring positive testimonials and case studies in your campaigns. 

This approach not only enhances your credibility but also influences potential buyers, as 47% of consumers check reviews before adding items to their cart. By prioritizing social proof, you build trust and increase conversion rates, ultimately strengthening your brand’s reputation.

7. Neglecting the challenges of international e-commerce

Expanding into international e-commerce opens up new markets but also presents several challenges. Key issues include navigating complex customs regulations, managing international shipping logistics, and complying with varying local regulations. To tackle these challenges, start by thoroughly understanding the legal requirements and import/export regulations for each target market. This foundation will help you avoid legal pitfalls and streamline your operations.

Furthermore, partner with reliable shipping providers who can efficiently handle international logistics and offer transparent tracking options. Be proactive about currency conversion, international taxes, and local consumer protection laws to ensure smooth transactions. 

Additionally, localizing your website and customer support to cater to different languages and cultural preferences can enhance user experience and build trust. By addressing these factors and adapting your strategy accordingly, you can effectively mitigate risks and capitalize on global opportunities.

8. Falling behind on innovation and technology

In the fast-paced world of e-commerce, staying updated with the latest technologies is crucial for maintaining a competitive edge. By embracing new innovations, you ensure that your operations remain efficient and your customer experience stays top-notch. For instance, utilizing advanced analytics platforms, AI-driven chatbots, and automated inventory management systems can significantly enhance your e-commerce operations.

Moreover, integrating technologies such as augmented reality (AR) for virtual product try-ons and leveraging blockchain for secure transactions can set you apart from competitors. Looking ahead, future trends for e-commerce growth to watch include the rise of voice commerce, the expansion of 5G technology for faster browsing, and increased personalization through machine learning. By proactively adopting and adapting to these technological advancements, you can drive growth, improve operational efficiency, and better meet evolving customer expectations.

Partnering with DHL Express for e-commerce growth

Overcoming barriers to e-commerce growth requires a strategic approach in several key areas. First, conducting comprehensive market research helps ensure your product meets real demand and appeals to your target audience. Next, implementing a multi-channel marketing strategy drives traffic and engagement across various platforms. Building a strong team and fostering a positive company culture is also crucial for long-term success. Effective communication and harnessing the power of social proof can significantly boost customer trust and conversions.

Additionally, addressing international e-commerce challenges can be streamlined with DHL Express Indonesia. Our global network and efficient shipping solutions help manage cross-border logistics, customs regulations, and local market requirements seamlessly. Staying updated with the latest technologies and integrating advanced tools will further enhance your operations. By implementing these strategies and using DHL Express for global shipping needs, you can position your e-commerce business for sustainable growth.

Ready to improve your international shipping? Create a business account with DHL Express today and take the first step toward seamless global expansion.