eCommerce businesses are indeed a better version of brick and mortar stores when it comes to capital investments and market reach.

However, setting up an eCommerce business isn't all roses and lilies.

Unlike brick and mortar stores, online stores have other challenges to overcome. And the foremost of all being setting it up for growth right from the start.

Keep reading to learn more about this challenge and the others that eCommerce owners must overcome.


The growth of an eCommerce website would depend upon how securely it can handle user data.

Since the online retail business is purely digital in all customer touchpoints, the users need to share a lot of their personal information—for example, address, banking details, and phone numbers.

These essential information pieces make up the most traded commodity on the black market.

In short, when setting up an online store, the first challenge is to ensure cybersecurity. It should involve protecting and securing user information, company data, and anything that can potentially harm the business.

Inventory and Logistics

The next challenge that any online store needs to overcome is managing inventory and logistics.

With no physical storefront, online stores use warehouses to store and manage their inventory. The retailers also need to ensure the packaging and delivery of the goods, and not to forget the correct shipping labels to be attached to the package.

All these practices are not easy to manage for a single person.

Therefore, most online retailers usually outsource these supply chain management tasks. It helps eliminate the fuss and improve efficiency. Apart from this, it also helps reduce the overall cost of inventory and logistics.

Attracting Customers

It is noteworthy that the eCommerce boom in the last decade has increased the competition for new entrants.

There are probably competitors in every segment of retail business, as far as you can think of.

For example, there are clothing stores, footwear stores, furniture, and home decor stores. And there are even supplier stores for retailers.

So, clearly, the biggest challenge to overcome is competing in the market to attract new customers. Of course, digital marketing strategies can help with these. Still, the strategy needs to be promising enough to create a sustainable income stream for growth.

Robust Financial Management

Last but not least is creating a robust financial structure for your online store.

Consider this; in a physical brick and mortar store, you can receive cash or payment for the goods or services as soon as you hand it over to the customer. But, it isn't the same with an online store.

You'd probably be offering cash-on-delivery options to your customers. This means you need to develop a financial plan to track such payments and include them in your books.

Besides, your outsourced partners will also need to be paid. And not to forget the invoicing part.

Thankfully, you can opt for e-invoicing or software to manage these financial problems. And give you a clear idea of your revenue generation and profit earnings.

The Bottomline

Challenges are indispensable for any business, regardless of its model. The key to overcome these challenges is finding the solution to them.