Starting an eCommerce business is an exciting journey, but it’s not without its hurdles. When you’re just getting started, it can feel like there’s an endless list of things to figure out—from getting noticed in a crowded market to managing orders and keeping customers happy.

The good news? You’re not alone, and every challenge has a solution.

Here are some of the most common obstacles new eCommerce businesses face and practical ways to tackle them head-on.

Just a note, I’ve given very quick solutions to these problems so the article wasn’t 10,000,000 words long, please get in touch if you need any help or clarification!

1. Intense Competition and Market Saturation

Challenge: The eCommerce space is highly competitive, with major players dominating many niches.

Solution: Differentiate your brand through unique products, superior customer service, or a hyper-focussed niche. Figure out exactly what problem you’re solving & who you’re solving it for. Conduct thorough market research to identify real gaps in the market.

Example: UK-based home fragrance brand Evermore London set itself apart by focusing on sustainable, hand-poured candles using repurposed materials, appealing to eco-conscious consumers.

2. Driving Traffic and Gaining Customers

Challenge: Getting customers to your site is difficult without a strong online presence.

Solution: There are so many options you could focus on here, but for me, the most important steps you can take are to start a pre-launch campaign (more on this in another blog) to generate email data and build anticipation for your brand.

Then i’d focus on creating really useful and entertaining content that captivates & educates your niche audience & share via social media. Whether it’s engaging blog posts, live demos, UGC, long/short form videos or behind-the-scenes sneak peaks, storytelling can help you build trust and drive organic engagement.

Once you’ve built momentum, you can supplement your efforts with other things like SEO, paid ads & influencer collaborations to amplify your reach.

Example: Rare Munchiez, a company that imports limited-edition snacks from around the world. They built a strong social media following by capitalising on the exclusivity and novelty of their products, leading to high customer engagement and word-of-mouth marketing.

3. Cart Abandonment and Low Conversion Rates

Challenge: Many shoppers abandon their carts due to high shipping costs, complicated checkout processes, or lack of trust.

Solution: Simplify the checkout process, offer free or discounted shipping for target AOV thresholds, and provide multiple payment options.

Ensure your product pages are fully optimised for conversions, read my blog: “Crafting High-Converting Product Pages” that goes into more detail on this.

Display trust signals like secure payment badges and customer reviews to build credibility.

Example: Take The Wasabi Company, a niche food retailer specialising in fresh wasabi and Japanese ingredients. They increased conversions by offering next-day delivery and bundling smaller products to offset shipping costs.

4. Managing Inventory and Supply Chain Issues

Challenge: Stockouts, overstocking, and supply chain disruptions can impact profitability.

Solution: Use inventory management software to track stock levels and automate replenishment. Work with reliable suppliers and have backup vendors to minimise risks.

Example: The Cheese Geek, a subscription-based cheese delivery service, improved inventory accuracy by implementing a pre-order system that helps forecast demand and reduce waste.

5. Handling Customer Service and Returns

Challenge: Poor customer service and complicated return policies can lead to negative reviews, bad reputation & lost sales.

Solution: Offer multiple support channels (chat, email, phone) and respond promptly to inquiries. A clear, customer-friendly return policy & portal (Think Loop or Aftership) can improve trust and reduce friction.

Example: Passenger Clothing, an outdoor apparel brand that enhanced customer loyalty by providing a hassle-free return policy and planting a tree for every order, turning returns into a sustainability message.

6. Keeping Up with Technology and Security

Challenge: Cybersecurity threats, outdated technology, and poor website performance can hinder business growth.

Solution: Choose a secure eCommerce platform, regularly update your software, and implement SSL certificates. Ensure fast website speed and mobile optimisation for a seamless shopping experience.

Example: Gym+Coffee, an Irish athleisure brand that uses Shopify Plus with built-in security features and a content delivery network (CDN) to maintain fast load times and protect against cyber threats.

7. Scaling the Business Profitably

Challenge: Growing an eCommerce business without increasing costs disproportionately can be difficult.

Solution: A great way to scale efficiently in 2025 is leveraging AI-driven automation, ensuring your tech stack is scalable, and working with the right logistics partners.

AI can help optimise marketing spend, personalise customer experiences, and automate customer service with chatbots.

Additionally, adopting fulfilment solutions that can scale as demand grows is crucial.

Businesses should also explore diversified sales channels, including marketplaces (Amazon, eBay) and subscription models, to increase revenue without massive overheads.

Example: Allbirds, a sustainable footwear brand that scaled rapidly while maintaining profitability.

They used AI-powered customer insights to refine their marketing, ensuring ad spend was effective.

Additionally, their partnership with Shopify Plus enabled them to handle international growth seamlessly without the need for excessive operational costs.

Final Thoughts

Hopefully this brief insight gave you a little bit of inspiration & guidance for overcoming those inevitable hurdles we all face in the eCom landscape.

Hang in there, it’ll all be worth it!