Top 13 E-Commerce Challenges In 2024 With Tips On How To Deal With Them

Have you written your New Year’s resolutions yet? 

Do you, in any way, include your e-commerce store in your New Year’s resolutions? 

Well, whatever your answers to the previous questions are, think of this article as a friend who will help you pave the way for you and your e-commerce store to succeed and develop in 2024.

Every new year brings opportunities that e-commerce businesses can’t wait to dive into. However, our world is not all sunshine and rainbows; sometimes, there must be a little rain. That means that just like a new year brings opportunities that e-commerce stores must seize, it also brings challenges they can’t avoid. The year 2024 is no exception. 

In this article, we will discuss the top challenges that your e-commerce business might encounter in 2024 and recommend a few tips on how to deal with these challenges. That’s what New Year’s resolutions are all about, aren’t they? 

Top 13 E-Commerce Challenges in 2024 With Tips On How To Deal With Them

1. Global Economic/ Political Situation.
2. Increasing Competitiveness.
3. Customer Satisfaction, Loyalty, And Retention.
4. Concerns About Data Privacy And Cyber Security Threats.
5. Supply Chain And Logistical Challenges.
6. Keeping Up With The Technological Advancements
7. Changes In The Regulatory Landscape
8. Committing To Causes
9. Cart Abandonment
10. Going Omnichannel
11. Hyper-Personalization
12. Expansion To New Markets
13. Overwhelming Number Of Marketing Strategies

Before we delve into this, we want to remind you that New Year’s resolutions are not magic, which means figuring out what you should take care of in the new year will not magically get it done. You will have to put some effort into it. 

As promised, in the following points, you will learn everything you need about e-commerce challenges in 2024. However, as we just said, there is nothing such as magic. So, merely learning about the challenges isn’t enough; you must also consider how to deal with them. Rest assured, we've got your back, offering some of the best tips to make it easier for you and your business.

1- Global Economic/ Political Situation

If there is one word that could describe the year 2024 perfectly, it would be “uncertainty.” To be honest, this global uncertainty has been going on for quite some time now; however, it is highly likely to increase in 2024. Humanity has been overwhelmed by crisis after crisis for the past few years. Political crises have turned into economic ones and vice versa, leaving no time for anyone to catch their breath. 

Every business on this earth is bound to be affected by the global economic and political situation. Yes, that even includes your little e-commerce store. 

So, what kind of economic and political situation should you expect in 2024? 

We should all admit that the global economy is still trying to heal from the repercussions of the COVID-19 pandemic. However, in 2024, this is exacerbated by several political crises in different parts of the world. So, this year, we can expect anything from inflation and economic stagnation to full-blown recession.

Tips:

• Never think an event is “too political” or “too far” to affect your e-commerce business. If there is one sure fact in this world, other than that the best time to start a diet is tomorrow, it would be that political crises directly and immediately impact economies. Also, thanks to globalization, all economies are now somehow dependent on each other, meaning that an event happening East of the globe can impact your business, which might be operating West of it. So, the bottom line here is not to underestimate anything. 
• Be aware! Even if you’re not a fan of watching news channels or reading the newspaper, find any other way to familiarize yourself with what’s happening around you. 
• You need to learn how to connect the dots. For instance, you need to understand that a political crisis can disrupt global trade, which, in turn, can increase inflation and result in changes in customers’ buying and spending patterns. To do that, try hiring experts, such as political and economic analysts, who can help you understand the political and economic situation and forecast possible impacts on your business. The bottom line is: Do whatever it takes to avoid surprises!
• The most logical thing you should do after that is adjust your budgets and business strategies accordingly. 

2- Increasing Competitiveness

It is true that, in the previous point, we discussed a dire economic situation in 2024; however, this does not contradict the fact that competitiveness in the e-commerce market will be on the rise in 2024. 

Statistics show that global e-commerce sales are expected to reach over $6 trillion in 2024, as 24% of retail purchases will be online. It is also expected that the e-commerce market will grow by 10% in the upcoming years, reaching a value of $5.026 trillion in 2028. Moreover, in 2023, 2.64 billion people were shopping online; however, in 2024, this number is expected to increase to 2.71 billion (Demand Sage, 2023).

The previous statistics show that more people will shop online in 2024, which means the demand in the e-commerce market will increase. With a basic economic understanding, one can conclude that the increased demand will need an increased supply. That means more e-commerce stores will join the market, increasing competitiveness. 

Tips:

• Be Different! Differentiate! Have a competitive advantage! There needs to be more ways to highlight how important it is to work on making your e-commerce business stand out in the market in 2024. Therefore, you can’t enter the new year without knowing what the edge of your e-commerce store is. Whether it is high-quality products, exceptional customer service, frequent promotions, or something else, your store must have something different. 
• Keep your friends close and your competitors closer! However, we’re not saying you should go on a trip with your competitors in 2024. All we’re saying is to keep an eye on the market. In other words, invest in data collection and analytics of competitors, track the pricing of their products and services, monitor their products or services catalogs, and follow customers’ reactions towards them. 

3- Customer Satisfaction, Loyalty, And Retention

You would hope that in a time of economic pressures and increasing competition keeping you on your toes, customers would ease up on you a little. However, unfortunately, that will not be the case in 2024. It is the exact opposite. 

Customers today are very cautious about where and when they spend their money. They are also becoming very aware of the abundance of options available. Hence, satisfying your customers, keeping them loyal, and retaining them is becoming very challenging. 

Remember that you also should be cautious about where you spend your money. You don’t want to find yourself losing money on customer acquisition costs.

Check out this article to discover the best tactics and strategies to reduce Customer Acquisition Costs (CAC).

Tips: 

• You need to be as flexible as you can get. In 2024, there is no time to waste on denying how fast customers’ expectations change. Put that time and effort towards adapting to these changes. 
• Prioritize customer service and customer support. Invest in it in every possible way. For instance, you can integrate new technologies into your customer support system.
• If you don’t already have a loyalty program, it’s time to develop one. Your chances of having a high customer retention rate are much better with a loyalty program than without it. This tip can also be helpful when dealing with increasing competition because most e-commerce stores today have a loyalty program, and you don’t want to be the only store that does not. 
• Don’t stop investing in proper customer segmentation because understanding your customers and segmenting your target audience is now more crucial than ever. 

Speaking of customer segmentation, converted.in offers a marketing automation tool that can conduct customer segmentation without you having to exert any effort. 

4- Concerns About Data Privacy And Cyber Security Threats

They always tell you how crucial it is to gather as much customer data as possible, but they don’t stress enough how critical it is to invest in the privacy of this data. Cyber security threats are one of the biggest challenges facing e-commerce stores in 2024. Unfortunately, technology is a double-edged sword. 

Just like it is important to leverage technological advancements for your e-commerce store, it is equally important to mitigate the risks they can create for your business. 

Research shows that Global cybercrime damage costs are expected to grow by 15% per year over the next two years, reaching $10.5 trillion annually by 2025 (Forbes, 2023). That will result in customers becoming more and more skeptical and hesitant about which e-commerce stores to share their data with and which ones to avoid. 

Tips:

• Ensure that you regularly back up all your customers’ data. 
• Invest in your IT team and ensure that it includes experts in cyber security. 
• Reassure your customers by adopting SSL certificates, two-factor authentication, security plugins, encryption protocols, secured payment getaways, and other commonly used cyber security measures. 

5- Supply Chain And Logistical Challenges

Many factors can cause disruptions in the global supply chain, resulting in unavoidable logistical challenges for e-commerce businesses. These factors can include natural disasters, geopolitical tensions, or economic crises. The world is becoming increasingly unpredictable. You would be surprised how one small event can impact the availability of products. 

Tips:

• Have complete visibility of your supply chain and regularly monitor the different stages of the supply chain process. 
• Regularly track your inventory and invest in inventory management.
• Diversify your supply networks. In other words, try to have relationships with multiple suppliers in different parts of the world. Also, always have backup suppliers. 
• Try localizing your supply chain and depending on domestic suppliers. 

6- Keeping Up With The Technological Advancements

Technology is great and everything, but trying to keep up with it can get overwhelming sometimes, don’t you agree? 

Keeping up with technological advancements will be a constant challenge every year because the world is not planning on putting a hold on its technological ambitions anytime soon. Therefore, this is a challenge that you will always have to deal with.

Tips: 

• Artificial Intelligence (AI): One day, artificial intelligence used to be something out of reach that people talked about as if it were from another planet. However, today, people and businesses use artificial intelligence daily as if they have known it their entire lives. That makes it on top of the list of technological advancements that you must keep up with in 2024. 

For example, using AI-powered customer service, such as AI-powered chatbots, can help you increase customer satisfaction; hence, cross that challenge off your list. Also, AI can help you make better product recommendations and personalize your customers’ experiences better, helping you deal with the challenge of hyper-personalization, which we will thoroughly discuss in another point. 

Research shows that 91% of top businesses have an ongoing investment in AI and hope to increase it in the upcoming years (NVP, 2022).

• The Metaverse: We advise you to invest in the metaverse while it’s still in its early stages because that will give your e-commerce business an edge, allowing it to stand out amongst competitors. Allow your customers to enjoy a different experience with your e-commerce business in 2024 by stepping virtually into the store using Augmented Reality (AR) and Virtual Reality (VR) technology.

• Blockchain Technology: Today, there is a sophisticated database system called blockchain technology that makes it possible for information to be shared transparently inside a business network. Data is kept in blocks that are connected in a chain within a blockchain database. Keeping up with that technology can help you mitigate the challenge of supply chain disruptions by recording every step of the process and paving the way for more decentralized marketplaces. 
• New Payment Methods: To keep up with the technological advancements of 2024, you should broaden the payment options you give to your customers. Allow the use of mobile payments and digital wallets, such as Apple Pay, Google Pay, PayPal, Payoneer…etc.
• Voice Search: Even the search process on your e-commerce website must be revolutionized in 2024. One way you can do that is by integrating voice search in your store and ensuring that your website is well-optimized to support it. 

7- Changes In The Regulatory Landscape

Regulations impacting the e-commerce market, directly or indirectly, are gradually increasing. A few years ago, you wouldn’t have heard many people use the terms “e-commerce” and “regulatory landscape” in the same sentence. Nevertheless, it is something that you will hear about very often in 2024 and the upcoming years. 

In 2024, you will witness the rise of e-commerce-related laws and regulations in many countries around the world, such as regulations for E-Signature, Anti-Cyber Security Threats, Information Technology Crimes, Personal Data Protection, National Strategies For Artificial Intelligence, Intellectual Property Rights, Consumer Protection, Taxes, Digital Identity, Online Payments, and others. 

Tips:

• The best way to deal with this challenge is to monitor the domestic and global regulatory landscape. If you don’t possess the necessary expertise, hire someone who does, or outsource a government relations agency that can keep you updated with all changes that might impact your e-commerce business. 
• Take this challenge seriously, and ensure you abide by all the laws and regulations. 
  

8- Committing To Causes, Such As “Environmental Sustainability” and “Women's Empowerment.”

We do not doubt that you already care about the planet and wish to see women empowered. However, we are here to tell you that these two causes will be on top of the list for your customers in 2024. 

Awareness about environmental sustainability and women's empowerment has been increasing for years. That awareness might be reaching a whole new level where customers expect businesses not to be merely aware of but to commit to making actual change.

Tips:

• Dedicate part of your 2024 budget to shifting to eco-friendly and recyclable or biodegradable materials and packaging.
• Try to reduce your energy consumption and shift to renewable energy wherever possible. 
• Try to contribute to reducing carbon emissions. Many countries are planning to reward businesses that reduce carbon emissions in 2024. 
• As for women's empowerment, you must ensure that women working in your e-commerce store have the same opportunities as men in terms of wages, salaries, promotions, training, and everything else. Also, ensure that the work environment at your store is safe and inclusive. 
• Let your customers know about your commitment to environmental sustainability and women’s empowerment. For instance, launch marketing campaigns centered around these causes, collaborate with influencers or organizations interested in these issues, and support as many related initiatives as possible. 

9- Cart Abandonment

You might be thinking that cart abandonment is not a new challenge, and you’re right. However, even though it’s not new, it is not going anywhere anytime soon.

Recent research shows the average cart abandonment rate across all industries is around 70% (Drip, 2023). THAT IS A HUGE PERCENTAGE, which qualifies this as one of the persisting e-commerce challenges for 2024. 

Instead of giving you a few tips on how to deal with this challenge, here’s a whole article about the most common cart abandonment reasons and how to solve them. 

10- Going Omnichannel

Going omnichannel for an e-commerce business means offering a seamless shopping experience to customers across different channels, platforms, and devices. It is about existing wherever your customers are and whenever it is convenient for them. In 2024, the challenge is not in working through multiple channels and platforms as much as in ensuring that all these touchpoints are perfectly connected, well-synchronized, and transmitting the same message and quality of service.

Research shows that 73% of retail customers shop across multiple channels. Additionally,  retailers who use three or more channels increase customer engagement by 251% more than single-channel retailers (Capital One Shopping, 2023). Again, having accounts on multiple social media platforms and having both an e-commerce and a brick-and-mortar store is easy. Seamlessly synchronizing them is where it gets challenging and tricky. 

In 2020, when the COVID-19 pandemic erupted, quarantine was imposed, and people stopped going to physical stores; businesses only had to focus on their online shops, social media platforms, and other third-party marketplaces. In 2021 and 2022, when places started opening again, businesses shifted their focus to embracing customers’ return to in-person shopping. In 2023, it became obvious to e-commerce businesses that customers got used to shopping across multiple channels and jumping from one touchpoint to another. That’s why, in 2024, this is considered a challenge for e-commerce businesses. It is not a luxury anymore; it is something your customers will expect to enjoy without disruptions. 

Quick Tip: Always remember that no matter which touchpoint your customer chooses to continue their buying journey, they must be able to seamlessly pick up where they left off. 

You can find all the Tips you want in this article about the top omnichannel marketing strategies for e-commerce. Also, check out this article to discover the best omnichannel marketing examples for e-commerce. 

11- Hyper-Personalization

We’ve been talking for years about the significance of personalization for e-commerce businesses. In 2024, all the talk will be about taking it to the next level: hyper-personalization. 

In 2024, EVERYTHING should be personalized.

Tips: 

• Do not waste time manually personalizing customers’ experiences when automation systems and AI-powered technology can do it for you.  
• Leverage all the behavioral and real-time data you get from your multiple channels and touchpoints and use them to extremely tailor and customize customers’ experiences. 

12- Expansion To New Markets

Are you struggling with competition in your local market? 

Do you need to broaden your customer base?

Are you considering expanding your business to international markets?

The global market in 2024 is offering numerous expansion opportunities. The challenge is represented in how much your e-commerce business will be able to catch these opportunities and take advantage of them. 

International e-commerce, also known as cross-border e-commerce brings complexities like handling different tax laws, shipping regulations, cultural differences, and customer preferences. 

Tips:

• Investing in market research is your way to deal with this challenge. Carefully study the market you wish to expand to and the audience you plan on targeting. 
• Consider having strategic partnerships in the new markets to make the integration process easier for you. 

13- Overwhelming Number Of Marketing Strategies: What Should You Choose?

With every passing day, marketing evolves. As much as having an abundance of marketing approaches that e-commerce businesses can adopt is a good thing, it can become overwhelming. 

Sometimes, it gets tempting, pushing you to adopt more marketing approaches than you need or can handle. You cannot afford such a mistake in 2024 because everything costs, and as discussed earlier, the economic situation requires cautious spending. 

Tips: 

• Carefully formulate your marketing plan and strategies for 2024. In other words, investing in marketing planning is as critical as investing in marketing implementation.
• Differentiate, but do it wisely. You don’t need to adopt every marketing technique in the book. 
• Follow the trends only if they suit your e-commerce business’s needs. For example, if you’re an e-commerce store that sells makeup products, it might be suitable for you to engage in influencer marketing more than an e-commerce store that sells batteries for cars. 
• If you plan on using traditional marketing techniques, such as email marketing and social media advertising, ensure that you AUTOMATE!

Speaking of automation, the marketing automation tool offered by converted.in can create, personalize, and automate your email marketing campaigns and social media ads. Be sure to check it out. 

Final Words:

To sum up, navigating the constantly evolving e-commerce market comes with unavoidable challenges. However, if you familiarize yourself with these challenges early on in the year, you can transform them into opportunities for growth. In this article, we discussed some of the most crucial challenges that e-commerce businesses are expected to face in 2024. We also provided as many useful tips as possible on how to deal with these challenges.

It’s your turn now! Familiarize yourself with the challenges and be prepared for them! 

These challenges have got nothing on you, Champion!