3 Harsh Challenges Faced by Web Design Startups During the Initial Years

Do you wish to launch a website design startup?

Did you face challenges during your initial startup years?

E-commerce and website design industry has been a popular concept since a few years now and is expected to gain more importance after the introduction of new development and security technologies. It is a hyper-valued & hyper-funded market because of the innumerable business opportunities that it offers.

It is surely a loved industry because of the many success stories and the vision of millions of dollars that it encompasses.  Millions are made, and entrepreneurs are born, but millions are lost also!! It may attract investors and creative minds alike, but the actual process is a bit complicated and full of challenges. It might sound attractive to invest in making an e-commerce website or a mobile app and enjoy the amazing benefits but always learn about the challenges before you invest time & money anywhere.

The various challenges faced by E-commerce industry can be described as follows:

  1. Logistics

Even though there are thousands of delivery services companies in the world, but delivering to the smaller cities is still a task. Even the multinationals like DHL & FedEx find it difficult and not-so-pocket-friendly to deliver to smaller cities because of lack of facilities in that area. Individual carriers are often hired to specifically cater to their small regions and make it a smooth experience. E-commerce startups find it difficult to find the best delivery options and still they have to advertise the ‘home delivery’ option on their portals to attract customers.

Making good relationships with trusted delivery services companies require ongoing focus because the company needs to pick the package from the storage facility, take care of the package, and deliver it to the customer’s address on time. It may sound easy, but it requires a lot of systematic management qualities. Late deliveries or broken items are not good for the business or for customer acquisition. The last mile delivery is another hurdle which basically means delivering to smaller places, where the big boys don’t usually operate in. Bicycle riders & independent delivery companies are hired to cater to such regions and more focus is required because of the credibility & quality issues.

 

It may sound easy, but it requires a lot of systematic management qualities. AT www.afterfivebydesign.com/web-design-myrtle-beach.  Late deliveries or broken items are not good for the business or for customer acquisition. The last mile delivery is another hurdle which basically means delivering to smaller places, where the big boys don’t usually operate in. Bicycle riders & independent delivery companies are hired to cater to such regions and more focus is required because of the credibility & quality issues.

  1. Cash on Delivery

The biggest attraction of E-commerce websites and mobile apps is the cash-on-delivery option. Truth be told, it allows individuals to buy whatever they wish to and pay after they receive their order. Sounds convenient? Not so convenient for the business owners because of the high return rates. Usually, all customers prefer the ‘COD’ option, but it is rather expensive for the business owner to accept the returned items because it not only costs them the delivery charge but also increases their liability towards the product, making it riskier.

The courier companies also play the crook by holding the money for up to two weeks or charge 3 percent for the COD service, which forces the e-commerce company to restock inventory even before the cash arrives. The return rates sometimes cost up to 10 % because of the reverse logistics. With that being said, courier companies have substantial running costs they must cover.

The courier companies also play the crook by holding the money for up to two weeks or charge 3 percent for the COD service, which forces the e-commerce company to restock inventory even before the cash arrives. The return rates sometimes cost up to 10 % because of the reverse logistics.

  1. Failure Rates in Online Payments

The online payments are discouraged because of the security issues and low penetration of debit & credit cards in the economy. The success of online payments for e-commerce websites is as low as 65%. There are many payment gateways which offer easy online payment options with superior technology but are not as widely used because of the security concerns and less knowledge among the customers.

Security concerns that have now been escalated to the members to parliament in the EU. Even though the payment gateways make the whole experience more convenient, customers are still skeptical about sharing their financial information with a third party, which increases the usage of COD transactions.

Do not invest in anything you’re not completely sure about. Know before you offer money!