Overcoming Key Challenges eCommerce Brands Face When Growing

Overcoming Key Challenges eCommerce Brands Face When Growing

Running an eCommerce brand isn’t what it used to be. With more competition, higher ad costs and increasingly demanding customers, even the most experienced business owners find themselves facing growth challenges when selling online. If you’ve built a solid foundation but scaling feels harder than it should, you’re not alone.

Introduction to Scaling eCommerce

Scaling an eCommerce business involves more than just increasing sales; it’s about expanding your online store to meet growing demands while maintaining efficiency and customer satisfaction. As customer expectations evolve, eCommerce businesses must stay agile, adapting to new market trends and technological advancements to remain competitive.

Successful eCommerce businesses prioritise creating exceptional online shopping experiences. This means ensuring a seamless checkout process, providing excellent customer service and continually enhancing user experience. Investing in digital marketing, social media and targeted marketing campaigns is crucial to attract potential customers and drive traffic to your online store.

1. Paid Ads Are Getting Pricier for Ecommerce Businesses — Here’s How to Stay Profitable

Customer acquisition has become significantly more expensive, and converting website visitors into paying customers presents additional challenges. According to IRP Commerce, the average cost per acquisition (CPA) in the UK eCommerce market increased by 1.43% from 7.86% to 7.97% between March 2024 and March 2025.

Fix it:

• Shift some budget into retention focused channels like email and SMS.
• Invest in SEO and content marketing to generate organic traffic over time.
• Make use of first party data to build smarter, high performing lookalike audiences.

2. Conversion Rates Are Declining

Attracting traffic is one thing; converting it is another. New research by ECOMMPAY and IMRG highlights that multiple checkout challenges are a key contributor, with the average conversion rate across retailers at just 1.5%. The study also found a sharp contrast in performance between guest checkout (45%) and registered users (64%), underlining how friction in the checkout process directly impacts sales.

Fix it:

• Conduct A/B tests on key pages — headlines, product imagery, CTAs.
• Utilise heatmaps, like Microsoft Clarity, and session recordings to identify drop off points.
• Personalise content based on user behaviour to enhance engagement.

3. How Supply Chain and Inventory Challenges Can Disrupt Your Growth

Post Brexit and pandemic, UK eCommerce brands continue to face unstable supply chains. The integration of AI and automation in inventory management comes with significant technical challenges. Delays, unpredictable tariffs and changes in customer expectations have made inventory planning more complex.

Fix it:

• Implement demand forecasting tools that integrate with your store and supplier data.
• Offer pre-orders or back in stock notifications to maintain customer interest.
• Be transparent with customers about postage timelines and stock status.

4. Your Brand Isn’t Standing Out

In a crowded market, good visuals and decent copy aren’t enough. Shoppers want to connect with something real. Exploring various ecommerce business models, such as drop shipping and print on demand, can help a brand stand out by offering lower startup and operational costs compared to traditional retail. Without a distinct brand identity, it’s easy to get lost in the noise.

Fix it:

• Develop an engaging brand story and clearly communicate your values.
• Encourage user generated content and showcase customer testimonials.
• Build a community through email, social media and loyalty programs.

5. Meeting the Demands of the Modern eCommerce Customer

Because of major players like Amazon, customers expect free postage, next day delivery, easy returns and flawless service. In fact, a 2023 Statista survey found that 84% of UK online shoppers always check a retailer’s return policy before purchasing, and 60% said they only shop at eCommerce stores offering free returns. This makes it essential for businesses to offer flexible return and refund options. Meeting these expectations is crucial for customer retention and relationship building, driven by excellent service and personalised communication that rewards loyal customers.

Fix it:

• Offer multiple delivery options — not just speed, but flexibility.
• Create a clear returns policy and automate the process where possible.
• Invest in customer support tools like chatbots, self-service FAQs, or even AI driven help desks — but don’t ditch the human touch entirely.

6. Tech Debt and Platform Fatigue

With constant changes to platforms, tools and algorithms, many eCommerce teams feel like they’re always playing catch up. Online identity verification is crucial for enhancing security and trust in digital transactions, ensuring that retailers can confirm the authenticity of their customers’ information. Whether it’s adapting to new analytics tools or emerging AI features, there’s often pressure to stay ahead.

Fix it:

• Regularly audit your tech stack to ensure it’s still fit for purpose
• Simplify your operations with automation — from Klaviyo email flows to synced inventory management and simplified returns.
• Stay informed but selective, don’t chase every trend unless it adds real value.

7. Customer Retention Gets Overlooked

While acquiring new customers is essential, neglecting existing ones can be costly. Making use of strategies such as Amazon’s advertising options and utilising social media platforms can effectively attract more customers to your business. According to Exploding Topics, the average customer retention rate across all industries tends to hover around 30-60%, with the retail sector typically seeing rates closer to the 60% mark. This shows that a significant portion of customers do not return, highlighting the importance of effective retention strategies that foster loyalty and long-term value.

Source: Exploding Topics

Fix it:

• Introduce a loyalty or referral program to reward returning shoppers.
• Create email flows tailored to post purchase, replenishment and cross sell opportunities.
• Use personalised offers and content to keep your brand front of mind.

8. Market Analysis and Research

Market analysis and research are the foundation of any successful eCommerce business. Understanding customer behaviour and preferences are crucial for creating strategies that resonate with your audience. Conducting thorough market research helps eCommerce companies identify trends, opportunities and challenges within the industry, allowing them to stay ahead of the competition.

Analysing customer data is essential for developing personalised marketing strategies that enhance customer satisfaction. By understanding what drives your customers’ purchasing decisions, you can tailor your offerings to meet their needs more effectively. Staying up to date with the latest eCommerce trends, such as mobile commerce and social media shopping habits, ensures that your business remains relevant and competitive.

Market research also plays an important role in developing effective sales strategies. By understanding the market landscape, eCommerce businesses can optimise their online stores to provide better customer experiences, ultimately driving sales and fostering customer loyalty. In a rapidly evolving industry, continuous market analysis and research are indispensable for sustained growth and success.

9. Mobile Commerce and Technology

Mobile commerce, or m-commerce, has become a cornerstone of the eCommerce industry, with a significant portion of online purchases now made through mobile devices. For eCommerce businesses, prioritising mobile optimization is no longer optional—it’s essential. Ensuring that your online store is mobile-friendly, with secure payment gateways and a streamlined checkout process, can significantly enhance the shopping experience for mobile users.

Investing in mobile commerce technology, such as mobile apps and leveraging social media platforms, allows businesses to reach customers online more effectively. These tools not only facilitate easier shopping but also help in engaging with customers on platforms they frequently use, thereby increasing sales and customer satisfaction.

Moreover, mobile commerce solutions are crucial for reducing lost sales and boosting revenue. By adapting to the latest mobile commerce trends, eCommerce companies can stay competitive and ensure that their customers have a seamless shopping experience, regardless of the device they use. In the fast-paced world of eCommerce, staying ahead in mobile commerce is a key driver of success.

10. Scaling Strategies

Scaling an eCommerce business requires a well thought out business strategy that encompasses market research, customer analysis and financial planning. Prioritising customer retention through loyalty programs and ensuring high levels of customer satisfaction are fundamental for long term growth.

Optimising your online store is another critical aspect of scaling. This includes refining product listings, offering diverse payment options and managing postage costs effectively to enhance the overall customer experience. Successful eCommerce businesses also invest heavily in digital marketing, social media and targeted marketing campaigns to attract new customers and increase sales.

Continuous monitoring and evaluation of sales strategies, customer satisfaction and market trends are essential to ensure sustained growth. By staying informed and adaptable, eCommerce companies can navigate the complexities of the industry and achieve long term success. Scaling is not just about growing bigger; it’s about growing smarter, ensuring that every aspect of the business is aligned with the goal of sustainable growth and customer satisfaction.

Final Thoughts

Scaling an eCommerce business presents several challenges, including rising ad costs, declining conversion rates and shifting customer expectations. However, these obstacles can be overcome by focusing on customer retention, simplifying operations with automation and differentiating your brand.

Achieving ecommerce success involves overcoming these challenges and ensuring sustainable growth by continuously adapting to changes in the market, making use of data to make informed decisions and prioritising long term customer loyalty.