With the increasing demands of customers, and technological upgradation, the e-commerce industry is not just changing year by year instead we see frequent changes in it whether it is related to trends in social media, the upgradation of a particular e-commerce software, or the impact of SEO algorithms in the ranking of online stores which is also impacting the e-commerce store development agency and Magento development companies. And who knows what other disruptions lie ahead in the e-commerce industry for online merchants, customers as well as e-commerce store development service providers.
For instance if we take the example of IKEA, leveraging AR/VR in their mobile apps since 2022 by using Apple’s ARKit platform to let customers view digitally-reproduced 3D product images in their homes. Users can examine whether a furniture piece fits nicely in a room with their mobile devices. Now such trends persuade other competitors to offer the same services if they want to fulfill the customer’s needs without any convenience in the future.
Now the above is a single example that we have mentioned, if you search online, you will find hundreds of such examples of different brands. That’s why as competition intensifies, businesses must adopt innovative strategies to remain viable in this challenging environment while keeping in mind the technological advancements that are unlocking new possibilities to elevate the online retail experience over time to time.
We understand that predicting trends is never easy, and years of experience in driving digital transformation have offered Rock Technolabs a front-row seat to the rapid evolution of the e-commerce world. So, in the blog, we have identified some major challenges that going to occur in 2025 for e-commerce store development providers, and merchants.
Competition
Trend:
99% of online shoppers go for reviews when making a purchase, even 96% of customers look specifically for negative reviews. Online reviews can hugely impact the sales of a product as 49% of shoppers trust customer reviews as much as personal recommendations from family and friends. And you can understand if your reviews are not good from other customers or there aren’t enough testimonials, then it can become a hindrance.
The e-commerce industry is becoming increasingly crowded, with small businesses competing against both established giants and emerging startups. Every e-commerce store development merchant tries their best to make up leeway by offering the best pricing, products, and services, all vying for the attention of the same target customers, so you have to make sure that everything is at its place when you are in the online world only then you would be able to get good reviews.
Challenges?
Price Wars:
Just do a little bit of research or you might already be aware of the fact that you are not the only one who is selling a product that is not offered by your opponents, if your opponents exist it means the same products exist. However, it has been noticed that Magento development store merchants mostly focus on competing solely on price which is no longer sustainable.
Brand Differentiation:
There are too many similar options for the customers nowadays so standing out has become a daunting task. Harsha Reddy, founder of Poppin Media, suggests that e-commerce businesses can set themselves apart by maintaining a professional, optimized website that aligns with Google’s algorithm updates. Offering a niche product or service tailored to a specific audience can help attract loyal customers while boosting domain authority.
Cybersecurity
Trend:
With cyberattacks on the rise in its various forms (phishing attacks, cryptojacking, bot-based credential stuffing, supply chain attacks, insider attacks, and so on), small and medium-sized e-commerce businesses are under increasing pressure to adopt robust cybersecurity measures.
Challenges?
Vulnerability to Attacks:
Not all businesses have enough resources especially if they are small-sized ecommerce owners to withstand downtime caused by cyberattacks. Victor Congionti, co-founder of Proven Data, stresses the importance of implementing strong policies and procedures to establish a solid cybersecurity framework.
Data Protection:
As a merchant and ecommerce development service provider you can’t take risks with customer data for which you have to invest in tools like access control systems and data security software to minimize risks. Empowering employees to follow cybersecurity best practices is equally crucial, in case you have a Magento store it would be secure if you consider all the features, and tools offered by this open-source platform like PCI compliance, file permissions, and so on, or you can ask your Magento development service provider to consider such actions.
Incident Response Plans:
A lack of preparedness can magnify the impact of cyberattacks, such as ransomware. Congionti advises businesses to have a comprehensive incident response plan to reduce downtime and continue serving customers through alternative methods like phone sales.
Quality Website Traffic and Visitor Conversion
Trend:
Whether it is organic or inorganic traffic, for the e-commerce store development agencies for merchants, driving quality traffic to e-commerce sites and then converting visitors into paying customers is becoming more challenging which is the result of many factors like SEO algorithms, keeping up with social media trends, budgetary issues, or a poor performing site. Taking care of everything is a must but a well-optimized, user-friendly website is essential for standing out and engaging the right audience.
Challenges?
Low Conversion Rates:
Global conversion rates average below 3%, making it critical to focus on attracting the right visitors. Lisa Chu, owner of Black N Bianco, emphasizes that having a clean, modern, and trustworthy website tailored to your audience is key to boosting conversions.
SEO Optimization:
Now there is no lie that a website is the basic foundation of your online business but at the same time it’s not everything. To get organic visibility SEO strategies play a key role. Phillip McCluskey, commercial director of One Erth, highlights the importance of conducting thorough keyword research. Focusing on long-tail keywords can help businesses target specific niches and drive more relevant traffic.
Breaking Through the Noise:
Gone are the days when you just needed to build a website, it starts ranking and you get enough traffic on your store. Now things are more tricky. Shirley Tan of Yahoo Small Business points out that with the internet becoming increasingly saturated, e-commerce businesses need to create impactful strategies to capture and retain customer attention which is not possible without understanding the target audience and fostering loyalty among a core customer base with a long-term approach.
Subscription-Based E-commerce Models
Trend:
Subscription-based e-commerce is gaining momentum as businesses strive to build customer loyalty and foster long-term engagement.
Challenges?
Automation and Personalization:
Customers expect seamless experiences, including automated reordering and scheduled deliveries for routine purchases. Businesses must invest in systems that simplify the process while tailoring subscription offerings to individual preferences. Including this in subscription-based model, you have to consider exclusive perks to retain customers in the long run.
Voice Commerce
Trend:
Voice commerce is another popular example of technological upgradation, like we give commands to Alexa, in the same way, customers now enjoy voice commerce to search and purchase products online as tools like Alexa and Google Assistant are making hands-free browsing and ordering more intuitive and convenient for users.
Challenges?
Accuracy in Interactions:
Ensuring that voice recognition tools can accurately understand and process customer queries is critical. Enhancing natural language processing capabilities will help deliver a smoother shopping experience.
Adoption in Key Industries:
Voice commerce is particularly valuable for industries like groceries and clothing, where hassle-free reordering is essential. Businesses must identify opportunities to implement voice-activated solutions that cater to their audience’s needs.
Return and Refund Policies
Trend:
A transparent and customer-friendly return and refund policy has become a cornerstone of trust in e-commerce. Today’s online shoppers prioritize brands that guarantee hassle-free returns, fostering confidence in the purchase process.
Challenges?
Building Trust: Shoppers often hesitate to buy from online stores with unclear or restrictive return policies. Syed Ali Hasan, digital marketing manager at Film Jackets, emphasizes the importance of creating fast, simple, and transparent return procedures to gain customer trust and satisfaction.
Reputation Risks: As pointed out by Rubright, rigid or non-existent return policies can harm a brand’s reputation. Customers may perceive such policies as a red flag, deterring potential buyers and increasing skepticism about product quality.
Customer Experience
Trend:
The shift to online shopping has heightened expectations for e-commerce businesses to match or surpass the personalized experiences of physical stores. From pricing strategies to customer segmentation, delivering an exceptional online experience is critical to building loyalty.
Challenges?
Meeting Elevated Expectations:
Customers now demand seamless and personalized experiences online, similar to what they receive in-store. George Dunham, CEO of epaCUBE, stresses that clear product offerings, competitive pricing, and effective loyalty programs are essential for success.
Pricing Parity:
Discrepancies between online and offline pricing often frustrate customers. Businesses must ensure that their e-commerce platforms reflect consistent pricing to avoid losing sales to competitors.
Wrapping Up
Like manufacturing, healthcare, finance and many other sectors across the globe, the e-commerce sector also has some challenges. It would be very advantageous for your business growth that you must be aware of all such challenges that will assist you in your e-commerce store development.
