4 Emerging Challenges Faced By E-commerce Startups in 2022

E-commerce is one of the fastest-growing segments in today’s digital market. It has also become a lucrative business opportunity for startups looking to expand their operations. E-commerce investments are projected to reach $200 billion by 2021, according to data from YC Research and Accel Partners. There are numerous challenges that every e-commerce startup must address before venturing into this business segment. Getting a solid understanding of the market, identifying target customers, creating an attractive online store, and developing a strategic marketing plan are just some of the many things you need to keep in mind as you begin your journey as an e-commerce manager. If you are someone who has already started thinking about launching your e-commerce venture, here is everything you need to know about the challenges facing e-commerce startups in 2022.

Emerging challenges for E-commerce startups in 2020

1. E-Commerce Startups Operation Costs Will Rise

Emerging challenges for E-commerce startups in 2020

Depending on the level of investment, setting up an e-commerce startups operation can be very costly. According to research from the Food Marketing Institute, the average cost of setting up a grocery store chain is around $1.7 million. But this figure can increase significantly if you plan to operate a high-end grocery store. For e-commerce, the cost of setting up a business depends on the model you choose, the products you plan to sell, and your target audience. For example, if you want to sell cosmetics, you need to take into account the cost of setting up a laboratory to test ingredients and mix chemicals. To succeed in this competitive market, you need to be careful about how much you spend on operations, especially when it comes to inventory management. The more you spend, the higher the chances are that you will incur a loss.

2. Consumers Will Demand More Transparency and Product Authenticity

In the age of digital shopping, customers have become more demanding and selective. They are constantly looking for ways to verify the authenticity of online products. Moreover, they are requesting more information about the sellers to ensure that they are dealing with legitimate organizations. In fact, a study found that a majority of customers would abandon an online purchase if they were not offered the option to verify the authenticity of a product.

This highlights the growing need for transparency and authenticity in e-commerce startups. If your online store does not have a unique verification system, it will be hard for the customers to trust you. As an e-commerce manager, it is important to keep this factor in mind when creating your product catalog. You need to determine the right authentication system based on the type of products you are selling. It is also essential to implement a verification system that is easy to navigate and understand by your customers.

3. Seller Reputation Will Become More Important Than Brand Reputation

One of the main concerns of customers buying products from e-commerce sites is whether they will receive the product they ordered. Earlier, it was possible to establish authenticity by providing a lot of information about a brand. But this is not the case anymore. In fact, recent studies show that buyers are more concerned about the seller than the brand. Customers want to ensure that when they receive an item, it is actually from the seller they selected online.

And only a seller’s reputation will make them confident enough to proceed with the purchase. Because of this trend, e-commerce managers need to place more emphasis on seller reputation. Your company’s name may be recognized by a handful of buyers, but the seller’s name has the ability to shape your brand image. This is where feedback management systems like NPS come in handy. By collecting feedback from your customers and acting on it to improve their shopping experience, you can enhance your seller’s reputation.

4. Blockchain Technology Will Fundamentally Change How E-commerce Startups Operates

The e-commerce industry has been growing steadily over the past few years. And as more customers start to shop online, e-commerce will become more lucrative. However, there is one major challenge that every e-commerce manager needs to keep in mind. And it is a growing concern over the security of customer information. With the advent of cryptocurrencies, blockchain technology has become an integral part of the e-commerce landscape.

E-commerce managers are now focusing on enhancing the security of their data to protect sensitive information stored in customer accounts. This is where blockchain technology can come in handy as it is one of the most secure ways to store information online. By 2022, it is expected that half of all e-commerce transactions will be powered by blockchain technology. This is because this system offers a decentralized network that is difficult to hack. It also comes with a host of other benefits, including lower fees and increased transparency. With blockchain technology, it becomes easier for e-commerce managers to authenticate their customers, which results in higher conversion rates.


Now that you have a better understanding of the challenges facing e-commerce startups in 2022, it is time to devise a strategy to overcome them. While it may appear to be a lucrative business opportunity, it is important to remember that there is no guarantee of success in this segment. If you want to stand out from the crowd, you need to put in the right amount of effort to prepare yourself for success.