Top challenges for e-commerce business in 2023

2023 will go down in history for having a rather long list of unique challenges for all of us, but what are the top challenges for the e-commerce business in 2023? It isn’t just the recovery from COVID that has thrown up difficulties to navigate. A cost of living and energy crisis are among some other less favourable circumstances. Here are some of the top challenges e-commerce entrepreneurs will have to navigate this year, and how to do so.

For some e-commerce entrepreneurs, 2023 is the perfect environment to concentrate on their business and make growth a priority. Although you may be forced to make significant cutbacks in your personal and business life, this year presents a host of new ways and opportunities to navigate an uncertain climate.  Stay on top of these challenges and you can have a flourishing e-commerce business in 2023.

Brexit

Prior to COVID, Brexit was the elephant in the room, and it remains a pressing concern for many e-commerce entrepreneurs. On the 31^st of December 2020, the United Kingdom completed its separation from the European Union, ending the Brexit transition period. Brexit regulations mean that e-commerce businesses are required to abide by new tax regulations and customs regulations.

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E-commerce businesses need to do a full review of their products. If you are selling within the EU or importing product from outside the UK, check your contracts for price clauses. It is important to ensure your products are still profitable when trading internationally under Brexit rules. If product lines need to be replaced or sourced elsewhere, you should do so now. Don’t let pressing deadlines lead you to less-than-ideal choices.

Borderless e-commerce

E-commerce business in 2023 is very much an international affair. While consumers have been purchasing from across the world for many years now, they are tired of calculating exchange rates and slow lengthy shipping times. Successful international e-commerce businesses now need to provide an experience that appeals to people in all nations, not just the UK.

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If you are selling through your own site, now is the time to invest in some borderless architecture. Install code that recognises your customer’s location and switches to local currency and appropriate language choices. Make sure your customers see measurements that are used in their country as they can be put off by having to convert them themselves. Set clear and realistic expectations for international shipping and deliver within that window or offer a discount on a follow-up purchase.

COVID-19

Whether you want to talk about it or not, three years later COVID-19 is still having a significant impact on e-commerce business. With supply chains still recovering and delivery times extended due to a backlog of online purchases, e-commerce businesses can slow to a near halt. In the last year or so, things have started to pick back up, but it is worth remembering that COVID 19 is far from over and that future spikes may cause localised lockdowns and a cease to manufacture or delivery. We are far from past these issues.

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Mitigate the damage. Add clear messaging to your site and any e-commerce platforms you sell through explaining how COVID has affected your business. Customers are more forgiving if you explain from the start and meet their expectations than if they order and don’t receive their product for weeks. Keep a clear eye on the situation and how it affects your product lines. If something changes, send an email to affected customers to keep them appeased as they wait for their goods. Maintain goodwill and your customers will stay with you while you weather the storm.