The 10 Biggest Problems in Ecommerce (and Why Many Brands Can’t Solve Them)

Ecommerce is booming, but its rapid growth poses unique challenges for businesses.

For starters, online brands are facing more competition than ever before. At the same time, acquisition costs are skyrocketing, making it difficult for small businesses to stay afloat.

Add to that the challenge of retaining customers in an oversaturated market, where poor reviews can ruin a brand's reputation.

Not surprisingly, many companies find themselves stuck in a loop — struggling to grow, drowning in costs, and grappling with stagnant sales.

The worst part? These are just a few of the biggest problems in ecommerce, and there's no clear path to fixing it all.

As difficult as things may seem, you can turn them around and achieve success. But first, you need to identify and understand the challenges that keep you from leveling up your business.

The ecommerce pressure cooker: Rising growth, rising expectations

Retail ecommerce sales worldwide generated $4.12 trillion in 2024 — and this figure is expected to rise to $6.49 trillion by 2029. According to Statista research, the number of digital buyers in the U.S. could increase by 60 million (21.9%) during this period.

That's great news for ecommerce businesses, right?

Not necessarily. It depends on how you look at it.

As the ecommerce market expands, it becomes increasingly difficult to keep up with customer demand and shifting trends.

In a recent Salesforce survey, 64% of ecommerce leaders agreed that meeting customer expectations is harder than ever. Most respondents also showed concern regarding website security, data privacy, and regulatory compliance.

With the latest technology at their fingertips, ecommerce giants like Amazon, Best Buy, and eBay are raising the bar for customer expectations.

For example, nearly two-thirds of shoppers expect to receive their orders within 24 hours. In fact, 6.42% would abandon their carts if same-day delivery was not an option, reports Digital Commerce 360.

Researchers also found that eight out of 10 consumers prioritize free shipping above all else. What's more, 56% expect online retailers to keep products in stock and ready to ship — and 34% would leave their carts if an item was out of stock.

Buyers also want highly personalized experiences from the companies they engage with. In a 2023 survey, 53% of retail consumers said they would increase their spending with brands offering such experiences. Around 60% agreed that retailers could do more to tailor their interactions.

These rising expectations pressure businesses to step up their game and refine everything from shipping speed to how they interact with customers. This is often difficult for small companies due to budget constraints and limited resources.

Top 10 biggest problems in ecommerce — and how to fix them

From security threats to the growing need for personalization, ecommerce brands face increasing challenges that didn't exist five or 10 years ago. The best thing you can do is take a proactive approach and adapt quickly.

With that in mind, let's break down the biggest ecommerce challenges in 2025 and how they can impact your business.

1. High customer acquisition cost

Customer acquisition cost (CAC) is the average amount spent to acquire one new customer. This number varies by industry and can fluctuate based on business size, ideal customer profile, types of products, and other factors.

B2B ecommerce companies have a CAC of $64–$68, according to 2023 data from FirstPageSage. However, your actual customer acquisition cost could be as high as $377, depending on what you sell.

Either way, that's a lot of money for a startup or small ecommerce business. If, say, you sell arts and crafts, a high CAC may leave you with little to no profit.

Potential solution: Narrow down your audience based on age, income, preferences, and other criteria. By focusing on a well-defined group, you can target your marketing efforts more precisely and reduce acquisition costs.

2. Operational inefficiencies

Manual order processing, poor inventory management, slow customer support, and other operational bottlenecks can drive up costs and stunt growth.

For example, inventory inefficiencies can lead to stockouts or overstocking, resulting in higher operating expenses, order delays, and diminished profits. These issues also affect the customer experience and, ultimately, your bottom line.

Potential solution: Continuously collect customer feedback to identify pain points like slow delivery times, stock issues, or unclear return and refund policies. Leverage these insights to optimize your processes and reduce churn.

3. Cybersecurity threats

One of the biggest challenges online businesses face is the rise in cyber attacks. Ecommerce websites are particularly vulnerable to malware, digital skimming, financial fraud, and other threats resulting in significant losses.

For instance, 6.77% of ransomware attacks are targeted at ecommerce businesses. These security incidents can cause downtime, reputational damage, and loss of customer data.

Hackers can exploit any vulnerability in your website, from weak passwords and outdated plugins to unpatched software.

If they gain access to your checkout page, they can steal personal data and credit card information. They could also inject malicious scripts into your web pages to redirect traffic to fraudulent sites, harm your search rankings, or mine cryptocurrency.

Potential solution: Make data security a top priority. Implement multi-factor authentication (MFA), enforce the use of strong passwords, and install firewalls. Also, keep your ecommerce platform and software up-to-date to patch vulnerabilities. Go one step further and use intrusion detection systems (IDS) to spot suspicious behavior, such as multiple unsuccessful sign-in attempts.

4. Turning customer feedback into actionable insights

Many enterprises, including those in the ecommerce industry, struggle to extract actionable insights from customer feedback. The reasons vary from disconnected systems and fragmented data to feedback fatigue.

In today's digital world, customers share reviews across various platforms and touch points. This fragmented data makes it difficult for businesses to connect the dots and identify trends, recurring issues, or changes in buyer behavior.

The result? Slow response times, missed opportunities, and customer dissatisfaction.

Potential solution: Leverage technology to collect, analyze, and manage customer feedback more effectively. For example, you could use an AI-powered platform like OpenDesk to bring all your inboxes into one place and identify time-sensitive inquiries.

It's also worth looking into Shopify apps like Grapevine, Seguno, or Air. These tools can automate review requests, collect qualitative and quantitative feedback, and save response data for further analysis.

5. Online identity verification

As an ecommerce business owner, you need accurate data to understand buyer behavior. The more you know about your audience, the better you can meet their expectations and personalize your messaging.

A common problem is that some consumers don't enter their real name, age, phone number, or other personal details when shopping online. This can skew the data you collect, leading to wasted marketing dollars and a poor understanding of your customer base.

Potential solution: Implement online identity verification on your site to ensure potential customers are who they say they are. This service can reduce fraud risk, improve data accuracy, and streamline regulatory compliance. Plus, you'll gain the insights you need for more effective marketing strategies.

Look into online digital identity verification solutions like iDenfy, Persona, Veriff, or Trulioo. These platforms offer biometric authentication, automated age checks, face matching, and other services that allow you to verify users in seconds.

6. Shopping cart abandonment

According to the Baymard Institute, the average online shopping cart abandonment rate is around 70%, meaning seven out of every 10 orders don't result in a purchase.

Nearly half of the consumers surveyed by Baymard said they left their carts due to the fees incurred at checkout.

For example, some online businesses don't display the shipping charges until customers get to the payment page, leading to frustration. Others add unexpected fees that deter buyers and erode their trust.

Shoppers may also abandon their carts if your website requires them to sign up for an account or has a complicated checkout process. The same can happen when they encounter non-secure pages or technical errors.

Your Shopify return policy matters, too. A whopping 18% of buyers will abandon their carts if the return process is time-consuming, unclear, or expensive.

Potential solution: Make sure your website offers a smooth user experience at every touchpoint. Display shipping costs early on, provide a hassle-free return process, and implement features like guest checkout and one-click payments.

7. Growing competition

The number of ecommerce websites reached 26.5 million in 2023, and it continues to rise year after year. More than half of these sites are based in the U.S., with millions of businesses vying for the same slice of the pie.

Unless you're an established brand, you may find yourself struggling to stand out. Since consumers have more options than ever, it’s hard for newer or lesser-known brands to win their business.

Potential solution: Narrow your niche and try to do things better or differently than your competitors. Seek ways to set your Shopify brand apart — whether through exceptional customer service, bespoke goods, or exclusive perks for repeat buyers. Commit to delivering a seamless omnichannel experience, focusing on the platforms where your audience is most active.

8. Low customer retention

Ecommerce brands have an average repeat purchase rate of 28.2%. What this means is that less than one-third of first-time buyers will return to make a purchase.

On a similar note, the average customer retention rate for the ecommerce industry is 30%. Basically, only three out of every 10 shoppers will stick with your brand over a given period, such as six or 12 months.

These trends pose several challenges for online businesses, such as increased customer acquisition costs and lower profitability.

One problem is that acquiring new customers costs more than retaining the ones you have. This aspect alone can impact your budget and return on investment (ROI).

Second, a low retention rate often translates into lost revenue and missed opportunities, making it harder to sustain long-term growth.

Loyal customers are more likely to recommend your business and make repeat purchases, driving up your revenue. Plus, they tend to spend more with the brands they love. But you can't reap these benefits if your customers don't stick around.

Potential solution: Implement a customer loyalty program to reward buyers for shopping with you. Also, incentivize them to leave reviews and recommend your brand to their family and friends. Most importantly, ask for their feedback and act on it. For further insights, see these customer retention strategies that work in 2025.

9. Rising return rates

U.S. consumers returned products worth $743 billion in 2023 alone, per the National Retail Federation. That's a return rate of 14.5%. This figure was even higher for ecommerce brands, reaching 17.6%.

Most shoppers return products that are damaged, defective, or ill-fitting. These are all valid reasons, but some customers have no intention to keep the items ordered.

A 2023 survey found that 24% of consumers intentionally buy multiple sizes, colors, or versions of a product, planning to return what they don’t keep.

This growing trend, known as bracketing, poses significant challenges for online vendors, resulting in higher operating costs, supply chain issues, and lower profits. Plus, you may end up with unsellable returned items, which can further impact your revenue.

Potential solution: Send customer surveys to assess the post-purchase experience and understand what went wrong. Consider offering virtual try-ons, better sizing guides, and more flexible exchange policies to reduce unnecessary returns.

10. The changing SEO landscape

Not too long ago, search engine optimization (SEO) was a top priority for business owners trying to get organic or unpaid traffic. These days, however, more and more brands are focusing on social media, email marketing, and other traffic acquisition channels.

One reason is that nearly half of Google's search results include AI Overviews instead of website content. These AI-generated summaries take up 48% of mobile screen space, resulting in diminished visibility and lower rankings for websites and blogs.

On top of that, many customers are now using ChatGPT or other AI platforms to find the information they need. If your ecommerce site relies on content to attract and convert leads, you may notice a drop in traffic.

SEO isn't dead, but the uncertainty surrounding it poses challenges for small and large enterprises alike. From link building to content creation, you can do everything by the book and still fail to rank on Google's first page.

Potential solution: Look beyond SEO and focus on building a strong online presence. Develop a well-rounded Shopify marketing strategy that incorporates acquisition channels like social media, paid advertising, referral programs, or brand partnerships. As far as SEO goes, follow Google’s best practices and keep the user experience top of mind.

The reason these problems persist might surprise you

Ecommerce businesses face a unique set of challenges, many of which are related to the customer experience. Offering better products, personalizing the buyer's journey, and refining your digital marketing efforts can help, but it may not be enough to overcome these hurdles.

The solution? Listen to what your customers have to say, act on their feedback, and put their needs at the forefront.

Some of the biggest problems in ecommerce stem from a common root: underinvestment in customer service.

For example, too many brands focus on acquisition but neglect post-purchase support. A complex return process, slow response times, unclear policies, and other issues can push customers away, making retention difficult. This aspect alone can hurt profitability and erode your reputation.

Another problem is the struggle to stay ahead of shifting customer expectations. Today's buyers expect fast shipping, easy returns, and personalized experiences at every interaction with your brand. Yet, many businesses lack the resources or infrastructure to keep up.

You can't expect to have a successful ecommerce website if you're stuck in reactive mode. To break the cycle, it's crucial to become a customer-centric business and take a proactive approach to problem-solving.

Let's say you sell leggings and yoga pants. These products are subject to high return rates due to bracketing, as customers cannot see, touch, or try them on.

What you can do is address the issue proactively by offering detailed sizing charts, personalized assistance, and AI-powered recommendations. Also, analyze returns data and customer questions to determine which items are returned most frequently and why.

Turn customer service into a profit center for your business

As many as 80% of Shopify brands fail in their first year of business. One reason is that they focus too much on acquisition while overlooking profitability and customer satisfaction.

This factor contributes to the biggest problems in ecommerce, resulting in missed opportunities. That's why you should prioritize seamless experiences, fast resolutions, and clear communication at every touchpoint.

But where to begin?

For starters, look into an AI-powered solution like OpenDesk. Our platform enables Shopify brands to deliver fast, personalized support and turn customer data into actionable insights.

With OpenDesk, you can view all your tickets in one place, organized by topic and urgency. From here, you can respond to time-sensitive messages and automate common inquiries.

For detailed reports, check out OpenDesk’s Analytics. Leverage these insights to identify the root causes of customer dissatisfaction — and fix them before they escalate. You can see exactly how many tickets are related to product quality, order delays, online payments, returns, and other critical aspects.

Go above and beyond customer expectations to stand out in a crowded market. Start your free trial with OpenDesk to see what it can do for your Shopify business