Challenges Faced by Indian Startups to run online business

The expansion of eCommerce volumes in India is attracting the interest of firms from all around the world. According to Worldometers’ analysis of the most recent United Nations data, India's current population is 1,406,569,444 as of 2022. The combined populations of Germany, the United Kingdom, France, Italy, the Netherlands, Belgium, and Greece equals to just one-fourth the population of India! Despite its lower per capita spending power, India remains one of the most appealing rising markets for eCommerce. However, India is far from a becoming an eCommerce paradise.

Listed below are a few challenges that Indian startups face while running an online business.

Meeting the Customers' Increasing Expectations

Startups that operate online are constantly working to improve their reputation and brand image by promising a pleasant experience. It is difficult to meet client expectations in an era when experience is everything, and existing eCommerce behemoths take the online purchasing procedure to the proverbial 'next level' with anticipatory shipping methods. For Indian startups to compete with these behemoths while meeting the ever-changing client demands, is a significant problem.

To achieve the desired customer expectations for a positive user experience, startups should begin evaluating their eCommerce trends and concentrate on using this data to create individualized customer experiences. Customers must feel recognized and valued from the time they begin utilizing your service. For instance, to facilitate this customer connection, send them notice alerts or product updates.

Data safety

Because cyberattacks can result in financial, informational, and company's overall viability losses, cybersecurity is crucial for a startup with an online business. When it comes to eCommerce, you must safeguard your data as well as your customers’ data. A breach in your cybersecurity systems may result in the loss of your customers' data which could significantly affect the trust and reputation you've worked so hard to build.

It is essential to have a cybersecurity policy in place. A cybersecurity policy defines ground rules for everyone in your firm to follow, clearly declaring that important activities must not fall through the cracks. Second, if you're in the market for a new online platform, investigate the various security features and possibilities. Such characteristics include multi factor authentication, client data encryption, real-time threat warnings, and compliance features.

Retention of Customers

Even some of the most notable businesses in the eCommerce sector are having difficulty in retaining their customer base. Customer-centric eCommerce problems can be ascribed to a variety of issues, including changing consumer expectations, similar options, and a failure to produce a pleasant buying experience, and occasionally offers and discounts on other platforms, at times, are more substantial.

Customer loyalty is an important factor in a company's success, and even a tiny blunder by the merchant can completely derail the brand's reputation. Many startups fail to see that maintaining a user entails developing a consistent and satisfying relationship with them over time and utilizing every communication channel to solidify this relationship. Building customer relationships takes time and effort, and companies should engage their customers in ways other than transactional correspondence to make them feel appreciated. While striving to provide a better internet experience, organizations must nurture their customers with a personalized communication strategy.

Consumer Loyalty arises from an emotional attachment with the brand, and every company's marketing efforts should be directed on strengthening that tie. A clever customer retention plan can do wonders for a startup, operating online, by converting customers into brand supporters and expanding the brand's reach.

While this article concentrates on issues that persist for startups, operating online in India, which is an inherently one-sided topic, it is crucial to recognize that eCommerce behemoths are increasingly drawn to the country. Cross-border eCommerce to India is increasing, and many huge foreign businesses are investing heavily in setting up shop in India.

By Himanshu Chawla, Co-Founder and CEO, Bakingo