All business owners find themselves challenged by a variety of factors almost every day and this is no different for online traders.

Some of these challenges are general issues which affect all types of companies, but there are also several factors which are quite specific to internet based ventures:

1. Visibility – Unlike shops on the high-street, online retailers cannot inform shoppers about their existence by displaying logos above their doors. Instead they need to use search engine optimisation (SEO), traditional and online advertising, social media and other available marketing techniques to attract customers.

2. Security – Online payments are targeted by fraudsters from around the world. All e-commerce business owners need to ensure that they are using the very latest security features and that they keep vigilant at all times when processing transactions. Even then it is almost impossible to completely eradicate fraudulent transactions and chargebacks.

3. Taking payments – Online businesses in general are not able to take payments in cash. Therefore they need to either accept cheques or bank transfers or start processing online payments. In order to do the latter they need to obtain a merchant account and a payment gateway, which adds to the list of essential tasks to be completed in the setup period. These services are available from payment service providers.

4. Fulfilment of orders – Online shopping is usually paired with home deliveries and e-commerce businesses need to ensure that they are able to deliver requests within a reasonable time and at the lowest possible price, if not for free. This is yet another issue which brick and mortar competitors do not normally have to worry about.

5. Technical abilities – running a website and taking card payments online can be tricky for people who are not comfortable using computers and the internet. Although anyone can start a business online, it is certainly easier for those comfortable with modern technology, as hiring experts to set everything up and then give ongoing support can prove too costly for many. Another issue is the number of options available in terms of shopping carts, hosting and security. Some people do find it difficult to choose which one would be best for their business.

6. Conversions – Online shop owners do not have any direct contact with customers, therefore they cannot use the regular selling techniques to increase conversions. One of the options available to them is to ensure that their website is easy to use and that product descriptions are detailed and appealing. Another way of increasing sales is through offering additional services, potentially not covered by competitors as well as through being able to accept a variety of payment methods.

Starting an online business is arguably easier than opening a shop, as you do not usually have to worry about having to lease a property and the initial costs can be minimal. But as with any commerce there are challenges which cannot be ignored and should ideally be addressed in your business plan.

The internet has certainly opened the door for many aspiring entrepreneurs who may not have been able to start a business otherwise. With the right preparation and planning your business too could be the next success story of the online world.