About two-thirds of online users purchase items online and 78 percent believe it is a convenient method of shopping, according to a 2008 Pew Research study. This presents a significant opportunity for anyone who has a product or service to sell online. Though selling on the Internet comes with a number of benefits for business owners, it's also important to take a look at the potential challenges.
Time Requirement
While some Internet businesses run on "auto-pilot," others may require a significant time investment from the owner. For example, if an online merchant sells tangible products, he must review, process and ship orders daily. A consultant who services clients online must email or chat with her contacts daily to ensure that the project is on track. An Internet business can become overwhelming for one person to manage.
Communication
Because the Internet entrepreneur talks to customers, clients and business contacts over the Internet, communication can prove challenging. Sometimes it's difficult for the business owner or customer to communicate needs and messages effectively over the Internet. The two parties don't have the benefit of seeing body language, voice inflections or facial expressions while discussing business matters online. At the same time, spending a significant amount of time on the phone or at in-person business meetings defeats one of the main purposes of selling online --- the benefits of a simple, automated Web transaction.
Trust Issues
Some Internet sellers also experience challenges due to trust and security issues when operating online. The threat of Internet scams, compromised websites, credit card fraud and other online threats may cause a potential customer to pass on purchasing from an online seller's website. For example, about 75 percent of online users have reservations about giving out a credit card number online, according to the Pew Research study on online shopping.
Bad Web Design & Navigation
According to Pew Research, 58 percent of Internet users feel "frustrated, confused or overwhelmed" during online shopping. When a website is poorly designed or doesn't have adequate information, the site owner may lose sales. One key example is inefficient navigation --- if the customer clicks a link expecting one result and doesn't get the answer, it could deter sales. The business owner may also unknowingly lose sales if basic features of the website, like the shopping cart system, don't work properly.
