Top 10 challenges of retail eCommerce in 2023


Topics Covered


In this blog, we are going to talk about the Top 10 challenges of retail eCommerce in 2022. The retail e-commerce industry is the second largest industry after oil and gas. The retail e-commerce industry is growing fast and is estimated to be worth $4 trillion by 2022. The retail e-commerce industry is one of the fastest-growing industries globally, and it is expected to grow at a rate of 25% per year between 2017 and 2022.

The growth of this industry can be attributed to several factors such as an increase in internet penetration, an increase in disposable income, an increase in the number of online shoppers, increase in the number of online stores rise. But with the opportunity, there are notable 10 challenges of retail eCommerce.


Data collection and validation for machine learning: In big data, it is crucial to collect, store and process data at scale. In the retail e-commerce domain, it is critical to analyze customer behavior, predict future trends, and provide personalized recommendations for each customer. This can be achieved by machine learning (ML) techniques like deep learning (DL), which uses neural networks to learn from large datasets. These algorithms require large datasets for training and validation. Hence, this article focuses on collecting and validating data for ML applications using Apache Spark with SQL and Hive/Pig/Hive LLAP as back.


The retail eCommerce sector is currently in a very busy period. This is the case for online and offline retail, with the latter now facing digital competition.

The development of mobile devices has led to a significant change in consumer behavior, so we are witnessing an increase in mobile sales. The use of social networks and the development of online marketing have also contributed to this evolution.

In this context, retailers need to collect data on their customers and improve their knowledge. This will enable them to understand their needs better and adapt.

The retail eCommerce industry constantly changes and evolves as businesses strive to offer the best customer experience possible. To stay ahead of the competition, retailers need to be aware of their challenges in the coming years.

  1. Keeping up with changing technology and trends
    Product owners need to address data management challenges to keep up with changing technology and trends. This includes the collection, storage, processing, and validation of customer data. By doing so, retail eCommerce can stay ahead of the curve and provide a better experience for its customers. One way to personalize customer data is by forecasting future needs and preferences. Additionally, effective data transport is essential for providing a smooth shopping experience.
  2. Meeting customer demands for faster deliveries and more variety
    Retail eCommerce businesses are constantly looking for ways to innovate to meet customer demands for faster deliveries and more variety. One way that they can do this is by improving their database systems. This will allow them to store, process, and transport data more efficiently, which will help them to forecast demand and personalize customer data.
  3. Handling increasing competition from online-only businesses
    There are many ways that product owners can address the increasing competition from online-only businesses. One crucial step is to ensure that the company’s data is well-organized and easily accessible for analysis and forecasting. The company should also develop personalized customer data to improve the customer experience and increase sales. Additionally, the effective use of marketing automation tools can help reach more customers and boost sales.
  4. Dealing with data security threats
    Retailers face several data security threats, including

    1. Hackers break into the system and steal customer data.
    2. Phishing attacks where customers are tricked into revealing their personal information.
    3. Ransomware attacks are when the retailer’s computer systems are locked down until a ransom is paid.
    4. Malware infections allow hackers to steal customer data or take control of the retailer’s computer systems.
    5. Unsecured Wi-Fi networks can be hacked by criminals to steal customer data.
    6. Employees who accidentally or deliberately leak confidential customer information.
    7. Data theft by third-party service providers such as marketing agencies and payment processors.
    8. Accidental loss or destruction of customer data by employees or contractors.’
  5. Managing inventory and fulfillment processes: Managing inventory and fulfillment processes can be a challenge for eCommerce businesses. To successfully manage inventory, it is essential to understand what items are selling and how quickly they are selling. This can be done through regular analysis of sales data.
    In addition to having an accurate understanding of stock levels, it is also essential to have a fulfillment process that can keep up with demand. A well-run fulfillment process will ensure that orders are processed quickly and efficiently, minimizing customers’ time to wait for their orders to arrive.
    Several different factors can affect inventory and fulfillment processes, so it is essential for businesses to continually analyze their operations to identify areas where improvements can be made. Companies can provide the best possible customer experience while maintaining a healthy stock level.
  6. Building an effective digital marketing strategy There are several factors to consider when building an effective digital marketing strategy. One of the most important is understanding your target audience, and what messaging and content will resonate. You’ll also need to develop a strong understanding of your brand and what you want to communicate to customers. Additionally, it’s essential to have a clear plan for measuring success to track progress and make necessary adjustments along the way.
  7. Adapting to shifting consumer behavior and preferences: To keep up with the ever-changing preferences of consumers, retailers must constantly be innovating their eCommerce offerings. One way to do this is by improving the accuracy and timeliness of data collection and analysis. This allows retailers to understand better what products and services consumers are interested in and then personalize their offers accordingly. Additionally, retailers must continually develop new ways to make the online shopping experience more convenient and enjoyable for customers, such as faster checkout processes and more user-friendly websites/apps. By doing so, retailers can ensure that they are not left behind as consumer behavior evolves.
  8. Creating a positive brand image: Brands are more than a name or a logo. They are stories that people tell about themselves and what they care about.
    Brands need to be authentic, relevant, and differentiated to capture people’s attention. They also need to be consistent so that people can trust them.
    Innovation is essential for brands if they want to stay ahead of the competition. It allows them to create new products and services that appeal to consumers‘ needs and desires.
    Retailers who can innovate will be better equipped to compete in the digital age. They will be able to store, process, and validate customer data more efficiently, which will enable them to personalize their customer experiences and improve their forecasting capabilities.
  9. Addressing the challenge of fraud and counterfeit products: There are several ways that product owners can address the challenge of fraud and counterfeit products. One approach is to develop an online system that verifies the authenticity of products before they are sold. This could be done through several methods, such as tracking codes or QR codes that buyers can scan to ensure the product is authentic. Another approach is to use blockchain technology to create a secure, tamper-proof record of all transactions involving the product. This would make it difficult for counterfeiters to sell fake products, as they would not forge blockchain records.
  10. Developing innovative ways to increase sales and customer satisfaction. There are many ways that retailers can innovate to increase sales and customer satisfaction. One way is to develop new technologies that make shopping more accessible and convenient. For example, online retailers can develop innovative ways to personalize the shopping experience for each customer based on their past purchases and preferences. They can also use technology to forecast what items customers are likely to want or need in the future to be prepared with the proper inventory.


Another way retailers can innovate is by developing new marketing strategies that appeal to customers’ interests. For example, they could create campaigns around major events or holidays or promote specific products that are seasonal or popular at certain times of the year. They could also try different reaching out to customers, such as using social media platforms or targeted ads.

Ultimately, retailers need to keep up with the latest trends and technologies to stay competitive and continue satisfying their customers. By being innovative and constantly evolving, they can ensure that their business remains successful in the ever-changing retail landscape.

‘How to adapt your business to take advantage of consumer trends such as mobile wallet innovations’

Top 5 Challenges of Retail eCommerce in 2022:

Retail eCommerce will continue to grow and face new challenges in the next five years. Here are the top ten:

  1. Continued Growth of Retail eCommerce:
    Retail eCommerce is expected to grow at a rate of 16% through 2022. This growth brings new opportunities but also creates new challenges for merchants.
  1. Increased Competition from Amazon and Other Large Players:
    Amazon and other prominent players continue to expand their market share, putting pressure on small and medium businesses.
  1. The Rise of Mobile Commerce:
    Mobile commerce is increasing and is expected to account for over 60% of online sales by 2022. This presents a unique challenge for retailers as they need to ensure their websites are mobile-friendly and optimized for purchase on mobile devices.
  1. The Emergence of Voice Commerce:
    With the advent of voice-activated devices such as the Amazon Echo, voice commerce is emerging as a significant trend. This presents a challenge for retailers as they need to develop strategies to enable customers to make purchases via voice commands.
  1. The Expansion of Social Commerce:
    Social commerce is growing rapidly, with over 60% of social media users purchasing a social network.
  • What are the top innovations in retail and eCommerce from 2022?
    • The continued rise of mobile commerce: By 2022, more than 50% of all retail sales will be made through mobile devices. This is mainly due to the continued proliferation of smartphones and the increasing sophistication of mobile shopping apps.
    • Increased use of augmented reality: Augmented reality will play a more prominent role in retail and eCommerce by 2022, as merchants use it to create more immersive shopping experiences. For example, customers could use AR to view how furniture or clothes would look in their home or office before purchasing.
    • More widespread use of drones: Drones will be used more extensively in retail and eCommerce by 2022 for tasks such as delivering packages to customers’ homes or warehouses. This will help speed up delivery times and reduce costs for merchants.
    • The continued growth of cross-border eCommerce: By 2022, cross-border eCommerce will account for more than 20% of total eCommerce sales. This is due to the increasing globalization of economies and the rise of digital nomads who prefer to buy items from foreign retailers rather than those in their home country.
    • The proliferation of voice-based interfaces: Voice-based interfaces will become increasingly popular among consumers by 2022, as they provide a more natural and convenient way to interact with technology. This is especially true for tasks that require hands-free operation, such as driving or cooking. Voice-based interfaces also allow users to interact with technology more conversationally, making tasks like searching the internet or placing orders faster and easier.
    • How brands can use AI to make shopping assistants better. There are a few ways brands can use AI to make shopping assistants better. One way is by using AI to improve the accuracy of product recommendations. Another way is by using AI to personalize the assistant’s offers based on the customer’s individual preferences. Finally, brands can use AI to improve the assistant’s understanding of customer queries to provide more accurate and relevant responses.
  • Why consumers don’t want AI for daily purchases like coffee and food deliveries: There are a few reasons why consumers may not want AI for daily purchases like coffee and food deliveries. Firstly, many people may feel that having AI handle such tasks would be intrusive and take away their autonomy. Secondly, there is the potential for errors or misunderstandings with AI-driven services, potentially leading to unpleasant customer experiences. Finally, some people may prefer interacting with human beings when making routine purchases like coffee and food.
  • An overview of AI applications in retail eCommerce.  

Artificial intelligence (AI) is a process of programming computers to make decisions. This could be anything from recognizing objects in an image to recommending products to customers on an eCommerce website.

There are many different applications of AI within retail eCommerce. One of the most common is product recommendation. By using AI, retailers can analyze customer data to identify trends and recommend products they think the customer will like. This can be done on both the individual level (e.g., suggesting products based on what someone has previously bought) and the aggregate level (e.g., showing recommended items based on other people with similar interests).


Another common application is personalization. With AI, retailers can create a unique experience for each customer, tailoring content and recommendations specifically for them. This can include displaying different product suggestions depending on where someone is shopping or providing tailored discounts and offers.

Finally, AI can also be used for forecasting and analysis tasks such as predicting demand for products or identifying patterns in customer behavior. This information can then be used to improve stocking levels and inventory management and create more targeted.

There are many ways that artificial intelligence (AI) can be used in retail eCommerce. Some of the most common applications include:

  1. Personalized recommendations: AI can create customized recommendations for customers based on their purchase history and preferences. This can help increase sales by suggesting products that the customer is likely interested in.
  1. Fraud prevention: AI can detect fraudulent activity, such as credit card fraud or identity theft. This can help protect businesses from losing money due to fraudulent purchases.
  1. Stock management: AI can optimize stock levels by predicting demand for products and adjusting stock levels accordingly. This can help reduce wastage and ensure that products are always available when customers need them.
  1. Customer service: AI can provide automated customer service through chatbots or virtual assistants. This can improve customer satisfaction by providing quick and easy access to support services.



Do follow up on social media platforms to stay updated.

Facebook                            Twitter                                   Linkedin                                  Linkedin Group