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Digital Supply Chain

April 3, 2025

E-commerce Challenges in 2025: Revealing Insights from 30 Interviews with Indust

ecommerce challenges 2025
Greencode Software
in

Between February and March, I met with more than 30 e-commerce owners and leaders from businesses of all sizes across various industries including cosmetics, fashion, beverages, and paint. After years of developing e-commerce solutions at Greencode, I thought there would be nothing new under the sun. I was wrong. While many general trends were familiar, each conversation revealed novel details and perspectives I hadn't considered before.

In summary, these are the main challenges I identified:

  • Personalizing the customer experience
  • Managing and making decisions with data
  • Marketing management
  • Product catalog management
  • Logistics management

Let's dive deeper into each of these challenges.

Personalization as a Competitive Advantage

A well-known e-commerce challenge continues to be one of the greatest hurdles: How do you adapt to each user's specific needs? How do you make each customer feel you're thinking specifically about them?

Storefront Personalization

In simple terms, this means showing each customer something different based on their demographic characteristics and behavior. This has fundamental implications for:

  • Information organization
  • Product search functionality
  • Product recommendations
  • Look and feel

The most advanced e-commerce businesses are developing algorithms that display different layouts and highlight different products based on browsing history, age, location, and user preferences. However, many interviewees expressed that their current platforms have significant limitations in implementing this level of personalization.

Payment Method Adaptation

Ensuring each customer can find the payment method that works best for them. The more options, the better. While this might seem irrelevant in countries like the United States, it's crucial in places like Argentina.

In Argentina, there are dozens of payment methods, each with its own discounts and promotions depending on the day of the week and product category. The e-commerce businesses that stand out are those that can intelligently display which payment method is most convenient for each customer at any specific moment.

Personalized Customer Support

This was one of the topics that surprised me the most. Partly because we had developed a sales and customer service assistant using generative artificial intelligence, and I thought it would be a "no-brainer" for everyone. However, I heard very diverse opinions:

The Human vs. AI Debate

"Let them talk to people": Some companies still strongly defend human customer service. These are typically larger e-commerce businesses with sufficient resources to maintain it. They value the human touch and capacity for empathy that's still difficult to replicate with technology.

Multi-channel Tracking

"I want to be able to track a single complaint across multiple channels." E-commerce businesses frequently receive inquiries or complaints from the same customer about the same issue across multiple platforms (for example: marketplaces, Facebook, Instagram, and WhatsApp). This challenge is one of the most complex to address, given the technical difficulty of identifying users across different platforms.

The Chatbot Case

Within customer service, chatbots deserve special mention:

  • They're generally a smart alternative to rule-based bots
  • They represent an economical (and 24/7 available) alternative to human service
  • They still have a long way to go regarding hallucinations (one interviewee told me their bot offered a customer a product they didn't sell)
  • They're more valued for after-sales than for sales support

For some, in an ideal world, they wouldn't exist at all. "I wish my customers never had to ask anyone anything." This statement was one of the most revealing to me and connects directly to customer experience personalization. It reflects that, if possible, e-commerce should be so intuitive and personalized, and should function so well, that no customer service would be necessary. Whether that's possible or not, I found it an inspiring aspiration.

Personalized Promotions and Discounts

The most sophisticated e-commerce businesses are abandoning mass promotions to adopt personalized discount systems based on:

  • Historical purchasing behavior
  • Products abandoned in carts
  • Customer loyalty level
  • Special occasions (birthdays, anniversaries)

However, implementing these strategies requires robust data infrastructure and analysis capabilities that many interviewees are still building.

Digital Marketing: Outsourcing vs. In-house Management Challenges

Digital marketing campaign management is another major pain point for e-commerce businesses. Many outsource this service to marketing agencies while others manage it in-house.

Knowledge Transfer with Agencies

For those outsourcing, one of the main challenges is that agencies lack knowledge about business specifics, and knowledge transfer is never perfect. This creates inefficiencies in decision-making and campaigns that don't always reflect the brand essence or specific business needs.

Response Times and Feedback Loops

The feedback loop between agencies and e-commerce businesses is slow and intermediated in a context where immediacy is crucial. While the market and consumer behavior change rapidly, campaign adjustment cycles can take days or weeks, resulting in lost opportunities and poorly utilized budgets.

Data Access and Management

In many cases, it's not possible to make all data available to agencies. With limited information, decisions are necessarily suboptimal. Companies that have managed to create shared dashboards and real-time access to key metrics report significant improvements in marketing campaign efficiency.

The Foundation: Data Management and Decision-Making

This topic deserves a separate article (which I commit to writing in the coming weeks). Not only because of its scope and complexity but also because it permeates all the pain points mentioned in this article.

Main Analytics Obstacles

The key challenges identified were:

  • Difficulty accessing all relevant data sources
  • Not having all data in one place (such as a data lake or data warehouse)
  • Lack of knowledge about which data sources are relevant
  • Lack of advanced data processing tools

Data Sources and Integration

There's a fundamental problem of data silos and intermediated information flow. Critical data is often dispersed across:

  • E-commerce platforms
  • CRM systems
  • Digital marketing platforms
  • ERP systems
  • Logistics systems
  • Customer service platforms

Integrating these sources remains a significant technical challenge for most companies interviewed.

Key Indicators by Business Type

One of the most valuable insights was discovering that many e-commerce businesses lack clarity about which indicators are truly relevant to their specific type of business. There's a tendency to measure everything possible without focusing on metrics that actually drive strategic decisions.

Efficient Product Catalog Management

One of the most mentioned pain areas among the e-commerce businesses I interviewed was catalog management.

Problems with Suppliers and Metadata

The specific problems can be summarized as suppliers providing data and metadata that is:

  • Heterogeneous: Different products have different categories of data and metadata
  • Incomplete: Some products don't have all the necessary data
  • Inconsistent: There's no unified standard for describing similar products

Image Quality and Standardization

Another critical point is the quality of visual content:

  • Products without images or with low-quality images
  • Differences in photographic style between different suppliers
  • Lack of images from different angles or in use
  • Inconsistency in image size and format

Companies that have invested in standardizing their visual content report significant improvements in conversion rates.

Categorization Strategies

Product taxonomy and categorization emerge as a constant challenge, especially for e-commerce businesses with extensive catalogs. The difficulty of maintaining a category system that is:

  • Intuitive for customers
  • Effective for SEO
  • Flexible for incorporating new products
  • Compatible with search and filtering systems

This represents a significant pain point that directly impacts user experience and sales.

The Final Link: Logistics and Fulfillment

Logistics management represents the final critical challenge for the e-commerce businesses interviewed. The most problematic aspects include:

  • Integration between physical and digital inventory
  • Management of multiple distribution centers
  • Transparency in shipment tracking
  • Efficient returns processing
  • Delivery route optimization
  • Managing customer expectations regarding delivery times

E-commerce businesses that have managed to excel in this aspect are those that have made logistics an integral part of the customer experience, offering personalized delivery options and clear, constant communication about order status.

Conclusions: Patterns and Emerging Trends

After these 30 interviews, some clear patterns emerge:

  1. Personalization is no longer a luxury but a competitive necessity
  2. Data is the new oil, but extracting value from it remains a challenge
  3. System integration and eliminating information silos is crucial
  4. The customer experience must be consistent throughout the entire journey, from search to post-sale support
  5. Technology alone doesn't solve problems; it must be aligned with appropriate processes and people

Transform Your E-commerce Challenges into Growth Opportunities

Do you identify with any of these challenges? At Greencode, we've developed specific solutions for each of the challenges mentioned in this article.

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