PRAFULLA CHANDRA COLLEGE

(SUBMITTED FOR THE DEGREE B.COM HONOURS ACCOUNTING AND FINANCE UNDER THE UNIVERSITY OF
CALCUTTA)

NAME OF THE CANDIDATE : ANURAG PATHAK

CU REGISTRATION NO. : 046-1111-0383-21

CU ROLL NO. : 211046-21-0213

COLLEGE ROLL NO. : 212001

DEPARTMENT : B.COM (HONS.)

SESSION : 2023-24

CHALLENGES OF LAUNCHING AN ONLINE BUSINESS AND WAYS TO

OVERCOME THEM
 ACKNOWLEDGEMENT

Any accomplishment requires work and effort of many people. This

project work is no different. I am grateful to our faculty member
respected Prof. Priyanka Banik maam and also to my college
Heremba Chandra college for giving me a chance to work on this
topic

ANURAG PATHAK

BCOM HONOURS

FIRST YEAR

INTRODUCTION
Online business, also known as e-commerce, involves conducting commercial activities over
the internet. It encompasses various models, such as selling products or services, affiliate
marketing, and drop shipping. Key elements include a user-friendly website, secure payment
gateways, and effective digital marketing strategies to reach a global audience. Success often
relies on providing value, optimizing user experience, and staying adaptable to evolving
online trends. Launching an online business opens doors to a vast digital marketplace,
providing opportunities to reach a global audience. Online businesses encounter diverse
challenges, such as establishing a strong digital presence, managing customer trust,
addressing cybersecurity risks, and staying ahead in a competitive market. Navigating the
complexities of digital marketing, maintaining a user-friendly website, and adapting to
evolving consumer expectations are also crucial aspects in the realm of online business
challenges.

OBJECTIVES OF ONLINE BUSINESS

The objectives of an online business are multifaceted, encompassing both strategic goals and
customer-centric outcomes. Firstly, establishing a robust digital presence stands as a primary
objective, aiming to reach a global audience and create brand visibility. Increasing online
sales and revenue generation through effective e-commerce strategies is another fundamental
goal. Enhancing customer engagement and satisfaction by providing a seamless and user-
friendly online experience remains paramount. Building and nurturing customer relationships
through personalized interactions, targeted marketing, and excellent customer service are key
objectives for long-term success. Furthermore, online businesses often strive to stay ahead of
technological trends, adopting innovations to improve operational efficiency and maintain
competitiveness. Achieving strong online brand recognition, optimizing website traffic, and
ensuring a secure and trustworthy online environment are additional objectives that contribute
to the overall success and sustainability of an online business.

CHALLENGES OF LAUNCHING
AN ONLINE BUSINESS AND
WAYS TO OVERCOME THEM OR
THEIR RESPECTIVE SOLUTIONS

COMPETITION

Competition poses a formidable threat to online businesses, intensifying in the fast-paced

digital landscape. With countless entities vying for consumer attention and market share,
standing out requires strategic differentiation. Online businesses must continuously refine
their value proposition, innovate product offerings, and enhance user experiences to stay
competitive. Fierce price wars and the race to adopt the latest technologies further amplify the
challenges. Maintaining a dynamic online presence through effective digital marketing
becomes pivotal.
SOLUTION

Provide an exceptional customer experience, from user-friendly websites to responsive

customer support. Continuously monitor the market and stay informed about industry trends.
Understand customer preferences and adapt your offerings to meet evolving
demands.Develop competitive pricing strategies. Invest in effective marketing and branding
to create a strong online presence. Clearly communicate your brand message, values, and
unique selling propositions. Leverage social media platforms to connect with your audience,
share engaging content, and build a community around your brand.

CYBER & DATA SECURITY

Cybersecurity threats pose significant risks to online businesses, including data breaches,
financial losses, and damage to reputation. Without robust security measures, businesses are
vulnerable to attacks such as hacking, phishing, and malware, which can compromise
sensitive information and disrupt operations. Implementing strong cybersecurity practices is
crucial to safeguarding online assets and maintaining trust with customers.
SOLUTION

Implement robust cybersecurity measures, use secure payment gateways, and educate
employees and customers about online security practices. Enforce complex password
requirements and encourage regular password updates. Enhance account security by
requiring multiple forms of verification. Keep all software, applications, and systems up to
date to address vulnerabilities and patch security flaws. Provide cybersecurity training to
employees to raise awareness about potential threats, phishing, and best practices. Ensure
regular and secure backups of critical data to mitigate the impact of potential ransomware
attacks or data breaches.

PAYMENT SECURITY

Payment security stands as a paramount concern for online businesses, given the increasing
sophistication of cyber threats. The potential compromise of sensitive financial information
during online transactions poses a substantial risk, eroding customer trust and damaging the
reputation of the business. The threat landscape includes various cyberattacks such as
phishing, ransomware, and data breaches that target payment systems.
SOLUTION

Use secure socket layer (SSL) or transport layer security (TLS) encryption to protect data
during transit, ensuring a secure connection between the user's browser and the online
business's server. Replace sensitive payment data with tokens, reducing the risk of exposing
actual card details during transactions. Educate customers about secure online practices, such
as creating strong passwords, recognizing phishing attempts, and regularly monitoring their
accounts for suspicious activity.

LOGISTICS & SHIPPING

Logistics and shipping present a substantial challenge for online businesses, impacting the
overall customer experience and operational efficiency. Timely and reliable delivery is
crucial, and disruptions in the logistics chain can lead to customer dissatisfaction and damage
the brand's reputation. Issues such as delays, damaged goods, or inaccurate tracking
information can erode trust. The complexity of managing shipping logistics, especially in
cross-border transactions, introduces additional hurdles.
SOLUTION

Forge reliable relationships with reputable shipping carriers and logistics providers. Negotiate
favourable terms for timely and cost-effective deliveries. Utilize real-time tracking systems to
provide transparency for both businesses and customers. Integrate tracking features on the
website to keep customers informed about shipment progress. Maintain optimal stock levels
to prevent stockouts and delays in order fulfilment. Utilize demand forecasting tools to
anticipate inventory needs accurately.

CUSTOMER EXPERIENCE

Customer experience can pose a threat to online businesses if it's negative. Dissatisfied
customers may share their experiences, leading to reputational damage and loss of trust.
Positive customer experiences, however, can enhance loyalty and drive success. Prioritizing
customer satisfaction is crucial in the competitive online landscape.
SOLUTION

Offer responsive and helpful customer support to address issues promptly. Implement
feedback systems to understand customer concerns and continuously improve. Be transparent
about your products, services, and policies to build trust with customers.Tailor experiences
based on customer preferences, enhancing satisfaction and engagement. Keep customers
informed about order status, updates, and any potential issues. Deliver high-quality
products/services to meet or exceed customer expectations.Train staff to handle customer
interactions effectively, resolving issues professionally.

CONCLUSION

Online business is the most customer demanded business in our current time. Hence, this
project gave me a huge opportunity of growth as an entrepreneur and will be helpful in the
future.

This project covers all the threats of an online business and the ways to overcome it as an
entrepreneur.