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retail software development

Sales strategy confusion

Marketplaces bring traffic but cut margins and keep customer data. Selling directly gives you data and control, but ads are expensive. Wholesale offers stability but less flexibility. Many newcomers get stuck choosing the right path.

Cancellations eat the profits

Statistically, shoppers order more than they need and send things back. In the U.S. retailers lost between $685B and $890B, and about 15% of returns were fraudulent.

Supply chain fragility

New brands often face high minimum orders and months-long wait times. That ties up cash and leaves shelves empty when trends shift fast.

The small business faces big rules

Even the smallest retailers must follow strict privacy and data rules when selling across states or online. Compliance takes time, money, and expertise that most local shops simply don’t have.

Payments & checkout friction

Customers expect tap, wallets, and fast refunds – long queues kill conversion.

Channel complexity without infrastructure

Customers bounce between search, social media and delivery apps. Without a unified catalog, inventory, and identity layer, small retailers experience out-of-stock items, slow pickup, and inconsistent pricing.

Integrations conflicts

Over the years, mid-sized retailers added POS, ecommerce, and loyalty tools from different vendors. Now data is split across systems , so real-time inventory and omnichannel concepts often fail.

Cancellations eat the profits

Lack of in-house tech talents Unlike large chains, regional retailers can’t afford big IT or data teams. That makes it tough to use AI or advanced analytics in practice.

Returns overhead

Reverse logistics costs and abuse (like wardrobing and claim fraud) eat into profit margins. It's also hard to enforce standardized policies across partners and channels.

Growth is slowing, while costs keep rising

Retail sales in the U.S. are expected to grow only 2.7%-3.7% in 2025, close to the long-term average. That means less room for mistakes with pricing, promotions, and inventory.

Shrink is a silent profit leak

Enterprises lost about 1.6% of sales (≈$112B) due to theft, fraud, or errors. It’s big enough to hurt margins and forces a constant balance between store safety and customer experience.

Omnichannel is facing operational pitfalls

E-commerce reached 16.3% of U.S. retail sales in Q2 2025. Good for growth, but costly: split inventories, last-mile delivery, and more complex forecasting compared to in-store sales.