Top 5 Challenges in E-Commerce Stores and How Magento 2 Advanced Reporting Extension Solves Them

The success of any e-commerce platform relies heavily on data. Every single click, addition to the cart, and purchase contains insights. And these insights can lead to smarter decisions, operations, and profitability.

However, this data still goes underutilized across multiple online businesses which results in missed opportunities, underachieved goals, and stagnant growth.

Are you also having similar struggles? Enter the Magento 2 Advanced Reports Extension—a game-changing tool designed to convert raw data into actionable strategies. 

This blog explores the top five challenges in e-commerce stores and how leveraging the Magento 2 Reporting extension can turn these obstacles into opportunities.

5 Pressing Challenges in E-Commerce Stores & How Magento 2 Advanced Reports Help To Overcome Them?

Challenge 1: Poor Sales Insights & Decision-Making

The Problem:

Without real-time sales data, businesses operate in the dark. Pricing adjustments, inventory restocking, and marketing campaigns become guesswork, leading to revenue leaks. Traditional Magento reporting tools aren’t enough. This leaves merchants unable to respond to sudden market shifts. 

The Industry Stats:

• Around 34% of retail businesses have shipped orders late because they sold out-of-stock products, highlighting challenges in E-Commerce stores arising from inadequate inventory visibility. 

• Retail giants like Amazon change prices frequently, sometimes every 10 minutes, to stay competitive.

• About 35% of marketers report that poor data quality hampers their ability to target consumers effectively with digital ads.

The Solution:

The Advanced Reporting Magento 2 extension offers real-time analytics on revenue, sales trends, and customer behavior. 

With customizable Magento 2 sales reports, merchants can:

• Identify top-performing products and seasonal trends.

• Track conversion rates by traffic source.

• Adjust pricing dynamically based on demand.

With the integration of Magento reporting tools, businesses gain a competitive edge, ensuring decisions are backed by data, not intuition.

Challenge 2: High Cart Abandonment Rates

The Problem:

Cart abandonment happens due to various reasons. These include: 

• unexpected costs, 

• complex checkouts or 

• lack of payment options. 

While traditional Magento reporting tools offer basic reporting, like cart abandonment rates, they lack in-depth insights. Without insights into why customers leave, businesses struggle to address the issue.

The Industry Stats:

• Around 18% of users give up on the last step of their purchase because checkout is overly long and complicated.

• Approximately $18 billion are lost every year by E-commerce companies in the United States because of cart abandonment.

• Mobile users present the highest cart abandonment rate at 85.65%, suggesting a need for better mobile optimization.

The Solution:

The Advanced Magento 2 reports extension helps dissect abandonment patterns through detailed analytics. 

This Magento 2 reports extension helps:

• Pinpoint the source of users that abandon carts at the checkout process. (mobile, desktop, tab)

• Identify which products get abandoned the most. 

• Segment users based on cart behavior (e.g., first-time vs. repeat shoppers).

Armed with these Magento reporting insights, stores can simplify navigation, offer live chat support, or test one-click checkouts—reducing abandonment and recovering lost sales.

Here’s a detailed guide to track customer behavior using this Advanced report extension: Track Customer Behavior with Magento 2 Reporting Extension! 

Challenge 3: Inefficient Inventory Management

The Problem:

Overstocking ties up capital, while stockouts frustrate customers and damage loyalty. Manual inventory tracking is error-prone and fails to predict demand accurately.

The Industry Stats:

• Approximately 62% of business finances are affected due to failures in inventory tracking. 

• Businesses worldwide incur approximately $1.6 trillion annually due to inventory distortion, which includes shrinkage, stockouts, and overstock situations. 

• Addressing understocking and overstocking can lead to a 10% reduction in inventory costs.

The Solution:

The Magento 2 Reporting Extension provides robust inventory analytics. Using this tool, ecommerce merchants can get the following: 

• Real-time stock level updates based on order volume.

• Demand forecasting based on historical sales data.

• Automated law stock alerts to prevent shortages.

With advanced reports and other Magento Extension Store integrations like Zoho inventory, businesses maintain optimal stock levels, reduce holding costs, and improve order fulfilment rates.

Challenge 4: Difficulty in Understanding Customer Behavior

The Problem:

In this era of relentless competition, generic marketing is bound to miss the mark with your specific target group. Businesses have no means to tailor their services which ultimately causes customers to lose interest.

Industry Stats:

• Approximately 31% of retailers cannot track consumers across devices, and another 38% can only track some consumers some of the time, leading to fragmented marketing efforts. Advanced Reporting Magento 2 solves this problem. 

The Solution:

Magento 2 Advanced Reports break down customer data into actionable segments:

• Lifetime value (LTV) and purchase frequency.

• Demographic preferences (age, location, device).

• Product affinity and cross-selling opportunities.

For example, a merchant might use insights from Advanced Reporting Magento 2 to email loyal customers early access to sales, boosting retention and spending.

Challenge 5: Lack of Financial Clarity

The Problem:

The basic Magento 2 sales reports will only give your sales volume.  Unclear profit margins, tax discrepancies, and vague ROI calculations hinder growth. Manual spreadsheets are time-consuming and prone to errors.

Industry Stats:

• Macy's Accounting Misstatement: In late 2024, Macy's discovered that an employee had concealed over $150 million in delivery expenses over three years. This concealment led to a substantial overstatement of net income. Upon correction, Macy's reported a 57% decrease in net income for fiscal year 2023, highlighting how unclear financial reporting can severely distort profit margins. 

The Solution:

The Magento 2 reports extension automates financial summaries, offering:

• Gross profit calculations by product or category.

• Amount of discount on a particular store/category

• Refund amounts and percentages help to calculate overall sales and tax liability. 

• Average order value and average return orders percentage for accurate revenue analysis. 

With Magento 2 sales reports, product dashboards, and customer data, finance teams allocate budgets confidently and identify underperforming areas needing intervention.

Conclusion

The Magento 2 Reporting extension isn’t just another tool—it’s a strategic ally. By tackling poor sales insights, cart abandonment, inventory woes, customer behavior gaps, and financial fog, this extension empowers businesses to thrive in a data-driven era. 

Whether you’re a startup or an enterprise, Magento 2 Advanced reports adapt to your needs, delivering clarity and control. 

Ready to transform challenges into victories? Explore the Magento Extension Store today and unlock your store’s full potential.