Looking to launch your own eCommerce store?
Repeating that eCommerce businesses are vulnerable to internet payment fraud and inventory mismanagement is an exercise in futility.
It is, however, not futile to set your sights on 7 important eCommerce business risks and effective steps to mitigate the same:
Infographics Source: ShopyGen
7 eCommerce risks to avoid:
1. Online security concerns
Commerce industry is rife with phishing, hacking and spoofing attacks. Credit card fraud and data fraud are ubiquitous in eCommerce.
Is there any silver lining? Of course, Yes!
Your eCommerce store should have SSL certifications. For all intents and purposes, transactions should be facilitated on multi-layered security platforms.
And yes, PCI scans should be deployed.
2. Copyrights & intellectual property
Your website logo, product descriptions, and motto can be copied.
Safeguard your intellectual properties by discussing and executing necessary plan(s) of action with your business attorney.
Conduct IP audits periodically to check if any webmaster is misusing your IP.
3. Customer disputes & chargebacks
Chargeback disputes with customers can dampen your ease of doing business. Your earnings may go for a big time toss.
It’s better to be pro-active. Provide clear information on refund, return and cancellation policies. Don’t charge your customers without any valid reason.
Acknowledge your mistakes and lapses in your modus operandi if you are at fault.
4. Inventory & logistics
Poor inventory management can be attributed to many reasons, such as a lack of expertise in cycle stock and safety stock management, and lack of funds to purchase a robust inventory management software, etc.
Always forge strategic alliances with professional drop shippers. You may consider using barcode scanners to expedite products delivery.
Invest in a quality inventory management software. Train your staff in inventory management.
5. Customer support & addressing their concerns
Customer service can make or break your sales. To exceed customer expectations, listen to their queries with immense patience and gracefully address them.
Use chatbots for round the clock customer support.
6. eCommerce Taxation
It’s important to understand the subtleties and nuances of different types of taxes. Don’t be a tax defaulter. Get yourself some education on sales tax.
It’s suggested to schedule an appointment with a tax advisor or a tax consultant. File your taxes with great diligence and caution.
7. eCommerce website visibility & marketing
Coming to SEO, take great care of keywords. Your home page and product pages should be rich in keywords.
Devise social media strategies after performing competitor research and keyword analysis.
Consistency and patience are required. Do not expect immediate results.
Prepare a checklist of all factors that could affect your eCommerce business. Know the rules of this industry and play by them. 🙂