7 risks you should know when launching your ecommerce business in 2018

David Linder

MSc in Marketing from the University of Salford. Facebook Certified Planning Professional Facebook Certified Buying Professional
3 min read

Those in ecommerce industry have a tendency to consider benchmarks, budgets, and trends to streamline their businesses. Unfortunately, they ignore risks

Every year, for this time, Shopygen publish a post on important risks that can’t be ignored by our readers’ businesses and clients.

7 undeniable risks you have to pay heed when launching your ecommerce business in 2018 (1)

Ecommerce Online Security

From a perspective of tackling cyber fraud, stringent security standards ought to be implemented. For a broader summary of various kinds of cyber threats, think about the following list:

  • Phishing
  • Hacking
  • Credit card fraud
  • Data errors
  • Unprotected online services

Adoption of techniques such as for example enforcing multi-layered security, deploying PCI scans, initiating and concluding transactions on sites with SSL certification etc., is desirable. Other techniques with great importance are:

  • Diligently monitor every single transaction – from ordering to delivery
  • Motivate users to possess strong passwords
  • A non – storable CVV is effective

Ecommerce Intellectual Property

Website and company logos, business mottos, product images are thought to be major ecommerce intellectual properties. Amongst other important concerns and solutions, the next look effective and profoundly effectual:

  • Being proactive in safeguarding your IP is expected of smart eCommerce entrepreneurs
  • Do NOT violate someone else’s IP
  • Discuss strategies with a small business attorney
  • Show great diligence in performing audits regularly. Schedule the same

Customer Disputes and Chargebacks

It is incredibly interesting to see customers upgrading their game in this eCommerce industry. Inside our survey on Chargebacks and Customer Concerns, going back 3-4 years, 30% of respondents were deeply worried about purchases made out of stolen bank cards. Another 26% respondents set their sights on another pressing concern – Product never arrived.

Nevertheless, the recipe for handling customer disputes and chargebacks doesn’t change. It’s vital that you swiftly react to chargeback notices, politely communicate and fine-tune refund policy. Other important measures are:

  • Do NOT charge your prospects and soon you are confident that the ordered items are shipped
  • Do NOT ship wrong products
  • Minimize the incidence of clerical errors in billing.

Product Warehousing and Logistics

Interestingly, 48% of online shoppers said they find guaranteed delivery dates vitally important. Generally, companies enter a frenzy should they go out of stock. In the event of delayed product deliveries and wrong product shipments, some companies enter full ‘panic’ mode. Here’s is really a list of guidelines to take care of such issues:

  • Use a listing management software
  • Collaborate with a specialist drop shipping service
  • Use barcode scanner to expedite and streamline processes
  • In case of wrong product delivers, politely acknowledge your mistake and process the refund

Customer Service

If your customer support team is getting the wrong tone and voice for the prospects, you’re losing BIG business. Focus ought to be on exceeding customer expectations and gracefully giving an answer to their queries. Personalization may take customer experiences to another best level. Customer communication will get easier with chatbots.

Taxation

Up until recently, eCommerce entrepreneurs haven’t given enough focus on taxes. Perhaps you have, your organization and team paid taxes? Different delivery locations have different sales taxes. File your taxes. Sit with a tax consultant and seek professional advice.

Website SEO and Marketing

Google and influencers have much help with where to find the proper keywords for the product pages utilizing the right tools. There’s plenty of info on competitor research and social media strategy. Yet, many entrepreneurs cannot get the essential traction. This could be attributed to insufficient consistency.

The risks I’ve covered listed below are pretty much whatever you to spotlight. However, as mentioned above, consistency and pro-activeness are necessary to mitigate and effectively handle risks.

David Linder

MSc in Marketing from the University of Salford. Facebook Certified Planning Professional Facebook Certified Buying Professional

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