When considering opening a business, many people choose to go for an eCommerce-based one. With a high demand for good eCommerce stores, business owners perceive this is the easiest route. At first glance, it does seem to be the best option since you are able to avoid high fixed costs like rent for a brick and mortar store, energy bills, upkeep and repair and more.
However, don’t get lulled by this factor. eCommerce businesses might save you money on fixed costs but if you aren’t careful, your variable costs can end up bankrupting you. The following are some of the most common challenges which are largely overlooked.
1. Improper Verification Methods
Many eCommerce businesses don’t have proper verification methods regarding the consumer. Processing an order without these details can be problematic, particularly when you are issuing an order on a Cash-On-Delivery basis (COD). Without the right verification modes, you also don’t get to turn that consumer into a repeat one.
With a simple form, you can not only collect their data but also sign them up for a newsletter or an email marketing list. It’s a win-win scenario where you can be sure that you have a paying consumer and have the opportunity to get return business from them.
2. Poor Security Measures
One major challenge that eCommerce stores overlook is that they don’t offer enough security measures. Online security is a necessity, particularly if you are supporting online payments. Hackers and data breaches make people more hesitant to shop online and misuse of their information at a business can not only drive them away but also keep potential customers at bay too.
By investing in your online security, you can make your eCommerce business more secure for your consumers. Similarly, it will also keep you from being targeted by online hackers. Since eCommerce businesses usually have poor security measures, they are a favorite target for many hackers.
3. Refunds and Returns
Many eCommerce businesses consider the transaction over and complete once the product is shipped and payment has been received. However, what about the refunds and returns? Not making room for this factor can earn your business a very angry consumer and a loss in business. Potential customers are also not willing to work with businesses that don’t take customer satisfaction into account.
While refunds and returns should be based on the nature of the business, your eCommerce business should always offer this feature. By having proper channels for refunds and returns, an eCommerce business can ensure that they take the consumer’s needs into accounts.
4. Your Warehouse and Storage
If you are products and goods based eCommerce business, you need to make sure that you have a warehouse or storage facility to keep your goods in. While you can keep goods in your home, as your business grows, this will be a serious issue that you will have to take into account.
Without considering this factor, you can face storage issues which can translate into damaged goods, shipping delays and more. To avoid this from happening, it is a good idea to take these things into account, right from the start.
