Those in ecommerce industry tend to consider benchmarks, budgets, and trends to streamline their businesses. Unfortunately, they ignore risks
Every year, around this time, Shopygen publish a post on important risks that cannot be ignored by our readers’ businesses and clients.
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Ecommerce Online Security
From a perspective of tackling cyber fraud, stringent security standards should be implemented. For a broader overview of different types of cyber threats, consider the following list:
- Phishing
- Hacking
- Credit card fraud
- Data errors
- Unprotected online services
Adoption of techniques such as 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 each and every transaction – right from ordering to delivery
- Motivate users to have strong passwords
- A non – storable CVV is effective
Ecommerce Intellectual Property
Website and company logos, business mottos, product images are believed to be major ecommerce intellectual properties. Amongst other important concerns and solutions, the following 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 business attorney
- Show great diligence in performing audits regularly. Schedule the same
Customer Disputes and Chargebacks
It is incredibly interesting to see customers stepping up their game in this eCommerce industry. In our survey on Chargebacks and Customer Concerns, for the last 3-4 years, 30% of respondents were deeply concerned about purchases made with stolen credit 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 important to swiftly respond to chargeback notices, politely communicate and fine-tune refund policy. Other important measures are:
- Do NOT charge your prospects until you are confident that all 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 that they find guaranteed delivery dates extremely important. More often than not, companies get into a frenzy if they run out of stock. In case of delayed product deliveries and wrong product shipments, some companies enter full ‘panic’ mode. Here’s is a list of best practices to handle such issues:
- Use an inventory management software
- Collaborate with a professional 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 service team is having the wrong tone and voice for your prospects, you are losing BIG business. Focus should be on exceeding customer expectations and gracefully responding to their queries. Personalization can take customer experiences to the next best level. Customer communication can get easier with chatbots.
Taxation
Up until recently, eCommerce entrepreneurs haven’t given enough attention to taxes. Have you, your company and team paid taxes? Different delivery locations have different sales taxes. File your taxes. Sit with a tax consultant and seek expert advice.
Website SEO and Marketing
Google and influencers have much guidance on how to find the right keywords for your product pages by using the right tools. There’s a lot of information on competitor research and social media strategy. Yet, many entrepreneurs are unable to get the much needed traction. This can be attributed to lack of consistency.
The risks I have covered here are pretty much all you to focus on. However, as stated above, consistency and pro-activeness are crucial to mitigate and effectively handle risks.