If you understand the potential risks of ecommerce then you can prepare, act and ultimately reap the reward of owning your own ecommerce business!
By: Catherine Perry
If you are considering becoming the owner of a brand new ecommerce business, you are more than likely doing due diligence. (And, if you aren’t, we suggest strongly that you should!) What are the risks that you will face with your ecommerce business? Everything has risk and owning an ecommerce business is no exception. However, in this post we’re going to explain these areas so you will be able to prepare and alleviate those risks. We also want you to understand the risks that are out there with starting an ecommerce business, but want you to understand there is risk with any type of business. That’s why you should not let risk outway the reward – ruling your life, being your own boss and owning your own business!
There are areas that have inherent risks that you should know about when doing your due diligence. Take a look at the mistakes you can make by not mitigating these risks in your new business venture. Be sure you are handling these risks. If you’re building your own site, you are flying solo and this can be a heavy weight of responsibility in handling the risks. If you are searching for a company to create the website, look for one that is putting systems in place that deal with the risks.
In this article, we want to help you by giving a “heads up” about areas of risk and where you can make mistakes that can cost you financially. These areas of your ecommerce business have potential risk and are where you need to focus:
Training after the purchase
Let’s look at each one.
The design of the website is very important. Your design is part of both the marketing and the operation of the website. If you miss the mark here, you are missing sales. Many websites are “cute” and creative, but don’t lead to sales. There is an art and a science to creating a website that is visually attractive and easy to operate for the customer.
The design and visual appeal of your site has to lead potential customers to continue on the site. The organization of the menu and the product selection must be clear and must entice the customer to go to the products and buy. The importance of a well-created website can’t be stressed enough. It is really critical in the customer’s ease-of-use and satisfaction with the site. Without a well put together website, you won’t have sales and therefore won’t be successful!
The website www.flippa.com is a marketer of established ecommerce businesses. In their blog, “5 Things to Look at When Buying an Ecommerce Website“, they have this to say about the design of a website, “Marketing is what brings customers to your site, but design is what convinces them to purchase.”
At Pure-Ecommerce, we have many years of experience in designing websites that draw in customers and keep them. Our websites are visually attractive and easy to use. We have proven this time and time again. In order to determine whether or not a website has the important aspects of design, you can use checklists such as this one http://ecommerce-platforms.com/articles/ultimate-checklist-every-new-ecommerce-site. You will find that Pure-Ecommerce incorporates each item on the list.
Why would you want to run the risk of having a website created that may not have the design that leads to success? Enter the ecommerce world with the peace of mind that your site will have the aspects that generate customers and sales using a company with history like Pure-Ecommerce.
RELATED ARTICLE: 5 Reasons to Have a Responsive Design Website
When you are purchasing a newly-created ecommerce business you want to be sure that relationships with reliable vendors have been established and come with the site. The suppliers for the products you offer need to be good and solid. They need to be responsive to you and offer good quality products at good prices. This is extremely important. The last thing you need is for customers to purchase your products and the supplier not deliver! If a supplier messes up on orders, it can cost you financially and you will have to deal with irate customers. Not something you want, right?
How do you know if the vendors are reputable? Well, you need to do some research in your due diligence. But, your job is made easier when you work with a company that has done the research for you, like Pure-Ecommerce. We mitigate much of the risk you incur with vendors and suppliers not being up to par, reliable, and responsive. We have many project managers whose sole responsibility is researching and finding great vendors for all the products you offer. These are already set up when you purchase a website from us! Plus, we set up relationships with drop ship vendors only. This means when you purchase a ready-made internet business from us you will not be required to hold any inventory. The vendor will ship the products ordered directly to your customers allowing you the freedom and flexibility to work from your chosen location.
RELATED ARTICLE: Custom Built VS Ready-to-Go Ecommerce Business – Which One Is For You?
I don’t think we have to say how important security for your website and customers is, do we? Having a company incorporate the checks and balances to comply with security necessities is extremely important. Security is essential and there are some essential pieces that should be built in behind the scenes. You should review the PCI Compliance Guide (https://www.pcicomplianceguide.org/creating-an-e-commerce-site-consider-pci-early/) to educate yourself about security risk.
Additionally, your ecommerce business should ensure that SSL is implemented so that your customers’ personal information like address, phone number, email, and credit card is secure. The bottom line is to make sure you are hosting your website at a reputable company like Pure-Ecommerce that does all these critical measures in building your website.
RELATED ARTICLE: Merchant Account 101 – The Basics You Need to Know When Owning an Ecommerce Business
One of the biggest risks you have with an ecommerce business, especially if this is a new business venture for you and you have no previous experience with ecommerce – is not knowing. Lack of knowledge affects your ramp-up time and increases the learning curve. The sooner you can get the initial learning curve out of the way, the sooner you can gain traction and get into the business of sales. However, in the beginning, many times you don’t know the extent of what you don’t know! You are way ahead of the game when you purchase a site from a company that offers you the training you need in order to learn the essential aspects of owning an ecommerce business like setting up your shopping cart, doing SEO, engaging in social media marketing, and so on.
Pure-Ecommerce has a 10-step training process, which we include 40 hours of step-by-step ecommerce consulting. In our training process we review every single thing you need to do in setting up your business for operation and success. We also house our training materials in an online eLearning Library that is accessible to our clients exclusively 24/7 for the first year of your business. This allows you to take the time you need to learn at your own pace while having the information at your fingertips when it is convenient for you. No other provider offers this same training. Why would you want to do all of the research and reading (and not even knowing exactly what you need to learn) on your own? Of course, you still have to do your due diligence, but you have us to lead you through the process and help you mitigate many of the risks.
All in all, there are plenty of risks in ecommerce. Although, if you are aware of them and select a company that can help you prepare for and alleviate those risks—and really be a partner in your success—then you can experience the benefits and pleasure of ecommerce ownership with peace of mind!