No business comes without risks. That is why entrepreneurs are considered to be risk-takers. However, E-commerce comes with its own set of risks that other companies do not necessarily face. In today’s world, e-commerce has grown, especially with more people choosing to shop online over going to stores physically. But along with that growth, some risks have tried to shake down e-commerce. These threats can have an impact on a business’s reputation and revenue. Fortunately, even with such risks, there are steps you can take to mitigate them. Discussed below are some of the risks associated with e-commerce and how you can avoid them.
Online Security Risks and Data Privacy
Each day, hackers are finding better ways to hack systems. In fact, it is easier for a malicious person to access your system by obtaining the credentials of an employee through phishing or by spreading malware through fraudulent emails. A data breach can cost a company as much as 4 million, and reputational damage is likely to cost even more. The best way to avoid this threat is by preventing it in the first place. Get an IT technician to help you set up a solid online security and data privacy policy. Also, ensure your staff is trained in looking out for such risks. You can also implement two-factor authentication for additional accountability.
Marketing and Design Tactics That are Not Unique
Another risk associated with e-commerce is the likelihood that your design ideas may be similar to another company’s. If that company has copyrighted those ideas, then there is the possibility of your company being sued. Maybe you have seen a company using specific images in marketing that has worked for them. However, do not use images you do not own rights to without permission from the owner. There are so many digital marketing ideas you can use to advertise your business. You can hire a marketing strategist, an SEO reseller, a social media influencer, etc. These are people who can help you promote your business while ensuring you are not infringing on any rights.
Late Shipment Delivery
Mistakes happen, and you may delay shipping a delivery, misplace a delivery, or deliver the wrong thing. If an error on your part leads to the customer losing money, you are liable as the business owner. For starters, it is essential to have coverage as you will be held responsible if the mistake affects your customer. While situations like this are unavoidable at times, ensure you document everything. Also, prep for any delays due to bad weather, the holiday season, and high volume. Do not forget to communicate with customers once an item is shipped and inform them in case of delays to prep them.
Website Downtime
This is another challenge that even big e-commerce stores may face from time to time. Once in a while, your site may be down because you are maintaining servers, updating code, or having security issues. The issue arises when the downtime is extended and happens a lot of time. This is likely to affect your revenue and reputation. To avoid this, when working with a website designer, these are some of the issues you need to address. Any bugs that keep causing downtime on your site are corrected. This also includes when your company has an app. Your website and app need to be functional almost all the time. And in case of scheduled maintenance, inform customers earlier.
Bad Customer Service
As much as customer service is essential everywhere, e-commerce faces these challenges more often. While it is impossible to please all people all the time, reacting negatively to customers can damage your company’s reputation. That means for your business to run smoothly, you have to keep up with customer satisfaction. Therefore, ensure you do not respond defensively or angrily, limit conflict as much as possible, respond professionally even to negative reviews, and always find what you can do to make things right as long as it is within reason.
As a business owner, one of your goals should be to minimize risks as much as possible. Listed above are risks that an e-commerce business will likely face at one point. Staying on top of such will not only help the company’s reputation, but it will also help save revenue.
