Running an ecommerce store might be much simpler than opening a brick-and-mortar store. However, it also comes with a whole new set of risks you might not have thought about.
This infographic shows the 10 common risks of running an ecommerce business that you need to beware of:
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1. Online Security
There is a whole range of security threats out there to beware of, including malware, phishing attacks, hacking and spam mail.
To defend against these threats, make sure that you update your platform’s operating system regularly, and use a strong SSL (Secure Sockets Layer).
2. System Reliability
The Internet service provider (ISP) server could crash, your online payment system could show errors and the ecommerce plugin could have bugs.
Except keeping all operating systems and APIs updated, these are just some things that may happen outside of our control.
3. Privacy Issues
Customers’ personal data could be compromised and used for spamming, identity theft and unsolicited marketing.
In addition to the online security measures previously mentioned, make sure to require customers to use strong passwords.
4. Customer Disputes
A customer might not have received their order, their credit card was charged twice, or the product their received didn’t fit the online description.
Whether the customer is right or not, it’s important to always have great customer service and to rectify all possible mistakes that were made.
5. Credit Card Fraud
Someone could use a stolen credit card to make an online purchase, or a hacker could use stolen credit data from other customers in your system.
No matter how good your online security measures are, always watch out for any suspicious transactions.
6. Intellectual Property Issues
Your website images, product descriptions, logos, videos, music, as well as your products, could be copied by others, or violate someone else’s intellectual property.
Google or other platforms could do a complete makeover of their algorithm at any time, and make your website traffic drop significantly overnight.
You might not be including the appropriate sales tax in your sales, or you are not paying fair shipping and/or import taxes depending on your shipping destination.
9. Return of Goods and Warranty
Common headaches when dealing with product returns: Increase in supply chain costs and not being able to resell the items at their original price.
10. Warehousing and Logistics Issues
You could run out of stocks while orders are coming in, a product shipment might be delayed, or a parcel could be delivered to the wrong recipient.
These are risks that come with the territory when running an ecommerce business.
The most important thing you can do is to always keep these in mind, and to build a strategy on how to deal with them once they happen.