7 Threats To Your eCommerce Business

World over, the fabric of the eCommerce industry is struggling between the wrap of 4 billion people who have access to the internet and the weft of ever-growing online fraud.

Don’t you think online fraud is a blemish on the fair face of eCommerce industry?

There have been risks galore, but hardly any convincing solutions. It is in this spirit, we have compiled this article on 7 undeniable risks. And yes, we have provided convincing solutions.

Without any further ado, let’s get started.

#1 Online Risks


Online risks are not limited to just credit card fraud. Phishing and hacking rule the roost!

Ways to deflect and mitigate online risks

  • Transactions should be initiated and concluded through PCI compliant payment gateways
  • User passwords should be strong
  • Multi-layer security is mandatory

#2 Intellectual Property Infringement


Ways to mitigate IP infringement

  • Register all your trademarks, patents, and copyrights
  • Keep monitoring your marketplace. In extreme cases, file a lawsuit. A court injunction may be required sometimes.

#3 High incidence of chargeback fraud


Increased awareness of chargeback rights has propelled customers to exploit chargeback policies. Merchants are at a great disadvantage

Ways to mitigate chargeback fraud

  • Do not charge the customer without taking his / her approval
  • If there are any ambiguities in your refund/cancellation policy, sort them out immediately
  • The product description shouldn’t be open to multiple interpretations. They should be concise and clear. They should describe but not glorify the products
  • Exercise great caution while shipping stuff. Wrong delivery can affect customer satisfaction

#4: Improper inventory management isn’t the road to prosperity


Ways to address improper inventory management

  • Collaborate with professional and experienced drop shippers
  • Use barcode scanners to expedite delivery
  • Monitor logistics

#5: Poor Customer Service


Ways to improve customer service

  • Round the clock customer service is mandatory.
  • Use chatbots to your advantage
  • Personalization is important. Provide tailor-made suggestions

#6: Little knowledge of taxation and tax structure


Ways to file taxes

  • Sit with an attorney/tax advocate
  • Understand the nuances of sales tax
  • Identify all your stakeholders. Apportion the taxes accordingly

# 7: Declining traffic and poor sales


Ways to improve sales and traffic

  • ­Keep an eye on your website SEO
  • Devise a long-term strategy to acquire organic and paid traffic
  • Use high-quality images
  • Do not stuff product descriptions with keywords. Maintain optimum keyword density

The road to prosperity is fraught with risks. Manage and mitigate your risks carefully. Be consistent and patient. Victory is yours. Cheers!

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