Know More About Cons of Running an E-commerce usiness

Florance/ December 31, 2020/ Education

Though e-commerce has many benefits, it’s not without its challenges. Here are six to consider before you decide if an e-commerce business is right for you agen poker resmi. You can’t reach everyone. Even amid the pandemic, there are still consumers who simply don’t like shopping online; they want to see and touch products before they buy, and they are afraid of online fraud. According to Oberlo, 2.05 billion people are projected to shop online in 2020 – but that’s out of the 7.8 billion people worldwide, making it approximately 26%.

Data and credit card fraud are rampant. One of the biggest problems with e-commerce is the risk of fraud. Credit card and identity theft are commonplace, affecting thousands of consumers annually. If hackers breach your network and steal sensitive customer information, it could cause irreparable damage. On average, a cyberattack costs a business $200,000, and 60% of businesses shutter within six months of the incident.

Customers abandon their shopping carts. E-commerce makes it easier for customers to window-shop with little intention of buying. Shopping cart abandonment impacts a high percentage of online sales.

There are costs for doing business online. You may not have the overhead physical retailers have, but there still costs to consider, such as website hosting and/or e-commerce platform fees, internet service costs, social media marketing, inventory management, and storage and shipping. Like any other business owner, you must also consider the applicable taxes, licenses and regulations.

E-commerce is a cutthroat business. You aren’t the first person to sell a product or service online; depending on your industry, you may have many competitors with identical or very similar products. Since many consumers shop based on price and expect to find good deals on the internet, you may find yourself in a race to the bottom.

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