It required a large amount of capital to start your own retail business. Most of these costs were associated with building, renovating, or renting a store. Today, anyone with a modest amount of capital can build an e-commerce website that can compete with established brick-and-mortar retailers.
E-commerce has changed how business works. It’s more than a trend; it’s a global business model. Still despite how easy it easy to set up shop as an entrepreneur, you face many challenges before you can create a successful business.
Here are 4 common challenges and the steps to take to meet them:
1. Unexpected technical issues:
If you have your own server and a local area network, you will find that for the most part, your computer system will be stable and reliable. However, what do you do if things go wrong? For instance, what do you do if your server crashes and you didn’t have enough time to backup some critical information? In a case like this, you can use data recovery services to get your crucial information back.
Handle unexpected technical problems by taking following 2 steps:
2. Reputation management.
While you may do your best to run your business with integrity, you can still have reputation management problems.
For instance, a customer might complain on a consumer website about your company because they didn’t get a refund to or that their shipment was lost.
These may not actually be your fault. The product may have passed its warranty; your fulfillment company may have made an error in the shipment.
Small things can quickly spiral out of control. Other customers may decide to join the chorus; business partners may begin to suspect you of chicanery; and potential customers may decide to buy from another vendor.
Manage your reputation by taking the following 2 steps:
3. Keep positive cash flow.
Business is based on a simple equation: you must have more money coming in then going out.
Unfortunately, it’s easy to spend more than you earn when you run an e-commerce business.
You have to pay for numerous services to run your business. You have to pay for web design, IT, electronic payment processing, landing pages, email marketing services, advertising, and so on.
If you are not careful, you can end up spending more money than you make. Even if you start out with sufficient capital, it can be quickly drained if you consistently spend more money than you make.
Once you hit a point of negative cash flow, you can quickly lose control of your entire business because you will have your essential services cut off.
Maintain positive cash flow problems by taking the following 4 steps:
4. Stay abreast of the latest marketing techniques.
Things change fast online. One month a favorite method of advertising may work wonders and the next month it is so saturated that you spend more money on advertising than you make from sales.
Stay abreast of the latest marketing techniques by taking the following 3 steps:
Constantly measure the metrics of all your advertising to be able to quickly sort out changes in revenue generation.
Business As Usual
Starting an e-commerce business may be easier to get into than opening up a brick-and-mortar company, and you may have huge advantages like global exposure and a business that runs 24/7, but you are still running a business that follows all the usual rules—taking care of problems before they happen, maintaining a good reputation, managing your money wisely, and advertising your goods effectively.