6 Factors That Can Harm Your Ecommerce Business Sales

While starting an ecommerce business is relatively easy, the industry has an 80% failure rate, which means maintaining it can be challenging.

However, understanding the common pitfalls can help you avoid the risks of failure. The online shopping world keeps rapidly changing, creating a need for ecommerce operators to realize and address critical business challenges. Here are a few factors that can harm your e-commerce business sales.

Low product quality

Perceived product quality is one vital factor customers consider when making a purchase. For example, consumers may think your goods could be better if they find out you used a quick or cheap method to manufacture your products. Indeed, your manufacturing standards cast a vivid picture of your product quality. Therefore, buyers may not choose your brand if your products have significant quirks. That said, prioritizing high product quality is critical to give your business a competitive edge while boosting customer loyalty. As a tip, please work with credible manufacturers to get the full benefits. 

Bad inventory management

Depending on your ecommerce business model, inventory management could be one significant issue you will face. While too little inventory can impact your sales, too much can cripple your cash flow. Sometimes, ordering products is more challenging than expected; different vendors usually have other lead times. Therefore, it can take one supplier two days to process your order, while another may require weeks. Placing your reorders at different times and diverse inventory levels would be best. Finally, freight charges associated with your inventory can affect your profit margin, so consider this cost.

Substandard website

A great business plan may only count if you have a good website. Modern ecommerce sites should be secure, mobile-friendly, responsive, and accessible 24/7. A functional website is necessary to maintain your productivity and brand reputation. There are several ecommerce platforms like Shopify, BigCommerce, and QuickBooks Online to choose from, so research properly to make an informed decision. Alternatively, consulting professional developers to work on your ecommerce store is a good thing if you lack the skills to design a good site.

You should also note that low traffic volume can kill your ecommerce business. Your web traffic often represents the flow of potential customers into your digital store. That means little to no traffic translates to low sales. One quick way to gain significant traffic is to use pay-per-click (PPC) advertising. However, studying the techniques before you invest is beneficial. Alternatively, you can use social media and SEO content marketing to increase online visibility.

Website breaches

Website breaches occur daily in the ecommerce landscape, tarnishing your business reputation and exposing your brand to liability. Studies reveal about 32% of successful data hacking attempts are executed on ecommerce websites, constituting about a third of all hackings. Averagely, data breaches cost businesses over $ 4 million. However, reputational damage can take years to restore. So, please keep in mind as keeping customer data secure is essential. The right way to patch vulnerabilities is to develop extra security barriers for your online store. You can set up a secure SSL certificate and hire experts to manage your website, so keep this in mind. Securing your customers’ financial information is also crucial, leading to the next point. 

Stolen credit card information        

Stolen credit card data constitute a critical business risk. Malicious actors may steal your customer's credit card info and make unauthorized transactions, causing your customers to lose money and damaging your reputation. Does your commerce business accept, process, or store credit card data? If yes, you must comply with PCI policies to protect customer data access. When observed strictly, PCI compliance is your best bet against stolen credit card data risks. Alternatively, consider safer payment options to protect your customers’ credit card information. For instance, you can try this POS for the best results.

Poor customer service

Lousy customer service can also stagnate your business growth. It’s worth noting that satisfied customers will likely recommend your products to other people. Moreover, they may improve your sales with repeat purchases. On the other hand, you risk losing clients when your customer service department is substandard. Studies show unhappy customers are less likely to order products recurrently or recommend your business. Disgruntled consumers may also write negative reviews about your company, leaving wrong impressions about your services or products. 

So, you'll need to prioritize customer satisfaction and invest more in your customer service team. You should shorten your response time, encourage your agents to listen to complaints, and exercise professionalism. Furthermore, employing an efficient customer relationship management system (CRM) could be a great hack to improve customer service.

Wrap Up

In conclusion, the ecommerce industry is rife with challenges. Still, your business can thrive and beat the high failure rate with the right approach. Maintaining a solid commitment to product quality, efficient inventory management, and excellent customer service is crucial. Your website, the face of your digital enterprise, should be user-friendly, secure, and always up-to-date. I want you to know that paying close attention to your site's security is a non-negotiable aspect, considering the prevalence of cyber threats that could jeopardize customer data and your reputation.

Increasing website traffic should also be a priority to ensure a steady flow of potential customers. Pay-per-click advertising, social media marketing, and SEO optimization could prove beneficial. Maintaining PCI compliance rules when handling credit card data is vital to protecting your customers and your business.

Therefore, running a successful ecommerce business is a continuous process that demands due diligence, innovation, and resilience in the face of the challenges mentioned. Armed with this knowledge, ecommerce operators are better prepared to confront and overcome these obstacles, ensuring the longevity and profitability of their online stores.

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