Cash flow issues are one of the most cited problems from small businesses of all types. What if you could harness every dime and turn your e-commerce store into a growth powerhouse?
You could be making costly mistakes you aren’t even aware of. Hint: Some may seem small but are costly mistakes that add up over time.
As an entrepreneur, it’s’ your job to be a good steward of the revenue you generate. You want your business to grow consistently, and keeping track of your finances is the best way to ensure it does. Know where your money comes from and where it goes.
What Is the Biggest Problem of E-Commerce?
A recent Forbes report indicated about 93% of cybercriminals could get through the safeguards of most companies. Small and medium-sized businesses were particularly vulnerable because of a lack of strong IT or not updating antivirus protections.
One of the costliest mistakes for e-commerce brands is letting your clients” information fall into the wrong hands. The cleanup will cost you vital funding, and you may lose customers. People will no longer trust you with their most sensitive information.
There are many other costly mistakes associated with running a small brand. Some errors increase over time, such as paying too much for insurance, while others may be more noticeable in the short term.
1. Not Knowing Your Customers
Not knowing who your customers are can be a costly mistake. One of the most important things you can do to grow your business is to keep your customers while adding new ones. Customer retention isn’t’ possible if you don’t fully understand your customers’ needs.
What are their pain points? What drives them to your brand in the first place? Once you break down what motivates your users, you can ensure you meet their expectations and then exceed them.
2. Overselling Across Platforms
Other costly mistakes include selling on multiple platforms and running out of inventory. It’s’ hard to keep up with more than a couple of online inventory systems on your own. You might forget to remove an item when stock runs low.
Customers become frustrated with brands that sell to them and don’t ship out immediately. Using a single system to track inventory across multiple channels is much easier. You won’t have to worry about missing one because all are updated simultaneously.
3. Failing to Capture Leads
Not capturing the leads that come your way can be one of those costly mistakes that hurt your business over time. If you spend the time and money to drive people to your website, you want to ensure you also collect information to stay in touch.
For example, you might offer free shipping, a guide to something, or a discount if they share their email. Think about why your target audience would stay subscribed to your list.
4. Not Measuring Shipping Correctly
Costly mistakes in shipping cost differences can hurt your bottom line. For example, you might think an order fits a specific size box and charges a set shipping rate. However, USPS and other carriers charge a premium over a certain size box.
It would help if you weighed everything as you added it to your inventory unless you plan to eat some of the costs of mailing things out to your customers.
5. Ignoring Cryptocurrency
Around 82% of small businesses cite cash flow issues as the number one reason for failure. Online stores should accept as many types of currency as possible. While you don’t have to take Cryptocurrency, you should know the possibility and understand how digital cash works.
If you choose to accept Cryptocurrency, you’ll want to work with a third-party provider that gives you the best rates and is reliable. The last thing you want is to lose money because of a sudden crash in the worth of cryptocash.
6. Accepting Poor Web Hosting
E-commerce is 100% online shopping. If your website isn’t up to the task 24/7/365, you’ll lose out on sales. Some issues you might run into include slow speeds, expensive fees, and crashes.
Every minute your website is down, you’ll lose revenue. Some customers will become so frustrated that they’ll go to a competitor’s site and never return.
Seek out the best web host you can afford. If possible, get a dedicated plan so what others do on the server doesn’t’ impact you.
7. Failing to Follow Up
Creating strong customer relationships can spur your business to new heights. You want customers who rave about your products and services. Ideally, you’ll gain new clients via word-of-mouth referrals.
It only takes a minute to program an email to follow up on order. Make sure your customers are happy with their purchases. If you don’t check in, people may feel you only care about making money and not about them as individuals.
Part of customer relationship management is follow-up. Not staying in touch with people will cost you future sales. Ideally, once someone becomes a client, they will continue to buy from your online store for all their needs in your niche.
Try New Things
Running a successful e-commerce business takes a ton of time and effort. Keep trying new tactics and watch your sales figures. Knowing what costs you the most and brings in the most is a good start toward a thriving online store.