Pitfalls In Ecommerce: The 4 Major Setbacks

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Pitfalls In Ecommerce The 4 Major Setbacks
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E Commerce has grown a lot in recent years. And
looking at the growth right now this might grow
even bigger in coming years. And will be
representing an increasing share of total retail
sales. As more and larger online stores open,
small sellers may face new business-threatening
pitfalls in e commerce too for online selling.
The concept of e commerce has long been the small
business person's friend. Because owners can
easily enter the market with this segment and can
acquire relatively low resources. Ecommerce
marketing is also a much more straightforward
concept. People want your product and you sell
that product. This might be the first pitfall
almost every business owner faces whether a new
one or an established one. And this also affects
mobile SEO for ecommerce in the long run.
Ecommerce marketing is more challenging and
competitive today than it ever was. The
competition is rising because of new trends in
SEO, paid search, social media marketing. And
learning to interpret these analytics are slowly
making it even bigger.
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Pitfalls In E Commerce Working Capital
Finance
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The businesses which are large and established
already with their offline outlets are doing
really well online. Because of easy access to
their working capital. This is because they
already have the resources, banks and even
physical assets as large turnovers and
collaterals. But, heres a big but - A new
entrant to this ever changing industry, does not
generally have easy access to any of these. -
They might be able to fund the early stages of
expansion from the initial capital they used to
set up the business. This capital might have been
borrowed from the bank. Or has come from their
own savings which they have saved from years.
However, this may not be enough. - A major
problem faced by growing businesses is over
trading. A lack of working capital in the time
between investing in growth and realizing the
profits can cause serious problems for a
business. - Lack of working capital finance does
not mean there will be no profit. But its effects
can be dangerous.
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Pitfalls In Ecommerce Price Competition
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Competition on pricing is a steep one in
ecommerce industry. And that is because many
thousands of online sellers list identical
products on marketplaces. And quite often the
only differentiator is the price-point - This
sort of price competition that especially hurts
retailers. Who do not have the purchasing power
to compete with large online sellers. - This
calls for changing your prices from time to time.
But you should also understand its potential
impact. - Frequently review your sales numbers to
determine if the changes are having the desired
effect. Because a price change may take longer
than you realize for impact to occur. - Most of
the time, you probably dont want to sell a
product at a loss. However, if youre clearing
out inventory from last season, its often better
to discount these items.
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Customer Loyalty
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Customer loyalty is arguably the most important
factor in business today. Not only will it bring
repeat business, but also translate to more
opportunities and even more conversions - Its
easier and much more profitable to sell to loyal
customers than it is to constantly search for new
ones. Smaller ecommerce sellers rarely have
resources to drive loyalty for their products or
store. - Video trends in ecommerce industry are
also a great way to gain customer loyalty. - A
significant aspect of customer loyalty comes down
to your likeability. People would definitely want
to remain committed to a brand. If they believe
theyve developed a beneficial relationship based
on trust and genuine. - Take advantage of any
opportunity to get to know a client on a personal
level. Organize your operations to keep a mindful
eye out for information that can help build a
relationship.
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Returns Policy
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Marketplace policies are highly favourable for
buyers - The seller would have to pay
commission to the marketplace even if the product
is returned in a damaged state. Also, generally
its the seller who pays for the return
charges. - The biggest challenge is to resell the
product, once the label or the packaging are
significantly damaged. Ecommerce sellers can
connect with various refurbished goods sellers,
who are more than willing to buy such products,
although at discounted prices. This is one of the
ways to boost sign ups in ecommerce industries. -
For many sellers, the process of handling product
returns has been mostly on an ad hoc basis. -
Many successful organizations have realized that
the returns process incurs significant costs. And
that, an effective product returns strategy, can
provide a number of benefits.
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