E-commerce has built many bridges and is a kickstarter especially for small businesses. But if you think it’s a no-brainer, you’re wrong. Here are five hidden traps in e-commerce.
t3n, from 27.10.2021 – Reading time: 3 min.
If you want to sell something today, you can’t get around e-commerce. Even smaller stores are taking a multi-channel approach and providing an online store to reach a larger target audience. Others even focus exclusively on online retail at the beginning. But unfortunately, it’s not quite that simple, because on the way to a successful online store, many traps await, which not only really eat up time, but can also significantly reduce the profit margin.
1. credit card payment or prepayment only….
… is now not even the minimum for online shopping. The right choice of payment options is a real turbo for your online store. A high abandonment rate in the checkout process can be one of the indicators that you need to step up your game when it comes to payment models. So let’s get into the numbers. But this is where the real trap lurks, because integrating all payment service providers (PSPs for short) can be complicated and costly, because each provider charges different fees. So you have to weigh up which PSPs are worthwhile and which ones cause too much bureaucracy.
2. always these bills …
… that’s what customers think, too. And not only can they lose track of bills, but so can you. Who do you have to send a reminder to and who is behind on installment payments? It must be possible to answer these questions constantly. However, it is not only the outstanding receivables that are challenging, but also having the receipts always at hand often means stress. It gets even more complicated when some customers want to receive digitally, but others want to receive in print. Only a good system can help against this.
3. finally abroad …
… is not only a vacation destination, but also represents a real milestone for many stores. Internationalization is at the top of the list, especially for motivated start-ups. But those who sell abroad unprepared often see their profit margins shrink. The reason for this is not only higher shipping costs. It is often the taxes in the recipient country that cause store operators concern, because VAT is paid in the recipient country. In addition, a sales tax return is also required for each country to which sales are to be made. Once you have fought your way through the maze of taxes, you still have to consider the exchange rates for the various currencies. So making the leap abroad requires careful consideration and well thought-out processes.
4. losing the overview …
… you can also do with accounting. Because with different invoices, tax rates and payment methods, different margins also follow. This makes success feel more like failure. The more customers buy or subscribe, the more invoices and payment flows need to be managed. In this context, good financial management brings benefits: It provides many insights into payment transactions, allowing popular and profitable means of payment to be identified. This is especially helpful for marketing strategies – but without a system, financial management, from which one could draw such important information, becomes a long ordeal.
5. always be available …
… is not only a service in e-commerce, but actually a duty. 89 percent of all customers who have had a bad experience with their provider are willing to change providers. Especially online, it is important to have contact persons if you have questions about a product. Because if the question about the product cannot be answered directly, the will to buy is gone. Of course, not only the slow accessibility via e-mail would be ideal. A good online store additionally offers telephone accessibility and a chat, but this swallows up resources. But that’s not the only pitfall: in the worst case, someone calls from abroad in a foreign language and you don’t understand a word. Ideally, customer support can be transferred to an external provider, but this step must also be well considered.
A help with all traps
With over 20 years of experience, nexnet offers a solution to all of these pitfalls with holistic outsourcing. Billing processes are automated by the company. Payment service providers can also be easily integrated: In no time you can offer Paypal, Klarna and Co on your website.
In addition, nexnet takes care of the subledger accounting and the monthly financial statements – so your paper chaos is also handled. Those who wish can also hand over receivables and accounts receivable management. This makes the entire invoicing process a breeze – even with upcoming internationalization. Instead of spending money on lawyers and auditors, nexnet observes, analyzes and evaluates legal regulations and changes. This is how customer service can be outsourced. nexnet offers telephone and written consulting, the latter also via chat. So it really pays to build some bridges for your online store here.