E-commerce has built many bridges and is a kickstarter, especially for small companies. But anyone who thinks it's a no-brainer is mistaken. Here are five hidden traps in e-commerce.
If you want to sell something today, you can no longer avoid e-commerce. Even smaller stores are pursuing a multi-channel approach and providing an online store to reach a larger target group. Others even focus exclusively on online retail at the beginning. But unfortunately it's not quite that simple, because there are many pitfalls on the way to a successful online store that not only eat up a lot of time, but can also significantly reduce the profit margin.
1. only credit card payment or prepayment...
... is no longer even the minimum when shopping online. The right choice of payment options is a real boost for your online store. A high abandonment rate during the checkout process can be one of the indicators that you need to make further adjustments to your 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, as each provider charges different fees. So you have to weigh up which PSPs are worthwhile and which cause too much bureaucracy.
2. always these bills ...
... that's what customers think too. And it's not just them who can lose track of their bills - you can too. Who do you need to send a reminder to and who is behind with their installment payments? You need to be able to answer these questions at all times. However, it's not just the outstanding debts that are challenging, but also always having the receipts to hand often means stress. It gets even more complicated when some customers want to receive them digitally and others want to receive them in printed form. Only a good system can help.
3. abroad at last ...
... is not just 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 without preparation often see their profit margin shrink. This is not only due to higher shipping costs. It is often the taxes in the recipient country that cause store operators concerns, as VAT is paid in the recipient country. In addition, a VAT declaration is also required for each country to which sales are to be made. Once you have navigated your way through the maze of taxes, you then need to take into account the exchange rates for the various currencies. The leap abroad therefore requires careful consideration and well thought-out processes.
4. lose the overview ...
... can also be applied to accounting. Because different invoices, tax rates and payment methods result in different margins. This makes success feel more like failure. The more customers make purchases or take out subscriptions, the more invoices and payment flows need to be managed. Good financial management brings advantages: It provides many insights into payment transactions, allowing popular and profitable payment methods to be identified. This is particularly helpful for marketing strategies - but without a system, financial management, from which you could draw such important information, becomes a long ordeal.
5. always be available ...
... is not just 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 switch providers. Especially online, it is important to have a contact person if you have questions about a product. Because if the question about the product cannot be answered directly, the willingness to buy is gone. Of course, it would not only be ideal to have slow availability via email. A good online store also offers telephone availability and chat, but that takes up resources. But that's not the only pitfall: in the worst-case scenario, someone calls from abroad in a foreign language and you don't understand a word they're saying. Ideally, customer support can be transferred to an external provider, but this step also needs to be carefully considered.
Help with all the pitfalls in e-commerce
With over 20 years of experience, nexnet offers a solution for 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 at all, you can offer Paypal, Klarna and co. on your website.
In addition, nexnet takes care of subledger accounting and monthly financial statements - so your paper chaos is also handled. If you wish, you can also outsource receivables and accounts receivable management . This makes the entire invoicing process a breeze - even when internationalization is on the horizon. Instead of spending money on lawyers and auditors, nexnet monitors, analyzes and evaluates legal regulations and changes. It's worth relying on this partner to optimize your online store.
