Ecommerce Risks Overview

There are no ecommerce risks; an ecommerce site will make you rich, right?

Unlikely. In fact, extremely unlikely. The ecommerce myth can be just that. Yes under certain circumstances, ecommerce can create wealth. Or support a bricks and mortar business.

Ecommerce Risks Overview

But before you invest several thousands of pounds in the hope of instant riches, run through our simple ecommerce myth checklist:

Is your product also available on Amazon? If the answer is yes, chances are you wont be able to compete. All the service in the world won’t make people buy from you if they can buy just 50p cheaper on Amazon, so be warned, people will milk you for info, then price compare.

On the flip side, if what you sell is unique, then Amazon definitely can’t compete. That’s a tick.

Are you prepared to invest in a large amount of stock? Do you have the cash for it? The space? If you are buying from a wholesaler, there will be minimum order quantities, so even if you just get one order, you’ll have to keep stock.

Are you prepared to spend money on getting terms and conditions written by a solicitor? Refund policy? It’s a legal requirement, and while you can buy off the shelf, it’s not a great idea.

Even the very biggest and most successful ecommerce stores suffer massively from the British tendency to send stuff back. This ‘unshopping’ can cost you massively in delivery costs, cash flow, slightly damaged or obsolete stock.

It can be done. But it’s tough. And if you don’t have an established brand behind you, please think very carefully. If you want to discuss your prospects, call us on. 01832 226421.