2022-04-24
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An online store and the main risks associated with its creation

An online store and the main risks associated with its creation dropshipping suppliers aliexpress amazon shopify best beginners apps products ebay wix distributors how to start business vendors stores alibaba compares your prices orders for suppliers create catalog

Every business involves risk in one way or another. Many people believe that when doing business on the Internet, the risks are minimal (after all, everything is done remotely, and financial investments are not that big). It really depends on the size of the business. If you provide private services, such as writing term papers and essays for students, then the costs (and risks) will indeed be minimal. However, it is unlikely that you will be able to earn a lot of money in such a business. If you own a large online store, you will have to invest much more material resources (and take more risks).

Below we list the main types of risks that online store owners most often face.

  1. Wrong choice of contractor for the development or support of the site. At the moment, services for the creation, promotion and promotion of online stores are provided by a variety of companies and individuals. In such a variety, there is a rather high chance of running into amateurs or simply dishonest people who will do their job for a “three with a minus”. And a poorly made site is unlikely to be able to bring sufficient profit to its owner.
  2. Low attendance. As you know, the profit of an online store depends on how many visitors come to its pages. The more of them, the more money (ceteris paribus) the store owner can earn. Low traffic may be due to technical problems (poor indexing, non-working modules, pages), SEO problems, high level of competition in the subject, and other factors. The worst thing here is that it is almost impossible to predict low traffic at the store design stage.
  3. Low percentage of targeted visitors. This is a less common problem, but some webmasters still experience it. In the case of an online store, the target visitor will be a person who is interested in buying the product offered to him. Usually such people come for relevant queries from search engines. A non-target visitor will be a person who came by random requests (keywords that are loosely related to the theme of the store).
  4. Decreased demand for a product. This problem is faced not only by Internet merchants, but also by entrepreneurs working offline. At the time of the creation of an online store, the demand for a product may be high. However, after some time, demand may well fall. In this case, you run the risk of not recouping the cost of purchasing the product.
  5. Tightening competition. Here everything happens exactly the opposite - the demand for the product increases and, as a result, the level of competition between different online stores increases (their total number also increases). As competition intensifies, it becomes much more difficult to stay afloat and attract a sufficient number of targeted visitors to the store pages.
  6. Problems with suppliers. As a rule, the owners of online stores do not produce products on their own, but purchase them from wholesalers. And when working with other people, all sorts of nuances are possible - misunderstanding, non-compliance with delivery dates, etc. All this is fraught with financial losses, the size of which depends on the scale of the business and the volume of products supplied.
  7. Problems with delivery. In general, the delivery of products to the end buyer of an online store is one of the most important procedures that needs to be considered at the stage of business design. You should decide on the territory of delivery, methods, terms and other parameters. If you forget to do all this, then the likelihood of certain delivery errors by store employees will increase (sending the wrong product, sending it to the wrong address, long delays in shipping, etc. ).

 

Copywriter ElbuzGroup


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