Beware Of The 7 Risks Of E-Commerce Business

Warning Alert! There might be some serious risks you need to assess before launching your e-commerce business.  While setting the budget, targets and strategies of your business, never ignore risks of e-commerce. E-commerce businesses and risk have been interconnected since forever and you need to pay heed before it gets too late.

The list is long if we compile all the threats but most of them include data theft, site hacking and scams etc.

We have noted 7 deadly risks that can ruin your business and have mentioned their solutions to help you tackle these risks.

What Are The Possible Risks Of E-commerce Business?

E-commerce business has given a lot of exposure and access to a larger audience. It was certainly not possible to achieve through conventional retailing methods.

However, it has also made business owners and customers prone to serious security threats.

The seven most inevitable threats to e-commerce include:

  • Online security breach
  • Client disputes and refunds
  • Violation of Intellectual property
  • Low SEO ranking
  • Credit cards scams
  • Poor customer service
  • Weak authentication methods

These are some of the risks that can affect your business and you can bear the loss if they are not addressed properly.

Now let’s discuss all these risks in detail so that you can save your business from getting destroyed.

1.  Online Security Breach

e-commerce website security

Your e-commerce business is vulnerable to online security breaches and cyber-attacks.

Some of these online security risks can include phishing, website hacking and unprotected web services.

There are many hackers who can breach the network of a company and access sensitive information.

Therefore, it is necessary that your e-commerce website security is very strong.

What’s The Solution?

You need the best data management practices to make your online security stringent.

We have suggested some solutions that can help you in protecting your business. You must:

  • Enforce additional layers of network security. You can start from the firewall.
  • After that you can add more layers on the website through contact forms, sign up boxes and search queries.
  • Your web development service provider can help you in setting up security for your site.
  • Make sure you initiate and end your transactions with SSL certification
  • Select a safe and secure e-commerce platform which uses object-oriented programming language.
  • Keep on monitoring your website regularly and ask your web hosting company to check their servers for any virus or malware.
  • Purge old records from the database and keep a minimum amount of data.

2.  Client Disputes And Refunds

 problems with online shopping

One of the biggest problems with online shopping in the e-commerce industry is that clients can claim refunds on disputed orders.

Most of the time dispute arises when the product never arrives and the amount has been charged from customers account.

Sometimes the customer has been charged twice and sometimes product description does not match the real product.

Moreover, many refund frauds can also occur. These are some of the potential risks associated with an e-commerce business.

What’s The Solution?

You can avoid disputed orders and claims for chargeback by:

  • Avoiding shipment of wrong product.
  • Not charging the customer until and unless you are sure that all items have shipped and delivered.
  • Using tracking number for each order that is placed and shipped.
  • Barcode scanners help in minimising payment related errors.

3.  Violation Of Intellectual Property

security threats of e-commerce business

Violation of intellectual property is also one of the common security threats of e-commerce business.

Protection of IP is very important in the e-commerce industry and includes website logos, content, taglines, products and other images and icons.

Violation of copyright rules and intellectual property can cause you a huge loss.

What’s The Solution?

Few techniques can be used to get rid of this risk.

  • Do not copy IP of any other company.
  • Enforce strong copyright rules.
  • Train your employees regarding IP security.
  • Never disclose sensitive information during live chats because they are not secure at all.
  • Employ strict written protocols and enforce security policies and practices.

4.  Low SEO Ranking

e-commerce threats

Out of many e-commerce threats, SEO and digital marketing of your business can also become a serious risk.

Google keeps on changing its algorithms and it drastically affects your ranking.

Low SEO ranking means low traffic to your website which ultimately results in less number of sales.

Therefore, you need to focus on the digital marketing of your e-commerce business too.

Readmore: Digital marketing art of boosting sales and generating leads

What’s The Solution?

If a professional SEO expert is not taking care of your website marketing then there are chances that your website traffic drops.

  • Find the right keywords to promote your products.
  • Use the right tools to search for
  • Make an effective social media strategy.

5.  Credit Card Scams

risks of e-commerce

Suspicious transactions and stolen credit card information are common risks of e-commerce business.

Hackers or anybody can use a stolen credit card to make an online transaction.

Your online security should be strong and tight enough to catch a doubtful transaction.

What’s The Solution?

You can use the following techniques to prevent fraudulent purchases:

  • You should be PCI compliant because PCI compliance protects the data of a credit card holder and maintains the firewall.
  • Use Secure Sockets Layer authentication for protection of data.
  • SSL certificates are important for transactions.
  • They can authenticate your business identity and encrypts the data which saves the data from being stolen.

6.  Poor Customer Service

poor customer service

Poor customer service or experience can be a serious turn off for the customers. Eventually, it can hurt your business.

It includes many loopholes ranging from your rude and unprofessional customer service agents to not up to date inventory management.

Wrong deliveries can also make you lose business.

What’s The Solution?

  • Always be polite when you are talking to your customers.
  • Focus on exceeding the expectations of your clients.
  • Always gracefully respond to your customer’s queries and apologise for your mistakes.
  • Use effective inventory management software to save your customers from any inconvenience.
  • Try to provide accurate deliveries.
  • Personalisation is the key to impress customers.

7.  Weak Authentication Methods

risks of e-commerce

If you have weak and very basic authentication methods then you are prone to more cyber-attacks.

If you are authenticating a user by ID and password only then there are chances that this information can be stolen.

You need strong authentication methods for your online security that can resist attacks.

What’s The Solution?

  • The best solution to this problem is that you should use two-factor or multifactor authentication methods.
  • It is the perfect way of improving your online security.
  • It adds an extra layer of security and can ask for a verification code other than ID and passwords.

Thus, all the above-mentioned risks and their solutions can help you in overcoming the security issues and risks of e-commerce business.

One important thing to be considered is that you need expert web development services to overcome all risks. Intelicle, a web design agency Nottingham, offers incredible web design and development services. Their proficient developers will help you in protecting your business from security threats.

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