Fear of the Risk associated with having an Online Store
There are multiple risks associated with having an online store:
1. Security risk
3. Online Store Visitor Count
4. Operational Risk
When they have their own E-Commerce Website, they are aware of the security risks that will arise. The website may become a target for Hackers or malicious software. With having an E-Commerce website they will surely be collecting payment information along with their customer data and these critical data cannot be shared with anyone and should be kept confidential at all times.
There is a risk of fraud when it comes to online business. For example, when a customer makes a payment via credit card, it is very difficult to know if the person making the payment is actually the owner of that credit card. When the store sends out the product for delivery that is when they realize that they were given false information and end up losing the merchandise and also the payment.
Online Store Visitor Count:
When they their own Online store, there should be traffic to that store, and when that does not happen ÔÇô that becomes loss for them. The challenge that they face, will be bringing in customer to their online store and for that they will have to spend a lot. Hence incurring more cost.
Having an Online Store has its own Operational risks, they need to coordinate with the supplier, the logistics and the vendors. In addition to that, they have to keep a track on the competitors pricing so that they can offer their products at the best price.
Huge StartUp Cost:
Designing and developing a professional Ecommerce Portal can be expensive for the first timers. The developers may be charging around 10,000 – 50,000 USD. That is huge sum which a startup has to incur to get a professional E-Commerce website to engage their customers. This surely will give them the exposure to the huge market out there for their products but there will be an up-front cost that they will have to bear. And if they go ahead with the website then there will be extra charges for the website maintenance and also for promoting their website online.
Online Shop Development Hassel
Even if the Brick and Mortar store have the capital to move ahead with an E-Commerce Website, they may need to coordinate with multiple department to get things moving:
1. Design Team
2. Development Team
3. Hosting Company
4. Support Team
They will need to coordinate with the Graphics team for the design, and define how the website should look.
They will also need to coordinate with the development team to check everything is as per the design and the functions are all running fine. All the functions are really important because if things are not in proper order customer will leave their website and never come back again.
Getting a good hosting company for the website is important. A good hosting company will keep the website safe from hackers and also give the website good loading speed. If the speed is slow then customer would surely leave the website no matter how good the website looks.
Most important of all, E-commerce development company should provide timely support so that the online store can provide continuous service to their customer.
Unaware about the Market Trend
There are Brick and Mortar owners who are not able to adapt to the changes happening to the business environment around them. For example: There are online stores who are selling products at a lower cost because they do not have to maintain a physical store nor hire staffs to manage the store. Another added benefit they have is, they stay open 24*7. Unknowingly offline stores are losing out on the market share as more and more online stores are now coming up.
KNOWARTH assists Brick and Mortar stores in developing and driving maximum revenue from their e-store and ensure that their customer can buy the products from anywhere using any device.