For many entrepreneurs, e-commerce provides a fast and efficient way to run their own business. The process of creating an online store is simple with services like Shopify, Magento, WooCommerce, and others. In fact, you do not even need a website in the first place thanks to marketplaces like Amazon and Etsy, in which you can display your products. But things are not really easy. There are many issues retailers fail to realize when launching their business.
Inventory Management
Many companies struggle to manage their inventory well. For a small retail store, poor inventory management can do a lot of damage to the company if there are too many unmet orders. Reconciling the supply and demand gap is a major challenge for some online stores.
Consumer Fraud
A customer may make a purchase on your website and wait for the product to be shipped to them. Once delivery is complete, it reports the purchase as fake and, in most cases, banks may believe the customer. The costs involved in tracking consumer fraud cases are huge. As a result, many companies choose to note this as a loss rather than dealing with it.
Shipping the Products
Even if you are reselling products from other manufacturers, you are still responsible for the safe delivery of your products. Some of the challenges you may face here:
Damage in Transit
You pay for shipping the products from the supplier’s site to your warehouse. Any damage caused to the products when they are moved from your warehouse to the customer is your responsibility.
Losses During Product Transit Across Countries
Some products may be lost while in transit to different countries. The postal network is not reliable in many countries, and in addition, consumption fees are often charged for international shipments. This can make your product much more expensive than you expect.