Myths of E-Commerce5th July 2021 1 By indiafreenotes
Setting up of an e commerce is very tempting and exciting but also carry risks. There are examples of entrepreneurs that have made millions through e-commerce and built successful online business. To name a few: amazon, ebay, alibaba, wallmart, flipkart, myntra etc.
Revenue is the only performance metric
Obviously, you want to make profits and increase revenue but they don’t always indicate the entire well-being of your business. You can still experience low conversions even with an effective online campaign. Unless you set medium-specific metrics and objectives, you cannot exactly tell whether your marketing strategy failed or your site needs a boost. It is common for business people to feel frustrated when their social media marketing campaigns fail to drive sales.
Online store is an easy money-making business
Making money online using e-commerce is easy; is far from reality. Someone claiming to earn INR 100,000 monthly by selling some kind of products to few desperate customers is either concocted or designed to make money by illegal or unethical means. There are many companies who have invested time, knowledge and money to build a viable system which can generate revenue by offering online products.
An e-commerce website is all you need
Do not fall a victim of this misconception. A website is not a complete plan for your business. To start enjoying online sales, you need more than just stocked databases, shopping carts, and payment methods. The truth is a website is only a part of the business plan. This tool needs to work in tandem with other methods for your business to survive the current competitive marketplaces.
Low prices drive online sales
Regardless of the market experience and the size of your business, never try to attract clients with low prices. This is a very archaic selling factor. Of course, you want to give competitive prices and the typical consumer always wants to pay less for more. Nonetheless, other factors come in to determine the final consumer decision e.g. the credibility of your business, shopping experience, customer support, the popularity of your brand, and engaging storefront.
Customer Privacy and Protection is not an important issue
You need a physical location to host events
This myth should not hold you back. Not every online business requires a physical location. You should be able to promote your products whether you have a physical business address or not. You have probably seen pop-up shops all over testing new products or boosting the sales of the existing products. You should also try come-buzz to benefit your online business. Whether you want to keep the location temporary or permanent, it is all up to you and dependent on your needs.
Online products sell themselves
Some people think that customers are easier to find online and that sales start zooming as soon as the business website is launched. After building the site, you don’t simply sit back and wait for clients to come. A lot of marketing is required for your products or online services to start selling. Just the way you work hard for your commodities to sell in the real-world markets, you must work hard too for online sales to pick.
One Language Support
Most e-stores use one language, especially English. It is wrong to assume that English is understood everywhere if you run an international brand. Recently a research on e-commerce was conducted and it revealed that 30% of online consumers buy products from e-stores which are not designed in their native language. Even if buyers tend to ignore sites with foreign languages, they are sometimes attracted by visually appealing goods.
The sales taxes are complex
Sure, sales taxes are not easy and every country provides its own rules pertaining to filing deadlines, standards, and rates. But it doesn’t have to be like this. All you need is to stay up-to-date on the changing laws by using Avalara. They will take care of your filing hence make your work easier.
The opportunity to give enough product information is limited
Don’t let this misconception confuse you. Online markets do not limit the volume of visual content or product information. Those who hold on to this lie end up offering too little information or too long product descriptions. There is no need to give unnecessary information because it ends up confusing prospective clients who then opt not to buy. Before you create content for your commercial site, think carefully and make the descriptions simple and comprehensible.
Traffic rolls in automatically
This is another big misconception regarding e-commerce. Even the most attractive commercial websites don’t gain automatic traffic. Without proper SEO mechanisms, your site may fail eventually. Online traffic is very different from the traditional one to a physical store. Internet-based marketplaces require serious efforts to drive prospects. Do not expect the prospective buyers to come easily to your site without some incentives. Without good promotional campaigns, you will only get a few visitors.