Business itself is a risk. You have to master the fear and have to proceed with rational views to get the profit. Ecommerce is not safe from these risks and losses as well and the statistics of the giant companies show it well.
But, don’t worry, there are way to reduce your losses and thus amplify the profit. So, let’s check what experts suggests to tackle all these losses and grab the cherry on the cake.
Inventory Management Application
The first thing that every ecommerce should do is installing an efficient and easy inventory management application. If you have a huge plan to spread your business nationwide and compete with the giant brands, you should develop a custom application with proper mobile app. But, for the small organizations the freewares are enough. Just check if it provides all the necessary features for your business. It would give you clear information about the current stock, low stock, buying price and so on through a few clicks.
Deter Fake Customers
With increasing competition, number of fake customers have increased a lot where online shopping websites get several false orders every month. It increases their overhead cost and so do need to pay the shipping charge for the bad business. It also decreases the number of available products in your online store until the product returns back to your store after a failed-delivery. So, it is best to make system in your ecommerce store for customer verification before taking any order. You can do it through mobile number verification as well as mail ID verification.
Set Order Cancellation Numbers
There are customers who keep searching for lower price even after submitting an order at some website. And they cancel the order even on the day of delivery if they find a better deal. Well, they have right to cancel any order for any reason; but there should be some limit. So, to prevent this frequent cancellations, set a cancellation limit to every customer where if they cancel orders consequently for a certain number of times block cash on delivery service for them. Or you can even charge them a nominal amount to prevent these repeated cancellations.
Find Vendors with Better Price
While you might have already connected your ecommerce with some vendors, it would be a good idea to find out some cheaper vendors with similar quality products. It would increase your profit margin and you can even offer more discount to your customers to get more visitors.