As simple as it sounds, eCommerce is not that easy.
In fact, there are a few fallacies the good ol’ internet may have you believe. Whether you’re thinking of shifting online to accompany your physical store, or starting your business from scratch, there's definitely a few that you won't have realised might be standing in the way of your growth. So here they are, debunked.Myth #1: It’s easy!
It’s time consuming. Even more so for someone who is not comfortable with website development and its many parameters (hosting, design, features, security, payment gateway and so on). In the end, your time has a value and building and maintaining a site can become time-consuming very quickly, and often produce a bad result. It's like wanting to build your own house, technically you CAN do it yourself; but if you haven't got the knowledge and the time, you will end up with a tent in the middle of your garden.Myth #2: It’s free/cheap.
You get what you pay for and nothing is free. You may be able to save money doing many of the tasks yourself, such as writing product descriptions, taking product photos, and some marketing. You will still have a hosting bill, cost of goods, and fees for processing credit cards. Many eCommerce platforms, usually the ones promoting the fact it's easy and cheap - have a cost monthly to pay, and a fee to be applied for each transaction, in the long term these platforms can quickly become expensive!Myth #3: Only price matters… Low price = competitive advantage.
Competing on price has been successful for a few, but is unrealistic for the majority since it works on economies of scale, meaning that you need to generate a massive volume of sales for substantial profit. Setting your prices low causes three distinct problems: first, it devalues your entire industry by setting off a price war that will alter customer assumptions about what products are supposed to cost. Second, it leads to extremely lazy marketing and differentiation because you’ve mixed up pricing and marketing strategy. And third, your wholesale supplier plays the field just as you do. Someone will always find a way to beat your price, making this an unsustainable way to fuel your business.You may not ever be able to out-price Kmart, but there are still a lot of people out there who don’t shop at Kmart.