You’re thinking of starting your own e-commerce business. What are the risks you should know about?

In my experience, starting an e-commerce business comes with challenges such as intense competition, cyber security threats, compliance with international laws and regulations, managing logistics and supply chain complexities, and the need for effective digital marketing strategies to stand out.

Starting an e-commerce business entails several risks to consider, including fierce competition, market saturation, fluctuating demand, and evolving consumer preferences. Operational challenges such as inventory management, fulfillment issues, and logistics complexities can also pose risks. Additionally, cybersecurity threats, data breaches, and regulatory compliance concerns require attention. Financial risks such as cash flow management, high upfront costs, and uncertain revenue streams are significant. Mitigating these risks requires thorough planning, robust strategies, and a commitment to continuous adaptation and improvement.

Before starting an e-commerce business, it's crucial to be aware of risks such as intense competition, fluctuating market trends, and logistical challenges. Additionally, cybersecurity threats and regulatory compliance issues pose significant risks that require careful consideration and mitigation strategies to ensure the long-term success and sustainability of the business.

Se você está começando, opte por ferramentas mais simples e de menor custo. Não tente resolver todos problemas de uma vez, pois você acabará fazendo escolhas erradas considerando um cenário futuro que ainda pode mudar muito. Priorize deixar o negócio leve e aberto para mudanças, o que irá facilitar ajustar a rota para atingir melhores resultados.

Returns Be prepared to handle returns which usually ranges between 15-30% of your entire business. And in some categories like apparels it can go Up to 40-45%. You have to factor that in while decidng your selling prices and margins. As usually 1/4 of the returns are either damaged or unsellable. 2/3 requires repackaging so in total this becomes a huge operational cost. Also, the liquidation of the unsellable items will not always be possible and even if it is you usually get 1/10 of of your actual cost of making. So please be prepared with enough cash flow and margins to handle the returns. Solution: Choosing product categories which are non-returnable. You can find that across platforms.

While acknowledging human and personal aspects as crucial, let's delve deeper and illuminate the entrepreneurial rollercoaster inherent in e-commerce. By acknowledging these human and strategic considerations, you'll be better equipped to weather the entrepreneurial storm and navigate the exciting, yet demanding, world of e-commerce. Remember, success in e-commerce requires not just a product, but a resilient spirit and a commitment to continuous learning and adaptation.