Setting up an online shop is exciting and full of promise. However, risks to e-commerce businesses are as critical as getting your website up and running. E-commerce and risk have always been interconnected; you should pay attention before it is too late.
E-commerce sellers have a lot to protect. However, it is easier to recognize the risks and strengthen your defenses. A reliable backup solution is essential, as always.
Although online backups are not guaranteed to protect you against every possible e-commerce threat, a proper e-commerce risk management strategy can give you some security.
Let’s identify the top five e-commerce risks and solutions to help prepare you to face threats to your business.
Common Risks in E-commerce Business and Recommended Solutions
E-commerce websites act as an online version of brick-and-mortar stores. It is becoming a requirement for brands to have an online presence due to the shift towards digitalization. The world is now able to enjoy a new shopping experience through e-commerce.
E-commerce platforms are taking the world by storm. Anyone can order new clothes, equipment, or even dinner for the evening in just a few clicks and have it shipped right to their door. However, before you jump on the bandwagon to open your website or online shop, thoroughly understand the risks of e-commerce.
Here are five e-commerce risks and controls to protect you and your customers:
1. Online Security Breach
Cyber-attacks and security breaches can make your e-commerce site vulnerable.
These online security threats include phishing and website hacking.
Hackers can access sensitive information and breach a company’s network.
It is, therefore, vital to ensure that your e-commerce website security is strong.
Tips & Solutions:
To ensure your online security is strong, you need to use the best data management practices.
These are some of the solutions to help protect your business. It is important to:
- Enforce additional layers of network security. Start with the firewall. Afterward, you can add layers to your website via contact forms and sign-up boxes.
- Get help from your web developer to set up security on your website.
- Use an SSL certificate to secure transactions.
- Choose an e-commerce platform that uses object-oriented programming languages for security and safety.
- Monitor your website and ask your web host company to inspect their servers for viruses or malware.
- Clear out any old records and reduce the amount of data you keep.
2. Violation of Intellectual Property
A common security threat to e-commerce businesses is the violation of intellectual property (IP).
Your business can suffer if you violate copyright rules or intellectual property. In the e-commerce sector, IP protection is crucial. This includes logos, content, and taglines for products, images, and icons.
Tips & Solutions:
Here are a few techniques that can eliminate this risk:
- Do not copy IPs from other companies.
- Enforce strict copyright rules.
- Train your employees in IP security.
- Live chats are not secure, so don’t share sensitive information.
- Use strict protocols in writing and enforce security policies.
3. Credit Card Scams
E-commerce businesses are susceptible to suspicious transactions and theft of credit card information.
Hackers and anyone can use stolen credit cards to make online transactions. Your online security should be strong enough to prevent such incidents.
Tips & Solutions:
To prevent fraudulent purchases, you can use these techniques:
- PCI (Payment Card Industry) compliance is substantial because it protects credit card holders’ data and keeps them safe.
- Deploy Secure Sockets Layer authentication to protect data. SSL certificates are essential for transactions. They can verify your business identity and encrypt the data to prevent data theft.
4. Low SEO Ranking
There are many threats to e-commerce, but poor SEO and digital marketing can also pose a severe threat to your business.
Google is constantly changing its algorithm, which can dramatically impact your ranking.
Low SEO ranking can mean low traffic to your site, leading to fewer sales.
Tips & Solutions:
There are high chances of your website traffic dropping if you don’t maintain your SEO standing. To prevent that, remember the following:
- Use the right keywords for marketing your products.
- Make sure you use the right tools when searching for keywords.
- Create a social media strategy that works.
5. Non-Compliance with Data Privacy Laws
The regulations for data privacy protection and protection are strict. There are many risks here, as described in HIPAA and the GDPR, PCI, and other international and regional data privacy legislation. Non-compliance can result in severe financial penalties.
These policies state that you must follow their guidelines if you are doing business online. Data protection is a serious matter; you risk your business continuity if you don’t pay attention.
Tips & Solutions:
- Make sure that you fully understand all data privacy laws.
- Do not assume that the GDPR does not apply to you.
- Make sure you update your websites and online properties regularly to make sure they are up-to-date.
- All vendors must be thoroughly vetted and qualified. If there is a breach, complaint, or other issue, the question of who controls the data and where it is stored could become a problem.
- Assure that all third-party SaaS are compliant with international privacy and security laws.
Understanding both the benefits and risks of e-commerce can help you build a solid strategy to protect your online shop.
Your business should not underestimate these risks to e-commerce. Take the steps necessary to ensure that you are protected. The solutions discussed above will help reduce risk and lower liability. They will also make it easier to recover quickly from an incident.
Minimize Risks and Protect Your Business With ADMS
Thinking of launching an e-commerce site or streamlining your online shop? While the technical aspects are critical to your online success, don’t make the mistake of overlooking the risks to e-commerce.
Protecting your e-commerce website, digital assets, and customers’ data is essential regardless of your business’ size.
Advanced Digital Media Services (ADMS) is a Cleveland SEO expert who completely understands the e-commerce landscape and can help you minimize risks. On the other hand, the team’s SEO experience will ensure your website is optimized to take a spot at the top of search engine results pages.
Partner with ADMS and learn how to reduce e-commerce risk. Call the team today and discuss how you can better prepare for the unexpected.
