4 Online Business Risks and How to Handle them
Online business is the choice of many people to build their own business in the digital era as now. If it is broken down again, this type of online business is quite a lot. Starting from opening an online shop through Instagram, setting up an e-commerce website, to posting ads on a blog. Although it sounds practical because everything is done through the online realm, online businesses actually have risks too – just like businesses in general.
The good news is that you can anticipate these risks early so you know what steps or risk management to take. That way, an online business can run smoothly and you can get maximum benefits.
The occurrence of a hit and run
Because business happens in the realm of online, you can’t meet your customers directly. In fact, trust between buyers and sellers can be more easily created if you face to face. This lack of trust can potentially lead to fraud.
One of the most common cases in online business is hit and run. In this case, a customer usually seems eager to ask you for a particular product via chat. He even asks you to add up the total purchases and ask to send the account number to transfer. However, after you make all the requests, the customer just suddenly disappears or runs away and doesn’t answer your message.
Very tight competition
Strict competition can encourage you to continue to provide different products and services and remain relevant to customers. If not, your online business will not be able to stand out.
As an online business risk management, you can overcome this by targeting a more specific audience. Perform detailed consumer research to find out pain points and target customer needs, then design the right solution. Of course this requires a short process. But if you also counterbalance it with an attractive marketing strategy, over time your online business will surely be increasingly recognized so that it can survive in the midst of competition.3.) Changing market demand
Changing market demand
The high market demand is actually a good thing. However, if it is not managed properly, it can be an online business risk. Especially if market demand tends to change while the items you sell are not always ready. Usually, risks like this occur in certain online business industries such as fashion.
Well, the key to business risk management is to provide the right amount of stock. The goal is to continue to meet market demand. However, for those of you who are beginners or have just jumped into online business, you should choose a product whose trends run a little longer or a product that is always sought after by customers so that you are not overwhelmed in meeting market demands. Some examples include laptop cases, books, or mattress sheets
Online business can provide promising benefits. Of course there are many factors that influence this and it takes a process that is not instantaneous to achieve it. Unfortunately, there are still many who think otherwise. As a result, online business people tend to have less realistic expectations. Usually, things like this often occur at startup. They want to be able to immediately enter the market as quickly as possible, prove themselves, and make a profit.
As a result, they do not allocate time correctly and do not really know what they want to make and sell. For this kind of online business risk, there is no way but to evaluate the business targets that have been created. Adjust back to your resources and abilities, then set realistic time targets. Do not let you force yourself so that your business will not be managed properly.