Three Common Challenges That e-commerce Merchants Face and Their Solutions

Aug 03, 2017

Preventing Chargebacks

Going by recent records, the e-commerce industry is on a steady growth path. Last year, the U.S. Department of Commerce reported a 14.5 percent growth in online retail sales, which amounted to more than $340 billion.

That said, even a thriving industry has pain points. If you’re new to the e-commerce game, knowing the potholes you’re most likely to come across can make all the difference between failure and success.

Below are three major hurdles that online merchants face, and how best to overcome them.

  1. Acquiring and retaining customers

Unlike brick-and-mortar businesses, e-commerce merchants lack the privilege of engaging and convincing customers face to face, which makes it challenging to get and maintain clients.

Regardless, fostering customer loyalty is the only guaranteed way to stay ahead of your rivals. Make sure your customers are accorded a pleasant shopping experience and ensure the checkout service is quick and hassle-free. It may also help to create a live chat feature, interactive blogs and loyalty programs, which will all encourage buyers to stick around.

  1. High Bounce-rate

After working tirelessly to bring customers onto your site, you may be wondering why only a handful of these new visits are converted into sales. In truth, however, more than half the people that visit e-commerce websites bounce without looking at anything besides your landing page.

To encourage your visitors to shop, engage them with tools designed to help them find the products they want. You can incorporate recommendations directly on your landing page, and refine search terms to include those that customers are most likely to type. The faster visitors can find what they want, the less time they will have to change their mind.

  1. Chargebacks

Online merchants suffer tremendous losses resulting from chargebacks. When a buyer successfully disputes a sale, for reasons ranging from clerical errors to fraudulent activity, the business often ends up losing both the sold item and the money.

To reduce the possibility of chargebacks, ensure all orders are billed accurately and outline descriptions clearly so that your customers don’t have any reason to contest a sale. You may also want to impose a “no-return” policy, to let buyers know the risk first hand.

If your business is prone to chargebacks, you can reach out to your payment processor and sign up for any useful services they may have. eMerchantBroker helps its clients to prevent chargebacks by giving them access to Ethoca’s alert system, which issues notifications immediately a customer files a chargeback, giving you enough time to dispute it.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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