Online business is growing all the time: according to the IMRG-Capgemini eRetail Sales Index, the UK internet retailing market grew by 16% in 2013, with consumers spending £91 billion online – and that figure is set to rise to £107 billion for 2014. So as far as business opportunities go, the online option is something of a no-brainer.
But if you’re starting an online business, don’t expect it to be easy. You’ll face a number of obstacles and challenges that could potentially derail your internet enterprise.
Here are some of the pitfalls you should be wary of:
* **Hacking and hijacking**.
Your site’s security is of the utmost importance. If you are hacked, the consequences could be disastrous for your enterprise, with loss of business and consumer trust.
One of the most basic measures to protect the security of your site is keeping your software up to date. This applies to everything you use, including your content management system (CMS) and your file transfer protocol (FTP) software, as well as the operating systems and anti-virus software on the computers used to edit your website. Also make sure all your passwords are strong and secure, and change them regularly.
Keep all your personal information secure. Be wary of sharing information and watch out for phishing attempts where hackers try to obtain your details to steal your identity and hijack your domain.
* **Website stability**.
Of course, it doesn’t always take a hacker to seriously mess up your website. Technical problems can put your site out of action, losing you valuable income and damaging your reputation with customers.
Choosing a reliable web hosting service will help to minimise difficulties. But when the inevitable problems occur, you also need to be confident that your web host will be able to deal with them quickly and efficiently. You need a good level of support, with the option to contact them 24 hours a day, seven days a week.
Again, making sure all your software (and hardware) is up to date and up to the job will go a long way towards maintaining stability.
* **Fraud**
Every sale you make online feels like a small victory – but you won’t be celebrating if purchases turn out to be fraudulent. The easiest way to make your systems as secure as possible is to use a reputable payment processing provider, such as PayPal, WorldPay and Sage. They will be able to alert you to problems with credit cards, etc, or other signs of fraud. Be vigilant, though, and make sure your policies and practices aren’t vulnerable to exploitation.
* **Privacy laws**
As an online business, you’ll be gathering personal data from your customers. According to the Data Protection Act, this makes you a “data controller”, meaning you must comply with eight specific data protection principles. You can view these at the Information Commissioner’s Office (ICO) website here: http://ico.org.uk/for_organisations/data_protection/the_guide
If you contravene any of the principles, it could lead to restrictions being placed on your business and heavy fines.
You can read more about the Data Protection Act and how it might affect you here: http://www.gov.uk/data-protection
Another consideration is your cookies policy – make sure you are complying with latest EU law and directives, explained here: http://ico.org.uk/for_organisations/privacy_and_electronic_communications/the_guide/cookies
* **Bad reviews**
In the world of online business, trust is everything. With the growing influence of online review sites and the unstoppable power of social media, what your customers say about you is crucial to the success of your enterprise.
Consumer opinions will be highly visible and readily shared. You need to manage your reputation online by monitoring review sites, forums and social media networks for mentions of your company.
Engage with your customers. Be polite and professional. If they’re happy, thank them. If they’re unhappy, try to make amends. Treat feedback seriously and take it on board.
