What Mistakes Should An Ecommerce Merchant Avoid Making In Order To Grow Their Business?

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Setting up a business and growing it has never been easier. In order to become an ecommerce merchant, all you have to do is go online and follow a series of steps. But what if you want more than just to have an online shop on a platform? What if you want to grow and expand your business to the point that you are eligible for level 3 processing status? That might take some time and some serious research. Also, some mistakes along the way are inevitable. The key is to know how to handle them. 

How Can An Ecommerce Merchant Grow? 

Growing and expanding a business is always hard work, especially if you are new to the game or want to carve out your own piece of an overly populated market. But that doesn’t mean it is impossible. Businesses are springing up all over the world and are looking to gaining global recognition. All it takes is a very well developed strategy, a unique product or service and a very strong ambition to build upwards. Also, having the right tools doesn’t hurt. Merchants have been looking for the perfect tools to grow their businesses for many years. Thanks to todays’ technological solutions it just might seem that they have found them. 

Becoming an ecommerce merchant is easier now than it was any other time. So for anyone looking to start their own business, this might be the best moment to do so. You can do almost everything online, from picking your business name to enrolling on an ecommerce platform to opening and operating your merchant account. All you need is to come up with a business model and get to work. There are many great opportunities for merchants choosing to go online nowadays. Many of them don’t have the money to build their own websites, so they join an already established ecommerce platforms like eBay. This is kind of like renting out space in a mall. The advantages of doing things this way are quite numerous. One of them is that you are associating your name with an already globally famous brand. This way you can capitalize on their reputation and kind of “piggy back” on that until you create your own customer base. 

Another great advantage of being an ecommerce merchant working with an ecommerce platform is that you can also benefit from the security protocols and standards they already have set in place. You might not be able to hire your own team to ensure your business is protected in the online commerce world right off the bat. But you can work with an online ecommerce platform. They usually have some of the tightest security money can buy. That way you can prove to your customers that you care about keeping their personal data safe and so make them trust you and want to do business with you. 

What Mistakes Should An Ecommerce Merchant Avoid Doing? 

While still growing, there are some things that an ecommerce merchant might want to avoid doing. One of them is taking things in his own hands too soon. Some merchants might think that once they’ve made a couple dozen transactions, using an already established ecommerce platform, they can go on their own. That might be a very big mistake to make. Firstly, those transactions might only exist due to the fact that you used the platform in the first place. Having them doesn’t mean that you have a strong client base that can sustain you. Remember that leaving a platform means you have to go into business on your own. That translates to building a website with a store and offering protection to your customers. All of that costs money. So you might just want to hang around the platform for a bit longer. 

Another big mistake merchants tend to make is limiting themselves. Although nobody can do everything and anything perfect, merchants shouldn’t just stay in one spot for their entire life. The object is to grow and develop your business. That can’t happen without taking some steps and trying new things. Nobody is saying that an ecommerce merchant that was offering financial advice should start selling parachutes, but a little diversity never hurt nobody. Although branching out might sound risky, a calculated risk can yield great results. 

How To Avoid Mistakes In Order To Obtain Level 3 Processing 

Obtaining level 3 processing status is the end goal for many businesses. But that is most of the times easier said than done. Level 3 processing mean that the business itself has reached a certain volume of transactions and is capable of providing a certain degree of security for its customers’ data. That is why reaching this status is quite hard for most businesses. Also, some businesses also make some mistakes along the way as well. One of the most frequent ones is that the business does not invest sufficiently in securing important sensitive data. Maintaining a certain level of security does in fact require some investments. Companies sometimes ignore this aspect and just focus on the transaction volume needed for the level 3 processing status. The best way to avoid such a mistake is by hiring either professionals within your company to make sure that the security protocols and standards are up to date or by periodically bringing in outside experts in order to assess your security level. 

Another mistake many businesses make while struggling to obtain a level 3 processing status is that they ignore the fact that each credit card provider has their own requirements for awarding this status. Growing a business and obtaining a preferential status can sometimes be hard when you don’t understand the rules. the best way a company can reach level 3 is by making sure they reach the individual benchmarks set by each card issuer. In order to do this, each merchant has to carefully analyze what the card issuer requires.

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