Big problem facing up-start retail.

One of the biggest problems facing up-start ecommerce companies is not lack of advertising or being bullied out by the big dogs. It's your customer base, not because you don't have enough, but customers are nervous about using your company.

Sure, you could be selling HDMI cables at Joe's A/V at half the price you see online at Best Buy or Circuit City, and even offer free shipping, but they wont sell, why?

People.are.afraid.

No one will believe the fact they are actually MORE likely to become a victim of credit card fraud in a brick and mortar store, than they are online. Because of this fear, people shy away from small e-tailers and shop with their big brand stores, in many cases, paying more.

Common Myths:

1. If I buy from Joe's AV, then they are going to sell my credit card numbers to someone and I'll have thousands of dollars of fraud.

Truth: Just because your card was used online, does not mean it was compromised online. Simply because the person using the card didn't steal your card, they cannot use it at a store.

2. Because Best Buy is a multi-billion dollar company, my information is safe there.

Truth: TJ Maxx anyone? Large corporations are not any more excluded from hackers than upstarts, in actuality, you're almost safer with an upstart, simply because they have more to lose if something happens.

Upstarts, how to win over customers fears.

This section is twofold, customer wants to know they are safe, and also, you want to make sure you are safe.

For the customer, check for the hacker safe icons. These can come in many varieties, but as long as you see something, you know you're safe.

How to increase the amount of customers who buy instead of just shop around?
Show the logos in a visible spot, sure it looks neat on the bottom, but if its around the shopping cart, a customer is more likely to see it and in the back of their mind, help them decide to buy while they are there.

Ebay!

The same goes for online sellers at places like Ebay and other auction sites. Customers feel that they cannot purchase with Ebay, because they don't know who on the other end is getting their credit card information. Those of us familiar with Paypal know that no credit information is given to the seller, the only thing there is their user name, and the fact we got paid, and then where to ship the product to.

Easy resolution to sellers, create a small "Why buy from me" page you can link from your auction to. In this of course, explain your feedback and that you don't scam people yada yada, but also, sell Ebay as well, if someone doesn't know if they want to buy from you, or Best Buy, explain how safe Ebay and Paypal really is.





Have anything you'd like to say? What do you think, have you seen buyers get turned off by your site simply because you're not a massive multinational corporation? For those who take my advice to heart, has your close rate improved?