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Top [insert your own number] E-commerce fallacies

advice you've learned to ignore about ecommerce

     
7:09 pm on Jun 20, 2007 (gmt 0)

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1) From the list of 100 ecommerce tips I start with this piece of bad advice

24A. Add as many credibility seals as you can.
Privacy: TRUSTe Web Privacy Seal
Security: VeriSign Secured Seal
Return Policy: Return Policy Agreement Seal
Reliability: BBBOnline Reliability seal

My guess is the guy who posted the above is a seller of some of those (probably the most obscure one).

Most high volume sites that I know don't have ANY cheesy seals. This subject has come up here every four months for the past 5 years. Some sellers like 'em, many don't.

7:27 pm on June 20, 2007 (gmt 0)

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2) At first sell at a loss so you'll develop a loyal customer base with considerable "lifetime" value.

3) WWW allows tiny local firms to sell all products profitably to customers everywhere around the world.

7:40 pm on June 20, 2007 (gmt 0)

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4) If i build it they will come.
5) I will easily make money.

e-commerce is the hardest way to make an easy living.

7:47 pm on June 20, 2007 (gmt 0)

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6) Almost forgot this 90s uber-mantra: "first-mover-wins."

In our field, the first commerce website shut down about 4 years ago.

10:03 pm on June 20, 2007 (gmt 0)

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Just drop ship it, no inventory no worries! KF
12:45 am on June 21, 2007 (gmt 0)

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consistent promotion will yield consistent results
10:43 pm on June 21, 2007 (gmt 0)

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>> Add as many credibility seals as you can.

I may not agree with the specifics of using "seals" but I do agree with what I believe to be the sentiment - that you and your store are anonymous until you show the visitor your true colors.

Credibility can be shown through such programs but I think most of us would agree on their worth to someone who knows how easy it is to obtain one. But giving your website a personality and using visual cues to establish that you are a credible business (for starters: name, address and phone number) can go a long way to establishing your credibility.

3:11 am on June 22, 2007 (gmt 0)

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Just drop ship it, no inventory no worries! KF

Well maybe it should be "no inventory, less worries!"

Their may be many pitfalls in dropshipping for the inexperienced, but once you have mastered the business model, it does have several advantages, which outweights the disadvantages.

6:12 pm on June 23, 2007 (gmt 0)

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I've seen dropshipping have 2 completely opposite effects.

1. You find a great dropshipper - An actual wholesaler, whos expanding into new fields. Good quality, good prices, fast delivery times. Your business thrives your reputation grows. You decide to outsource customer service and have a fully automated business making sure you keep up to date and just fill in your Tax return.

2. You find a dropshipper - probably a retailer offering goods at a discount. The goods are poor and the delivery is worse. you soon find your name slandered on forums and shopping comparison ratings. Within months the site is in trouble and you are soon gone.

I have seen examples of both of these in fields related to mine. I would quite like to rely solely on a dropshipper, BUT the only relieable one I have does not keep a wide enough range of stock and I would miss packing my parcels.

Dropshipping can work, but you have to be smart.

12:10 am on June 24, 2007 (gmt 0)

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I would never outsource customer service. Its a recipe for disaster.
1:12 am on June 24, 2007 (gmt 0)

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only those who dont have any idea about handling customer support will try to outsource

really its a disaster recipe

5:09 am on June 25, 2007 (gmt 0)

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"The customer is always right"

Couldn't be more wrong. Some customers are not right, are a pain to deal with and need to be fired.

3:08 pm on June 25, 2007 (gmt 0)

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No, the customer has a right to a fair hearing, notihng more.

They are certainly never always right.