Ecommerce — the use of digital channels like websites, mobile apps, and point-of-sale terminals to sell products to customers — is one of the most exciting areas in online marketing today. With more than 20% of US retail sales expected to be from ecommerce by 2022, there’s no doubt that ecommerce will continue to grow exponentially for many years to come.
However, as with any other new area of business, the increased demand for ecommerce marketing has also brought with it more stringent regulations and more stringent financial requirements that new businesses must meet in order to use those channels. This means that if you’re a new business looking to start selling your products through ecommerce platforms, you might need to take some additional steps before being able to do so. Here are four insights into why you might want to consider an alternative solution such as an Ecommerce merchant account rather than a direct follow on of your current business plan.
Table of Contents
- Why Are Ecommerce Merchant Accounts Considered High Risk?
- What’s the Difference Between an Ecommerce and Non-eCommerce Merchant Account?
- Good Reasons to Consider an Ecommerce Merchant Account
- Bad Reasons to Avoid an Ecommerce Merchant Account
- Final Words
Why Are Ecommerce Merchant Accounts Considered High Risk?
1. There are higher demands to maintain the account
If your business is an ecommerce retailer, you’re going to need to spend a lot of time and effort maintaining the account. This could be as simple as conducting regular back-end updates or as complex as setting up complex automated processes for your products. This means that your time is likely better spent on other areas of your business than handling the ecommerce marketing.
2. You won’t have full control over your product listings
The purchasing process for ecommerce offers less flexibility than traditional in-store shopping, but it also comes with some tradeoffs that are worth considering. For example, only four out of every five shoppers will actually go through the “add to cart” button when they’re on a website, meaning that many people who see an item don’t know what it’s about or what it costs until later. On top of this, there is no direct communication with customers after they purchase items online; you can’t ask them if anything is wrong with their purchase or if they need any help before they leave the site.
3. You might not get access to valuable insights
Ecommerce has highly personalized buying patterns and needs specific customer insights in order to optimize successful campaigns and increase conversion rates, so you may find some ecommerce marketers provide more value than others in this regard. Additionally, with all of these extra steps involved in starting an ecommerce business, you might not have enough time left
What’s the Difference Between an Ecommerce and Non-eCommerce Merchant Account?
Many new businesses are often tempted to conduct all of their business online with the use of an ecommerce merchant account. What is the difference between an ecommerce and a non-eCommerce merchant account?
Ecommerce merchant accounts provide businesses with more advanced payment processing and advertising services, as well as special apps for mobile devices. In general, these types of accounts offer merchants a lot more flexibility and options than non-eCommerce merchant accounts do. Merchants can also expect better customer service from ecommerce account providers. Non-Ecommerce merchant accounts are typically used by business owners who don’t have much experience using technology or those that have limited budgets. The fees associated with these types of accounts are significantly lower than what you would pay for an ecommerce account provider, so they can be a great option for your startup business if you’re on a tight budget or lack experience managing payments and advertising campaigns.
Good Reasons to Consider an Ecommerce Merchant Account
1. You don’t have a website or point-of-sale terminal
If you don’t yet have a website or a point-of-sale terminal and you want to sell your products online, an ecommerce merchant account is a great solution because it provides access to websites and online payment processing services that are designed specifically for ecommerce retailers. With an established merchant account, you can use digital marketing techniques such as SEO and PPC advertising to gain customers and drive sales.
Bad Reasons to Avoid an Ecommerce Merchant Account
1. You don’t have the budget to pay for an Ecommerce merchant account.
A large portion of the cost associated with a marketing campaign is spent on acquiring and retaining customers, not on advertising. With an ecommerce merchant account, you can save money on acquiring customers, as there are no fees for customer acquisition.
2. You don’t have any experience running campaigns through an Ecommerce Merchant Account
If you’ve never run an ecommerce campaign before, it might be a good idea to start by using a third-party platform or service like Shopify that allows you to quickly try out your ideas without having to spend a lot of time setting up your own website and doing all of the other things that go into running a successful online store.
Ecommerce merchants are considered high risk because there are more stringent regulations and more strict financial requirements than those for your existing business. This means that if you’re a new business looking to start selling your products through ecommerce platforms, you might need to take some additional steps before being able to do so.
When you compare ecommerce merchant accounts to your current business plan, consider the following:
1) In some cases, it’s not possible or recommended to use your own bank as an account holder. Consider having a third-party handle this financial responsibility instead.
2) Some of the fees related to ecommerce merchant accounts can be less expensive than those associated with operating your own website.
3) Ecommerce merchant accounts have the potential for more flexible payment options for consumers – including credit card transactions!
4) Ecommerce Merchant Accounts are less likely to be subject to payment fraud than traditional merchant accounts, making payments safer for consumers and businesses alike.
What are the benefits of ecommerce marketing?
There are many benefits of ecommerce marketing, but one of the most obvious is lower cost per lead. Because ecommerce websites are built with specific target audiences in mind, they are often more effective at reaching those audiences than traditional offline advertising. Additionally, because ecommerce websites often allow for a much more personalized experience, they are far more likely to result in a sale than traditional website ads.
Ecommerce marketing can be a great way to reach a highly targeted audience with significantly lower cost per lead than traditional offline advertising.
What are the challenges of ecommerce marketing?
There are so many incredible benefits of running an ecommerce business, but one of the most exciting is the endless possibilities that ecommerce marketing offers. With the ability to reach consumers directly, there’s no limitation on how far you can go with your marketing efforts. Plus, with all of the different platform options available, you’re capable of reaching your target audience in the most efficient way possible.
There are also so many different types of ecommerce marketing strategies that you can implement to take your business to the next level. From content marketing to lead generation to branding, there’s a tactic that can help you reach your goals. And whatever you choose, you’ll have a team of experts at your disposal to help you succeed.
Overall, ecommerce marketing has endless possibilities for businesses of all sizes — it’s simply a matter of finding the best fit for your needs!