Thanks to recent events, the growth of eCommerce has exploded. Before this year, predictions showed an 18.4 percent global eCommerce growth and $4.105 trillion in sales. Fast forward to today, and eCommerce growth predictions have accelerated by four to six years, according to an Adobe report released in June 2020. While the use of eCommerce can be a useful technological tool to increase business productivity, it also comes with its risks. As activity in the eCommerce industry amps up, online business owners also need to be alert to increasing security risks as more scammers and fraudulent customers target eCommerce businesses.
Trademark Your Company Details Before Your First Sale
With so many online businesses being launched this year, the risk of brand replication and fraud is also high. Trademarking your business logo, name, and identifying details will protect your eCommerce business from any other fraudulent business using them. While smaller eCommerce startups may not think it is necessary, experts recommend that all online businesses try to trademark their details as soon as possible in order to protect their brand. This is particularly applicable if you will producing a unique product or service for sale.
If you do choose to trademark your business details, eCommerce businesses are entitled to pursue legal action against any fraudsters that infringe on their trademark after the process is finished. This is because, unlike patents, trademarks do not expire after a set amount of time. Having a trademarked business also opens up additional opportunities for eCommerce businesses on online selling platforms like Amazon. The Amazon Brand Registry program is only open to trademarked businesses, and gives participants access to additional data analytics – a perfect tool to optimize online sales.
Consider Securing A Transaction Tracking Tool
As a business accepting payments online, it is important that you choose a trusted payment or eCommerce platform, and that you know the red flags in online payment transactions. Setting up a transaction tracking tool can help you with this, and help businesses prevent online payment processing fraud online. For instance, monitoring your transactions may reveal inconsistent billing or the forced processing of a transaction after a credit card has been declined. By 2021, merchant losses to eCommerce fraud are estimated to hit $6.4 billion, according to a report by Aite Group.
Use the Payment Card Industry Security Standards Council’s Standards
All eCommerce businesses must comply with the Payment Card Industry Standards Council Standards guidelines (PCIS SCS). These guidelines are implemented to protect online shoppers, who share their personal and financial data with online merchants. Formed by some of the world’s major credit card companies like Visa and Discover, the PCI standards are mandated for eCommerce businesses of any size or nature, as long as they are accepting credit cards. Failure to follow the best practices set out but the PCI leaves your online business vulnerable to data theft, hacking, and potential legal action. For instance, data breaches for noncompliant small business websites come with an $86,500 price tag.
However, keeping your customers’ data secure online is about much more than complying with the standards set out by the PCI. ECommerce businesses should also regularly assess and amend their security measures, based on the current security risks they face. To help new eCommerce businesses ensure compliance, the use of a PCI security compliance requirements checklist can help. Simple measures like avoiding transmission of customer data without encryption are a great start.
There is great opportunity in the eCommerce industry right now. However, with the shift of customer preference to online retail and the boom of eCommerce activities, business owners must begin to think of protecting their business and customers online. Starting with these small steps can get you and your eCommerce business off to a good start.