Running an eCommerce business in West Bloomfield, MI comes with a certain level of risk. Risks are unavoidable, whether it’s financial risk, market risk, or something else entirely. Fortunately, you can anticipate and avoid pitfalls with proper planning and strategy. Phil Klein Insurance Group can help you uncover three of the most common eCommerce risks and provide tips on mitigating them.
Risk of a Security Breach
A security breach is any intentional or unintentional act that compromises the security of an online business. This can include hacking, data breaches, phishing attacks, malware or viruses, and unauthorized access to sensitive information. To avoid security breaches, companies should have a robust security strategy. This should include the following:
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Multi-factor authentication
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Encryption
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Regular backups
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Patch management
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Firewalls
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User training
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Frequent security audits
Payment Processing Issues
When running an online business, payment processing issues include fraud, chargebacks, and failed payments. Companies should implement robust security protocols to avoid these issues, including data encryption, fraud prevention measures, and secure payment gateways. Additionally, businesses should comply with local regulations and properly verify customer identities.
Shipping Delays and Lost Items
The most common causes of shipping delays and lost items include incorrect addresses, weather conditions, carrier errors, and customs processing delays. To avoid these issues when running an online business:
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Double-check the address provided by customers before sending out packages
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Keep track of changes in the weather
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Choose reliable carriers
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Be aware of any additional customs fees that may be required
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Provide customers with tracking numbers so they can stay up to date on the status of their shipments
We specialize in providing commercial insurance for online businesses at the Phil Klein Insurance Group in West Bloomfield, MI. The internet’s unique and constantly changing landscape requires a tailored approach to cover all risk areas. With our industry-leading coverage options, you can know that you’re well protected. Let us show you why we are the best choice for online business insurance today!
