How to build a reputable online store

In business the basis of success is either price competitiveness or quality of a product but some of the online stores that are opening up in the virtual marketplace fail to see this logic, or are simply unable to follow through. Since some of the new ventures do not have enough capital to purchase the products in bulk to sell them, they usually wait for the product to be added to the cart before buying them from some other store themselves, and in the process buy it on the retail price and sell it off on a much higher price to the consumers.

These sort of practices do not help in the progress of an online retail shop, not for long at least, because today’s consumers are well aware of the things going around them and it never takes them long to figure out when they are being cheated off their hard earned money. For this purpose, the online retail stores need to follow a few main rules; they need ample capital for a startup so that they have enough inventory to sell off at a profit but simultaneously at a discount to the customers and secondly have a warehouse where they can store the inventory and make sure they are safe and within reach so that timely deliveries are possible.

Another factor that helps build a company’s reputation is its payment methods. People in our country are very wary of the intangible ways some things are operated. They hesitate from paying for stuff that they cannot touch and feel, and they also want to stay clear in case they might become a victim of a cyber-fraud. In order to palacate them, it is both helpful and prudent to start practices like cash on delivery and escrow methods (as currently being adopted by Kaymu in Pakistan along with some other vetures). This way the consumers know that their money is safe and they will get their order. Cash on delivery helps curb their fears as the people can first check out their ordered product first hand before paying for it and in escrow methods, a third neutral party, hold off the payment to the supplier till the delivery is made and the consumer is satisfied.

These small but very crucial steps determine the fate of an online business along with the number of suppliers that are willing to do business with them and increase their repute.