Ecommerce Myths & Common Misconceptions (2019 )

Running a successful ecommerce website isn’t simple, but it’s made more difficult by a couple of misconceptions– a few of which are deeply deep-rooted in our human minds. I ‘d like to resolve a number of myths I see holding ecommerce companies back from attaining the growth they want.Read on– you

may discover you have actually been standing in the way of your own growth.Myth # 1: If you have actually invested a lot of

time and money into something that’s not working, it’s not worth it to find a brand-new solution.Recently, a CIO who had simply launched after a challenging

migration told me that if he so much as pointed out another ecommerce platform to his executive leadership group they would fire him on the spot. His words were powerful and his belief was 100%authentic. I comprehended and appreciated it.Two weeks later on, he called me to talk about replatforming

because the pain of the new platform had become unbearable. During the migration they had seen red flags with the innovation, but they kept hoping if they just kept investing in it, they would be able to make it work. They were tossing great money after bad to attempt and make it work. This went on for months.Clearly, they never ever accomplished a workable solution.This is a classic example of the fallacy of sunk expenses. Sunk expenses are specified as an expense that has actually currently been sustained and can not be recovered. To put it simply, a sunk expense is a sum paid in the past that is no longer relevant to decisions about the future. The logical decision maker will rule out these expenses in their decisions, but just the factors that affect the future outcomes.Psychological Science:”That impact ends up being a fallacy if it’s pushing you to do things that are making you dissatisfied or worse off.”Let’s say you spend$250,000 to build a brand-new website, however it’s terribly broken, costing you earnings and creating a disappointment for your consumers. The thought of those sunk costs may prevent you from examining brand-new platforms that may be a much better fit. If it would only cost$100,000 to relocate to a brand-new platform with a lower total ecommerce cost of ownership and enhanced profits and earnings over the next 3 years, the advantages would go beyond the cost to move to the brand-new platform. The previous $250,000 investment is unimportant. Only the ongoing cost to keep the 2 platforms and the expected roi should be considered in the calculations for the “should I remain or need to I go “decision.Humans are infamously horrible at releasing sunk costs in decision making. We wish to seem like we are great choice makers. We don’t want to feel inefficient, so it’s hard to let go of the old expenditure. The more recent the expense, the more powerful its pull on

our mind. We ascribe the “value”of something as the cost paid, which is never ever true. It’s an easy heuristic we have actually learned and follow subconsciously.I love Farnam Street for making complicated subjects super accessible, so I’m going to steal their questions to help those who might have succumbed to this fallacy.Check for Sunk-Cost Misconception, Endowment Result: If you’ve recently moved to a new ecommerce platform and you do not see issues resolving themselves in the future, be conscious you are

n’t falling prey to the sunk cost misconception. It doesn’t matter how much you’ve spent, it matters just how much it’s going to cost you progressing to not have the ideal platform and the right

consumer experience to grow your business.Myth # 2:

The holidays are a bad time to examine brand-new technologies.Are you about to go into code freeze? Seems like a good time to take a look at brand-new technology, partners, and projects.I was recently speaking to my group who were worried that the ecommerce business with whom they ‘d been interacting would fall under a dark hole of extreme busyness during the vacations and would have no time to evaluate new ecommerce tasks or platforms.Sounds sensible, right?Yes, ecommerce groups, retailing teams, marketing groups, and fulfillment operations are

all hustling like accountants in April, but the innovation groups did all their work leading up to the holidays. They needed to put scalability, security, and contingency strategies in location, and test them 22 times to make sure everything would run smoothly when it matters most. Today that Black Friday and Cyber Monday are almost here, they aren’t allowed to touch anything.Welcome to code freeze(aptly called for the wintry vacation season it accompanies in ecommerce).

I have actually seen an unexpected number of jobs get begun during the holiday code freeze exactly since the innovation side of the house is hands-off. They can’t touch the site with the exception of making sure all systems are go. The entire point of code freeze is that presenting change is presenting risk and if the vacations are your busy season, you can’t afford downtime or problems in user experience negatively impacting your efficiency throughout peak selling season.Often the business side of the house and the innovation side have various priorities and different choice requirements for what they believe would be an ideal solution. For larger scale mid-market and business ecommerce services, the technology group is accountable for far more of the requirements due to the fact that combinations into existing back-office facilities, API efficiency, ease of management, scalability, and security all end up being more vital factors in the partner choice. Thinking about that much of those require prolonged explorations with highly-technical professionals on both the merchant and platform groups, it makes sense to make use of the code freeze duration during the vacations to assess, test, and even build out new

sandbox environments that can be pushed to production after the vacations wrap up. is a terrific example of this on BigCommerce. They made their choice prior to the holidays remained in complete swing so that the ecommerce and marketing groups could be involved in the choice process. Once the decision was made, the innovation group, together with their firm partner ZaneRay, got hectic establishing the website in early December. They published the very first live BigCommerce site in mid-February of the list below year. Once again, they were able to make use of the same resources that would normally be developing on their ecommerce website throughout the vacations because they weren’t making numerous changes to the site to guarantee the greatest stability.Don’t Let Ecommerce Myths Hold You Back Is your company method or choice making being impacted by one or both of these myths?If this short article makes you take a tough look at your expensive-to-implement ecommerce platform that’s providing you absolutely nothing however headaches or understand your code freeze does not have to be a development freeze, then I’m happy I could help.Want more insights like this?We’re on a mission to provide services like yours marketing and sales pointers, tricks and industry leading knowledge to develop the next house-hold name brand name. Don’t miss a post. Register for our weekly newsletter.