Online business is pretty different to the traditional offline business whereby you can sell on credit to customers that you already know of. What about in the online business?
What are the key factors to consider before making sales in credit on the online businesses?
- Thread starter Xtynehappy
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In our city, almost all online stores require payment when placing order for your products. This is understandable because there is no guarantee the customer will pay upon delivery.
Nomad
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Can you actually sell on credits on online business? I don't think so. In fact it is not even possible.
eLdavis
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You can't sell on credit when it comes to online business, I don't think it's possible to do this, cause there is no way in knowing if these persons are legit or not.
There are few online stores that accept payments in installments. They are very few for sure but most of them accept cash with order
Before offering credit sales to customers in your online business think about your own financial stability and the potential risks involved. Credit sales can be risky, especially if customers default on payments or chargebacks are issued. Make sure you have a contingency plan in place to mitigate these risks.
I wouldn't even advised one to sell on credit but if you have to then it should be an old customer that you can trust.
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It depends on how/what online sales system you use, if you sell directly to customers through your online store or social media, it means that all risks of default are in your hands, but if you sell through a marketplace like Shopee, then Shopee regulates credit sales, so you always receive full payment for the sale of goods and you have no risk of default.
If possible we should not sell on credit and sell only when we receive payment but in case we need to then we need to check the credibility of the buyer
I think the credit worthness of the buyer may help to identify a honestly debtor for sure.
