10 Mistakes to Avoid When Introducing Crypto to an E-Commerce Business

E-commerce businesses are increasingly introducing crypto as a payment method.  Some are also paying salaries in crypto, while others use it to hold and store value.  It’s a smart business decision, as it puts e-commerce businesses at the forefront of the growing acceptance of crypto.

However, there are common mistakes businesses in this industry often make when introducing crypto.  It happens because the technology is still somewhat new, and e-commerce businesses aren’t the ones to experiment with novel features.

Mistake #1: Treating Crypto as a Marketing Gimmick Instead of a Payment Tool

Many e-commerce business owners treat crypto as a marketing gimmick, a way to attract younger customers and clients who are already accustomed to cryptocurrencies.  For instance, some businesses add a crypto logo to their marketing without first providing a clear, simple payment process.

Crypto should be treated as a payment tool, with its main benefit being reduced transaction costs and increased transaction speed.  Businesses should fully integrate crypto payment options before advertising the new feature.  When implemented correctly, crypto payments provide a smooth service and open doors to new customers.

 Mistake #2: Ignoring Regulatory and Tax Implications

Cryptos are taxed differently from fiat payments.  They are taxed as investment assets based on the difference between their value at the time the payment is made and their value at the time of taxation.  In some cases, these payments can also trigger VAT, sales tax, or income reporting requirements.

Crypto regulations are also relatively new and evolving, as governments and regulatory agencies try to catch up with the realities of everyday crypto use.  It’s up to e-commerce businesses to stay on top of these changes and comply with them.

Mistake #3: Choosing the Wrong Crypto Payment Processor

Selecting a crypto payment processor is often more challenging than it seems.  Some processors charge very high fees, and businesses with a small profit margin feel these expenses more than others.  Other providers support only a limited number of crypto tokens, while businesses seek ways to accommodate as many customers as possible.

Custodial providers hold the funds customers have paid to the business, but they also limit the control over those funds.  On the other hand, non-custodial wallets require the e-commerce business to be much more involved in the process.

Choosing the wrong provider can lead to lost revenue, lost time, and delayed payments.

 Mistake #4: Overcomplicating the Checkout Experience

A smooth checkout process is one of the most important features for an e-commerce business.  If customers are offered too many wallet options, if they need to enter their address manually, or install additional software, chances are they will abandon the process and the purchase.

The goal is for the crypto payment to feel as familiar as making a payment with a card or via PayPal.  The best approach is for an e-commerce business to test the checkout process before implementing it.

 Mistake #5: Poor Handling of Price Volatility

Pricing products in crypto can be risky, since cryptocurrencies are volatile and their value changes, often very rapidly.  According to experts at CryptoManiaks, Bitcoin is often seen as the best cryptocurrency for long-term value storage, but it is also volatile.  Merchants can also employ safeguards such as instant conversion to fiat or stablecoins at the time of purchase.

Payment processors can automate these processes, and e-commerce businesses should prepare for potential volatility.  The goal is to remain financially stable while still providing flexibility for crypto users.

Mistake #6: Failing to Support Refunds and Chargeback Equivalents

Crypto payments are irreversible.  E-commerce businesses often offer a refund policy for customers who change their minds.  Offering a clear refund policy shows that the business cares about its customers, and it’s important to have that option for those paying in crypto as well.

Support staff should be trained to handle refund and chargeback requests, especially for crypto-paying customers.  If crypto users feel left out, they could leave negative reviews or switch to competitors.

 Mistake #7: Not Educating Customers (or Staff) About Crypto Payments

Many customers hesitate to use crypto because they’re not yet familiar with it, even though adoption is much wider now.  Also, many employees tend to hesitate to recommend crypto for the same reason.  Educating the public is the responsibility of the e-commerce business if it plans to start using crypto.  They should dedicate funds and effort to these goals.

It can be done by providing simple guides, FAQs, or tooltips.  All of these measures lead to increased adoption and, in the long run, to increased revenue.  Without such efforts, both employees and customers may become frustrated with the process and give up on crypto payments.

 Mistake #8: Neglecting Security and Wallet Management Practices

Security is essential when providing crypto payments.  If a business uses a hot wallet for these payments, it must also manage security keys.  API vulnerabilities in plugins or payment processors can also be exploited if left unchecked.

Managers should also ensure that operational funds are separated from crypto payments and use multi-signature wallets when transferring crypto funds.  It’s also essential to regularly audit crypto wallet configurations and update all the software you’re using.  All of these require extra labor and time, but they are not optional because security isn’t either.

Mistake #9: Ignoring Analytics and Payment Performance Data

One important feature of crypto payments is their well-documented nature, which provides e-commerce businesses with a wide range of data to analyze and improve performance.  This includes conversion rates, geographic trends, average order value, and drop-off points.

Many business owners aren’t aware of these features or fail to use them to improve crypto adoption.  The best approach is to treat crypto as any other business metric, monitor performance, iterate based on data, and integrate insights into the overall e-commerce strategy.

 Mistake #10: Launching Without a Clear Long-Term Strategy

Introducing crypto payments as a one-time experiment is a short-sighted way to do it.  Businesses need to have a plan to scale up the feature as soon as they introduce it.  This includes introducing new tokens, scaling up payment volume, and enabling stablecoin payments.

Without such plans, adoption stalls, tech debt accumulates, and staff become frustrated.  Crypto plans should also be treated as part of a broader business plan.  Crypto is a strategic, long-term asset, and businesses should treat it as such.

Most mistakes in introducing crypto payments occur because businesses don’t treat crypto like any other payment option and because they aren’t familiar with the tech.  By addressing these issues, e-commerce companies could make the most out of this feature.

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