Category: Sales and Selling

Fighting First Party Fraud

America’s small businesses face unprecedented opportunities and challenges, particularly in combating a potential 40% increase in “friendly fraud” and “first-party fraud,” where customers dispute legitimate charges despite having received the goods or services. Friendly fraud involves genuine customers falsely claiming disputes on their legitimate purchases, posing a significant financial threat to merchants. To mitigate these risks while ensuring a smooth purchasing experience, businesses must balance effective fraud prevention with customer-friendly policies, emphasizing customer education, robust support, and clear communication about transactions.

To read more about this issue, see this post on PYMNTS, a site that provides data, news and insights on innovation in payments and the platforms powering the connected economy.

Some Cities Offering Discounted Rates to Fill Retail Vacancies

Empty storefront, illustration.

Cities like Seattle and Austin are repurposing vacant retail and office spaces to support small businesses and artisans by offering them at discounted rates, making it easier for them to establish a physical presence. These initiatives aim to revitalize commercial districts and increase economic opportunities for local entrepreneurs who might otherwise be unable to afford traditional long-term leases. To read more about these initiatives, see this piece in Small Business Trends.

Why You Might Consider a Shop On Etsy

Etsy, originally an artisanal marketplace, has grown into a major platform for creative entrepreneurs, boasting a $3.5B+ valuation as of 2015. The user-friendly setup and management, along with potential for significant supplemental income, make it an attractive option for those looking to monetize their crafts amid rising living costs. See this piece in Essence for more info.

Many Small Businesses Struggle with Marketing

Despite an improving economy and record-setting consumer spending, small businesses are struggling to effectively market their goods and services, with many overwhelmed by marketing and lacking confidence in their current strategies, as revealed by a report from Constant Contact. Factors such as economic worry and time constraints contribute to this marketing anxiety, leading to a cycle of procrastination hindering small businesses from reaching their potential.

Small Business Trends for 2024

According to this piece posted by the US Chamber of Commerce, small businesses are expected to undergo significant changes in 2024. The adoption of artificial intelligence (AI) is anticipated to grow rapidly, with applications in marketing, HR, customer service, and logistics, providing efficiency and productivity gains.

Augmented reality (AR) and virtual reality (VR) are predicted to be leveraged by businesses, especially in retail, real estate, and hospitality, to create immersive customer experiences.

Remote operations are expected to become the norm for many small businesses, allowing access to a global talent pool and reducing overhead costs.

Finally, customers are expected to take greater control of their journeys, requiring businesses to provide more personalized and educational experiences. Check out the link above to read more!

New thing? Subscription Models For Restaurants

Restaurants, including large chains like Panera and P.F. Chang’s, but also local eateries and coffee shops are increasingly adopting subscription models to secure steady revenue and customer loyalty. These subscriptions can offer perks like free delivery, favorite dish selections or free beverages. According to this online piece on AP News, this model is capitalizing on the growing trend of Americans who subscribe to various services like streaming and groceries. While it hasn’t become a dominant aspect of the restaurant marketplace, it is something that small businesses might want to consider to stay engaged and competititve.

What You Need To Know if You Use Venmo or Paypal for Business Payments

Lawmakers are debating changes to tax reporting for business transactions on payment apps like Venmo and PayPal, as well as e-commerce platforms such as eBay, Etsy, and Poshmark. The American Rescue Plan Act of 2021 lowered the threshold for Form 1099-K, which reports third-party business payments. Previously, individuals received this form if they had over 200 transactions totaling more than $20,000. Now, the threshold is just $600, causing concern that many taxpayers might mistakenly receive a 1099-K, even for small, one-time sales. Bipartisan efforts are underway to raise the reporting threshold back to 2022 levels, with some proposals suggesting an increase to $10,000. If you are a small business that receives revenue via these payment apps, it’s essential for to stay organized and be prepared for tax reporting. Read more about the issue in this article posted on CNBC.

Navigating the World of Tipping

In this article from Nerd Wallet, the author explores the new challenges faced by small businesses as they shift from traditional tip jars to digital tipping screens for in-person purchases. Specifically, the article discusses the importance of finding the right balance with preset tipping options so that tipping can be encouraged without upsetting customers. The article also mentions that these screens have led to increased tips, and using a point-of-sale system to track tipping data can provide valuable insights for business management.