Reasons Why New E-Commerce Businesses Fail So Easily

Starting any ecommerce business is fairly simple, and also does not require much initial investment. There are a number of variables that need to be in place though, and so entrepreneurs need to think this venture through. Unfortunately, the failure rate for e-commerce businesses is as high as 80%. To succeed in this field, one needs to closely examine the reasons why e-commerce business fail.
  1. Lack of cash flow-
    For any business to run profitably, it is important to allow easy inward and outward movement of cash. If a new company does not adequate operating cash, it is a major reason why e-commerce business fail. Solve this problem by analyzing your expenses and spreading them across days.
  2. Excessive competition-
    While deciding to enter into a segment of online retail, ensure that you conduct thorough research on competitors in that market. This will help you understand different players, and the possible level of difficulty in creating your niche. Trying to sell mass market products will show you why e-commerce business fail. Therefore, always look at establishing your brand niche.
  3. Poor website-
    Other than a low quality design, many websites are guilty of not offering high loading times, SEO-friendliness, user-friendliness, Google-friendliness and engaging content. Mobile responsiveness and bounce rates are also frequently ignored. Small, medium and startup businesses must understand that today’s customers do not much time to spend on a single website, and if a lot of time is spent in navigation, they will mostly switch to a competitor. Guilty of not being emphasized enough, this is definitely one of the e-commerce mistakes to avoid.
  4. Bad photography-
    Picture clarity is very important for customers to have confidence on your products. If the picture is blurred and not clean, it is not the right standard for product sale, and you will certainly end up losing business.
  5. Inappropriate pricing-
    While trying to build an online store, you might come across a number of online retail businesses with average-looking websites, but doing well as a result of great prices. Yes, the online buyer needs to have a strong enough reason to stay at home and check out your products instead of spending time at a brick-and-mortar store. In other words, if you do not want to be lost in the crowd, be sure to research your competitors for pricing models.
To not become yet another reason that becomes part of a list titled “Why e-commerce business fail”, ensure that you have a marketing strategy firmly in place. Spend time analyzing its advantages and pitfalls, and have a proper forecast in place. Also remember to tweak and make it work in case the original plan does not work. A paid search marketing strategy could be of great help to your online business.

E-commerce platforms

An e-commerce website is built on a suitable e-commerce platform, based on the nature of your business. While selecting the best platform to build an e-commerce website, you will have to choose the parameters in priority order. For most online businesses, business scalability tops the priority list. This is closely followed by website loading times, user interface, marketing and promotional options.

Comments

Post a Comment

Popular posts from this blog

Benefits of Integrated E-commerce Platform

Image
As the years go by, the e-commerce business is getting bigger. Whether it is electronics or different FMCG products, consumers are making deliberate online shopping efforts, one of which is the review of the product or service, and the other is convenience. Therefore, if you are running an e-commerce business, it would be wise to know about the benefits of an i ntegrated e-commerce platform . Most B2C brands are aware of how to sell across retail chains. By using point of sale (POS) machines, they are able to know the exact position of supplier shipments, sales figures, inventories, customer trends and more. But when these brands move to online environments and sales through e-commerce platforms, they do not miss integrating POS systems. Why is there an integrated e-commerce platform? An e-commerce platform has many processes related to product information, discount codes, product reviews, storefronts, customer accounts, inventory, performance reports, and more. Being able to i
Read more

How to Choose the Best Inventory Management Software

Image
Finding the correct inventory management system can be an overwhelming undertaking. There is an assortment of alternatives out there, which can make it elusive the ideal fit for you.  So where do you begin? Here are five stages that can enable you to locate the correct system: 1. Have a budget Initially, you have to choose a financial plan. It will be practically difficult to locate the correct fit on the off chance that you don't have the foggiest idea about your value run. A characterized spending will limit your hunt, sparing you the time and exertion it would take to consider system outside your spending range.  Inventory management systems can extend in cost from allowed to upwards of $100,000. Thus, there are numerous choices in wording quality, abilities, and versatility. Not recognizing what your value run is will significantly constrain your capacity to locate the correct fit. 2. Know your inventory challenges Similarly, as there is a wide scope
Read more

Twirll Kitchen Display System (KDS): The One Stop Solution for Busy Restaurants

Image
A Restaurant kitchen display system is an information and ordering system. Restaurants are constantly updating their technology today to meet growing consumer demand. It is not only about providing free Wi-Fi, online orders and table kiosks but to ensure a smooth operation, the role of a kitchen display system is unique. A kitchen monitor system in the background is not just a mere technique to satisfy guests, but yes, it does change how a restaurant performs. By definition, the kitchen display system is intended to replace the kitchen order ticketing system. Simply put, the display shows how the food is transported from the kitchen to the tables. It also controls how dishes are prepared with the monitoring of each negative data of the kitchen operating. So, what are the benefits of kitchen display systems A restaurant with a functional KDS restaurant or display system plays an important role in improving the capabilities of kitchen management. Here you enjoy its installati
Read more