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-

1. Excessive competition-

1. Poor website-

1. Bad photography-

1. Inappropriate pricing-

E-commerce platforms

1. 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.

1. 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.

1. 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.

1. 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.

1. 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.

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.

Do remember that online traffic is very important to any online business, including yours. It can often become one of the top reasons for why e-commerce business fail. For the sake of traffic, you would need to have a proper SEO (Search Engine Optimization) in place, which can take your website to the top of Google rankings. Since most individuals do online shopping through their mobile phones these days, it is also important to have a mobile responsive website, so that the dimensions are not distorted on the smaller screen


Source: 5 Main Reasons Why New E-Commerce Businesses Fail So Easily