Why Do E-commerce Businesses Fail And Ways To Avoid Them

90% of startups fail to maintain their businesses and generate revenue from it and eCommerce is no exception. With an 80% failure rate, the eCommerce industry can be a nightmare for many entrepreneurs. What could be the possible reason? Many, I say. eCommerce is a vast domain and lack of attention even in a small area can lead to big problems in the future and that’s how they contribute to eCommerce business fail. 

Below mentioned are a few main reasons why e-commerce businesses see downfall and solutions to them. Let’s have a look. 

Selection Of Wrong Products

Problem

Selecting products for your business that has literally no demand when it comes to online shopping. 

Solution

The first thing you think while setting up a business is, ‘what should you sell’. I would say, rather ask yourself ‘what customers want to buy online, and what isn’t quite available in the online market’.

Pricing

Problem

This is important in online marketing even more than retail marketing as another alternative is lurking around the web, just a few clicks away. You don’t want your prices to be too high that customers never plan on purchasing your products. 

Solution

Be reasonable with the pricing and quote accordingly. Never forget to research the pricing of your competitor, which should give you insight.

No Marketing Plan

Problem

With a poor or no marketing plan you aren’t going to generate good ROI. Why would you even invest in something if it can’t generate revenue? A properly crafted marketing plan is a must.

Solution

If this is the case, you should focus on tweaking your marketing plan and experiment with new ideas to check if that helps you with a greater ROI. 

Poor Ranking In Google 

Problem

A large amount of traffic paves their way through Google’s keyword search. With a poor ranking in Google, you will be missing out on a lot of traffic. 

Solution

eCommerce search engine optimization is essential for businesses so that they can increase their reach amongst consumers. If your site appears in the search results for Google, that’s still a good shot for you as 35% of people start their product search from Google. 

Poor Design

Problem

Online businesses can be risky and with lots of options available on the web absolutely no one will like to explore a poorly designed website, let’s not talk about buy. 

Solution

It is important to choose a reliable eCommerce development company for your project. Hire a good eCommerce website development company that will make your website appear good and legit and you will see more customers drawn toward it. 

Problem Selecting Niche

Problem

Selecting a saturated niche is definitely a downside for your business. People go for brands and they won’t buy products from anywhere/ everywhere. You can’t expect people to buy sportswear/ gym wear from just any ABC company when they have well-established brands like Nike and Adidas. 

Solution

Choose your niche carefully where you can make real progress. Finding the right niche and then designing a good eCommerce site for it could be your best choice. 

Devaluing products with poor content and photos

Problem

You have a very good product, properly designed website, nice marketing strategy- everything good, but poor content! How do you expect people to realize that without an excellently articulated content and clear photographs?

Solution

Hire professionals for the task as this is what buyers see on your site and not the original product. A beautifully crafted product description, clear quality product images with zooming capability and images from different angles- These will speak on behalf of your product. 

Poor customer support

Problem

Customers are very aware now a day of online frauds and hence very particular about their decisions. They will never trust an eCommerce site that has poor customer support, who don’t respond well to consumer problems. 

Solution

Customer support is an essential factor in gaining customer’s trust and build a good image of your brand. You should be able to make a reliable and fast support system that will respond to customer problems efficiently. 

Avoid these mistakes today and make your business stand out.