Why Are Ecommerce Businesses Failing

  • By :Shri Ganesh
  • Date :09-06-2017

Did you even have the faintest idea that out of every ten new online stores, eight of these E-commerce businesses fail to make the cut within 2 years of going live. The stats are actually shocking because when the E-commerce business is growing at a rate of more than 12% each year, it makes one wonder why are so many businesses failing then?

I was curious and I dug a little deeper into this, only to find out that the problem lies in the basic fundamental approach of these stores. In a market which is highly competitive in nature, if you struggle to get the basics right you are obviously going down, unnoticed.

So as an E-Commerce business owner, do you think you are getting everything right? Are you aware of the basic mistakes you are doing? Here are some insights on some of the major and most common mistakes an E-Commerce business can make which can turn out to be catastrophic.

Where is Your Focus?

As an E-Commerce business, trying to succeed in this extremely competitive market, where do you think your focus should be? Your products. And unfortunately, most of the businesses do not recognize this. They fail to have a proper product planning stage and as a result, end up having anything & everything in their store.

The idea of "more the products I have, the more I sell" is the main reason for some of the biggest E-Commerce failures. I'm not telling you that you need to have only a few products to make it big in the market. What I'm trying to point out is that you need to have your niche figured out. With this knowledge to help your customers within the niche, you can develop your store's identity to which they can relate to, easily.

What Do You Need To Work On?

It is not like you build your E-Commerce business & then sit back and relax as the traffic flows in! Well, even brick and mortar stores don't work like that. Unless you have a proper marketing plan in mind, people won't even have a clue about your store. Many E-commerce businesses in the market fail due their incompetency in marketing strategies.

From SEO & social media to Google AdWords & other paid content types, you need to be aware of all the channels to drive good amount of sales and help you grow.

Big & Small

We are living in a world where people are addicted to mobile phones. Everywhere you see, you can find people using mobile phones to perform majority of their day to day tasks. And this fact is especially true in the case of e-commerce. Now when most of your customers prefer mobile phones over other devices & you do not design your E-Commerce store for mobiles, imagine the amount of valuable customers you will lose.

Some glitches & clutters, poor navigation, poor quality images and an over all confusing E-Commerce website design are things which can drive people away from your store. It is important to make sure that your site is responsive and can offer amazing user experience on any screen type.

Innovate or Die

No matter what you are selling, or in what niche you re selling your product in, there will atleast be one more E-Commerce business in the market selling what you are selling. At such high level of competition, it is very important that you find ways to make your E-commerce business more innovative and give your customers something new to look out for. At the same time you also need to keep a tab on your competitors trying to break into the market with their products.

Key To Success

If you are one of those businesses looking for a quick turn around in the market, then E-Commerce is not for you. For an E-Commerce business to be successful, merchants need to build the reputation and the brand of the store by spreading awareness and improving their ranking in search engines.

Initially, they need investments, nurturing and a lot of perseverance as you will not see any noticeable profit for the first couple of months. Actually it might even be for a year. And at this stage is where most of the E-Commerce businesses fail as they do not have that determination and stamina to navigate through this rough initial patch.

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