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7 Reasons Why eCommerce Businesses Failure

Must write upfront about the shipping charges, or at times you can let your customers know that if they shop beyond the specific limit, then they can avail free shipping. This way, the startup eCommerce businesses can save their customer base.

7 Reasons Why eCommerce Businesses Failure

Tuesday August 20, 2019,

6 min Read

7 Significant Reasons Responsible For Failure Of Your ECommerce Businesses

Starting an eCommerce business seems a lucrative opportunity for many people. As it is fast, affordable, and more manageable, but most people do not realize that, it can be difficult to manage too. As a startup, you need to compete with billions of website present over the internet that makes the competition and chances of survival quite hard. It is stated that more than 90% of the startups fail within the first few months of its formation. Many factors contribute to the failure of your business. A few can be hard to determine. However, if your company does not possess proper planning, then the results can be quite alarming.

Let us take a sneak peek into these seven essential reasons that will provide you a full insight:

1. Poor Performing Website

ECommerce businesses need to possess a website that is easy to navigate and search-oriented. If your customers are not able to find the products within a few seconds, then they tend to leave your website. Even the loading time must also be minimal. A complicated or untrustworthy website loses customers fast. Moreover, if the website’s bounce rate is higher, then it is taken as less user-friendly website and slips down on Google Search Engine too.

To cater to all these problems, you must first choose a trustworthy eCommerce website platform like Magento. The owners must take the services of reputed and Experienced Magento eCommerce Development Company. This will help you in having a responsive website, user-friendly website layout, links to accurate products, and much more.

2. Lack of Investment

The success of your eCommerce business is also related to your business investment. Most of the startups feel that opening a store on Etsy, Shopify, etc. can bring significant returns, then it is a big mistake you are making. Most of the beginners fail as they do not make the right calculations about the investment, time, and efforts they need to invest in making their eCommerce business a success. If you see it is as your only financial source, then you need to calculate the exact amount of investment you require for online marketing, the amount you require for the product manufacturing and warehousing, to hire a developer to build a seamless website, etc.

3. Poor Content and Product Images

As an owner, you need to focus on the content that you are producing for your venture as well as each product that you are selling to your immediate customers. But, most of the businesses have poor content being put up on their website. The blurred images of the products also take a toll on your brand image.

So, if you are concerned about your sales, then you need to correct the content on your website by making it crisp and appealing for your visitors by rightly stating about product features. The images of the products should be of high-quality as you can hire the product photography service providers too.

4. High Shipping Cost

The higher shipping cost that is at times reflected as a hidden fee can affect your new brand. Most of the consumers are only happy to pay the amount of the product rather than the shipping cost. A higher shipping cost may let your customers abandon the cart. So, if you have just started, then it is advisable to offer free shipping to the customers. To make your customers stay, you must write upfront about the shipping charges, or at times you can let your customers know that if they shop beyond the specific limit, then they can avail free shipping. This way, the startup eCommerce businesses can save their customer base.

5. Failure to Organize the Product Categories

A lot many websites have poor product categorization that leads to a lackluster website. Most of the eCommerce business website has so many products combined under one category. It can irritate your customers if they are not able to find the right product. This also becomes the reason for consumers leaving the website, and as a result, the site gets a lower conversion rate.

If you are concerned about a higher bounce rate, then you can take the services of professional magento eCommerce development company. They have experts to help your eCommerce website right from its designing, development, categorization of products, content marketing, and online marketing activities. You can even take the example from big eCommerce stores like Amazon, Walmart, etc. to take an insider’s look into their product categorization.

6. Complex Checkout System

While shopping online customers just want to add the products into the cart, proceed, make payments, and wait for their product delivery. But, most of the online websites tend to possess a complex checkout system. They want their customers first to sign up and even register for newsletters to avail discounts or get coupon codes. The multi-step checkout system can mess the customer’s mind that results in consumers leaving your online store.

Magento offers an easy operational and seamless checkout process. You can hire Magento Developer who can redefine your checkout system. This way, you can give an option to your customers that if they want to sign up for the account, then it is solely at their discretion. If they're going to complete the payment process as a guest, then they have an option too.

7. Tough Competition

There are many small to big businesses operating over the internet that makes it hard for startups to survive. If your website is not designed and maintained right, then you are surely going to lose your ranking and customers. If you are selling the same products as your competitors, then you need to offer something different and unique to stand above your competitors.

It is never advisable to sell mass marketing products that people are already purchasing from the big eCommerce platforms like Amazon, Best Buy, Walmart, etc. If your product has some variation, then it can attract many customers. Like, there are hundreds of Lip Balms present over the big eCommerce platforms from established brands, but if you are offering an organic as well as affordable Lip Balm, then you can attract your customers. So, it is better to find your niche and bring uniqueness in it.

Ecommerce Development Company

It Just Starts With Small Steps!

Running an eCommerce business is not a child’s play, as it demands utmost attention and care from the entrepreneur’s side. You have to look after your customer’s needs and requirements, competitor’s products, online marketing activities, etc. An unwelcoming and messed up website can ruin your brand’s name. So, business owners need to consider the above reasons and also take care of their investments. If you are a beginner, then you can opt for professional services from eCommerce development company who has an expert team to cater to all your needs.

Original Source: 7 Significant Reasons Responsible For Failure of your eCommerce Businesses