Top 15 Reasons for E-commerce Failures and Mistakes

Around 80% of eCommerce businesses have been failing because of lacking those issues. So, for starting an eCommerce business, you must have to be conscious of those factors.

21st May 2020
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Nowadays, the eCommerce industry is growing very rapidly. But this task is not easy to maintain an eCommerce business. Most of the time, eCommerce startups fail for various reasons. If you want to start a new eCommerce business, then you will feel anxiety in various issues. Also, you will face several confusions for starting up your business. Moreover, that confusion will create mistakes in your business. So, you have to be clear about how to start an online business, and also you have to understand the reasons for the new eCommerce startup's failure. Now, in this article, I would like to describe some reasons of E-Commerce failures and mistakes .

Lack of Planning

Better business planning is the key to the success of any business. Before starting an eCommerce business, you have to proper business planning. Thus, you have to plan for how to promote your website. Also, you have to create a proper business model. Otherwise, you can not survive the real world market. Moreover, it is a long time process. Hence, you have to continue your procedure in a timely and efficient manner. Sometimes it does not work the first time then you have to determine, and re-plan your work. Additionally,  in your business plan, you should have a plan of monetization. Otherwise, you do not get profitable results. So, proper planning is the basement of any business.  As a result, for insufficient planning, your eCommerce startups will fail. 

Faulty Inventory Management

An inventory management based eCommerce shopping cart software is the most important part of any business. If you do not manage the inventory system properly, then you will face the shortage of product. Moreover, when you start a new eCommerce business, if your inventory contains too much product, then it will create a bad impact on the cash flow of your business. Also, when your inventory holds few products, then you will have to deal with the product shortage problems. As a consequence, customers do not find their desired products, and they feel very disappointed. So, depending on your business model, you have to organize your inventory system. Otherwise,  your eCommerce business will collapse. 

Lack of Maintenance

One of the most concerning factors of any eCommerce startups is proper maintenance. If you do not maintain your system effectively, then your business will not sustain it. Thus, you have to create some terms and conditions. As well as, you have to fix some privacy policies. Moreover, in your terms and conditions, you must have to keep the return policy. After selling products, if the customer identifies any fault of those products, then you will have to change these products or refund them. Also, your behavior must be polite and decent to the customer. Furthermore, after a certain period, you have to check in all functionalities of your site. Indeed, you have to perform this testing procedure continuously for updating purposes. Without updating the system, you can not serve a better platform for the customer. So, you have to maintain your site adequately to reduce the chance of failure. 

Lack of Customer Support

Proper customer support is a positive sign of all businesses. All-time, you have to be ready to serve the customer. Moreover,  if any customers have any queries, then you have to respond to those queries as early as possible. Because customer satisfaction is one of the priorities of all businesses. Also, if you do not provide customer support in  time, then those customers will ignore your site the next time. As well as, they will not refer this site to anyone. So, you have to provide customer service properly and quickly. Otherwise, it will create a negative impact on your business. 

Insufficient Marketing Strategy

An effective marketing plan is the key success of all businesses. You have to collect market feedback and then analyze it. Without doing this, you can not understand the current situation of the marketplace. After that, you have to target your customer for creating an appropriate marketing model. Moreover, the marketing plan will be varied depending on the customer's age, gender, and buying tendency. Also, you have to use content marketing for promoting your products. As well as, you have to include the option of a review that will be very helpful for the customer. Using this review option, a customer can understand the quality of your product easily. So, without a sufficient marketing plan, your eCommerce startups can not be successful.

Lack of Cash Flow

For boosting up any business, cash flow is a vital element. It means total inflow and outflow of money in a business. Moreover, for operating any new eCommerce startups, you must have enough cash flow. According to your business plan, you have to decide how much money will spend in your business. On the other hand, if you spend a huge amount of money in your inventory, then your marketing sector will decline. As a consequence, your sales will downfall, and the business will be shut down. So, you have to ensure a positive cash flow of your business that helps to generate profits and increase any business.  

Poor UI & UX Design

Proper UI and UX design is an important feature of a good eCommerce business. As well, customers feel very attractive with a decent user interface. Moreover, it creates the outlook of your website. When any customer comes to your site, then they will first notice your user interface design. If it is comfortable and easier, then they will visit your site again, and purchase from it. In the present world, around 60% of people are using a smartphone. Indeed, most of the time, they do purchase through their mobile phone for saving their time. So, in your system, you must have a mobile-friendly UX design. That helps to increase your sales and also helps to grow your business.    

Selling Wrong Product

Choosing the right product is the key strategy of all businesses. When you want to establish new eCommerce startups, then you have to know the customer’s choice and demand. If you do not prioritize the customer’s preferences, then they will purchase nothing from your website. After that, you will face an enormous loss, and your startup will fail.   

Bad Quality Photos

When any customer comes to your website, then they will see the product photos for purchasing products. If the quality of your product photos is low, then it will create a negative impression for the customers. Some customers dislike reading the product description. Moreover, they can understand your product quality by looking at the picture. So, you have to ensure the best quality pictures on your site. Otherwise, you will lose several customers, and your eCommerce startups will fail.   

Insufficient SEO Optimization

Optimizing SEO facilities can promote your eCommerce startups. For that reason, you have to apply SEO optimization techniques from the start of your business. You have to establish your important keywords. But it must have to limit the use of these keywords. Also, you can use title tags for your pages that are relevant to your selling items. As a consequence, customers can get their desired product easily. When any customers search for any product through Google, then they will pick up the topmost suggestion. So, you have to provide an SEO friendly and optimized system.   

High Shipping Cost

High shipping cost is the primary obstacle to any eCommerce startups. As a new business holder, that will be very tough for you to pay the enormous shipping cost. When the shipping cost is greater than the net price of products, then you can not cope up with your business demand. That is not good for your business. Moreover, it will bring the alarming situation of your business. So, you should not have invested more money in this sector for your business success. 

Aggressive Competition

Nowadays, there are lots of eCommerce platforms available. But various platforms can not survive the real world market. Whose platforms can serve the qualitative service, only they will sustain in the present competitive marketplace. Otherwise, your business will be a downfall at the beginning. For this reason, you have to give better service for reducing the chance of failure of your eCommerce startups. 

Mismatch of Price & Cost

If you gain profit from your business, then your business will go on smoothly. But the target of gaining too much profit is harmful to business. So, depending on each product cost, you have to fix the price of that product. Otherwise, you can not balance the cost and price. When you give the exorbitant price for getting a huge profit, then you will lose customers. As a result, your eCommerce startups will fail.    

Lack of Proper Website

For growing up your eCommerce startups, you must need an excellent platform. Moreover, using an appropriate website, you can create this platform. Also, your system may be fast, secure, and flexible, but these criteria will be nothing without using a proper website. Many startups are failing for the reason of lacking a proper website. So, if you can not choose an efficient website, then your business will face various difficulties.     



A proverb goes that, "Patience and fortitude conquer all things".


Lack of Patience 

So, you have to be patient in your work. For growing eCommerce startups, it takes time. Also, you can not earn profit instantly from any eCommerce startups. Therefore, when you fail for the first time, then you will not be upset. After that, you have to try again to establish your eCommerce business. Finally, you will succeed in your business.

Conclusion

Around 80% of eCommerce businesses have been failing because of lacking those issues. So, for starting an eCommerce business, you must have to be conscious of those factors. If you can manage all things properly, then you will be successful in your eCommerce startups.   

Want to make your startup journey smooth? YS Education brings a comprehensive Funding Course, where you also get a chance to pitch your business plan to top investors. Click here to know more.

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