The 6 Most Common Reasons E-Commerce Stores Fail

Categories

According to many different sources, over 90% of online businesses collapse. That’s a ghastly stat. That means– statistically speaking– your chance of success as an online retailer is less than 10%. An E-commerce business is extremely easy to set up. You don’t have to rent a physical space for your store. When put against other types of businesses the invest costs are relatively low. You can launch your store in very little time. So, if things are so easy, why are so many businesses failing?

The truth is that the average entrepreneur does not run a tight operation. The average entrepreneur will get bamboozled by the ease of entry into E-commerce and will foolishly believe everything will be smooth sailing (yeah, right).

If you are reading this blog, it’s safe to assume that you do not want to be an average entrepreneur. This blog post is a roadmap to help you avoid the dead-ends and pitfalls that are common for online retailers .

  1. Lack of investment/capital

The internet has mislead you. Yes, there are entrepreneurs who launched their store from virtually nothing, but those stories are largely anomalies. Putting in merely hundreds of dollars and expecting millions to be generated is foolhardy. Your store is a digital location. Your costs are reduced tremendously, but don’t think that you can get away with paltry investments. When you’re getting started, there needs to be a healthy amount of capital to ensure that things run smoothly.

Your cash flow needs to allocated so that every expense can be taken care of. You can’t put all of your capital into your marketing budget if your inventory is low and needs an injection of cash. Misspending your money can lead to catastrophic consequences– failure is almost guaranteed.

  1. The market is over-competitive

If you’re selling something that larger retailers offer on their website, your sales aren’t going to be great. It’s a very bad idea to sell something like Nike shoes when there are hundreds of established retailers that have a strong foothold in your market. If you look deep enough, there is market where you can excel, but it’s likely not where the huge brands are.

  1. Poorly managed inventory

Buy too much inventory and you will devour your capital. Buy too little inventory and you miss out on sales and customers. Inventory is tricky and you need to strike the right balance. Most importantly, you need to be on top of things. You need to properly plan for slow delivery times, high freight costs, getting shipments through customs (if your items are produced outside the country), etc. Keeping track of your inventory is a necessity.

  1. Badly designed website

If your store was in a physical location, and that location was poorly lit, dusty, and badly decorated, would that store be successful? Probably not. The same goes for your web design. Your website is your operation’s critical foundation, and if it is poorly designed, then you are losing out on customers– this is almost a guarantee.

When people initially think of a well designed website, they picture eye-pleasing aesthetics. But the appearance of the website is only the part of the equation. Your E-commerce website needs to be secure, SEO-friendly, functional and fast. This is why we recommend that you spend a considerable amount of time choosing the best platform to launch your E-commerce store.

  1. Lack of marketing

No web traffic=no revenue. And a lack of revenue will mean the death of your E-commerce operation. You need traffic for your store, and there are many ways to obtain it– SEO, PPC, email marketing, etc. The point is that you absolutely should put a concentrated effort towards marketing your business. Make sure that you have a budget that’s reserved for marketing.

  1. Weak copy

Words sell. The quality of your copy will either compel someone to buy or will cause them to bounce from your site. Your product descriptions need to be persuasive because they need to convince the prospect that your product is the best solution for their problems and needs.

Are you making these mistakes?

These mistakes can destroy your business before it even really begins. Now that you know the pitfalls, launch and build your store the right way.

Are you ready to discuss your next eCommerce project with the leader in shopping cart website development and digital marketing? If so, contact Zen Agency today! We are a group of web development experts!

Want more digital strategy advice and insights?

Sign up for our newsletter.
!
!
Something went wrong. Please check your entries and try again.

Joseph Riviello

Joseph L. Riviello is the CEO and Founder of Zen Agency. Joe's agency builds websites and web applications that attract, engage, and convert. Joe has over 30 years of experience in entrepreneurship and he is an expert digital marketing strategist who specializes in conversion-centric e-commerce experiences and cutting-edge solutions that maximize growth and profit. Check out Joe featured on: Business.com, Redbooth.com, Kabbage.com, MaterialDesignBlog.com

Leave a Comment

You must be logged in to post a comment.

More Posts By Joseph Riviello

How To Prepare Your Site For Voice Search 

By Joseph Riviello

January 19, 2020/Joseph Riviello/Uncategorized Want more digital strategy advice and insights? Sign up for our newsletter. Your Name ! Your Email ! Sign up Something went wrong. Please check your entries and try again. Joseph Riviello Comments More Posts By Our Services Post navigation ← 5 Secrets of Successful Content Marketing Companies

E-Commerce Experts Thoughts on New Instagram Checkout Feature

By Joseph Riviello

Facebook is at it again, innovating the social media landscape … this time with its uber-popular platform, Instagram. In a March 19th press release, the company unveiled the new Instagram Checkout feature, an e-commerce extension of the app. Since it’s currently in beta with only 25 companies, not much is known about it, and businesses…

Why You Need a WooCommerce Store

By Joseph Riviello

According to a study published by the U.S. Census Bureau’s Department of Commerce, total e-commerce sales in the United States were estimated at $513.6 billion in 2018, a 14.2% increase from 2017. This data has been on an upward trend since 2009. Future projections globally cement e-commerce as the primary shopping method. Now, more than…

4 Tactics Marketing Automation Companies Use to Improve ROI

By Joseph Riviello

The most exciting part of doing business in this day in age is how much technology is available. This elevates the potential of what you can do with your marketing since it opens up a world of opportunities. While technology won’t be the magic button that will fix all of your problems, it helps accelerate…

The 3 Tenets of Lead Generation: How You Can Produce Sales On-Demand

By Joseph Riviello

Sales are the lifeblood of any business. Without a steady stream of sales, you don’t have revenue. And without revenue, you don’t have a thriving business. In today’s post, we’re going to look at the three tenets of lead generation, and how you can use them to exponentially grow your business. Tenet 1: You Must…

Zen Agency is Now a Sharpspring Silver Partner!

By Joseph Riviello

Zen Agency has earned the Sharpspring Silver Partner Certification from Sharpspring, a leading marketing automation platform. Why Does Marketing Automation Matter? The marketing automation tools provided by Zen Agency as a Sharpspring Silver Partner allows you to deliver the right message to the right leads. Track your content, who is seeing it, and craft an…

How to Create a Successful Law Firm Marketing Funnel

By Joseph Riviello

If you were to go back 20 years, you would see that law firm marketing was starkly different than it is today. You would see more billboards, late-night infomercials, neighborhood flyers, and newspaper ads. These days, we have websites, SEO, pay-per-click ads, and social media marketing. The options available to lawyers today give them countless…

What Is Content Marketing? How You Can Get Started Today

By Joseph Riviello

Almost every successful website has one thing in common: Great content. You can have an extremely beautiful website with all the bells and whistles, but if you don’t have content, your web presence is woefully incomplete. You must learn how to start content marketing the proper way. There are no shortcuts: You need good content.…

5 Steps for Creating a Successful Marketing Strategy

By Joseph Riviello

Many businesses jump straight into marketing without a plan. This is a big mistake. Going into battle without a strategy will leave you with a poorly spent marketing budget and lackluster results. Often enough, the difference between companies who dominate the marketplace and companies who fail to get off the ground is simple: A clear,…

The 5 Step Cheat-Sheet for Using Youtube for Your Local Business

By Joseph Riviello

If I were to ask you, “what’s the #1 search engine?”, you would automatically say, “Google”, and you’d be right. But what if I were to ask you to state the #2 search engine? Some would say Bing or Yahoo, but the truth is that Youtube is the second largest search engine in the world.…