You may be aware of the alarming rate at which startup businesses shut down. According to the recent research about E-Commerce Startups, 90% of the E-Commerce startups fail within the first four years. So, “Why do so many startups fail?”
There is no denying the fact that the people today have become more marketing-savvy and price-conscious. They are loyal to particular brands. This is not a positive sign for ambitious entrepreneurs looking to venture into the e-Commerce business.
E-Commerce Business Success Stats
- 90% of the E-commerce startups fail within their first year.
- Of the remaining, 36% of E-commerce startups fail in their second year.
- Of the remaining, 44% of E-commerce startups fail in their third year.
- Of the remaining 50% of E-commerce, startups fail in their fourth year.
Disappointed?
There are a lot of things you can learn from established businesses and successful entrepreneurs. You should also keep in mind that you can learn more about your business from failures than from success. Failures give you a sharp insight into what works best for your business and what to avoid.
eCommerce startups tend to make many mistakes in their initial years
Maintain a checklist of what not to do and learn how to scale your business by understanding the growth process of the selective 10% of successful e-commerce stores. You will not be able to follow success stories by reading random articles but involves deep digging and thorough analysis.
Here are some common mistakes e-commerce startups make and what you can do to avoid these errors:
Top Seven E-Commerce Mistakes to avoid
1. Are you selling the wrong product?
The most important thing to consider when launching an E-commerce business is the product, and it’s the prime reason why startups fail? If you are selling products that are outdated or not in demand, no one will purchase them. By offering a wrong product category, you’ve already made your biggest mistake.
Here’s what to do instead:
Before you launch a product, make sure your target audience is interested in the product you are selling. Find the right product category that is useful for both your target market and your audiences.
2. Are your product photos and description good enough?
Let consider that you have a great product to sell online and you are sure your target customers will be interested. But what if the product listing on your e-commerce store has poorly written description and low-resolution photos. The answer is simple, you’ll never be able to convert your visitors into buyers.
Here’s what to do:
Always remember, it’s the visuals that appeal to online buyers first. Second is the well-described understandable content. Use good product photos that are high-resolution and make sure your product description is catchy, to the point, and describes the item in a way it resonates with the buyers.
3. Is your E-commerce Store design cluttered?
The design and appearance of your website are also important. 90% of the time it is the biggest factor that determines whether or not it will be successful. Website design is not all about external appearance, the visuals, and the graphics. It includes everything from the way it looks and the way it works. It should be aesthetically appealing but also be functional and should serve the purpose of both visual appeal and user-friendly interface.
Here’s what to do:
The first thing you can do is building a strong, visually appealing, fully-functional store that showcases user-friendliness, brand-authenticity, and great content availability. Next, add elements that give your store a competitive edge, enhance the scope for communication, increase the credibility, and assure easy navigation.
4. Are you wasting your customer’s time?
With online shopping, customers definitely get to save a lot of time which has made them more conscious about time wastage. No one likes to spend time filling unnecessary details and completing formalities. Buyers want to place an order with only a few clicks. With a lengthy checkout process, buyers often abandon the cart and visit another site.
Here’s what to do:
Make the checkout process simple and straightforward to stop buyers from leaving your site. Hire checkout trust signals to make it a secure gateway and partner with certified payment facilitators as users are always skeptical about new companies.
5. Does your pricing and marketing ads align?
A lot of e-commerce businesses today are luring customers with half-informative ads and then disappointing them with low-quality products and hidden prices, which later becomes a top reason for cart abonnement.
Here’s what to do:
Manage your buyer’s expectations by telling them the truth about price and quality. Stop persuading buyers in the name of the shipping fee and never deceive their trust.
6. Do you have a clear policy?
People are sceptical about purchasing from a company without a clear product policy. As a seller, make sure your information is precise and understandable. A lot of new e-commerce businesses do not define their policy clearly, due to which customers abandon the cart and shop from someone who has a broad guideline related to the development of a product.
Here’s what you can do:
Place the policy under each product description or page of your e-commerce store. Email the policy to the buyers once they’ve purchased it with you.
7. Are you making the right investment?
When dealing with an online business, never neglect the investment part. If you planning to enter this business, you have to have enough money, no matter which product you are selling. Many times e-commerce businesses fail to make the right investment. They overspend in unnecessary phases of their business and neglect the important ones.
Here’s what to do:
You need to create a budget for your expenses and create separate fund sheets about promotions, marketing, and inventory management. It is more meaningful to spend a small amount of inventory for evaluating product demand before buying it in bulk.
Summary
The last thing you want to be is one of the 90% of failed entrepreneurs. Ask yourself the practical questions, research, analyze, and gain clarity. These startup mistakes are very common still many eCommerce stores fail to execute them. E-commerce stores and their trends change very frequently so stay updated and always have the curiosity to find scope for improvement.
One of the reasons for the failure of E-commerce stores, the design of the website. Digital Presence Today can help you build the most interactive, responsive, and dynamic website that will drive traffic, generate leads and increase sales for your business. Visit, www.digitalpresence.today to explore our full range of services.
