3 Reasons For Ecommerce Failure

So you’ve looked at your bottom line, and the numbers just aren’t adding up? In ecommerce, there can be a multitude of reasons why the books aren’t balanced and you are paying out more than you’re getting in. Typically, this requires some investigation to determine what is going wrong and what you can change to make the necessary improvements. While it might seem like ecommerce is the way forward and will be a guaranteed success, there is a failure rate of 80%, with many operations folding within the first 120 days of business. If you want to avoid the common pitfalls of ecommerce, you need to address these 3 Reasons For Ecommerce Failure.

Poor User Experience

How easy it is to use your website and actually make a sale will greatly impact your success. If people can’t get onto the website because it is too slow to load, they will click off before they even start shopping. If you don’t have clear images or a structured layout, or things are too busy and cluttered, again, they will click off and shop elsewhere. A good user experience means you must factor in your website design and navigation to ensure that they have a fast, smooth experience on your store and can do everything they need to quickly.

Hidden Costs

Hidden costs can really sneak up on you if you are unaware of what is involved in running your ecommerce store. Things like credit card payment fees, provider fees, shrinkage, website security and maintenance, shipping delays, and so on can really eat into your profits, So taking the time to look at what you are paying for, what you can likely expect to pay for and make changes such as finding a commercial card interchange service like this one that reduces how much you pay on each transaction that will work in your favor.

Poor Marketing

With such a saturated sector (there are anywhere from 12 to 24 million e-commerce stores worldwide), not being able to reach your ideal customers will feel like you’re fighting an uphill battle and be the cause of failure fast before anything else does any damage.

You need to use all the resources at your disposal to help you create an effective marketing plan that can target those who need to find your website and secure sales. It’s no good setting up your store and then hoping people find it, because they won’t. You need to be putting effort into finding your ideal customer, identifying who they are, their shopping habits, and preferences. From here, you can create an effective marketing campaign that targets them directly via vicarious channels, eg, social media, email, PPC, targeted ads, and so on, to help you boost your visibility and get them to make the sale.

There are many reasons why your ecommerce store might not thrive as you expected it to. Remember, much like a brick-and-mortar store, you need to put the effort behind the scenes to ensure that you are doing everything correctly and nothing is being overlooked. These three issues are commonplace for any business, but for e-commerce, they hold slightly more significance in relation to how successful you can be.

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