7 Reasons why E-commerce business fail
E-commerce business is a new trend for budding entrepreneurs. It offers amazing revenue opportunities 24/7 unlike the traditional methods of business of the same products. However, despite this, they fail at a very high rate.
The reasons can be as follow:
1. Website issue
E-commerce is synonymous with showcasing your products online and for that, a good website is a must. The issue begins when the website is not updated or it is not appealing enough to lure customers to buy the products, the sales will surely drop. Not only good product display but also the description should be attractive enough. A lot of businesses fail at this step itself.
2. No marketing plan
A lot of entrepreneurs who start this kind of business have no marketing plan beforehand. Selling products online is not a cakewalk. It requires a lot of groundwork to completely start an E-commerce business which is usually missing. Thinking about the target market and how to reach them is a must. Your store needs to put itself outside there.
3. Low conversion rate
Nobody has enough time in this fast moving world to buy stuff online only when they open their laptops. People want to function the website or app on their phones too and this is where everything goes wrong. The entrepreneurs haven’t made their websites mobile friendly at all. People start losing interest and stop purchasing at all then.
4. Tough Competition
There are thousands of people who have the same idea every day and this tells how competitive the world has become. To make your products stand out, one needs to have a clear idea about the loopholes of other businesses which aim to sell similar or identical products. Your products should be good enough that they should fail to have an alternative. A lot of E-commerce businesses are unaware of this fact and thus leading to a downfall.
5. A lot of hidden fees
Shipment fees are normally not disclosed at the time of purchase and hence creating a havoc later. People don’t like it when they have to pay extra at the end after making a decision to buy the product. A shipping calculator can thus be provided to ease this process.
6. Customers sometimes have no clue
They don’t know what to do so it is your sole duty to guide them step to step. Never leave the customer clueless. People start leaving the website as soon as they realize they cannot function it properly.
7. Missing contact information
Along with a step to step guide, contact information should also be provided. The response to the queries should also be quick. Always remember to keep your customers engaged. Ignoring them and fewer customers satisfaction are also the reasons of failure of E-commerce businesses.