TOP 5 REASONS WHY YOUR ECOMMERCE BUSINESS FAILS
Fact: 8 out of 10 E-commerce businesses fail within 2 years of launch. But, even with that failure rate, the E-commerce marketplace is growing around 13% each year. The market has become saturated already, and the competition is fierce. That’s why every segment of your E-commerce business matters.
It doesn’t matter what niche your online store is. What matters is how you run the store. Just like in every other business, the challenges are here and all sorts of mistakes are possible. These are the top five mistakes that may hurt your E-commerce business:
1. YOU DON’T NICHE OUT
First thing is first, what products do you plan to sell online? The logic of “more products equals more revenue” does not always exude confidence in the eyes of the consumer. And guess what? The consumer doesn’t feel confident in purchasing from your store either. How can someone trust you when you put shoes and cables in the same pile and on the same pedestal?
What you need to aim for with you E-commerce store is to have a niche and to become an authority within your niche. It’s all about focus and building trust. You can become a leader and the go-to store in your niche.
2. NOT AWARE OF THE COMPETITION
It’s 2017, and there’s definitely another store that sells what you’re selling. But that doesn’t mean that you should be scared about your E-commerce business. It means that you need to improve and beat your competition within the marketplace.
Our advice is to steer clear of competing with the big dogs when you start your E-commerce store. What you need to do is offer products that are valuable and affordable to make sure that you’re getting a reputation as the go-to store for those products.
3. POOR CASH FLOW MANAGEMENT
It’s the same like in every business. E-commerce asks for balance too. Especially since it’s an online store. You have to market your store to the consumers. If you focus on spending your time and resources to only buying products and leaving marketing out of the equation, guess what?
Your warehouse will be full and your online store will not be visited enough.
When you decide to start your E-commerce business, you need to plan your budget around sales revenue instead of projected. That will help in keeping a steady cash flow.
4. YOUR WEBSITE IS UNATTRACTIVE
There are no excuses here. If your website doesn’t look and function right, you’ll get no sales. Period!
Without a properly designed website that is intuitive and understands the user’s journey you will not succeed with your Ecommerce business. Your online store needs to be in top shape from the UX to the language to appearance and speed.
5. YOU DON’T KNOW HOW TO BRING TRAFFIC
Well, you might as well have the best product in your market. And your website may be gorgeous. But if you don’t know how to bring traffic to your website, then none of it matters. Because just like in every business, visitors and sales matter.
Can someone purchase from you if your store is hidden in a dark alley? How can someone buy if they can’t see you or don’t know that you exist? Social media, AdWords, SEO practices, content marketing and traffic techniques are a must if you want your E-commerce store to succeed.
To wrap things up, do your research and “buy” knowledge from the big dogs of E-commerce. See how they approach the market and get a grasp of their sales funnel too. Then make sure that you’ll find your unique leverage and capitalize on that. Find a way to be distinctive in the eyes of your customers.