Did you know that the eCommerce failure rate is 22% within the first year?
How is this practical when internet sales account for 18% of all retail sales?
Ecommerce offers good revenue potential, the ability to be available 24/7, and usually cheaper overheads than traditional brick-and-mortar retailing. Yet, even though more than 12 million people buy online each year and the number of people shopping online doubles every year, a considerable percentage of e-commerce businesses fail to make a profit or, in some cases, even survive.
We’ll go over the eCommerce failure reasons and how to avoid being a failure in this article.
9 Reasons Why eCommerce Businesses Fails
#1. The Wrong Products Are Being Sold
One prominent reason for the failure of eCommerce is faulty products and too much competition. If you’re offering a product that no one wants, you’re in a difficult situation. However, even if you sell many websites’ products, you can create a value proposition with proper marketing. It is up to you to decide how to sell a product and which product to sell!
#2. The pricing is entirely incorrect
Discount sales, reward points, and offers will attract many customers. But if your product is not up to the mark, pricing is too high, and website design is not appealing, it can cost you! Therefore, you should do homework on your competitors and ensure comparable rates. Customers also leave a store when pricing is unfair.
#3. Missed Opportunities Due to Insufficient Content
An appropriate amount of content will always assist a customer in learning more about you and feeling more at ease when purchasing with you. Therefore, it is crucial to not only sell to your consumers but also to educate your visitors. This will assist your search engine ranks as well. Also,low-quality content can harm the site’s search ranking and prevents users from clicking to learn more about your offerings.
#4. Search Ranking Flaws
Even if your products are unique, there is no assurance that they will rank well on Google. To rank well, you need to carry out Page optimization and SEO in the best way. For example, customers begin their product search on Amazon 36% of the time, whereas Google 35%. As a result, ranking on Google for your product keywords is still one of the most acceptable methods to be discovered on the internet. eCommerce Search Engine Optimization should be a vital component of your marketing strategy. If this is not done right, you are going to fail!
#5. Marketing Efforts That Aren’t Targeted
Customers that appreciate your uniqueness will continue to purchase with you. Zero Value and no proper target orientation will cost you! Make sure you have a strategy in place for marketing your website. You will never succeed if you do not have a strategy. Plan it out and strive to apply it without fail for the first few months; this will assist you in better understanding your market.
#6. Checkout Procedure Is Complicated
No one wants to spend eternity — or, in today’s digital world, even minutes — filling out forms and going through countless checkout stages. While there are numerous ways to improve an eCommerce site’s conversion rate, lowering cart abandonment will undoubtedly significantly influence your bottom line. In addition, making the checkout process as simple as possible can go a long way toward encouraging customers to complete their transactions.
#7. Poor Customer Service
The after-sale is as crucial as the sale itself. It costs five times more to acquire new consumers than keep existing ones; negative experiences are unacceptable. Poor customer service occurs when your company fails to meet clients’ expectations. It could be the level of service your consumer received, the time it took for you to return their phone call, or their general impression of your brand.
#8. Inadequate Site Security
With cyber threats lurking over websites at all times, it’s more crucial than ever to close any security vulnerabilities. Regularly review, examine and upgrade your security features. Customers will not trust a site with security issues.
#9. Hidden and Expensive Shipping Fee
Transparency will build trust and help you grow! One of the most common reasons for eCommerce business failure is hidden expenses and rates! Customers can compare shipping prices at different eCommerce sites because it is readily available. Customers want to know how much their product will cost and when they will receive it. With specifics, clarify both sides of shipment.
You might have got a picture of why eCommerce business fails, didn’t you? WooCommerce development has made it simple to set up an eCommerce store, but building a reputation and keeping it long is difficult if you don’t do it the right way. However, the nine points described above have simplified everything for you. Combining these solutions into your eCommerce store will never fail rather than outperform your competitors.
Author Bio: Juliet Cody is a certified WooCommerce developer passionate about writing WooCommerce development. Her yearlong experience with CartKnitter helps provide insightful articles for a wide range of customers.