- eCommerce

Why Do Most E-Commerce Businesses Fail Today

When we perceive eCommerce similar to brick business, we assure its failure. There are several mistakes that impact the success of an eCommerce store. We have identified some of them below and tip on how to avoid failure with your start-up.

Having professional consultants and developer teams can increase the likelihood of the success of your eCommerce venture.

For any business, increasing its customer base is a prime target, and online business model offers that opportunity for all. When you think of eCommerce, you ultimately are breaking the geographical boundaries for your business.

The Internet increases the chances of customer acquisition and makes your reach global. Moreover, it saves you from the investment of brick store establishment and related expenditures like maintenance, human resources, sales, inventory, presentation, and a lot more.

Today creating an online storefront is very easy and handy thing for tech-savvy people. Open source eCommerce platforms provide ready to use templates or themes to make your online store live with a few tweaks and some hosting skills or knowledge that any power user can possess.

Therefore, new generation startups are tempted to jump on an eCommerce idea immediately with immense dreams in their eyes. The majority of eCommerce startups have hardly any prior experience or knowledge of running a business with success.

At other hands, when an established brick brand thinks of eCommerce, they have practical experience of running a business in the real world, but the lack of experiences and expertise running a virtual portal online.

These apparent realities turn glorious dreams of eCommerce into gloomy failures in short to longer term. If we dissect further, some other factors are determining the success and failures of your eCommerce adventure so let’s explore them in details.

Reason #1: Waiter Mentality Rather Than Salesman Approaches
In most of the brick businesses, we erect the shop, keep products, display products decently, do some traditional marketing, and wait for consumers to arrive in store with hopes that they will come, and we will serve them your goods and / or services and gain profits.

Just like in a restaurant, waiters come into actions after the order has placed otherwise they stay passive and never try to acquire any customer directly. Against these, sales persons roam into near and far areas to make brand viral, interact with people, and tempt them to visit the store through various marketing incentives and techniques.

As discussed earlier, power users and low-end developers can create an eCommerce store using open source technologies within a fraction of the time. They may upload products or services based on the facilities available in themes. Then they will wait for visitors to arrive just like a waiter and do nothing more than these.


Be active and proactive, as eCommerce site never sell itself. You need to create compelling content, product images, forecast your policies to build trust, include positive reviews, display shipping, and return policies, and declare some marketing incentives.

These are vital actions that no eCommerce owner or marketer/developer can ignore at any cost.

Reason #2: Unfit eCommerce Development

Today expectations of online shoppers are high and minimal needs include

Security: Since money transactions involved, nobody stays with an insecure eCommerce environment.

Navigation: Shoppers are always in a hurry to find whatever they want in no time so advanced navigation options such as advanced search features (Suggested search, faceted search, etc.) seem great besides traditional navigation menus and techniques.

Performance: Modern shoppers are on the verge of decreasing patience and three seconds are standards for a page load. Mobile users are not in an exception. Similarly, interactions with smart UI elements must increase with few clicks or taps of fingers.

RWD: Responsive Web Design or mobile friendly eCommerce is a compulsion today, as a massive audience is using mobile Internet for any task including shopping.


If you are capable of attending such priorities technically by hiring suitable eCommerce developers or an eCommerce development company, you may win half battle up front.

Your experienced, skilled, and talented eCommerce designers and programmers will take care of all required details during the development of your storefront. They will infuse the excellent user experiences, usability, personalization, and optimization to achieve maximum ROI.

Reason #3: Poor Internet Marketing

Once upon a time, SEO was a synonym of the Internet marketing. Unfortunately, today the Internet marketing is a multichannel approach including social media marketing (SMM/SMO), content marketing, Paid channels (PPC, Social, Mobile Ads, etc.), and many other new gimmicks.


Hire the best Internet marketing team along with eCommerce development team so they can synchronize marketing approaches in designing as well as programming process and make your online store completely fit for the modern Internet marketing arsenals.

Start marketing earlier and with an expert as well as an experienced team. Be active on social media and other channels to grab immense opportunities existing there. Make your goal of marketing to grab maximum traffic with quality shoppers that can raise your conversion rate, hence ROI.

Reason #4: Poor eCommerce Operations

Just like the brick store, you have to assure the supply, stock, and shipping of the products through effective inventory management, order management, and shipping management.

If your shoppers pass through the checkout process and at the end realize that the purchased product is missing in your inventory, their frustrations may kill your business.

Similarly, when shoppers know final price of goods at the end of the checkout process, they annoy and abandon the cart for better options. Moreover, when any customer does not like the product and wants to return it upon receiving, they will look at your return policies.


Integration of software or functionality in your eCommerce assures all operations in a transparent and efficient way. For instance, display of product availability in adequate amount, categories, and sizes encourage more shopping.

Order tracking and shipping management software/features like shipping calculators enable shoppers to know the final cost of products/orders upfront as well as assure supply monitoring in a real-time manner.

Similarly, comprehensive return policies build trust in eCommerce brand and enhance loyal customer building process.

Reason #5: Poor Support

Whenever your shoppers need your help, your service staff or you should be available to answer their queries appropriately and in satisfactory ways. Therefore, without substantial support, you may lose the confidence of your shoppers and lose the business too.


Instead of managing support services alone or with inadequate staff, you must allocate enough trained and professional resources to address any scale of support to your valuable shoppers in real-time.

Today we have myriads of instant messengers and VOIP like communication options to explore. Facebook chats are a stylish and feasible way to enhance two-way communications.

eCommerce demands different treatment and approaches than a brick store. Therefore, active participation, salespeople like strategies, high-end eCommerce development, comprehensive eCommerce management, and supports are factors, which leads to absolute success in an eCommerce venture and save you from failures as it happens in broad scale today.

Tarang Vyash is a Head of Development Team at Mag Ecommerce Studio, the Leading Magento Development Company. He has been in the industry for last 15+ Years.

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