You would have heard the proverb, “First steps are the most difficult.” But, that’s not true with ecommerce businesses. Today, with lots of off-the-shelf ecommerce store setup software and affordable ecommerce website design companies, starting an online store is quite easy – and you can even get started on selling your products within a few days.
But, the most important part is transforming your ecommerce startup into a successful and effective business. Recent industry reports state eight out ten ecommerce stores get discontinued within 24 months of work. Other researchers secure the number even higher, stating 97% of all ecommerce businesses don’t make a profit.
So, what’s going wrong? Why do the majority of ecommerce businesses fail, especially when they have a passionate founder or team behind it? Here, in this post, we dive into a deep study of the top causes why ecommerce businesses fail and how to implement a solution for the most common causes of failure.
- Low-quality Product Images and Content Description
You’ve got a great product, and you’ve consumed a lot of time designing it or sourcing it from the best of suppliers. You’ve done your market research, and you know that there is a high demand for the product.
But, then your product listing on your site is a few low-quality photos with a poorly written copy. If your product listing looks like something that you would see on eBay, then it’s time to get it renewed. Poor quality product images and badly written content not only prevent sales but can seriously make a subpar impact on your product and depreciate your brand.
How Can You Solve It?
If you’re interested in product photography, then start by investing in the right photography equipment and learn a few tips and tricks to click pictures in the best light. Provide multiple views of your product and include detailed descriptions. Don’t use general descriptions, rather describe your product from the perspective of the customer – what they would like to know about the product, etc. If you don’t know photography, you can hire expert photographers to get the job done or get the help of professional woocommerce development services, to help you set up your product listing and the rest of your ecommerce store.
Don’t rely only on a price to pull in customers. Instead, attract them by highlighting the best features of your product. Showcase your products in the best way possible.
- Contact Information – Phone Numbers, Email Id, etc.
While this may look like a minor problem, not revealing your full contact information prominently on your site or burying it deep in the corner of the site, stops customers from trusting you. When a new customer arrives on your site, he/she will look for information about your brand – like where you are based, the story behind your brand, etc. Customers choose brands that are easy to communicate since they can contact you quickly if something goes wrong.
How Can You Solve It?
Make sure to present your complete contact information – email ID, phone numbers, address, social media pages to build the trust of your potential customers.
- Financial Mismanagement
Lack of tracking and controlling the financials will destroy any business quickly. Let’s demonstrate this point with an example. Ecomom was one of the early ecommerce companies that were started in 2007. The company had a solid product line – natural and eco-friendly products from expecting and new moms, as well as natural baby food, toys, and clothing.
The idea was a great one, and the company had a increasing consumer base, thanks to the increase in the demand for natural and chemical-free baby products. But, then the company went bankrupt in 2013, just six years after launch.
So what went wrong?
Jody Sherman, the Founder of Ecomom, was, in fact, able to obtain a large $1 million as funding for his online business. But, the biggest problem was Jody was an entrepreneur and not an accountant. He failed to hire the right financial team for his startup. While it looked like revenues were growing, the company was losing money, failing to get profits on their investments. Driven by his losses, Jody committed suicide in 2013 and the business folded.
Not to scare you, but the lesson is stark clear – you need the right accounting or financial team to help you stay on track. If you don’t have the funds to hire an expert accountant, take some time, and learn the basics of business accounting. Understand where your money is coming from and where it’s going, thereby bypassing financial disasters down the line.
- Complex Checkout Process
No one loves to do more than the basic minimum, especially when shopping online. Amazon revolutionized online shopping when they put away the difficult checkout of the last decade and moved to single-click purchases.
If you have a complex, multi-step checkout process, then it’s high time you change the design. Hire a Magento web developer to help you improve and redesign the checkout process. Don’t make it necessary for customers to register or sign in to their account before they can complete the process. Instead, give the customers the option and let them decide if they want to sign in before they complete the purchase. If not, let them check out as a guest, without having to create yet another registration account.
- Slow Website
No matter your business model, or the types of products you sell, you cannot expect to taste victory with a poor acting website. Your website is the shop front for your online business. Irrespective of the other channels you use to sell your products, your website is the foundation of your entire ecommerce business, and it needs to show that.
While designing a website, you need to ensure that it is working, active, refreshed, and offers the best user experience. An easy-to-use website not only improves conversion rates but also ranks higher on Google. Look for simple, clutter-free layouts.
And don’t forget the mobile user experience. Mobile ecommerce sales have been regularly increasing over the years, and by 2021, 1 out of 2 ecommerce sales will happen on mobile. Let’s say; you have a possible customer who comes across your site on their home desktop. The customer then gets suggested of your site, while on the move and decides to complete a purchase from his/her mobile device. If your site isn’t optimized for mobile or offers a sub-par experience, you not only lose the sales, but the customer is never likely to return to your site.
There’s no excuse to offer a poor mobile experience in 2019. Understand the nuts and bolts of good mobile user experience, and hire a competent ecommerce website design company to get your online store optimized for all mobile devices. Apart from a mobile website, you can also spend on a mobile shopping app, if needed. However, remember that you need to give customers a good experience on the app as well. So, ensure that it’s robustly tested and don’t make it an afterthought.
Once you have improved your website, mobile website, and mobile shopping app, take the time to test every nook and cranny. Load it from various mobile devices, browsers, check how it appears on tablets, laptops, etc., try differing web speeds and more. Ensure that your online experience is seamless across devices to provide existing and possible customers with the best experience.
- Hidden Fees
This is a tremendous drawback. One of the main reasons for cart abandonment is hidden fees. 61% of customers abandon a cart when they are performed with an extra cost at the end, like shipping fees. To bypass this, make sure to share your shipping costs with the customer upfront. You can also turn it to your advantage by allowing customers to know that they can avoid shipping costs when they shop beyond a particular amount.
You can also provide customers with shipping costs calculator to know how much they will have to pay beforehand.
- Online Marketing
Let’s say you open a café in a faraway corner of your city, and not advertise it. Apart from the handful of walk-ins, you will not have any customers. The same applies to online stores.
You may have the best products on the market, superior customer service, and a seamless web store, but without targeted marketing, you will not be able to reach your sales targets. This is where digital marketing gets into the picture.
Start by building a robust online marketing plan. Recognize your goals, and then work on how to accomplish them. If possible, hire a devoted digital marketing team to help you across channels – social media, email marketing, paid ads, organic SEO, and more.
Getting Started Maybe Easy, But Succeeding Requires Effort and Planning
There’s no doubt that ecommerce is a great way of starting your business, with minimum overhead. However, it requires work, effort, and planning. Make sure to avoid the deadly mistakes listed above, and succeed in your ecommerce venture. Focus on sustainability and growth, rather than on short-term goals. Do your research and build an excellent online business that continues to pull in customers and produce sales, in the long-term.
