In this technology-driven world that we live in today, consumer behavior is quickly evolving. We rely heavily on the internet to gather information and get products and services. Looking at the retail scenario now, we all know that the eCommerce industry is going nowhere but up.
According to Statistics portal, Statista, retail eCommerce sales worldwide surpassed 3.53 trillion US dollars in 2019. And with the current world situation, it’s sure to accelerate even more. However, Medium.com tells us that 8 out of 10 online stores fail within the first two years despite the skyrocketing sales.
How can you avoid being on the negative side of the statistics? Here are the most common reasons why eCommerce businesses fail and how you can turn the situation in your favor.
Lackluster Marketing Efforts
One of the primary keys to success is having efficient marketing strategies. Lack thereof may cause your eCommerce business to fail. After all, if no one knows about you, how will you expect them to patronize you?
Get the word out about your business and create strategies that will attract customers to your online store. There are tools and resources you can get to help you do this. But remember that it’s not an overnight endeavor. You need to think of ways to get the attention of prospects continually.
Bad Design Choices
Your website is probably the first view of your brand that customers and prospects get of you. First impressions leave a lasting impact on how they see your business. A poorly designed site can turn off potential customers from getting to know your brand.
A HubSpot research shows us that 90% of visitors leave the site due to bad design. If you discover that the main reason your eCommerce business is failing because of bad design choices, it’s time to make the change. An on-demand graphic design service such as Penji can help you with this. Their unlimited designs at fixed monthly rates leave you no excuse to get that fantastic website design.
Your Website Isn’t Ranking in Search Engines
Former Walmart CEO Joel Anderson is quoted as saying, “You can’t just open a website and expect people to flood in. If you really want to succeed, you have to create traffic.” And that’s what having the best SEO (Search Engine Optimization) practices is precisely for.
Using SEO is like placing your eCommerce store right in front of your exact audience. Your content has to have relevant keywords, image alt tags, and many other white hat practices. You can get someone to make your site SEO friendly or brush up on having your system optimized.
Selling the Wrong Products
When your products fail, so does your eCommerce store. It may seem obvious, but many eCommerce businesses close shop because of this. When no one wants the product or service you’re selling, chances are, your business is deemed to go down.
From the get-go, you should ensure that what you sell is what people want and need. Thorough market research is a must in this case. A brand reinvention or a change in your unique selling proposition may be in order.
Issues with Pricing and Costing
With so much competition there is whatever your niche is, you need to spend a significant time managing your pricing. You may have the best prices, but if the shipping fees exceed the product costs, you stand less with selling an item.
Additionally, make sure that your advertisements are aligned with the actual price of your wares. Misleading your customers can cause them to hate you forever and subject your brand to negative feedback. Pricing and costing also need strategizing. Make sure you’re offering competitive prices that your customers will love.
Poor Content
Quality content can help your website rank on top of the search engines. It can also lure potential customers to your eCommerce website. Why waste a good product or service with poorly written content? It is sure to devalue your website as well as your reputation, and of course, your revenues.
If you can’t or don’t have the time to write compelling content, get the services of professional copywriters. Also in the same vein, your product images should be clear and crisp. Get the assistance of a professional photographer if you must. Always make sure that your photos are good representations of your items.
Ignoring the Importance of Mobile Design
Statista tells us that in the third quarter of 2020, mobile devices generated 50.81% of global website traffic. That means more than half of us are on mobile. If your eCommerce store design looks good on a laptop, make sure that it translates well on mobile devices.
A responsively designed eCommerce store allows easy and convenient shopping for your customers. Any business owner worth their salt will tell you that a good customer experience is at the top of their priorities. Make sure that you do as well with a mobile app design that makes shopping a joy.
Too Stiff the Competition
There is money in selling online. So it’s no surprise that many people flock to it instead of opening a brick-and-mortar store. It’s more convenient and reaches a broader market. Expect competition to be fierce but make sure that you don’t get outcompeted.
Get a website that’s eye-catching and easy to use. Make your processes simple and straightforward. Add as many call-to-action buttons as needed. Customers hate complicated checkout processes as well as inconvenient return policies. Always prioritize customer convenience to make them come back again.
Poor Customer Service
Online selling guarantees queries from customers, whether new or repeat. Always be ready to answer them and provide customer service. However, providing support isn’t enough. You have to give them excellent customer service.
An American Express study shows that most Americans have decided not to make a purchase because of a poor customer service experience. Even if you have the best products and prices, poor customer service can bring your eCommerce business down.
