Ecommerce Startups Failure: Reasons Explained


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Are you willing to be a part of the eCommerce industry? Well then you better be aware of the perks and woes of digitalizing your business. The eCommerce industry is growing rapidly witnessing global retail sales of approximately 3.53 trillion US dollars. Moreover setting up an online business is relatively easy that too for a small amount of money. But with failure rate of 90%, creating a successful eCommerce company is more challenging than business owners could imagine.

But fear not! You are not going to be one of those failed eCommerce entrepreneurs. Our attempt of pinpointing the reasons behind the failure of eCommerce startups will help you get your business in that successful 10%. Check out the reasons:

1. Below Par Content
You have got a great product. Market research is also done. But poor content ruins all your effort. Silly grammatical errors and plagiarism can devalue your brand. Therefore, you need to focus on every detail of your product description for perfection and client retention. Good content can educate your audience, ensuring that they are making the right purchasing decisions.

Quality content can also increase traffic to your website and top the search engine results. Using bullet points as features of your product is a smart way of driving audience’s attention.

2. Unimpressive Logo
Many eCommerce entrepreneurs underestimate the importance of logo, when it is one of the major ways of brand identification. It is more than an image. Logo is a point of recognition for clients, and therefore needs attention. Creating a well-designed logo is the easiest yet effective way to convey to your potential customers that your business is trustworthy, professional and the products you offer are of optimum level. Moreover, graphical representation of your brand increase the count of visitors and double your sales, which are the more reasons for putting effort into creating an eye-catching logo right from the start.

The best part is that you don’t have to spend a single penny to design a professional looking logo of your niche. With a plethora of free logo creator like Designhill logo maker tool, you can get a logo of your desire in no time.

3. High Shipping Cost
A huge number of buyers restrict themselves from shopping online because of high shipping cost. It is totally understandable that budget restraints don’t allow eCommerce entrepreneurs provide free delivery on every product. But with a decent pricing policy they can save their business from losing potential customers.

4. Improper Return Policy
When selling products online, dealing with returns is unavoidable. Products can be returned for being damaged, wrong item, and when it looks different from online. Therefore, consumers consider the return policy before making the purchasing decision. Many eCommerce sellers tend to overlook their return policy and processes whereas it is a vital part of eCommerce strategy.

A concise, understandable and clear return policy give customers a sense of security, giving them the guarantee of getting the product changed or exchanged they have already purchased. Also, an easily accessible return policy help consumers go directly to the page and get rid of the hassles of the procedure of exchanging or changing the purchased product.

5. Lack of Customer Support
Customer satisfaction is one of the priorities of all businesses. Therefore, ignoring the queries of the consumers is a big NO. Besides, eCommerce entrepreneurs need to solve the queries in a jiffy. Failing to provide customer support on time can ruin their hard-earned reputation; make them lose loyal customers and new sales that often come from referrals.

6. Not Responsive UI
There are more than 3.7 billion mobile users in the world. Most people prefer browsing shopping websites from their mobile phones. It is more than a trend. Installing shopping apps on phones is a necessity nowadays. It enables easy navigation & flexible browsing. And this creates the need for developing a responsive eCommerce website. Responsive web design being mobile-friendly increases visibility on search engines and easily turns the visitors into customers.

7. Poor UI Design
Developing a responsive website when followed by attractive User Interface (UI) design can double your business profit. UI design emphasizes on the presentation of the app even when browsed from a mobile phone and therefore strengthens user’s interaction with the app. It ensures consistency of the mobile app with the website.

An UI designer focuses on the app’s graphic design and the presentation of the product on any screen considering the need of users. For example, when you are browsing through the category of tank tops design from your mobile phone, you might doubt the color authenticity and quality of the product. But good user interface clarifies your vision, gives you a clear view of your chosen tank top design, and puts at ease your purchasing decision.

When starting an online business you need to be conscious of these lacking issues that lead to the failure of thousands of online startups. So, without further delay, start working on these factors to run your eCommerce store successfully.

Alice Jackson
Alice Jackson is a blogger and Digital Marketing Consultant at a crowdsourcing company. She is a social media enthusiast, online market analyst, amateur designer and an avid author. She has written on several topics including social media marketing, content marketing, designing trends, startup strategies, and e-commerce. When not writing, she loves spending her time reading romantic novels.


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