The numbers around e-Commerce are growing. According to eMarketer report retail e-Commerce sales will skyrocket to $4.058 trillion in 2020.
For brick and mortar retailers; e-Commerce is not only an additional optional augmentation but it is a must have augmentation, essential for survival in the business.
Having understood this, we see a lot of businesses jumping into e-Commerce. In this article we shall look at 5 main reasons why e-Commerce businesses fail.
1. A Poorly Designed Website
Now a days a lot of website designing tools are available. Many of the aspiring entrepreneurs venture into website building using tools such as WordPress, Weebly, Wix etc. The website builders offer some standard templates and standard features required for running an e-Commerce business. But these standard templates don't offer personalised user experience. A website with a poor browsing experience, poor design and navigation will lead to increased bounce rates because people will immediately leave your site almost as soon as they arrive.
Above are few examples of poorly designed e-Commerce sites.
Some common mistakes of e-Commerce websites are,
Remember if the customers visiting the site are confused then they are not going to buy from you.
2. Low Web Traffic
Having a well designed website with great content doesn’t really matter if you have nobody visiting your site, does it?
Once you have your e-Commerce website up and running you need to take advantage of social media, emails, forums etc. to promote your website. Search Engine Optimisation, organic traffic and paid traffic are different ways to boost number of people visiting your website.
If you build a magnificent website but if nobody knows about it then it is still of no use. Your e-Commerce business will fail if you fail to generate enough web traffic to your e-Commerce website.
3. Security Issues on Website
As e-Commerce websites handle personal data such as name, address, credit card number, phone number etc. it is essential for e-Commerce websites to implement strong security standards. Remember trust is an important aspect in sales process. So if the customer visiting your site does feel secure then only he is going to buy from you.
Also remember losing customer data from your e-Commerce website will not only ruin the reputation of your business but also will land you in a soup of legal nightmares.
Failing to implement proper security standards on your e-Commerce website is a sure way to fail in an e-Commerce business.
4. Not Building Customer Loyalty
Getting new customers to visit your website and to buy from you takes a lot of efforts. There is always some customer acquisition cost involved. To increase profits it is essential for you to in increase a customer's lifetime value. Once you acquire customers it is essential to develop trust with your customers and to ensure that they continue to come back for more. 'Customer Loyalty' is something that you can’t simply buy with money, you have to provide a unique experience for your customers that they can’t resist coming back for more.
5. Not having Unique Selling Point
Most of the online merchants try to compete using price system. The price competition badly affects small e-Commerce businesses because large competitors are easily able to offer products for less price and free shipping, while you, on the other hand, might not be able to afford to offer products for the same price.
We can’t simply compete with large e-Commerce websites based on price, so unless we have a great strategy to differentiate ourselves from others, the e-Commerce store will not succeed.
It may seem like scary affair while doing e-Commerce business. But there are always great resources available. The activities such as Digital Marketing, Reputation Building, having great reviews on the internet, delivering easy communication options to customer, building customer loyalty and providing great service are now easy with a suit of services Edify Now has built. Talk to us today to have one stop e-Commerce solution designed and implemented for your business.
Pranav M. Jere
Founder and CEO