Why do most eCommerce companies fail?
We always tend to focus on how to be a successful entrepreneur or top success mantras or the stories of the most successful entrepreneurs. However, the problem is that we are not focusing on the bigger pie that is why most ecommerce companies fail? As per a broader industry estimate, about 90% of the startups fail or struggle to perform as expected within 1 year. Understanding why most startups fail could bring more insights and can help you to avoid the potential disaster.
Let’s look at the top reasons why an eCommerce startup fails.
- Running out of cash
- Poor online marketing
- Lacking a clear return policy
- Poor money management
- Not realizing the importance of mobile shoppers
- Confusing site navigation
- Displaying annoying popups
- Prompting for registration to access the website
- Not having dedicated customer service team
- Having poor team and lacking skillful resources
- Having incorrect pricing strategy
How to build a robust eCommerce marketing strategy?
1. Have a strong digital marketing team:
- Put together a strong team of specialists to put in place a strong online marketing plan and to implement the plan.
- Employ the right tools to automate the tasks and improve your team efficiency.
- Keep experimenting with different ideas untill you find out what’s best for you.
2. Focus on branding:
- Highlight your unique proposition.
- Get your social media strategy right.
- Get your entire team aware of and alligned to your brand’s message.
- Put in place a careful customer service strategy
3. Work on your product selection and pricing strategy:
- Do thorough market research to decide which products are in best demand
- Focus on product quality
- Plan your pricing strategy to beat the competition