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Reasons Why eCommerce Businesses Fail
Reasons Why eCommerce Businesses Fail

People start eCommerce businesses to expand their reach and increase their revenue.
Experts today are stating that eCommerce stores are bound to rise after the devastating COVID-19 pandemic. They are right about it.
People are heavily relying on eCommerce businesses for their daily needs. Still, only 1.94% of eCommerce website visitors convert into customers.
Why do 80% of entrepreneurs fail to convert their ideas into fully stacked eCommerce stores?
Well, we have researched and assembled eight reasons why such businesses fail. Our points will cover everything from security to design.
So, without further due, let’s get started:

 8 reasons behind eCommerce business failure
8 reasons behind eCommerce business failure

1. Not featuring relevant products

Most eCommerce stores that fail have everything from food items to toys featured on their website.
It makes such a store look like a random general store. Moreover, customers won’t feel that they are buying from an authorized seller.
As an eCommerce store owner, you must niche down on product categories. Instead of featuring all types of products, focus only on the ones that your customers want to see.
If people have to buy random stuff, they already have options like Amazon and Walmart, which have established themselves as trusted entities.

2. Not ranking in the top 10 results.

If you want to run a successful online store, you have to be in Google’s good books. This is because search rankings play a huge role in bringing traffic to your website.
Stores that rank in the top 10 results in the SERP have a good URL structure, schema markups, small but effective title tags, quality product descriptions, and relevant keywords in place to showcase themselves to search engines.
But, 80% of stores fail to incorporate these small things into their stores, so they never make it to the top 10.

3. Selling products that no one wants to buy.

It does not matter what you think of your eCommerce store; instead, your customer’s perception matters.
If you list products that are not in demand, but you like them, then probably you’ll be the only one buying them.
Always do your research before listing any product. See what reviews and ratings a particular product is getting on other sites, how many times people have purchased it, and it is valuable to them or not.
Thorough research will help you get more sales and generate revenue.

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4. Flawed website design

Customer experience is of paramount importance in the E-commerce industry. If you fail to give them a good experience, they are highly unlikely ever to come back.
Website design can make or break businesses. For example, designs incompatible with mobile devices are often rejected by search engines and customers.
Moreover, too many popups, warnings, acceptance requests, and ads also signal bad website design management.
As an eCommerce website owner, you must keep track of your popups and compatibility so that you can escape the tag of a badly designed eCommerce website.

5. Leaving security gaps

Many eCommerce owners think that people don’t care about security protocols like SSL certificates and firewalls. They couldn’t be farther from the truth.
Today’s customer is tech-savvy, well-informed and observant about the cyber security red flags before making any purchase decision with any eCommerce website, whether established or an amateur.
Search engines like the ever-mighty, omniscient, omnipresent Google also prefer sites that run over secure HTTPS protocol instead of those still operating over non-secure HTTP protocol. To call a spade a spade, HTTPS = HTTP + SSL.
Google’s new Page Algorithm Update has stated that only those websites with an SSL installed and HTTPS encryption will rank on Google.
SSL protects your customer’s online payment process, data, and communication through PKI or Public Key Infrastructure.
SSL encrypts the data transfer between you and your customer and passes it over a secure network where no hacker can see and intercept it. There are several SSL certificate providers available in the market, like CheapSSLShop who has a huge range of SSL brands like RapidSSL, GeoTrust, DigiCert. They provide cheap SSL certificates to their customers for securing their sites compared to others.

6. Not having a relevant call to action buttons.

Call to action buttons tells a user where to go and what to do next.
But most businesses take their significance lightly. Call to action buttons should represent what you want your customers to do.
Do you want them to read an article? Or add a product to their cart? Whatever it is, mention it clearly in the button text.
You don’t want your customers to be stuck in the middle of purchase without knowing where to go.

7. Absence of customer retention policy

It is harder to retain customers when they have many options available to buy from in today’s world.
Under such heavy competition, if you fail to impress customers and address their issues, you cannot retain them, which is why you must have an impactful customer retention policy in place.
You can make your customers come back to you by offering customized discounts to them and make them feel special with free giveaways.
Most eCommerce stores never do that, which is why they fail to impress and retain their customers.

8. Flawed customer service policy

Customer service is one of the most overlooked aspects of the business. Most businesses don’t even look back at how their company responds to after-sales services and customer queries.
Often such companies enter the blacklist of customers and tend to lose their customer base within no time.
As an online business owner, it is your responsibility to ensure that your customers get quick responses to their queries through chat support and calls.
After the service, you can also take customer responses and use them as testimonials to showcase your service quality.
So, always have a good customer service policy in place.

To Conclude

The global havoc wrecked by the COVID-19 pandemic has turned people’s buying behavior upside down.
Nowadays, people prefer online shopping over offline because it is more convenient and trustworthy.
Sites like Amazon and Walmart have taken the eCommerce industry to a whole new level, which introduced heavy competition in the industry.
Establishing an eCommerce store has been made easy by sites like Shopify but, gain a reputation and sustaining it for long is the tough part.
But, the 8 points mentioned above have made it all easy for you. If you integrate their solutions in your eCommerce store then, you can comprehensively beat your competition.
So, solute these mistakes and your eCommerce store will be on top of the food chain.

UP Team
Author

UpTeam is a group of prodigious technical bloggers, app specialists, market researchers, business analysts, and industry wizards who are aware of the precise and imperative ability to write accurate, precise, and up-to-date blogs/articles. We, as a team, strive to bring the most recent tech news for our users.

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