E-commerce stores bring enormous opportunities to generate massive revenues. With a sustained customer base and scope, this business has proven to be lucrative. However, their are certain pitfalls accompanied with it, which makes it extravagant to few determined individuals.
As many eCommerce businesses fail in their first attempts, making it more challenging for merchants to outperform. The lack of business plan, knowledge and expertise leads to an ultimate downfall. Many online businesses manage to get on the track with stable payoffs, yet there are uncertainties attached with the forthcoming buyer preferences.
Why e-commerce businesses fail is hard to determine, but there are certain factors that take part in making it less productive.
As a large number of the audience access the eCommerce stores through search engines, it became crucial to rank them higher in SERPs. An eCommerce store ranked lower in search results will have less chances of getting noticed by the potential audience and the competitors will get leverage by taking over the top positions.
The lack of patience and inconsistency drive many online businesses to subsequent misery. The ratio of failed eCommerce businesses to the successful ones is at declining levels, as 8 out of 10 online stores get abandoned within 24 months of their early growing stages.
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Instead of waiting to be found by the audience, make efforts to spread brand awareness through multiple social media channels and forums. The more your online business gets recognition, the more chances of growth there will be.
Higher shipping rates
Sometimes, merchants tend to charge higher shipping rates to their product buyers, this leads to decline interests and conversions.
As a startup, you may consider offering free shipping to your early customers. This can extensively increase your customer base. As 23% shoppers are most happy to pay nothing more than the price of product they are buying.
Further factors and reasons as ‘why eCommerce businesses fails’ are highlighted in the info-graphic below, which is compiled and designed by Team FME extensions. Have a look at it and discover more.