Starting an eCommerce website business is a rewarding yet challenging venture. Ecommerce has been widely popular over the recent years as more consumers and businesses are turning to online shopping to purchase goods and services. Not only that, eCommerce allows businesses to sell their products online whether it’s towards customers and to other businesses as well. With the uptrends of eCommerce’s market value with more and more people using eCommerce as a gateway for convenience, starting an eCommerce business is definitely a great opportunity for entrepreneurs eyeing to start their own eCommerce business. But, starting an eCommerce business is a risky venture without a well planned business strategy. In this article, we will discuss 10 things that lead to eCommerce business failure so you can mitigate the risk of your eCommerce business venture.
- No Value Proposition
One of the reasons why some eCommerce businesses fail is because they don’t highlight their purpose or value to customers. Without a value proposition, your eCommerce website would just be another marketplace in the eyes of your customers. What you can do is to set what sets you apart from other eCommerce competitors. Your value to your customers is what sets them into choosing your eCommerce website. Think of a reason why customers should buy or sell into your website. Does your business cater to B2C (business to consumers) solutions? Does it cater to B2B (business to business) solutions? Highlight why customers should choose your marketplace and set your value into the industry.
- Inaccurate Pricing
Selling goods and products at inaccurate prices can be a factor why most eCommerce businesses fail. If you go over the suggested retail price (or SRP), most customers won’t buy from your website and would rather buy it for a cheaper price from your competitor. On the other hand, if you go below the suggested retail price without reason, it can stimulate skepticism and doubts. Most customers would look for the best prices and best deals when buying whether it’s at a physical store or an online store. Selling your products at a sale or at a discount can attract customers which can gain you long-term results.
- Offering the Wrong Products
No one is going to buy the products they don’t want. It would be difficult for your eCommerce store to drive sales if you’re offering the wrong products to your customers. To elaborate further, put yourself into your customer’s shoes and start wondering if the products you are selling are something you want to buy for yourself.
- Poor Shipping & Fulfillment
Slow shipping with high shipping fees is not enticing for an eCommerce store. Your items may be cheap and customers might get the best deals out of your store, but if the shipping fee costs more than the product itself, it can be off-putting for customers. Not to mention, the time it takes to deliver your products to customers is also another factor to consider that can be unpleasant to your buyers.
- Limited Payment Options
Online shoppers expect online payment methods including GCash, Maya, Debit/credit card payments, PayPal, and other digital wallets that they can use to pay for orders online. Some may prefer cash on delivery or through bank deposit or check. Without having multiple payment options can cost you potential customers that prefer to pay in a method that may not be available to your store.
- Poor Website User Experience (UX)
When customers are buying for convenience, they want it quick and easy. A study by Marketing Science Institute states that “The checkout process and its related touch points are especially critical in shaping customer experience, which would lead to purchases at an online store.” Having an eCommerce store designed user-friendly, with less click processes can encourage customers to buy more items which can lead to sales. But if an eCommerce website is hard to navigate and takes a long time before your customer can make a purchase, it can be a factor to why an eCommerce business fails.
- Ineffective Website Design
The aesthetics of websites, especially in eCommerce, has become more relevant in today’s modern technology. Don’t get me wrong, your website design doesn’t primarily indicate whether your eCommerce website will be successful or not, but having a professional looking website design can provide your business and brand with credibility. As long as your website is fully functional and doesn’t look like a sketchy website that scams customers for their credit card information then you’re good to go.
- No Marketing Strategy
If your eCommerce website doesn’t rank anywhere in the 10 blue links for any keyword in Google or doesn’t have any social media presence on any social media platform, then it is one of the reasons why an eCommerce business fails. Starting an eCommerce website or store from scratch is tedious and challenging. You will need to get your business out there. If no one sees your brand or website, chances are, there will be no website traffic which means no sales. Creating a marketing strategy starting with search engine optimization, Facebook & Google Ads, social media posts can go a long way for potential customers to see your brands, products, or services, which eventually can drive good sales through effective marketing.
- Lack of Capital Funding or Investors
Starting your own eCommerce business requires a great amount of financial capital. Working with IT engineers, Marketing, and other related business operations would require your business to invest in these areas. Without having the support of financial management or investors, it would be difficult for your eCommerce business to succeed. In order to catch the attention of investors to invest in your eCommerce business, we need to go back to your business value proposition. Most investors would invest their money and time into something that has business value. And selling a solid value proposition to investors can lead into funding and supporting your business.
- No Social Proof or Reviews on the Products
Social proof is one of the strongest ways to drive sales for your eCommerce business. The first thing most customers do when they look for products online is the reviews left by other customers to see how reliable and trustworthy the products are. Even though your business means business, having no reviews on your products can incite skepticism and doubts for your business. Having your past customers or recurring customers leave a review about your business is free marketing. This builds trust and confidence for your customers and also influences new customers to purchase your products. Having your past customers or recurring customers leave a review about your business is free marketing.
Now that you’ve learned 10 things that lead to eCommerce business failure, you are less likely to commit them. But if you really want to stay away from the things that lead to eCommerce business failure, then Shoppable Business can do the heavy lifting for you.
Shoppable Business: A Better Way to Set up Shop Online
Setting up an online business or an eCommerce website can be quite intimidating and challenging, but it doesn’t have to be that way. If you’re a business looking to set up shop online, then a B2B eCommerce Marketplace In the Philippines, Shoppable Business can help you sell your products online without going through the hassle and risk of setting up your own eCommerce website. Shoppable Business can take care of your SEO and digital marketing through its user-friendly marketplace website. Another thing, Shoppable Business can take care of your inventory, deliveries, and logistics through Fulfillment by Shoppable ensuring your deliveries always make it on time or even earlier!
Here at Shoppable Business, we support buyers and sellers that are eyeing to tap into the B2B market with vetted brands, suppliers that guarantee 100% authentic branded products every time you buy. You can also sell or buy products for wholesale which enables you to do business with fellow businesses, allowing you to build the connection you need to grow your business further.
Why Become a Seller in Shoppable Business
- Access to a large customer base – giving businesses an opportunity to expand their reach and increase sales
- Increased visibility and brand awareness – a platform for businesses to showcase their products/services and potentially attract new customers
- BNPL (Buy now, Pay later) – grow your ASP; buyers/companies can apply for loans up to ₱150,000.00
Why Become a Buyer in Shoppable Business
- Wide product selection from different categories – a one-stop-shop solution for businesses’ procurement needs
- Save company time and money – Customized orders, RFQ for specific quantities, bundles, configuration, Track their orders, view purchase history
- Need it now but limited budget – Buy Now Pay Later – apply and get up to ₱150,000.00
Join Shoppable Business as a buyer or a seller today and we’ll help your business tap into the eCommerce market.
