An estimate of around 12 to 24-million eCommerce startups has been formed throughout the globe. Moreover, the numbers are increasing every day as this niche is becoming gigantic every passing day. eCommerce has given the entrepreneurs come online and create an identity in the industry.
Starting a business has become really simple that anyone can make their website and start a business. But according to Forbes, Huff Post and other reliable sources, 90 per cent of the startups fail within a year.
While online startups have gained a lot of demand, it is not likely that each one of them will survive. But indeed there is a lot of competition with some giant such as Amazon.
However, this does not state that you cannot compete. eCommerce is not some trend that will end shortly; it is here to stay. People have never felt this convenient while shopping.
Moreover, the eCommerce industry is growing by 23 per cent each year. 95 per cent of all purchases would be done online by the year 2040. Additionally, you would be surprised to know that nearly 93.5 per cent of internet products have brought their products online.
So, it the future of the industry is this bright, then there have to be reasons why eCommerce startups fail!
Top three reasons why eCommerce startups fail?
While the question is easy, the answer to this is quite complex. Besides, there is no one reason for this failure. So, here we are with three reasons to why eCommerce startups fail. This will not only provide you with answers but will guide you with your startups.
Neglecting SEO
Search Engine Optimization acts as a key element in improving the traffic of websites from search engines. It enables the website to appear in top organic results whenever google fetches results based on searched keywords. Even if your products and services match the search, Google won’t appear in the top results if SEO is poor.
eCommerce startups fail because they cannot maintain SEO and hence are not able to fetch the audience.
Bad customer assistance.
Many websites fail to meet the service quality in terms of response, problem-solving, and overall customer experience. Not being able to solve queries leads to losing reputation and loyalty of customers. Thus leading to failure of the startup.
Meeting the needs of your customers leads you a long way. A way to keep flourishing is to keep your customers happy.
Poor management of resources and funds.
One of the main reasons why eCommerce startups fail is that they cannot maintain economic resources and funds. Startups unable to manage resources properly are likely to experience many problems that affect their business and long-term strategies.