In this advancing world, with the rapid growth of technology, we have seen a wide variety of businesses trying to establish themselves online. Though all these online businesses have unique ideas and fulfill customer’s demands relatively cheaper and faster than physical businesses. We still have online businesses with huge bounce rates which are failing to capture the online markets. Survey shows an 80% failure of online business. Now, the question is with the ever growing e-commerce generation why are so many online businesses not doing well. Here, are a few common factors contributing to the failure of online business:
- No actual investment – You can start an e-commerce business with less investment but that does not mean that your initial capital is all that you need to invest in your business. Like every other physical business, you need to invest from time to time in your online business. Just taking your business online doesn’t guarantee that you’re catering to the needs of all the customers. Hence, once your business is online, keep upgrading and investing in your online business just the way you would do in your physical business.
- Lack of commitment – You talk about new ideas and how it’s different from other ecommerce portals. But how much time do you actually commit to your online business. How much time do you spend on improvising your business online? Online business also requires the same amount of commitment that a physical business needs.
- Not serving your customers – Your most unhappy customers are your greatest source of learning. Listen to what customers actually need though their online feedbacks and work to meet their demands. The ultimate reason customers shop online is because it’s catering to their needs efficiently as well as saving their time and costs. So, keeping in mind that the needs of customers can be fulfilled by physical businesses as well, you need to take extra efforts serve your customers.
- Business Plan – You may have a unique idea, which might cater the needs of million customers and establish itself in a very small time span. But you need a substantial plan behind that idea. Make a SWOT analysis of your business and then establish yourself online.
- Design of your online portal – If your website has many categories, you should take the time to consider the best order to have the most effective number of categories with the maximum relevancy. The customer should know exactly where to find their products or services they are looking for, because if your website is difficult to browse, you will trigger customers to leave. So, you can keep your portal user friendly to attract the layman, as the physical salesman does to sell his products.
- Shipping costs – In the eyes of the consumer, shipping costs are a hated and unwanted increase in price that decreases any savings they may make by purchasing products online. The fastest way to send away potential customers are these additional costs. You should make a strategy to keep your shipping costs low compared to your competitors.
- Pricing issues – Price has always played an important role to both the customers and the business. With online business flourishing in the market competitor analysis has been made easier, the prices and deals of brands competing with you not being more than a few clicks away. You have chances of customers buying the products from your competitor’s website because of low prices or faster shipping time. But at the same time you have a chance to analyze your competitors deals and make a better deal for your business.
So, if you’re that kind of person who is waiting for the right time to come for your business to succeed. You might have to wait for a long time. It’s like waiting for all the traffic lights to be green for five miles before starting the trip. But you don’t have to wait for so long, we have an offer for you. Want to know more? Visit us at Globbering. Globbering is a global innovation firm, providing E-Commerce services to the world. At Globbering, we connect. We connect you to information, to your audience, to clients, and to the world at large. We will help you set a business plan covering all the aspects of your failure and revive your online business because failure is simply the opportunity to begin again. Whether you have a product, a message or a talent, at Globbering we make sure it is out there for the entire globe to experience.