Reasons why an E-Commerce Website Fails – A Reality Checker

Starting off an e-commerce website relatively looks easy and not much expensive. People who have some products to sell and have enough capital to invest and make a website, surely try to come to this business. Many entrepreneurs take an initiative each year and there are many new online selling sites that are developed the same year or a few months back. But there lies a tragedy, where these entrepreneurs underestimate the difficulties, risks and potential hurdles of e-commerce businesses and face severe loss of their money and capital. To your great surprise, only 20% of e-commerce businesses succeed every year, whereas 80% of the businesses gets stuck and fails miserably within 18 months of their inception.

Entrepreneurs make a website and then believes all is done. They think that traffic will come on its own, but is it even practical to think? According to Joel Anderson, CEO of Walmart, “It is impossible to simply open a website and start expecting that people will flood in automatically. If you are actually interested in the success that you need to create traffic for your site.” But from this, many understand something else and starts to invest in the paid advertisement for generating massive traffic to your site. What’s next? If your website does not have what a customer is looking for then, of course, they will leave immediately, resulting in a complete failure and more loss of money through paid campaigns.

There are some common factors that we have evaluated that results in the failure of an e-commerce website. You can at least understand them and avoid to commit these mistakes.

Selling the Wrong Product

The biggest reason for a website failure can be selling that product that is neither in demand nor legal to be sold. This includes selling of liquor for instance which is not illegal actually but in many of the countries, purchase, and sales of liquor are forbidden, hence your target market has already got shrunk. Another thing can be selling and purchasing of weapons, which is, of course, illegal all over the world.

These are just examples, which indicates that either your market is too narrow or your target market doesn’t exist, there is no point of making a website then, it will definitely fail. It is a crucial decision for an entrepreneur to choose their products wisely which has the utmost humongous market so that they don’t fell short of people even thinking to purchase it. Target those products that have demand by the masses.

Too Narrow Market

Another problem that is evaluated is choosing a category that has limitation. You would be able to offer only limited products, will never be able to add value proposition and there would be no uniqueness is your offering. An example can be having a website that offers premium quality jeans pants. Now what? Would you be selling jeans pants only throughout the year? What would be your USP? How you are different from your competitors and most importantly what other options you offer? This makes your site too narrow and ultimately the site will doom. Your site actually ran out of unique ideas and creative deals so how can you attract your customers? This is why it is important to offer those products where you can add variety, offer innovative services, helping your site run a long way.

Extremely Expensive Pricing Strategy

Analyzing your competitors is the first rule of the e-commerce industry. Before you quote any price on your website, analyze what price your business rival is quoting and how he is justifying the price he is offering. Both are harmful, having a perfect and well-designed website with extremely high prices can never help you earn your profit, similarly, a mediocre design website with too low prices will never attract customers for you. Try to make and then maintain a balance. Make a proper website that is user-friendly and offers prices that are market competitive and justify your prices. For example, joggers and sports shoes offered by Nike are relatively expensive as compared to their direct rival, Adidas, but Nike justifies their prices by assuring guaranteed quality to their products.

Never ever underestimate the importance of pricing in this modish era where the market is too saturated. You need to stand out in competition with price justifications. Don’t think if your site is perfect and you offer exceptionally low prices, this will also make your customer skeptical about the quality of the product immediately. You see, play safe to remain safe.

Google Ranking not completed for the Website

It is researched that nearly 36% of customers start their product search from Amazon, whereas nearly 35% of customers have the Google search engine as their first priority. This clearly indicates the importance of ranking your site on Google, which majority of the site owners ignore. With proper search engine optimization (SEO), you can easily move your website to the top three positions by using specific keywords. It is studied that more than 60% of users visit the top three web links for their product search needs. Therefore it is crucial for your site to be ranked properly on Google, make it SEO friendly and utilize the Google indexing tool to get your site on top search positions.

Online Store Having a Plain Design

The look and layout of your website are one of the most crucial factors that make your site a success and absence of brilliance lead to destruction. You yourself must have come across such a website at least once in your life where as soon as the site loads you either instantly closes the browser or hit the back arrow right away. Why this behavior? Because of the layout of the site, as soon as you see a bizarre layout that is not even worth seeing another second, you feel better leaving the site quickly. A site that has a sketchy look will make you confused and frustrating at the same time.

There are numerous cases where the layout of the site influenced the visitors to predict the website as a scam and inappropriate to share personal and credit information. So, it is evident to make sure your e-commerce web design is made on a modish layout that should be appealing and compelling enough to grab the attention of your visitors.

Lack of CTA Buttons & Forms

What is the main motive of your e-commerce site? To get leads and make sales right? So when a customer is adding different items to his cart, make sure that every button is properly visible and must be interactive so that it cannot be ignored at all. It is important to add different call-to-action forms to your site to capture every possible lead, which is clearly visible and unique. But don’t overflow the CTA forms. It is a common mistake that entrepreneurs ask for CTA form addition on every single page on at least three different places. Seriously, by using three forms on a single page will definitely frustrate your customer.

Lack of Eminent Content

Content is what makes your site unique and attention-grabbing. After a fascinating design of the site, make sure to add compelling content that has industry-specific keywords, which can help you in SEO later on. Don’t write heavy jargons as visitors are not aware of the meaning of those nor write in complete laymen English that the customer doesn’t feel excited about your offerings. Your content must contain reasons why to purchase this product, what exceptional benefits it has and why to choose this product only from you.

For instance, if you write a 32” black television with speakers and good colors, is this content ever going to motivate a customer to purchase it? What about you write, a 32” flat screen television ensuring enchanting view with appealing vivid colors. Its powerful speakers will make an ambiance of a theater right at your home, so make sure to enjoy your movies with crisp and clear voice quality. We are offering a high-quality stretchable cover for your television to protect the smooth glossy black surface from the dust. So, did you see the difference?

Extremely High Shipping Cost

In recent research, it is found out that if 1000 people are adding products to the cart, nearly 660 people will abandon it. The reason is simple, high and unbearable shipping costs! This the real struggle all the online store goes through. In a quick survey, nearly 28% of people said they abandon a shopping cart due to excessive shipping cost. Paying heavy shipping cost is totally frustrating for the customers.

We know avoiding shipping cost is not easy for you as you will of course not give the cost from your own pocket, but make sure the price is not too high. Think it yourself, if the price of the product is $15 and the shipment cost is $25, would there be any customer who would ever purchase that product? Though FREE shipping is the most favorable phenomenon if that is not possible that at least reduce the shipping cost to not more than $7.

No Promotional Offers or Discounts

Promotional offers and bundle deals motivate a customer to shop from your site. In a recent survey, 8% of people responded that they abandon a shopping cart as there were no discount or deal coupons. To ensure proper traffic routed to your e-commerce site, give promotional offers, discounts and give sale on leading products. This encourages a customer and he also helps in creating a buzz for your site. Make sure your offers are clearly visible and is placed in such a place that can be noticed instantly.

Product Photos of Low Quality

It is a universal truth that a picture speaks thousands of words itself, therefore when it comes to e-commerce product photography make sure to add quality images. What most of the e-commerce sites do is that they don’t add real pictures, instead get images from google. It is proved that most customers make their purchase decision after viewing images of the product, so if the images are not real then they will refrain from making purchases. Make sure your images are real and snapped with a high-resolution professional camera. To add more exotic experience, make it a 360o rotation image so that the customer can view every aspect of the image until satisfaction.

These are a few common reasons why an e-commerce website fails. Therefore it is recommended to go to a professional e-commerce website development company such as TransData, who have years of experience in designing and delivering phenomenal e-commerce sites. Specialized companies also provide consultancy services where they educate their clients that which trends are latest and by implementing which new technologies on their site they can prove themselves as a credible website. If you have an e-commerce web development idea then do not hesitate, TransData is there to help you out and guide you in a professional way, just send us an email at and get your dream website to turn into a reality with professional development services.