Why maximum eCommerce Startups Fail

So you’ve set up an e-commerce firm of your own in Los Angeles. Many factors are making you scared for your first time having an online store. We’re sorry to tell you this, but things will not always go your way. However, there is a technique to reduce the number of mistakes you make and avoid a failing e-commerce business.

Here’s a fascinating (but frightening) fact: according to recent studies by a website design agency Los Angeles, 90% of new businesses fail. eCommerce businesses have a similar problem, too. Approximately 80 percent to 90 percent fail, so the e-commerce success rate is less than 20 percent. A chill should run down your spine if you’re thinking about creating an internet company or if you’re currently running one.

But don’t be alarmed! While a successful company may teach you a lot, failure can teach you much more. We’ve researched and identified the top reasons e-commerce firms fail, so you don’t make the same errors and increase your company’s chances of being among the 10% that is successful.

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Reasons ecommerce Businesses Fail

1. Are you selling the wrong product?

When starting an E-commerce firm, the product is the most crucial consideration, and it’s one of the most common causes of startup failure. Think about it: who would want to buy something that’s a decade old or a decade ahead of its time? Choosing the incorrect product category puts you in a difficult starting position.

Instead, try these suggestions: buyers or potential customers should be enthusiastic about the thing you’re offering. Look for a product category that applies to both your custom and lookalike audiences.

What questions should you ask yourself?

  • What should I sell to satisfy the needs of my customers?
  • What can I do to improve my product?
  • How can I position my product in such a way that it offers value?

2. Are your product photos and description good enough?

An excellent product has been picked for online sales. The product is guaranteed to be a success as soon as people learn about its availability and impressive capabilities. You’ve completed your audience research and are ready to proceed. What if your e-commerce store’s product listing has a low-resolution, blurry picture and a poorly written description?

Use your product picture and description to check out what you’ve got to offer. Is this a picture shot using a cell phone from the year 2000? The description seems to have been written by a five-year-old, doesn’t it? Otherwise, you can never turn visitors into paying customers.

What you need to do: It’s important to remember that internet shoppers are drawn in by attractive images. After that, there will be well-organized, easy-to-understand material. Poor photography and sloppy writing are not acceptable.

  • Take high-quality product images that are free of glare or other imperfections (or get them done by a professional).
  • If you want to sell a product, make sure your description is concise and appealing to the target audience.
  • Instead of using fancy words, keep things simple.

3. Is your E-commerce store design lousy?

In the end, it’s all about making an impact visually. The visual appeal of your website is critical. 90 percent of the time, this is the most essential component in determining whether a project is a success. External look, images, and graphics aren’t the only considerations in website design.

In an E-commerce shop, website design is a much larger phrase. The term encompasses both the aesthetics and functionality of your website. Designed to be both visually appealing and simple to use, the interface is both visually appealing and easy to use.

As an example, here’s what you should do:

  • Hire a web design company Los Angeles to create an online shop that is user-friendly, true to your brand, and has an abundance of high-quality content.
  • Increase the legitimacy of your shop, make it easier for customers to communicate with you, and make it easier for them to find what they’re looking for.

4. Are you wasting your customer’s time?

Customers save a great deal of time when they purchase online. However, the ‘shopping from home comfort’ phenomenon has made people more aware of time waste. No one enjoys wasting time on a website filling out unneeded information and completing the essential paperwork. All of us want to get things done quickly and easily.

Many online companies cannot make the purchase and checkout procedure as easy as possible for their customers, and this is to no one’s benefit. Customers typically leave their shopping carts and go on to another site when faced with an extended checkout procedure.

What you should do instead is:

  • Stop your customers from abandoning their shopping carts by making the checkout procedure as simple as possible.
  • Please refrain from requesting information that isn’t essential.
  • Hire trust signals and work with established payment facilitators, since customers are usually wary about new businesses.

5. Do you have a clear policy?

Be wary of companies who don’t disclose their product policies in writing. As buyers, we are constantly on the lookout for policies that are easy to grasp. Make sure, as a merchant, that the information you provide is accurate and easy to learn.

There are many new e-commerce enterprises that don’t have any guidelines for product development, which leads to shoppers abandoning their carts and shopping elsewhere.

Here’s what you can do:

  • Make the policy readily accessible to customers by placing it next to each product’s details page on your online shop.
  • Once a customer has bought from you, send them a copy of your policy.
  • With a lawsuit, the information in your insurance should serve as a defense.

6. Are you making the right investment?

Of course, there’s a price to pay… When discussing internet companies, it’s impossible to ignore the need for capital. To be successful in this company, you need a sufficient amount of capital, regardless of the commodity you are selling. Your business will cease to exist if you don’t.

For e-commerce, many companies cannot make the correct investment. Either they overpay on areas of their company that aren’t vital, or they overlook other facets of marketing.

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Here is what you should do:

  • Keep track of your expenditures by creating a different budget sheet for each element of your business, such as advertising, marketing, and inventory management.
  • Before making a large purchase, it’s a good idea to do some market research on a small sample of inventory to see how popular the product is.


Don’t become another failing entrepreneur. Research, evaluate, and get insight by asking yourself practical questions. Many new business failures may be traced back to the same faults. A great deal of flux occurs in the world of e-commerce businesses and the fashions that accompany them. Always be on the lookout for new things to learn and methods to develop your own skills and abilities, and don’t forget to hire a web design agency Los Angeles to help.

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