Ingredients for e-commerce failure
Failing new ventures are not a new thing in e-commerce. There are many reasons why e-commerce businesses fail. Actually, a majority of e-commerce businesses fail within the first year. In a period of 3 years, a handful of e-commerce businesses will be left running. There are many causes of this some of them are very common in other business sectors. The main cause of failure amongst e-commerce businesses has been commonly noted to be competition, poor market research, and poor marketing tactics.
Ingredients for e-commerce failure: Competition
Competition is one of the leading causes of e-commerce failure. If you want to prevent your business from failing due to stiff competition I would suggest that you choose a niche that does not have a lot of businesses in it. Selling an iPhone that you bought on iStore is a good recipe for failure in e-commerce. This is mainly due to the fact that you will be already competing with your supplier. Most e-commerce businesses makes the big mistake of competing with their supplier. What you can do to avoid this mistake is to look for a product in a unique niche that is not already flooded.
Ingredient for e-commerce failure: Poor marketing techniques
Poor marketing techniques are another big reason why e-commerce businesses fail all the time. Some e-commerce business owners believe that if they are selling an amazing product then they will probably be successful and rack up a lot of profits. They are disappointed when they learn that their product is not making a sale online. Having a good product is a good thing but you need to know how to also sell the product. You will also need to be a good marketer in order to be successful in e-commerce.