Starting an eCommerce business from scratch is not anymore a complicated thing. Anyone can build an eCommerce platform today and start selling. However, launching an ecommerce platform will not fetch immediate success. There are a few things that business owners must know before launching the ecommerce platform.
Many business owners or entrepreneurs make mistakes in the beginning at the time of launching an ecommerce platform. The errors, in the beginning, will prove to be costly later. According to a few industry surveys, the failure rate in ecommerce stands at 90% after four months of the business commencement. The risk of failure decreases with time, though risk remains high for around one year.
So, why is the failure rate in ecommerce so high? There are many reasons behind the high failure rate. Knowing a few things can help business owners to reduce the risk of failure in the ecommerce industry. Find some crucial tips in the following section in this regard.
1. Market Research
The most important thing for an ecommerce business is market research before launching the website. An ecommerce website should conduct market research on three major things, and they are:
- The Demand for the Products: Do the products featured on your ecommerce website have market demand? Are the products trending among the buyers? Finding the answers to these questions is important. Moreover, it is important to know the potential buyers of your products.
- Competition: Before launching an ecommerce web platform, you should conduct market research on the competitors. Are there too many rivals? Keep in mind that more competition means a higher chance of failure.
- Product Pricing: Setting the right price for the products is crucial for all ecommerce stores. Today, people want cheaper products, and competition between the ecommerce platforms allows the buyers to find more affordable products. So, you need to perform market research before setting the prices for the products. Keep in mind that 29% of ecommerce businesses fail due to product pricing issues.
2. Ecommerce Website Design
The next important thing is the eCommerce web design. A visually attractive website draws the attention of the buyers easily. For a visually appealing website, choosing the right theme is crucial. Most content management systems (CMS) come with free and premium themes. While free themes are chosen by most entrepreneurs, choosing a premium theme is the smarter thing.
A premium theme will give your website a unique interface. While choosing the theme, you need to keep in mind that the theme goes well with your business niche. For website interface design and theme customization, it is wiser to get the assistance of a professional website designer. Here is a list of the website templates, check Shopify eCommerce theme, WordPress WooCommerce Themes to purchase web design templates.
3. Responsive Website Design
Good website design makes an ecommerce platform visually attractive to visitors. However, a visually attractive website can fail if it is not responsive. Today, more than 70% of ecommerce visitors come from smartphone devices. Thus, your website interface should be mobile-friendly. Responsive website design makes a website suitable for viewing from different screens. Both desktop and smartphone users will access the website without facing difficulties viewing the website through their devices.
4. Focus on the Website Content
Website content is the most important thing. An ecommerce platform has two types of content, and they are text and visual content. Visual content should be pleasing to the eyes, while text content must encourage the buyers to purchase the product. Details of the product should be provided properly. Good content also helps ecommerce platforms to get top page ranking in Google. Thus, you will get more traffic on your website.
5. Blueprint for Online Marketing
For an ecommerce business, online marketing is vital. Without online marketing, you cannot reach potential buyers. Businesses should focus on the following two types of marketing campaigns.
- Search Engine Optimization (SEO): SEO fetches organic traffic for a website through the search engine. More than 70% of visitors on an ecommerce platform come from search engines such as Google, Bing, etc.
- Social Media Marketing: Social media plays a big role in business marketing today. Your business can obtain a significant number of traffic through social media marketing. So, you need to create and maintain social media profiles for your business.
6. Launch the Platform with Discounts on Products
An ecommerce store should be launched with big discounts for the buyers. A big discount helps to create the immediate buzz for the ecommerce platforms. Typically ecommerce stores offer discounts through coupon codes, referral programs, etc.
7. Find Potential Investors
Around 32% of ecommerce platforms fail due to a lack of cash or capital. Starting an ecommerce store is cheaper than launching a physical store. But, you still need to make hefty expenses on business marketing, infrastructure building, etc. So, entrepreneurs should create a captivating presentation of their business models. If the presentation is attractive, you can get a few investors.
Success in the eCommerce industry does not happen overnight. Business owners must keep patience and invest time and effort to grow the business.