Ecommerce failures – Tips And Tricks To Help Ecommerce Companies Succeed



10 Apr, 2024


If you’re looking to build your ecommerce brand, the great news is that ecommerce is thriving with revenue in the eCommerce market is projected to reach US$3.64tn in 2023. Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 11.17%, resulting in a projected market volume of US$5.56tn by 2027.

However at the same time you should also be aware of the fact that 80-90% is the ecommerce failure rate. From managing multiple storefronts, to right audience mapping, strong local presence, effective social media marketing, there are plenty of factors that need to be contribute to the success or e commerce failures. This blog will help you understand the underlying facts behind failed e-commerce companies and how a ecommerce website development company can help them succeed.

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Top 10 Reasons Behind eCommerce failure

Ecommerce failure can be attributed to multiple factors, but the truth remains the same. Running an eCommerce website is complex. It requires meticulous planning in both the pre- and post-launch phases. Here is a list of reasons that often lead you to ecommerce failure.

top 10 reasons why e com fails

1. Lack Of Planning

Without proper planning and research, e-commerce businesses may not fully understand their target market, customer preferences, and competitive landscape. This can result in offering products or services that have no demand or face intense competition.

  • It is important for any business to have a sound understanding of its audience persona
  • What is the demographic they want to target and how is the user behavior
  • Understanding of market trends, seasonality, or profitability.
  • Research your competitors to determine what products they offer, their pricing strategies, and their strengths and weaknesses.
  • Define your unique selling proposition (USP) and what makes your e-commerce business stand out in the market.

Ecommerce business that fail to do the groundwork right end up spending big budgets and ultimately lead to losses. Professional brand marketing companies help ecommerce business set the right facts before any product or brand launch is being done.

2. Poor UI & UX Design

Website is the face of any ecommerce business. If your website fails to deliver the right user experience, its difficult to navigate through product pages, payment processes are too tedious consumer will simply move to another website and you will be facing challenges in terms of high cart abandonment rate. 

Poor UI & UX Design

As a growing number of consumers shop on mobile devices, having a user-friendly and mobile-responsive website is essential and could be a reason behind e commerce companies that failed. Professional website designing companies can help build the entire ecosystem for you that not juts provide the right user experience but acts as a leads funnel for your business.

3. Lack Of Customer Support

Proper customer service is a fantastic signal for all businesses. All you need to be equipped with is the zeal and services to provide the client. Moreover, if any clients have any queries, you need to reply to the one's queries as early as possible. Because client delight is one of the priorities of all businesses. 

Also, if you no longer offer customer service on time, the clients will forget about you in subsequent times. As properly, they'll no longer refer to this online web website to anyone. So, you need to offer customer support well and quickly. Otherwise, it'll negatively affect your enterprise and might lead to an ecommerce failure.

4. Insufficient Marketing Strategy

A powerful advertising and marketing plan is the most important thing for all businesses. You should gather marketplace information, after which you examine it. Without doing this, you can't apprehend the cutting-edge state of affairs of the marketplace. After that, you need to target your patron to grow the right advertising and marketing model. Moreover, the advertising and marketing plan may vary depending on the patron’s age, gender, and shopping tendency. 

Also, you need to use content material advertising and marketing for selling your products. As well as you need to encompass the choice of an overview to be able to be very beneficial for the consumer. Using this overview option, an individual can easily apprehend your product's excellence. So, without enough advertising and marketing plans, your startup can go through an ecommerce failure. 

features in SMM tools

5. Insufficient Search Engine Optimization

Optimizing search engine marketing centers can sell your eCommerce startups. For that motive, you must follow search engine marketing optimization strategies from the beginning of your enterprise. You should set up your critical keywords. 

SEO strategies for ecommerce business

Also, you could use name tags on your pages that apply to your promoting items. As a consequence, clients can get their preferred product easily. When clients look at any product through Google, then they may choose the topmost suggestion. So, you must offer a search engine marketing-optimized gadget. 

6. Lack Of Cash Flow

For boosting any enterprise, coin waft is crucial . It approaches the overall influx and outflow of cash in an enterprise. Moreover, for working with any new eCommerce startup, you ought to have sufficient coins waft. According to your enterprise plan, you need to determine how plenty cash will spend on your enterprise. 

On the other hand, if you spend a massive sum of money on your inventory, your advertising and marketing region will decline. As a consequence, your income will go down, and the enterprise may close down. So, you need to ensure certain high-quality coins waft off the enterprise, enabling you to generate earnings and boom any enterprise.

7. Faulty Inventory Management

Inventory management and its control are primarily based on ecommerce website development. If you no longer manipulate the inventory machine well, then you'll face a dearth of products or, even worse, ecommerce failure. Moreover, when you begin a brand new eCommerce enterprise, in case your stock carries an excessive amount of product, then it'll create a horrific effect of failed ecommerce companies at the drift of your enterprise. 

Also, if your inventory holds merchandise, then you'll cope with product scarcity problems. Consequently, clients will no longer locate their favored merchandise, and they might even experience disappointment. So, depending on your enterprise model, you must prepare your inventory management system. Otherwise, your ecommerce failure will drag your business down as well.

8. Poor Image Quality

When any patron comes to your website, then they may see the product pix for buying products. If the excellence of your product pix is low, then it's going to create a poor influence on the clients. Some clients dislike analyzing the product description. Moreover, they can apprehend your product excellently via means of searching on the picture. So, you need to make certain first-class excellent pictures on your webpage. Otherwise, you'll lose numerous clients, and your ecommerce startups will fail.  

9. High Shipping Cost

High transport fee is one of the critical factors any ecommerce startup needs to keep in mind. As a brand-new enterprise holder, paying the full-size transport fee is a little tricky at times. When the transport fee is more than the rate of products, then you definitely can't cope with your enterprise demand. Moreover, it's going to carry the dire state of affairs of your enterprise. So, you must no longer have invested extra cash on this part in your enterprise’s success.  

How Can An ECommerce Site Still Succeed?

Now that we know the reasons that can lead to your ecommerce failure let us find out in detail about the best ways to make your ecommerce website a success. Ecommerce marketing strategies aligned with the below-mentioned parts will eventually make your business a success! Leading your eCommerce website to success involves a combination of strategic planning, effective execution, and continuous adaptation. Here are seven steps to help you achieve that success:

Market Research and Niche Selection:

  • Begin by conducting thorough market research to identify potential niches or products that have demand but are not oversaturated.
  • Analyze your competitors to understand their strengths and weaknesses, pricing strategies, and target audience.

Business Plan and Strategy:

  • Develop a comprehensive business plan outlining your goals, target market, revenue projections, and marketing strategies.
  • Define your unique selling proposition (USP) that sets you apart from competitors.

Platform Selection and Website Development:

  • Choose the right eCommerce platform that aligns with your business needs (e.g., Shopify, WooCommerce, Magento).
  • Invest in professional website design and user experience (UX) to create an attractive and user-friendly online store.

Product Selection and Inventory Management:

  • Carefully curate your product catalog, focusing on high-quality items that appeal to your target audience.
  • Implement effective inventory management to ensure products are in stock and readily available to fulfill orders.

Effective SEO and Content Marketing:

  • Optimize your website for search engines (SEO) to improve visibility in search results.
  • Create valuable and informative content, such as blog posts, product descriptions, and guides, to engage and educate your audience.

Social Media and Online Advertising:

  • Leverage social media platforms to build your brand presence, engage with customers, and drive traffic to your website.
  • Invest in online advertising campaigns, such as Google Ads, Facebook Ads, or influencer marketing, to reach a wider audience.

Analytics and Continuous Improvement:

  • Implement analytics tools (e.g., Google Analytics) to track website traffic, user behavior, and sales data.
  • Regularly analyze these metrics to identify areas for improvement and adjust your strategies accordingly.
  • Focus on customer feedback and reviews to enhance customer satisfaction and build trust. Remember that eCommerce success often takes time and persistence. Continuously adapt and refine your strategies based on market trends and customer feedback. Building a strong online presence and reputation requires consistent effort and dedication.

1. Don’t Rush The Release Of The Website

One of the most significant errors with ecommerce failures is forcing or speeding the release of an internet website. You simply get one shot at launching your internet site, and you can not mess this up. While it’s okay to keep a "Coming Soon" page, you must keep away from the website launch till you've got a few sizable floor work with search engine optimization, content material marketing, social media, paid advertising, etc.

2. Put The Focus Point On The User

It's no mystery that the largest shortcoming of ecommerce organizations is the lack of ability to permit their clients to touch, feel, smell, and see merchandise earlier than creating a decision. While there is no answer for fixing this problem, you may make amends for this deficiency in different business regions. Some of the high-quality recommendations consist of supplying reasonable pricing, giving unfastened delivery, and making the checkout process clean with simplified purchasing carts.

3. Test Everything In Detail

Before you release any ecommerce business, you must spend money on trying out analytics and figuring out how ecommerce sites can succeed. Think just like the purchaser and determine what is working and what is not. Here you’ll have to take a look at several high-quality A/B trying out tools.

4. Stay On The Pinnacle Of Search Engine Optimization

As the ecommerce financial system goes through fast growth, increasingly more organizations may be getting into this as an increasing number of crowded spaces. Similarly, it'll be extra crucial than ever to live at the pinnacle of search engine optimization, a good way to stand proud of the competition. Connecting with professional search engine optimization will assist you in living in the long run.


1. Why Do E-commerce Businesses Fail? 

Ecommerce failures can occur due to multiple reasons. The most common cause of e-commerce business failures is poor product content, not having a clear return policy, poor money management, and not having a clear enough marketing strategy.

2. Why is my ecommerce site not selling?

If your e-commerce site is not selling, there could be various reasons behind it. It's essential to evaluate factors like user experience, product presentation, trustworthiness, marketing, pricing, and customer service. A cumbersome or confusing website, subpar product information, lack of trust signals, poor marketing efforts, uncompetitive pricing, and inefficient customer service can all deter potential customers. Identifying the specific issues and making necessary improvements in these areas can help boost your e-commerce site's sales and overall performance. Remember that e-commerce success often requires continuous optimization and adaptation to changing market conditions.

3. What is an example of a failed e-business?

To briefly name some of the failed ecommerce companies, here are the same-,, and Value America. 

4. What are the 5 important requirements for e-commerce?

A few of the requirements mentioned here are Payment Systems, Mobile-Friendly Websites, Customizable Themes and Templates, Integration of Third-Party Apps, and Customer Support are a few points to keep into consideration for e-commerce management.

5. What is the biggest problem of eCommerce?

An ecommerce platform will face many issues. The most important ones that you need to cater to are building customer relationships, multi-channeling, and automation of competitor analysis to maintain competitive prices and increase customer loyalty.

6. What are the major ecommerce failures?

A system failure that disables the entire system or major part of the system, or an individual critical piece of equipment that prevents the proper operation of more than one system component.

To Sum It All Up!

You probably don’t need to explore acquisition, retention, and profitability simultaneously with your ecommerce enterprise. Your focus will depend on the stage of your ecommerce business development. And for that, you may require an Ecommerce marketing guide as well. However, looking after any reason that can lead to ecommerce failure is the first step to success.

If you’re just starting, a good ecommerce development company can help you with a successful journey. At JanBask, we try to handle the ecommerce development services to maintain ecommerce success. Moreover, once you start getting more visitors and sales, you can start working on customer retention on your ecommerce platform.

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Paul Wilson

Getting to know ecommerce failures in detail has helped me with deciding what are the exact factors I need to work on.


Omar Moore

The tips for overcoming ecommerce failures have been mentioned here in detail


Joaquin Foster

The failures discussed in this blog post provide a dose of reality in the eCommerce world.


Zane Brown

Your post provides a much-needed reality check for those entering the eCommerce arena. Learning from the missteps of others can save a lot of time and resources. Thanks for providing a thoughtful analysis of eCommerce failures.

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