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Top 10 Reasons Why eCommerce Startups Fail

It’s very important for these startups to figure out why eCommerce business failed. Here, we’ve put a list of some of the main reasons.

The eCommerce business is growing very quickly. In the last few years, many new companies have started up in this field and become leaders. But there are also a lot of startups that got started but didn’t make it very far.

1. Poor online marketing strategic plans

One of the main reasons an ecommerce startup fails is because it can’t market itself online. Ecommerce startups need to have a clear plan for how they will market themselves.

Even if the online store is good, if nobody knows about it, it won’t make enough sales, which means it’s not getting the traction it needs. So, if you want to start your own ecommerce business, you need a strong marketing plan.

2. Shortage of of online search visibility

The second reason why e-commerce startups fail is that they aren’t easy to find on search engines. Online search engine optimization is the best way to get the word out about your ecommerce store. If not enough people visit your e-commerce store, it won’t make as many sales as you want.

So, you need a great ecommerce design website that will help you get more people to your online store and make more sales.

3.Lack of market for products and services

Before you open your own ecommerce store, you should do some research on the market. There are a lot of e-commerce businesses that start up without doing any market research and then fail.

For your ecommerce startup, you can do market research by talking to other ecommerce business owners, looking at the competition, doing a thorough market analysis, asking customers what they want, and doing a thorough keyword analysis.

4. Not having enough money

If your e-commerce store isn’t making any sales and you need to run it for a longer time to make money, you will have to spend more money to keep the business going. One of the main reasons why many ecommerce startups fail is that they run out of money.

So, you need to have a clear idea of how much money you will need to start your ecommerce business and to keep it going for a long time.

5. Prices and costs problems

Many ecommerce startups fail because they don’t understand how to set prices for the products they’re selling on their online store. The main problem here is that they don’t have a clear plan for how much they need to charge for their products in order to make money.

Also, many new e-commerce businesses fail because they don’t accurately account for their costing structure, which is needed to figure out how much it will cost to run the business.

6. Got outcompeted by other rivals

In a time when there are more and more online stores every day. It’s getting harder and harder for an online shop to stay in business. You will have to compete with other online stores and other types of businesses if you want to do well.

So, what’s more important is how your e-commerce business is different from other e-commerce businesses. You can hire a company that makes ecommerce websites to help you figure out how to make your site stand out and get more sales.

7. Big stores control a big part of the market.

In many ecommerce businesses, competition is one of the most difficult things to deal with. That they have to deal with from big stores like Amazon, Walmart, eBay, Sears, and others.

They can be a big threat to a new e-commerce business because they have a large customer base with which you will have to compete.

8. Poor customer service

Many e-commerce businesses fail because they don’t have good customer service.

In a time when most people use the Internet to do research and shop, this is a big deal. Your customers will expect you to give them great customer service that puts them ahead of the competition.

9. Poor team

When it comes to making sales, a startup’s team is the most important thing. How well your business makes sales will depend on the team you have.

You should make sure that the people you hire will help you make sales. And in solving the many problems that might come up in the future.

10. Bad timing for a product

There is nothing worse than a business that puts out a product or service. Which is made for a certain market, but that market doesn’t really need it.

Doing research is the best way to avoid the problems this could cause. And research, both on your potential customers and on your competitors.

A good ecommerce business needs to sell high-quality products. That is reasonably priced, has great customer service, and a great team.


In this article, we’ve talked about the main reasons why eCommerce startups fail. So, do you want to start an online business? Make sure you go over these points before you start so you don’t have to deal with problems later. You can also improve your online store with the help of an ecommerce web design company.

Updated on October 11, 2022 in Ecommerce by Nishant Shrimali, Stumble Guys.

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