8 Reasons Why Your Online Store Business Fails – Want to start an online buying and selling or e-commerce business can be a business solution that requires little capital, is fast, and is relatively easy to run. But running this online buying and selling business also has a very high failure rate of up to 80 percent, creating a successful online business is more challenging than some other businesses.
Although every new business has its own unique side as it does online business e-commerce, but still the business has a risk of failure. By knowing these facts, here I will provide some of the reasons why business online store You failed. Hopefully the tips below can make those of you who are about to start an online business or who are running an online business can avoid the causes of failure and achieve success with your online store.
8 Causes of Online Shop Business Failure
Here are some things that can cause your online store business to fail. The important things below make sure you prepare properly so that your online store can achieve success.
1. Lack of Investment
Create an online shop and rental site hosting it may only cost a little money. But you also have to provide separate funds that are devoted to supporting the success of your online business.
Most beginner online business people only think that having a little capital for products and having an online store is enough to make them successful, but in fact you still need a lot of capital for marketing, add a more complete product or maybe capital to pay someone to help with operations. your online shop.
2. Unclear Finance
At its most basic level, cash flow is the movement of money in and out of a business. The new e-commerce business can get into trouble when they don’t have enough money to keep it operating. Suppose you invest all the money in stock and no money on marketing – so sales don’t go up and the business stagnates. Try to divide the funds into several parts so that everything runs smoothly, be it for product inventory, marketing and other operational costs.
3. Lack of stock
Inventory management can be one of the most significant problems a new online store business will face. As I already mentioned in the second point that buying too much inventory can cripple cash flow. And by buying too little inventory, you may end up losing sales or even disappointing customers.
In solving supply problems, you should have sufficient supplies and provide products that are ready for products that are likely to be bought a lot. In addition, you also have to work with suppliers of the products you sell, maybe you can sell first without buying from the supplier, and make payments when a sale is made.
4. Number of competitions
Internet makes it easy for everyone to create a business, even with a little knowledge can start this business. But because there are so many people who can start this business, of course there is a lot of competition.
If you want to get into the online buying and selling business, sell unique products and have little competition, find your own niche for your online store. For example, it can be very difficult for a new online shop trying to sell smartphones, which are already available in hundreds of well-known online shops such as lazada, bhinneka, blibli and many more.
5. Bad Web Site
An online shop site that wants to reap success must have a modern design side, must be safe, functional, have easy search features, adapt to mobile devices, and have very fast access.
There are already many excellent e-commerce platforms that you can use to build your online store, so there’s really no excuse for having a bad online shop site.
6. Unattractive Product Photos
Online shoppers can’t physically inspect the product you are selling, so they will need strong visual representations of the products to help buyers understand the product, so they feel like it, and then buy it. Thus, a bad product photo is one of the failures of online store sites. So, make sure you make the photos of every product you sell really look attractive and real.
7. Low Visitor Traffic
Website traffic or traffic is the flow of buyers into and out of your store. If you want to make sales, of course you need traffic.
A fast way to get traffic is to post AdWord pay-per-click advertising. But they can be very expensive, so make sure that you understand that before investing too much.
Another way that you can do this is by driving traffic through SEO optimization or content marketing, social media, videos, forums or also create a free online shop such as on olx, Bukalapak, Tokopedia and others to help the success of your online shop.
8. Lack of patience
E-commerce business takes a lot of time to grow. Too often new business people imagine that they will make a profit as soon as possible through an internet business. But that doesn’t usually happen. You as a new businessman should not be surprised if it takes several months to make a profit, even a small profit.
Above are 8 reasons and reasons why your online store business is failing, hopefully by reading this article you can get back to setting up your online store business and get back on your path of success. Hopefully this is useful 🙂