Statistical Analysis on Why Ecommerce Businesses Fail

Many startup enthusiasts often follow the footsteps of famous entrepreneurs, inspiring from how they started their ventures from scratch, endured the onset of crisis and finally triumphed into the billion-dollar juggernaut they are today. While it may be the case with few, it’s also a well-documented fact that 90% startups don’t even make it far from their infancy stage. E-commerce is no exception.

E-commerce yields the fastest growth opportunity than any other business activity. It allows investors to minimize business cost, streamline administrative operations, prevent the risk of legal complications and timely expand and diversify their businesses. However, e-commerce demands a fair share of effort to create a strong digital footprint for the brand. This is where most startups stumble and fail to effectively convert their marketing efforts into revenue. According to the latest research, the most common reason why e-commerce businesses fail is negligence in SEO. Since 35% of shoppers search for products on Google, a brand that does not show on the first 3-4 results becomes incapable of generating leads. Similarly, poorly developed websites with weak security measures are equally responsible as 84% of shoppers will not make a purchase if they are dealing with an unsecured website.

38% of shoppers also tend to abandon a website if they find the layout unattractive, making web design a deciding factor between success and failure of an e-commerce startup.

This infographic will share an in-depth analysis of why e-commerce startups fail.


Also read: Why your Ecommerce business needs to start as an affiliate site