Back in 2023, online shopping accounted for 19.4 percent of total retail sales across the world. A staggering number, right? Yet, despite so many people shopping online, 80 to 90 percent of e-commerce businesses fail all the time. That means the e-commerce success rate is less than 20 percent.
Therefore, starting an e-commerce store can feel like stepping onto a thrill ride. You’ve got your products, your brand name, and your vision set. All you need to do now is reach customers and make sales.
However, the reality that many e-commerce ventures struggle to survive starts setting in. What do you do then? Decide not to go ahead with your e-commerce business?
While some reasons for failure are beyond control, there are many preventable mistakes. Here’s how you can avoid those pitfalls and steer your new e-commerce business toward success.
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Focus on Avoiding Common SEO Mistakes
If you want people to find your store online, search engine optimization (SEO) is essential. But a lot of new e-commerce businesses make rookie SEO mistakes that cost them their online visibility. If you don’t address these issues, search engines won’t find or favor your site, leaving you invisible to potential customers.
Your SEO strategy should go beyond just using keywords. Pay attention to technical SEO aspects, such as page load speed, mobile-friendliness, and site security. A sluggish site or poor mobile experience frustrates visitors, and search engines will rank you lower because of it.
When these technical aspects are solid, you set yourself up for success and improve your chances of ranking high on search engines.
Build a Memorable Brand Story
As Elite SEO Consulting points out, an effective e-commerce SEO strategy will offer you ongoing returns. Know this: you won’t get the same kind of returns in any other marketing solution. To ensure maximum effectiveness though, you must stand out, and for that, you need more than just great products – you need a story.
Your story must resonate with the people, a.k.a your target audience. Think of your favorite brands; they’re likely memorable because they make you feel something. A well-crafted brand story helps customers connect with you on an emotional level.
When customers connect with your story, they’re more likely to return and recommend you.
Make sure your brand story is authentic. People can tell when something feels forced or phony, and that’s a huge turnoff. Show your values, share your inspiration, and let your personality come through.
Creating a brand story that feels real can be the key to building a loyal customer base.
Offer Unbeatable Customer Service
Here’s a quick reality check: 86 percent of your customers will leave you after just two poor customer service experiences. Do you know what this means? It means that businesses must prioritize customer satisfaction at every interaction.
Customers want to feel valued, and treating them well can help you create that trust. Even if issues arise, if you handle them with respect and promptness, your customers are more likely to return.
Think about adding a live chat option or setting up a quick-response email system to provide instant support. The faster you respond, the more customers will feel you’re there for them, which builds trust and can encourage repeat business. Consider assigning team members to monitor these channels so customers get fast answers, even outside of regular hours if possible.
Manage Inventory and Finances Wisely
It’s easy to get excited and overstock products, thinking sales will keep rolling in. However, mismanaging inventory can lead to big losses if items aren’t selling as planned. Instead of overloading your inventory, focus on best-sellers and monitor sales trends.
Keep a close eye on what you’re making and spending, and try not to sink too much cash into inventory. Staying on top of your finances helps you catch any cash flow issues before they get serious. Use accounting tools and set clear budgets for everything, whether it’s marketing or buying new products.
Planning your finances can save you from making risky financial moves that could sink your business.
At the end of the day, remember that building a successful e-commerce business is nothing short of a journey. It’s a mix of making smart choices, understanding your market, and learning from mistakes. When you combine the above-listed strategies with a willingness to adapt, you set your business up for long-term success.
As you continue to grow, remember to listen to your customers and stay flexible. Adaptation and customer care are the backbone of any thriving e-commerce business. With this approach, you’ll be better prepared to overcome challenges and watch your business succeed.
