When it comes to make money online, an E-commerce website or webblog give you a great opportunity to build your montly income. However as anything, there are some thing that does e-commerce fail.
If you want to start an E-commerce you need to taking a strategic approach to marketing just as you could do if you open an store in your town, as I can not emphasize enough how the “trust” increase the commission rate as well
If you are a newbie in that subject and you do not want do mistake, here are my top ten reasons why e-commerce fails – Remember to consider these tips!
Top 5 Reasons Why e-Commerce Fails
Image Credit: griffithchris
1. Lack of Strategy – Lack of strategy might bring failure in all affairs of life as in e-commerce as well. You can not think about build an e-commerce website and expect to having success without advertising and promoting it. It’s like to open a Wall-Market in the middle of desert. Nobody will find you.
First at all, you need to drive a lot o traffic into your webpages, and market your product in order to satisfy a particular target audience.
Also, every product or services you sell should address a problem that your potential customers have. Quite often, your customers don’t realize yet that they have this problem.
For instance, my friend Mike developed an antivirus to help bloggers protect their blog from hackers. He knew that blog hacking is a problem many people have, but most bloggers don’t know they’re at risk.
2. Lack of a good User Interface - The main components of user interfaces are concepts communicated through words, or images, etc. Another important factor to consider is navigation, the process of moving through the mental models),
Interaction is another important part for a successful e-commerce web-site and cover, all input-output sequences. And in the end appearance, if your site is nice to the eye of your readers.
Remember to create an user interface that is easy to navigate. Create simple menu structures, Targeted search, and labelled products, in order to can encourage visitors to purchase.
3. Lack of Trust – I want insist to one thing. The question is simple: What kind of help has needed a business online to sell more and more? The answer is very simple. The answer is Trust. When someone has been fooled before, his feelings is that to be exploited. That’s a reason why they are wary about trusting you, and often don’t believe what you sell.
It’s a defense mechanism. So, here why you need to add value in any thing you sell and build trust. Trust and credibility with your customers is important both online and offline.
To grow trust, you must provide security against misuse of information. Using SSL you enables the encryption of sensitive information during online transactions. Also add clearly privacy policies, which will increase trust and credibility in the organisation.
Image Credit: Yrix
4. Lack of Payment System – Payment system is another point where many people fails. Usually I see on certain blog an ugly Paypal button placed below any products. Nothing more wrong. Why? The reason is simple, not all potential customers have an account with Paypal, so you need to give them the ability to choose the payment system more adapt for them.
Also, with the full page cart you can provide useful information such as product details, tax prices, remove/edit items, and shipping options.
When you choose a Shopping cart software to add to your blog, check up that there are many many elements included within the shopping cart and checkout process. For instance:
- Product Categories
- Digital Downloads (MP3s,PDFs)
- PayPal Gateway
- Credit Card (POS)
- Multiple Products
- Discount Coupon Codes
- and so on.
That’s the best part. Make sure to having multiple payment methods such as, PayPal, 2CheckOut, MoneyBookers, First Data, credit card (POS), and so on. So you do not risk to lose potential customers that can not pay your product through Paypal.
Last but not least important. When you use a shopping cart system, remember that there’s nothing more annoying to the average consumer than having to fill out an unnecessary amount of input fields in a form. You want the checkout process to be as easy as possible.
5. Lack to organization and personalization – Screwed up your blog? ok, now your site should provides to your potential customers the opportunity subscribe to blogs via RSS, to sign up for newsletters, and differentiate the product/service offering for various target segments where possible.
Your website should provide a variety of products, prices and styles for different customer segments to increase probability of purchase – just as you would if you have a real store.
If you have any question feel free to ask
To Our Success,
Nicola Deiana
Affiliate Marketer
i particularly like the reason that says lack of stragedy and lack of trust these are some of the reasons why online businesses fail thanks for the heads up
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Nicola Reply:
July 27th, 2010 at 12:56 am
@lawmacs, Yes Gary, both are very important to have successful online.
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I think the best reason is “person is Lack to organization and personalization”
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Nicola Deiana Reply:
July 28th, 2010 at 2:39 am
@Ram kumar, Yes Ram these are two great point to consider
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Learned some nice information here.
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Nicola Deiana Reply:
July 28th, 2010 at 2:37 am
@Franklin Manuel, Thanks Franklin!
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Great post again. Well, I am myself into this field and yes, I agree you to most of your points. Anyone can open an ecommerce site to sell products online but everything then comes to one thing – Have you done a keyword research for those products? Are those products actually in demand? And even if you have done the same, then have you presented them well in your online shopping system? Are those products easily visible to your visitors? How well is your site navigation system? How about the product search feature? And how about the payment system? Have you worked out on all these things? And above all, are you following right marketing strategies to make it all work? These and perhaps many other things need to be sorted out to see your ecommerce site turn out into a profitable investment.
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Nicola Deiana Reply:
July 28th, 2010 at 2:44 am
@Aswani, Wow great detailed comment bro. Thanks very much
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Very nice post bro,thanks for sharing
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Nicola Deiana Reply:
July 28th, 2010 at 2:38 am
@Hirfan, Thanks Hirfan!
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Nice post. Right to the point.
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Nicola Deiana Reply:
July 28th, 2010 at 2:38 am
@Harshad, Thanks Harshad!
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I feel that lack of payment system is the biggest reason for it to fail. Many a times I couldn’t buy a stuff even when I wanted to because the merchant only accepted paypal or credit card.
Nice post btw
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I personally think “Lack of strategy” and ” Lack of payment ” are the main reasons for the downfall of a e-commerce site
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As usual a great post Nicola!! I think you’ve made this post at the right time as I am planning e-commerce on my blog, I am reading a hell lot of posts on this topic lately and yours is surely one of the best.
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As Gary mentioned i would also go with the points lack of strategy and lack of trust.They both are important for a successful online business.
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