Why eCommerce Businesses Fail – Top 5 Technical Reasons?

To cause failure of an eCommerce business in today’s fiercely competitive business environment, the technical reasons are equally critical along with the basic business management related factors.

eCommerce failureA popular axiom “think creatively, plan rationally, and execute intelligently” describes a successful startup business eloquently. Any short lapse in the proper implementation of this business principle puts your eCommerce website in the list of 97% of all startup websites that fail at the end of the day. It requires both the technical and managerial perspectives of starting and running a successful business. You can find numerous reports, researches and case studies citing the reasons that punctured the bubble of the dotcom boom in the early 21st century globally. A large majority of those reports focused on the reasons pertaining to business management for that global failure, and the technical reasons were analyzed at the secondary level.

In today’s changed business environment, we are going to re-analyze the technical reasons that leave a direct adverse impact on the survival of eCommerce businesses. Top five reasons for a failure of eCommerce business in today’s competitive market environment are given below.

1.     Poor Content & Website Design

Poor website imageIt is obvious from many researches that more than 99% of the traffic that terminates on your eCommerce website does not convert into purchases. But, some of the eCommerce websites have more than 1% of conversion ratio due to numerous value added features, capabilities and qualities. According to the WebVantage Technologies research, the remaining 3% of the eCommerce businesses that sustain in the market earn double, triple, quadruple or even more profits. The first and most important quality of those successful websites is the content, and perfect web design. A website with poor content and design brings disastrous results to the business because, any online visitor that visits your website does not remain more than 5-7 seconds, if your website design and content is not up to the mark. Your website is supposed to capture the attention of your visitor within that short period of time.

To avoid eCommerce website failure, you need to take care of the following points related to the website design and its content.

  • Proper description of the products in legible size and fonts
  • Well captured photos, and related images in natural and eye catching colors
  • Use of attractive heading at the proper place on the web page
  • The website should be secure, reliable and smooth in terms of surfing its contents
  • The related items should be properly linked in a professional level website layout
  • The on-site search option should be at a prominent/notable position on the website
  • Proper video formats should be used that can draw attention of the visitors
  • The user interface should be easy to use, organized and intuitive

2.     Poor User Experience

Poor user experiencePoor user experience really sucks your eCommerce business! You will not only lose your potential customers, but also create a bad reputation online that spreads like a jungle fire. So, your business sustains a substantial loss – tangible and intangible – on the internet marketplace. Normally, online visitors want your website to load in about 2 seconds or so.  If your website suffers any kind of slow speed, then you are sure to lose more than 40% of your potential revenue as suggested by many researches. The cost of an outage is critically high in the range of thousands of dollars per hour. So, you should make sure that your eCommerce website don’t fall victim of the following important factors that impact the user experience directly.

  • Avoid slow speed of your website. It should load in about 2 seconds or so.
  • Your website should not be cluttered with many things, items and information
  • The checkout process should be very simple, easy and secure
  • Checkout form should be as short as possible

3.     Use of Poor Technology

Poor technology useTechnology is one of the most powerful factors for a successful online eCommerce business in the modern era of information technology. A large number of eCommerce websites fail due to the use of poor technology in their back-end operations. The back-end platform technologies include operating system, server type, web-technology, eCommerce software platform and others. The eCommerce software platform is one of the most important factors – if improperly chosen – can lead to complete failure of your eCommerce business. A bad choice of operating system, server type, CMS platform, and eCommerce software can create numerous issues related to the speed, security, and performance of your eCommerce website.

Thus, the bad performance creates a horrible customer experience, service outages, malfunction of the website, and other systems that lead to a complete failure of your website at the end of the day. So, to make your eCommerce website safer, you need to take the following steps carefully.

  • Choose the most secure, powerful and robust operating system
  • Choose the best cloud hosting service provider with 99.99% of system up-time
  • Choose the most featured and dynamic content management system CMS platforms, such as WordPress, Joomla or the likes.
  • Choose the reliable and effective eCommerce software platform such as Woo Commerce for WordPress platform and others that suite the web technologies you are using
  • The website should have responsive design and support for mobile devices
  • The open source technology is more suitable for SMBs eCommerce websites
  • The exciting features and advanced capabilities should be used to create ease, and great experience for the online visitors
  • Use web technologies that are SEO friendly, lightweight and fast

4.     Low Search Engine Ranking

Low search engine rankingThe search engine optimization SEO is the heart and soul of eCommerce business on the internet. A successful SEO strategy can make your business a multi-million entity in a short span of time; otherwise, your business is destined to fail for sure. The SEO is a combination of powerful use of social media, content, programming skills, website designs, and many other such factors. According to B2B marketing research, more than 10.3 billion monthly searches conducted on Google only in 2014. A large ratio of over 54% of marketers believes that a huge growth in the adoption of SEO will continue in 2015. A gigantic spending of over 12% increase was observed during 2013-2014 globally, as per Adobe, Inc research report. More than 76% of SEO professionals tap the power of social media to achieve SEO objectives, according to IMPACT branding and design research report. The SEO is used to induce customer loyalty in more than 95% of existing customers, says the Regalix, 2014 report.

In the light of such overwhelming figures, it is very clear that bad search engine ranking can lead to disastrous business results for your eCommerce website. To avoid from this impact, take the following measures.

  • Use the professional services of SEO experts
  • Use social media extensively to promote your eCommerce website
  • Use associate/partner websites and blogs to promote your website
  • Always create useful and valuable content – video, audio, and text – for viewers, listeners and readers respectively
  • Use affiliate programs to get useful links, and subsequently the potential customers from your business affiliates
  • Make SEO friendly and mobile-optimized websites

5.     Lack of Perfect Monitoring and Analytics

testing and monitoringTesting, Monitoring, and Analysis play instrumental role in handling all technical as well as non technical problems that damage your eCommerce business on the internet. A properly tested eCommerce website under different real world scenarios will definitely prove to be one of the most powerful online websites to face the common issues that arise on the internet in day to day operations. In many studies, it has been found that the lack of traffic analysis on your website, and proper monitoring of their experience can lead to complete failure of an eCommerce website in this cut-throat competitive marketplace. There are many unified monitoring service providers available in the marketplace to monitor your eCommerce websites with 100% precision and accuracy. Among such enterprise level monitoring services, SiteObservers website monitoring service is the best to provide a comprehensive set of monitoring solutions for your business.

You should use the following services to save your eCommerce website from a complete failure or any service degradation.

  • Use enterprise level eCommerce website monitoring service such as SiteObservers for free
  • Use the user experience monitoring service to measure user experience in the real browser
  • Get instant and real alerts for any kind about untoward incident in your eCommerce services
  • Get detailed reports, and root-cause reports related to the issues or faults that damage the performance of your website.
  • Always use the best analysis software to make sure you are targeting the right segment of customers get deeper insight into the issues of and behavior of your website visitors.

SiteObservers offers unified monitoring solutions for all types of eCommerce websites and other online business activities related to customer experience and high level of website performance. You can monitor numerous WordPress eCommerce plugins through this enterprise level monitoring service. To know more about SiteObservers’ free web test development services, click here.