CEO Thomas Stridiron Names the Top 10 Reasons E-Commerce Ventures Fail

These days, practically anyone can start an e-commerce website with a little business savvy and a few online tools. Keeping the business afloat and profitable, however, is a whole other matter. According to Forbes, e-commerce companies have a 90-percent failure rate. Before you get yours up and running, it can help to see why so many online startups fail to soar after getting off the ground. Here are the top 10 reasons why e-commerce businesses fail:

1. Lack of Market Need for the Product

Beats by Dr. Dre costs less than $10 to make, yet sell for about $200 to $700. The substantial markup is not what’s surprising though—the biggest surprise is how the product has managed to lord over the headphones market. According to INC.com, Beats controls around 70 percent of the headphones market.

The Top 10 E-commerce Complaints

Any business, especially businesses that take part in e-commerce, should create an environment that fosters great customer service. Unfortunately, there are times when miscommunication or misplaced expectations can result in dissatisfied customers and lead to your business receiving complaints.

Online reviews and complaints are a common thing nowadays thanks to the emergence of review sites such as Yelp. Unfortunately, online reviews and complaints do not fade away even after issues have been resolved. At some point, your e-commerce business may experience something similar. Even if complaints may seem unfair, it is our responsibility as business owners to provide exceptional customer service and take any complaints seriously.

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