More and more people are shopping online, with Shopify reporting that the global B2C e-commerce market will grow from $4.8 trillion in 2023 to $9 trillion by 2032.
Utilizing this booming market is more of a necessity than a strategy if you want to get into the retail space, especially if you own a brick-and-mortar shop that doesn’t already offer online ordering as an alternative. Not only does an online shop provide convenience to your loyal customers, but you can also reach markets you didn’t think were possible.
Online retail is becoming increasingly popular. Retail Dogma statistics reveal that the biggest Amazon categories in 2022 were Computer and Electronics, Apparel and Accessories, and Books/Music/Video.
However, the internet is full of misleading information about how to run an e-commerce business, and the average Shopify store lasted only 143 days in 2021 .
The Perils of Rapid Growth Without a Clear Vision
Fab, an e-commerce company born from a dating site, rose to fame in just six months, surpassing Facebook’s record for subscribers. Its remarkable rise crumbled when it lost sight of its core values and profitability.
Its European site abandoned its diverse line of design products in 2014, opting to sell only customized furniture, putting its prospects of becoming a global brand at risk.
The failure of Fab serves as a cautionary tale about the perils of rapid growth without a clear vision.
Inability to sustain success was due to deviating from the company’s founding principles that caused a lack of profitability. By avoiding the allure of rapid expansion, Fab’s downfall exemplifies the importance of preserving core values.
Here is what you should know about the most critical mistakes that e-commerce businesses make and how you can avoid them:
1. Not Focusing on a Single Niche or Choosing the Wrong One
If you do not pick a niche, you are bound to fail. And you can’t just close your eyes and point at something. You need to research the market, competition, and the potential of specific niches.
Without a focus, you won’t stand out online unless you want to spend a fortune on ads. And guess what? You’ll never be able to compete with the budgets of international corporations in terms of ad spend. Instead, you should aim to become the best in your chosen niche and take advantage of every opportunity you can to become an authority in your particular field.
For example, “dog food” is way too generic for a small business. “Hypoallergenic insect-based dry food for senior dogs” is something you actually have the chance to rank for and become a main source of information for.
2. Poor Store Design
Having worked with plenty of e-commerce businesses, I have seen how a well-designed store can serve as a magnet to capture and retain customers on the site.
At the other end of the stick, poor web design has detrimental effects on businesses. In fact, 50% of consumers base their impression of a business on their website, and as much as 42% of people leave a website if it has poor functionality.
Here are some design tips for your Shopify store:
- Choose the right theme to create a memorable customer experience
- Make sure there isn’t too much clutter that overwhelms visitors
- Optimize page loading speeds to keep customers on the site
- Use visuals that are aligned with your store’s design
- Adopt a smart pop-up strategy without being too intrusive
- Highlight important details with color
- Enhance visual appeal with high-quality images
- Provide relevant and concise information on each page
- Make browsing and shopping easier (don’t forget mobile optimization)
3. Starting a Business with the “Get Rich Quick Mentality”
If it sounds too good to be true, it probably is. And that goes for e-commerce “hacks,” too.
Don’t fall for the “Get rich quick” mentality or self-proclaimed fake gurus. If it were that easy, everyone would do it.
By putting in the effort to learn and implement effective strategies, seeking information and guidance from reliable sources, and surrounding yourself with like-minded individuals, you’re setting your store up for success.
Keep in mind that you’re not just competing with small e-commerce sites. You’re also facing major e-commerce retailers such as Amazon, Walmart, eBay, and Alibaba.
While it’s possible to build a thriving e-commerce store in spite of this David-Goliath imbalance, no quick fixes can replace dedication and hard work.
4. Poor Product Selection
Poor product selection is another leading cause of Shopify store failures.
An example would be a store selling herbal supplements without a selection of organic products, as the target audience is likely to prioritize shops that offer this.
Shooting from the hip when pricing your products is a risky game that can harm your revenue and undermine your business’s viability, whether you’re setting prices too low or high.
Additionally, offering low-quality items that don’t meet customer expectations and failing to differentiate products from competitors can lead to declining sales and negative reviews. You also need to consider if your niche aligns with the products you provide as well as the interests of the intended audience.
As we’ve discussed previously, research is key and helps you understand what products your customers are looking for, what they’re willing to pay, and how to deliver unique value to them.
5. Failing to Get Website Traffic
Even if your website design is flawless and your products are perfect for your niche, your shop will never succeed if it doesn’t attract traffic.
The most effective way to attract organic and consistent visitors to your store is to create an effective content strategy.
The right content marketing strategy is a long-term investment and the most cost-effective option compared to marketing methods like SEO and PPC.
Don’t know a thing about content marketing? Don’t worry; at Ethos Media & Marketing LLC, we offer a Done-For-You organic traffic model so that you can focus on your core business.
6. Not Building a Mobile-Friendly Site
By ignoring the need for a mobile-friendly website, you’ll do yourself a huge disservice.
The number of internet users worldwide who rely solely on smartphones is predicted to rise to over 72% by 2025 , underscoring the amount of sales you could be missing out on if you don’t have a mobile-friendly store.
As a bonus, search engines like Google also favor mobile-friendly sites, so it’s a great way to boost your visibility and traffic.
7. Poor Customer Service
My extensive e-commerce experience has taught me that customer service and user experience are crucial to long-term success and brand loyalty.
Meanwhile, the consequences of poor customer service can lead to lost business and negative PR.
Consider measuring customer satisfaction with NPS (Net Promoter Score) to stay on top of things so that you can promptly address complaints and exceed expectations.
Other things that improve customer service are offering multi-channel support and being proactive about common concerns, for example, via an FAQ section.
You should also streamline the returns process, train customer service teams to listen actively and prioritize transparency.
8. Failure to Move Beyond Shopify
Although hosted solutions like Shopify and BigCommerce are convenient, they come with a price.
You may soon realize how challenging it is to dismantle your existing store and rebuild it, complete with your extensive product catalog.
Remember that you’re not tied down to the biggest platforms. You might need to look for other more flexible and autonomous e-commerce platforms so that you can adapt and scale your business.
Platforms like Shopify and BigCommerce can be helpful tools when you’re getting started. But don’t be afraid to look for other options if you find that you’ve outgrown the format. After all, the platform you choose is supposed to fit you, not the other way around.
9. Lack of Marketing Strategy
My experience has shown me the consequences of skipping the step of marketing strategy in business planning.
Without a solid marketing plan, building a strong online presence and engaging the intended audience becomes a guessing game that will affect your traffic and sales potential.
With our expertise, we can help your e-commerce brand increase its promotional efforts, particularly during holidays and special occasions, so you can target your target audience, drive sales, and establish a thriving e-commerce presence.
10. Poor Inventory Management
In all the excitement of planning to launch your e-commerce business, it’s easy to forget about the boring stuff, like developing a strategy for effective inventory management.
Many who are new in the e-commerce game have put their foot in it by underestimating the importance of inventory management, especially during a peak sales period when they unexpectedly run out of their best-selling product.
11. Failure to Convert Traffic
The inability to convert visitors into buyers is another primary reason why 95% of Shopify stores fail within the first few years . While traffic is a gateway to growth, it’s not going to do the selling for you magically. To succeed, you need an effective conversion strategy.
Here are some tips:
- Make your offer irresistible by highlighting its unique value
- Guide visitors through the buying process with a high-converting sales funnel
- Address customer objections and pain points in your sales copy
- Build trust by using social proof, including testimonials
- Make sure visitors know what to do by using clear, prominent calls to action
- Optimize and test elements continuously to increase conversions
Expert Marketing Strategies for Launching and Growing Your E-com Store
Growing and sustaining an e-commerce store might seem overwhelming, and sure, it won’t be easy, but don’t let it scare you. If you adopt a strategic mindset, you’re likely to experience the same success as our clients.
For example, we’ve helped a Canadian-based mattress e-commerce store increase organic traffic by 417.8% in just a bit over a year using our hyper-targeted content strategy. Another success story is the home robot Shopify store we worked with that increased organic traffic by 195% despite competing against giants like Amazon in a highly saturated market.
Our strategy works for any niche and product. During our many years in the industry, we’ve helped thousands of businesses boost their organic traffic and grow with a tailored marketing plan.
And we can do the same for you! Schedule a no-obligation call with Ethos Media & Marketing LLC to discuss your goals.
