There are still many e-commerce companies that won’t survive the first year of existence
It’s a well-known ‘statistic’ that 90% of startups fail within the first 120 days. But what could be the reason for an ecommerce company that just started to be unsuccessful so soon? Ecommerce News offers to take a look at the top 10 reasons why ecommerce startups fail.
As a matter of fact, statistics from the European Commission show that within the European Union, about 81% of enterprises survive the first year. Though there are still many e-commerce companies that won’t survive the first year of existence. But why is this? Digital marketing agency Marketingsignals carried out a survey among 1,253 owners of failed startups in the UK and analyzed the results so they could come up with the top 10 reasons why ecommerce startups fail.
Here are the complete top 10 of reasons why ecommerce startups fail:
|1||Poor online marketing||37%|
|2||Lack of online search visibility||35%|
|3||Little to no market for their products or services||35%|
|4||Running out of cash||32%|
|5||Price and costing issues||29%|
|7||Retail giants dominating a large share of the market||19%|
|8||Lack customer service||16%|
|9||Poor team around them||14%|