Poor online marketing and struggling to reach customers are among the main reasons that the vast majority of e-commerce start-ups fail within their first 120 days of operation.
New research which looked at 1,253 owners of failed UK start-ups claims that there are 10 key reasons for failure.
- Poor online marketing – 37%
- Lack of online search visibility – 35%
- Little to no market for their products or services – 35%
- Running out of cash – 32%
- Price and costing issues – 29%
- Got outcompeted – 23%
- Retail giants dominating a large share of the market – 19%
- Lack customer service – 16%
- Poor team around them – 14%
- Product mistiming – 11%
The research was carried out by digital marketing agency Marketingsignals.com. Managing director, Gareth Hoyle, reveals: “It’s clear to see that having an online presence and being visible on search engines is a key area e-commerce startups need to focus on to ensure they succeed.
“As nine in ten online startups fail within their first 120 days of businesses, it’s incredibly important that business owners put provisions firmly in place well before launching – this must include a bulletproof search visibility and online marketing strategy, as well as ensuring there is a market for their product offering.
“A targeted, strategic approach to digital marketing is vital to the success of any online business in this day and age, only more so for small businesses who are just starting out. Many tools can be used to increase their brand awareness and search visibility in their first few days and weeks, where consumer trust and loyalty hasn’t yet been established.”