Those preparing to launch their own successful eCommerce venture might be disheartened by figures revealing that around 90% of all new eCommerce startups go bust within the first 90 days. This is despite the record numbers of new eCommerce startups being launched in the past couple of years.
While some of the reason that eCommerce companies fail has been chalked up to intense competition from retailing giants like Amazon, this is not the whole story. Rather, many eCommerce startups simply get off to the worst possible start, due to strategic errors that are wholly avoidable. If you’re looking to launch a resilient eCommerce startup that can fend off the competition, make sure to avoid these fatal mistakes.
1. Do not underestimate Amazon
As an eCommerce founder, your primary competition will be Amazon. There is no use attempting to ignore this and just hoping for the best. Instead, you need to build advantages into your eCommerce startup that Amazon does not have. Make the delivery process as streamlined as possible so that customers are not tempted to Amazon for the sake of convenience. Add a personal touch to your service to remind customers of the importance of choosing small businesses. Most importantly, give your own unique service offering to your valued customers.
2. Neglecting localization needs
If you’re actually planning on making a profit with your eCommerce company, you may need an international focus. This is where localization comes in. Localization is the process of adapting your marketing and your products to every market that you are targeting.
This is why tech industry localization specialists such as Pronet Gaming, which offers localization expertise to the online casino sector, have become so in-demand in recent years. Pronet Gaming helps casino gaming companies adapt their language and their product offering to different audiences simultaneously. Even more, they offer platforms and tailored solutions to their clients to suit their particular niches. You should be doing the same.
3. Taking a superficial approach to recruitment
A major weakness of many eCommerce tech founders is that they think “on paper” credentials are enough for a successful team. This is a lazy approach to recruitment that is pretty much a recipe for disaster. It is essential that you invest the necessary labour hours into putting together a real dream team for your startup. Make sure that you all work well together and have the matching skills needed to launch your product.
4. Ignoring mobile-friendliness
As an eCommerce founder, you cannot afford to ignore the importance of mobile-friendliness. This is why one of the most important early decisions you can make is to choose an eCommerce software that supports mobile shopping, such as Shopify or Instagram Shopping. All available figures show us that mobile-based shopping is on track to imminently overtake desktops in every major market. Before long, all of your customers will be shopping on their smartphones. Making sure your business is ready for this is key to eCommerce success.
By avoiding these pitfalls, you can build a resilient tech startup that has a stronger chance of success.