7 Reasons Your Ecommerce Store Is Not Profitable
It’s well known that almost 90% of startups, sooner or later, will fail. Ecommerce businesses aren’t exempted from this statistic.
This is a serious number that can strike fear into people who run a business or wish to start one.
You can learn a lot from the 10% of businesses that went on to be successful. However, there’s a great deal to be learned from the 90% that failed.
We’ve compiled seven possible reasons as to why your eCommerce store isn’t profitable.
You're Selling The Wrong Products
Selling the wrong products is one of the biggest reasons why many businesses fail. If your company tries to sell products that aren’t in trend or don’t interest anyone, it’ll put your business in a rough patch from the very beginning.
Before starting a business, make sure to properly research the product you wish to sell. You must determine if selling that product will yield the profits and success that you wish for.
Additionally, you must consider your target audience’s demands and preferences before building your inventory.
You’re Targeting The Wrong Market
Your business needs to properly define its target market. Getting this wrong may lead to losses and failure.
Targeting an audience that’s interested in your product, but doesn’t have the money to buy it, will lead to a failed product.
Likewise, targeting an audience with the money to buy your product, but has no interest in the product, itself will also lead to your business's failure.
Therefore, it’s imperative that you target a market that’s both interested in the product you wish to sell and has the money to buy it.
Your Shipping Costs Are Too High
Your target market may spend money on your product even if it’s slightly on the expensive side.
However, asking them to add an extra $25 in shipping charges might be the deal-breaker.
Try to minimize shipping costs or offer free shipping. This will go a long way in ensuring the success of your business.
You Aren’t Able To Manage The Inventory Properly
Managing your inventory is of prime importance. It can be the make or break of a business. If the inventory is redundant, it’ll compromise customer service. This could make an unsatisfied customer opt for different companies.
If the inventory is excess, then the total profits that your business makes will be reduced due to the costs of these excess inventories. Finding the right balance to your inventory is key. If your business can manage inventory properly, it’ll go a long way in saving money and maximizing profits.
Your Website/App Isn’t User-friendly
This one is pretty obvious, but a very important point, nevertheless. It’s through your eCommerce website and/or app that your audience will be able to engage with your products.
Therefore, it’s crucial that every customer that accesses your eCommerce store website will find it extremely easy to use.
Additionally, you must provide the best customer service possible. No one will want to order from a site that makes it hard to find a product or make orders.
Your Product Photos Aren’t Of Good Quality
Let’s say your market deals with the sales of various kinds of shoes. The most important thing when it comes to shoes is the material that it’s made of.
If your product photos don’t showcase this and overall aren’t of excellent quality, then this may put them off.
Customers will hesitate to place an order if they can’t see all details of the product.
Read More: How to build a killer product page
You Aren’t Giving Your Customers Enough Reasons To Buy
More often than not, people buy a product only if they really need it, rather than needlessly spending.
It’s important that you give your customers enough reasons to buy your product so they’ll consider putting in the money to buy it.
Ensuring that you’re honest about the quality of your product can go a long way in encouraging the customer to make a purchase.
Offering high quality customer service means that you make the customer feel satisfied.
Additionally, you’ll want to consider offering discounts, exclusives, sales, and so forth.
Losses and failure are a part of any business, even the successful ones.
Realizing the reasons why your eCommerce store isn’t profitable is the first step to finding success.
The next step is to work on fixing those failures.
This may include targeting a better audience or ensuring quality customer service at all times.