5 reasons why your e-commerce start-up isn’t making profits

50% of the e-commerce companies which are being set up are headed towards failure.

ecommerce startup failure

The most popular kind of start-up in today’s day is e-commerce as people in India are gradually shifting from in-store shopping to e-commerce shopping. However, 50% of the e-commerce companies which are being set up are headed towards failure because of various reasons.

Listed below are a few probable reasons why your e-commerce start-up isn’t making any profits:

i. Poor quality images

When the customers shop online, they tend to focus more on the visual aspects of the products. If the images of the product seem damaged or unappealing to the viewer, s/he might choose to not buy the product. For more outreach, display the products with a multiple-angle view of the product.

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ii. Bad product descriptions

For products which are uncommon, a product description needs to be unique and crisp in order to interest the customer. If you are solely depending on technical descriptions of the products, you won’t really be able to sell your product as the viewer wants more meaty stuff like ratings and more quirky descriptions which help him understand the product better.



iii. Undisclosed shipping rates

You should make the customer aware of the shipping rates for a product before s/he puts it in the cart. Hidden shipping charges make the customer feel like s/he has been deceived and they tend to abandon their cart midway. This results in loss of a sale. You can add features like a pin code zipper which helps the customer calculate the shipping rates.

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iv. Poor promotion

Since it is an e-commerce website, you should be promoting it more on social media and via digital marketing. If there isn’t enough hype about your page, you will not garner enough traffic for your site to make sales. Inorganic and organic forms of social media marketing can help you promote your page and products better.

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v. Pricing

Since the Indian market is heavily price-sensitive, you need to focus on pricing. If the products are priced too low, then the customers will think that your products are of inferior quality. Hence, you need to strike a balance in terms of pricing to interest more people in your website.