We know the E commerce business has lead a strong path in the digital marketing sector and also every branded business has their own E commerce area. It’s being found that most care should be required while we are starting a new E commerce business. Here are some of the reasons why the eCommerce business cause failure.

E commerce Business

· Premature scaling — It means spending money on marketing, hiring etc. either before you found a working business model or in general spending too fast while failing to secure further financing.

· Investment– It is easier to open an e-commerce website with a few thousand rupees but the job does not end there. A large sum of money is required to run the business and for its expansion into other places. Although some businesses might get a decent some of money via seed funding but they might not be able to sustain and use the amount judiciously, leading to the failure of the business.


· Cash in hand– Cash is required for paying off liabilities and debts and for paying expenses of the business. Inadequate cash in hand or holding too much in inventories or in debtors might result in cash shortage and might adversely affect the business. Due to inadequate cash the business might not be able to the benefit of investment opportunities.

· Team– The team or the founders play an important role in the running of the business. If there is friction between the members of the business it might adversely affect the smooth working of the e-commerce business.

Efficient Team

· Competition– One of the biggest advantages for the customers is that there are way too many e commerce businesses in the market which helps them to negotiate the price and shift their behavior. It is however one of the biggest reason of an E commerce business failing since the buyers might at any point shift their behavior. To stay in the game the business needs to reduce its cost and offer its products or services at a low price, which again might kill the profits.

· Website — The website is the first thing that the customer sees. It must be secure, functional, have great search, adapt to mobile devices, and load very quickly. Like it is been said earlier that the customers have too many choices, if the website is anything less than what the customers expects he might lose interest and visit some other website and the business might lose a potential customer.

· Description of products– The products or the services on the website must be clearly defined and explained in detail so that even a layman understands. For example in an advertisement by Google, an old man was explained that eggplant curry is actually his favorite “Brinjal”. Hence it is important the customer understand the product. Also the product has to be adequately and attractively photographed.

Describe on the product

· Popularity– The product will sell only when people know about it! A lot of business don’t adequately spend on Search Engine Optimization (SEO), marketing, social media marketing or promoting their website which backfires since the public isn’t aware of the business or it does not seem to be reliable.

· Lack of Faith– It is, in my view the most important thing to have a successful business. You have to realize if not you, then who? And if not now, then when?



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