Keys to Success and Failure in E-Commerce
Causes of success and failure in e-commerce
While e-commerce is increasing its sphere of influence in the world, entrepreneurs who want to get a share in this market want to write new success stories. The success or failure of investors trying to find a place in the e-commerce ecosystem with large investments develops in direct proportion to some factors. An e-commerce platform should have some basic features for success.
Not all e-commerce initiatives have a chance to be successful. E-commerce initiative without strategy and planning will not be enough for success in the ecosystem where the competition is at its peak!
For success in e-commerce, it is necessary to pay attention to the following criteria;
- Originality and originality: Uniqueness and originality are the key elements of being successful in e-commerce. Products, services and sites with unique and original features without imitating other products, services and sites will be the cornerstone of success. Especially e-commerce investment in an unexplored area will trigger success.
- Advertising and marketing: Especially digital advertising and marketing methods should be given importance for a successful e-commerce initiative. Apart from traditional ads, Google ads should be emphasized; digital marketing strategies should be determined and implemented.
- E-commerce site interface: The interface or theme of the e-commerce website should allow easy shopping. E-commerce sites designed with an easy-to-use and simple interface will have a high success rate.
- Security: Consumers entering the e-commerce site have to give their personal data, bank and credit card information. For this reason, they want to feel safe. Having 3D Secure system and SSL certificates on the e-commerce site gives customers confidence. It indirectly affects success positively.
- SEO: Search Engine Optimization (SEO) is important for ranking high in search engines. Textual content suitable for SEO increases the traffic of the e-commerce site. SEO allows the customer to find the e-commerce site faster and faster. It is one of the tools that can be used for an e-commerce entrepreneur to reach the target audience. For this, there should be a blog area with content suitable for SEO on the e-commerce website and content should be added to this area regularly. In addition, the necessary SEO procedures must be done on the site.
- Social media: Social media platforms are potential customer areas for e-commerce investors. Being active in social media channels is an opportunity for close contact with customers. It is also an effective area to direct the target customer to the e-commerce site and increase brand awareness. For this reason, it should increase the number of followers on social media; should be shared periodically.
Failure in e-commerce
E-commerce is easier to fail than to be successful! In other words, you do not do what should be done to be successful, failure will be inevitable. For this reason, visionary entrepreneurs act with strategies and e-commerce does not allow for failures!
The factors that trigger the failure of the e-commerce initiative are;
- No planning in product management: One of the failures of entrepreneurs who first started e-commerce is the lack of a product management strategy. After starting e-commerce, the investor who cannot sell their products due to lack of planning in product management may have to give up e-commerce. Failing to integrate success criteria such as time, resources, marketing and advertising for product management into the system will result in failure.
- Lack of cash: Expecting a high profit margin from e-commerce sites will not be realistic. It is necessary to implement an ideal cash management strategy for this investment, which has many costs. It can be expected to ensure the awareness of the website, to cover the expenses and to make a profit after a certain period of time. Cash will be needed to manage all business processes.
- Difficulty in purchasing methods: Every consumer prefers the easiest and safest e-commerce site first. Customers who have difficulties in purchasing processes will not choose the same site again. While asking customers to become a member of the e-commerce site, not offering payment, shipping and return options or experiencing disruptions in these services is sufficient for failure.
- Unplannedness: No matter what sector the e-commerce site operates in, if there is no business plan, failure will be inevitable in the medium or long term. First of all, business plans must be created, especially on issues such as sales, customer management, warehouse management, advertising, marketing, operation and budget management. Otherwise, failure will come!
- Not paying attention to customer relationships: Every customer wants to get the attention they deserve from an e-commerce site they pay for. Unlike traditional commerce, digital communication methods are used in e-commerce, which includes many business processes such as product, purchase, shipping, return and exchange. For this reason, responding to the customer in a short time and remaining insensitive to their problems is an unsuccessful e-commerce.
- Infrastructure shortage: The infrastructure of the e-commerce site brings together many factors. Technical details from the servers to the software are one of the most important factors in the success of the e-commerce site. Technical insufficiency in infrastructure will adversely affect customers’ preferences.