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Why Do eCommerce Businesses Fail? Top 5 Technical Reasons

Published By
Thomas Erb
Reading Time
8 Min

In today's highly competitive business landscape, the success of an eCommerce venture hinges not only on basic management principles but also on crucial technical factors. This blog post explores the top five technical reasons behind the failure of eCommerce businesses.

1. Poor Content & Website Design

Research indicates that over 99% of website traffic does not translate into purchases. However, successful eCommerce sites boast a conversion ratio of more than 1%, thanks to value-added features and quality content. The primary attributes of these successful sites are compelling content and impeccable web design. A poorly designed website can drive away potential customers within seconds. To prevent eCommerce failure, focus on:

  • Clear product descriptions in legible size and fonts
  • High-quality, eye-catching images
  • Strategic placement of attractive headings
  • Secure and smooth website navigation
  • Professional layout with properly linked related items
  • Prominent on-site search option
  • Use of proper video formats
  • Intuitive and organized user interface

2. Poor User Experience

A subpar user experience not only repels potential customers but also tarnishes your online reputation. Aim for a website that loads within 2 seconds, as studies show that slow-loading sites can result in a loss of over 40% of potential revenue. To enhance user experience:

  • Ensure swift website loading
  • Avoid clutter on the website
  • Simplify and secure the checkout process
  • Keep the checkout form brief

3. Use of Poor Technology

The technology powering your eCommerce site plays a pivotal role in its success. Many failures stem from inadequate back-end technologies, including the choice of the operating system, server type, web technology, and eCommerce software platform. To ensure a robust website:

  • Choose a secure and powerful operating system
  • Opt for a reliable cloud hosting service with high uptime
  • Select a feature-rich content management system (CMS) platform
  • Choose an effective eCommerce software platform with responsive design
  • Utilize open-source technology for SMBs
  • Implement SEO-friendly, lightweight, and fast web technologies

4. Low Search Engine Ranking

Effective Search Engine Optimization (SEO) is crucial for eCommerce success. A well-executed SEO strategy can rapidly elevate your business, while poor search engine ranking can lead to failure. To bolster SEO:

  • Utilize professional SEO services
  • Leverage social media for promotion
  • Collaborate with associate/partner websites and blogs
  • Create valuable content in various formats
  • Embrace affiliate programs
  • Develop SEO-friendly and mobile-optimized websites

5. Lack of Perfect Monitoring and Analytics

Testing, monitoring, and analysis are indispensable for addressing technical and non-technical issues. Failing to analyze website traffic and monitor user experiences can result in eCommerce failure. Implement the following measures:

  • Utilize enterprise-level eCommerce website monitoring services
  • Employ user experience monitoring for real browser insights
  • Receive real-time alerts for incidents
  • Access detailed reports and root-cause analysis
  • Use analysis software for deeper customer insight

Consider eXperStack for unified monitoring solutions that cater to eCommerce websites, ensuring a seamless customer experience and optimal website performance.