Peppul
Active member
What are the main reasons why most online businesses fails. Well here are some few reasons.
1. No market need for the products. Sometimes a wrong product may seem like the most right thing to do and you would promote it over and over, until you realize that no one needs it. It's a tough call to understand what products will sell and what won't until you try it out. But some businesses just rush to promoting their products without understanding the market needs.
2. Not enough finance to run the business.
Many business fail to continue because of cash flow problems, starting an online business might require a few hundred dollars, but promoting the product, maintaining the service and delivering can bring in a range of expenses. Right from inventory management to product distribution, every step requires cash to keep the business running.
3. Incompetent team or business model or website.
Some percentage of customers want to do business with brands that can personalize the shopping experience online. Creating a website is an easier task but creating a fully functional website that can lead to conversion is different. Many online businesses fails because their support team is not handling the customers well or the social media team is not creating effective ads. They also fail when their website is not optimized for online shopping and gives users poor experience.
1. No market need for the products. Sometimes a wrong product may seem like the most right thing to do and you would promote it over and over, until you realize that no one needs it. It's a tough call to understand what products will sell and what won't until you try it out. But some businesses just rush to promoting their products without understanding the market needs.
2. Not enough finance to run the business.
Many business fail to continue because of cash flow problems, starting an online business might require a few hundred dollars, but promoting the product, maintaining the service and delivering can bring in a range of expenses. Right from inventory management to product distribution, every step requires cash to keep the business running.
3. Incompetent team or business model or website.
Some percentage of customers want to do business with brands that can personalize the shopping experience online. Creating a website is an easier task but creating a fully functional website that can lead to conversion is different. Many online businesses fails because their support team is not handling the customers well or the social media team is not creating effective ads. They also fail when their website is not optimized for online shopping and gives users poor experience.
