8 Reasons Why Ecommerce Businesses Fail

Starting an ecommerce business can be fast, relatively easy, and not very expensive. But with something like an 80-percent failure rate, creating a successful online business is more challenging than some entrepreneurs imagine.

Although each new business is unique, there are common contributors to ecommerce failures. Understanding these possible pitfalls should help you to avoid them, beat the statistics, and have a successful ecommerce business.

2 Ecommerce Blunders to Avoid in 2015

Businesses ultimately fail when liabilities exceed assets — when the company doesn’t have enough money to pay its bills and keep operating. While there are many reasons or ways that a business can get to that point, for ecommerce operations there are two strategic blunders that will almost certainly lead to failure: (a) discounting too heavily, and (b) spending too much on marketing.

Knowing what these blunders are and how they can destroy an ecommerce business may help some entrepreneurs avoid them in 2015.