online businesses il in the first 120 days

According to several sources, including Forbes and HuffPost, 90% of e-commerce start-up enterprises fail within the first 120 days.

The two primary causes of online business failure are poor online marketing performance and a general lack of search engine presence.

22% of failed businesses didn’t implement the correct marketing strategies.

According to a study, 37% of the ecommerce entrepreneurs asked claimed their failure may be due to an inability to compete or offer online marketing, with 35% blaming a lack of an online presence because they ignored digital marketing.

Rates of Startup Failure: How Many Businesses Fail in the First Year?

Approximately 10% of new businesses fail within their first year.

According to the United States Bureau of Labor Statistics, the startup failure rate rises over time, and the majority of enterprises that fail because of a lack of digital marketing are less than ten years old. 90% of startups fail in the long run.

The Bureau of Labor Statistics‘ industry data on startups provides useful insights on business failure.

Some Important Facts

  • Within the first two years, 20% of new firms fail because they underestimate online marketing.
  • 45% of new business launches fail during the first five years.
  • 65% of new businesses fail during the first ten years.
  • 75% of American startups fail during the first 15 years.

For more details: Why New Businesses Fail?

Why Do 90% of Online Businesses Fail in the First 120 Days?

online businesses

1. Starting with no prior research

An online entrepreneur’s research should not be restricted to studying the competition. The most common eCommerce error is to begin without conducting adequate research.

Their e commerce company plan will fail if they do not conduct online marketing research and use proper digital marketing services.

2. People are unable to define their niche.

Businesses’ target audience is their most valuable asset for their eCommerce store. The most serious eCommerce error is not knowing who their clients are.

Businesses will never know if their product is needed unless they leverage digital marketing services to define their audience.

Businesses can lose money even if they have consumers, but them being outside of their specialty.

3. Inadequate website design and navigation

The user experience of an eCommerce website is critical. Even if the clients want to buy goods, poor design and navigation will keep them away. 

A poor design will irritate the users and drive them away.

Poor design, on the other hand, will have an influence on the website’s online marketing operation.

There are certain elements that take a long time to load, to prevent this to happen taking a help of digital marketing services is best option businesses have.

Related Products: All-in One Ecommerce Website Solution for Starter Pack

4. Choosing the incorrect eCommerce platforms

An eCommerce platform is a tool that will help businesses establish their position in the eCommerce sector.

An improper eCommerce platform will severely limit their online business experience.

Whether it’s Shopify development or Spree Commerce, the optimal option must meet business goals.

Businesses can take help of Exabytes SME go digital plan which comes with a lot of features which every business needs.

5. Selling the unsuitable items

The majority of eCommerce enterprises begin by selling the wrong goods. They can never be too enthusiastic about a product.

Most people, however, will not see it that way. There’s a good chance their product doesn’t even have enough market demand.

Online businesses cannot have a large number of items unless they are certain that each product has a strong demand, and they will never know that until they do online marketing research.

Related: 25 Trending Products to Sell Online for Profits

6. Inadequate online marketing

Just because people have an eCommerce business doesn’t imply they’ll start gaining consumers.

One of the most common e-Commerce blunders is not applying online marketing to their website sufficiently.

If there is no solid digital marketing plan, an e-Commerce entrepreneur might lose a lot of money. If no one knows where their business are, their entire investment will be for nothing.

7. Poor customer service

Neglecting customer service is one of the most terrible mistakes ecommerce business make.

Of course, they must concentrate on the goods and online marketing but failing to provide customer service can severely limit their consumer base.

Customers that are dissatisfied in the early stages will have a negative influence on their reputation.

They have high expectations, and if they fail to meet them, business will not progress.

Related: Recommend these Best Customer Communication Tools for Businesses

8. Misconceptions about the internet

When one considers the number of people that start an online business, 90% failure rate of new online businesses isn’t all that unexpected.

People believe that starting a successful online business is as simple as creating a website and putting up an ‘open for business’ sign.

They couldn’t be more wrong. Self-discipline is required to run a successful online business of any sort.

People will start an online company believing that they can party all night, sleep until noon, and then make a career sitting in front of a computer for 3 or 4 hours.

They can’t succeed until they do proper online marketing of their business or hire digital marketing company.

9. Not using right online tools

When people start an online business, they do not research online and find a quality service provider or a plan that can cover all their online business needs, like the one offered by Exabytes, which is to motivate SMEs in Singapore to adopt digital transformation solutions.

SME Go online solution plan is included with necessary online services which can benefit online businesses.

When there is no market for a startup’s product or service, even the most innovative and well-executed online marketing campaign will fail.

Extensive market research and digital marketing is required to establish product-market fit.

If startup businesses avoid these mistakes and take advantage of digital marketing services for online marketing they can definitely succeed.

For an online business looking to get best services in Singapore they should consider SME Go online plan for small and medium-sized business from Exabytes which comes with a lot of perks including relief fund of up to S$1,848 per business owner.

For more details, please contact Exabytes Singapore today!

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Related articles:

Why You Need a Digital Marketing Strategy in 2023

10 Digital Marketing Tips to Promote Your Online Store

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