{"id":24501,"date":"2022-10-17T19:58:47","date_gmt":"2022-10-17T11:58:47","guid":{"rendered":"https:\/\/www.exabytes.sg\/blog\/?p=24501"},"modified":"2022-10-17T19:58:47","modified_gmt":"2022-10-17T11:58:47","slug":"why-online-businesses-fail-in-first-120-days","status":"publish","type":"post","link":"https:\/\/www.exabytes.sg\/blog\/why-online-businesses-fail-in-first-120-days\/","title":{"rendered":"90% of Online Businesses Fail In the First 120 Days. Here\u2019s Why"},"content":{"rendered":"<p><span style=\"font-weight: 400;\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"alignnone wp-image-24547 size-full\" src=\"https:\/\/i0.wp.com\/www.exabytes.sg\/blog\/wp-content\/uploads\/2022\/10\/90-online-businesses-fail-in-the-first-90-days.jpg?resize=696%2C364&#038;ssl=1\" alt=\"online businesses il in the first 120 days\" width=\"696\" height=\"364\" srcset=\"https:\/\/i0.wp.com\/www.exabytes.sg\/blog\/wp-content\/uploads\/2022\/10\/90-online-businesses-fail-in-the-first-90-days.jpg?w=1200&amp;ssl=1 1200w, https:\/\/i0.wp.com\/www.exabytes.sg\/blog\/wp-content\/uploads\/2022\/10\/90-online-businesses-fail-in-the-first-90-days.jpg?resize=300%2C157&amp;ssl=1 300w, https:\/\/i0.wp.com\/www.exabytes.sg\/blog\/wp-content\/uploads\/2022\/10\/90-online-businesses-fail-in-the-first-90-days.jpg?resize=1024%2C536&amp;ssl=1 1024w, https:\/\/i0.wp.com\/www.exabytes.sg\/blog\/wp-content\/uploads\/2022\/10\/90-online-businesses-fail-in-the-first-90-days.jpg?resize=768%2C402&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.exabytes.sg\/blog\/wp-content\/uploads\/2022\/10\/90-online-businesses-fail-in-the-first-90-days.jpg?resize=696%2C364&amp;ssl=1 696w, https:\/\/i0.wp.com\/www.exabytes.sg\/blog\/wp-content\/uploads\/2022\/10\/90-online-businesses-fail-in-the-first-90-days.jpg?resize=1068%2C559&amp;ssl=1 1068w, https:\/\/i0.wp.com\/www.exabytes.sg\/blog\/wp-content\/uploads\/2022\/10\/90-online-businesses-fail-in-the-first-90-days.jpg?resize=218%2C114&amp;ssl=1 218w, https:\/\/i0.wp.com\/www.exabytes.sg\/blog\/wp-content\/uploads\/2022\/10\/90-online-businesses-fail-in-the-first-90-days.jpg?resize=803%2C420&amp;ssl=1 803w\" sizes=\"(max-width: 696px) 100vw, 696px\" \/><\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to several sources, including Forbes and HuffPost, <a href=\"https:\/\/chrisducker.com\/internet-business-failures\/#:~:text=According%20to%20many%20sources%2C%20more,all%20too%20accurate%3A%20NINETY%20PERCENT!\" rel=\"noopener\">90% of e-commerce start-up enterprises fail within the first 120 days<\/a>.<\/span><\/p>\n<p>The two primary causes of online business failure are <strong>poor online marketing performance<\/strong> and a <strong>general lack of search engine presence<\/strong>.<\/p>\n<p>22% of failed businesses didn\u2019t implement the correct marketing strategies.<\/p>\n<p>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 <a href=\"https:\/\/www.exabytes.sg\/digital\">digital marketing.<\/a><\/p>\n<h2><b>Rates of Startup Failure: How Many Businesses Fail in the First Year?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Approximately 10% of new businesses fail within their first year. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the <a href=\"https:\/\/www.bls.gov\/\" rel=\"noopener\">United States Bureau of Labor Statistics<\/a>, the startup failure rate rises over time, and the majority of enterprises that fail because of a lack of <\/span>digital marketing are less than ten years old. 90% of startups fail in the long run.<\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/www.bls.gov\/bdm\/entrepreneurship\/entrepreneurship.htm\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Bureau of Labor Statistics<\/span><\/a><span style=\"font-weight: 400;\">&#8216; industry data on startups provides useful insights on business failure.<\/span><\/p>\n<p><b>Some Important Facts<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Within the first two years, 20% of new firms fail because they underestimate <a href=\"https:\/\/www.exabytes.sg\/digital\" target=\"_blank\" rel=\"noopener\">online marketing.<\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">45% of new business launches fail during the first five years.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">65% of new businesses fail during the first ten years.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">75% of American startups fail during the first 15 years.<\/span><\/li>\n<\/ul>\n<p>For more details: <a href=\"https:\/\/www.investopedia.com\/financial-edge\/1010\/top-6-reasons-new-businesses-fail.aspx#:~:text=According%20to%20the%20U.S.%20Bureau,to%2015%20years%20or%20more.\" rel=\"noopener\">Why New Businesses Fail?<\/a><\/p>\n<h2><b>Why Do <\/b><b>90% of Online Businesses Fail in the First 120 Days?<\/b><\/h2>\n<h3><b><img data-recalc-dims=\"1\" decoding=\"async\" class=\"alignnone wp-image-24548 size-large\" src=\"https:\/\/i0.wp.com\/www.exabytes.sg\/blog\/wp-content\/uploads\/2022\/10\/online-businesses.jpg?resize=696%2C487&#038;ssl=1\" alt=\"online businesses\" width=\"696\" height=\"487\" srcset=\"https:\/\/i0.wp.com\/www.exabytes.sg\/blog\/wp-content\/uploads\/2022\/10\/online-businesses.jpg?resize=1024%2C717&amp;ssl=1 1024w, https:\/\/i0.wp.com\/www.exabytes.sg\/blog\/wp-content\/uploads\/2022\/10\/online-businesses.jpg?resize=300%2C210&amp;ssl=1 300w, https:\/\/i0.wp.com\/www.exabytes.sg\/blog\/wp-content\/uploads\/2022\/10\/online-businesses.jpg?resize=768%2C538&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.exabytes.sg\/blog\/wp-content\/uploads\/2022\/10\/online-businesses.jpg?resize=696%2C487&amp;ssl=1 696w, https:\/\/i0.wp.com\/www.exabytes.sg\/blog\/wp-content\/uploads\/2022\/10\/online-businesses.jpg?resize=1068%2C748&amp;ssl=1 1068w, https:\/\/i0.wp.com\/www.exabytes.sg\/blog\/wp-content\/uploads\/2022\/10\/online-businesses.jpg?resize=163%2C114&amp;ssl=1 163w, https:\/\/i0.wp.com\/www.exabytes.sg\/blog\/wp-content\/uploads\/2022\/10\/online-businesses.jpg?resize=600%2C420&amp;ssl=1 600w, https:\/\/i0.wp.com\/www.exabytes.sg\/blog\/wp-content\/uploads\/2022\/10\/online-businesses.jpg?resize=100%2C70&amp;ssl=1 100w, https:\/\/i0.wp.com\/www.exabytes.sg\/blog\/wp-content\/uploads\/2022\/10\/online-businesses.jpg?w=1400&amp;ssl=1 1400w\" sizes=\"(max-width: 696px) 100vw, 696px\" \/><\/b><\/h3>\n<h3><b>1. Starting with no prior research<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">An online entrepreneur&#8217;s research should not be restricted to studying the competition. The most common eCommerce error is to begin without conducting adequate research. <\/span><\/p>\n<p>Their e commerce company plan will fail if they do not conduct online marketing<span style=\"font-weight: 400;\"> research and use proper <\/span><a href=\"https:\/\/www.exabytes.sg\/digital\" target=\"_blank\" rel=\"noopener\"><b>digital marketing services.<\/b><\/a><\/p>\n<h3><b>2. People are unable to define their niche.<\/b><\/h3>\n<p>Businesses&#8217; target audience is their most valuable asset for their <a href=\"https:\/\/www.exabytes.sg\/websites\/ecommerce-website\">eCommerce store<\/a>. The most serious eCommerce error is not knowing who their clients are.<\/p>\n<p>Businesses will never know if their product is needed unless they leverage digital marketing services to define their audience.<\/p>\n<p>Businesses can lose money even if they have consumers, but them being outside of their specialty.<\/p>\n<h3><b>3. Inadequate website design and navigation<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The user experience of an <a href=\"https:\/\/www.exabytes.sg\/websites\/ecommerce-website\">eCommerce website<\/a> is critical. Even if the clients want to buy goods, poor design and navigation will keep them away.\u00a0<\/span><\/p>\n<p>A poor design will irritate the users and drive them away.<\/p>\n<p>Poor design, on the other hand, will have an influence on the website&#8217;s <a href=\"https:\/\/www.exabytes.sg\/digital\">online marketing operation<\/a>.<\/p>\n<p>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.<\/p>\n<p>Related Products: <a href=\"https:\/\/www.exabytes.sg\/websites\/ecommerce-website\">All-in One Ecommerce Website Solution for Starter Pack<\/a><\/p>\n<h3><b>4. Choosing the incorrect eCommerce platforms<\/b><\/h3>\n<p>An eCommerce platform is a tool that will help businesses establish their position in the eCommerce sector.<\/p>\n<p>An improper <a href=\"https:\/\/www.exabytes.sg\/websites\/ecommerce-website\">eCommerce platform<\/a> will severely limit their online business experience.<\/p>\n<p>Whether it&#8217;s Shopify development or Spree Commerce, the optimal option must meet business goals.<\/p>\n<p>Businesses can take help of <a href=\"https:\/\/www.exabytes.sg\/go-online-with-exabytes\" target=\"_blank\" rel=\"noopener\">Exabytes SME go digital<\/a> plan which comes with a lot of features which every business needs.<\/p>\n<h3><b>5. Selling the unsuitable items<\/b><\/h3>\n<p>The majority of eCommerce enterprises begin by selling the wrong goods. They can never be too enthusiastic about a product.<\/p>\n<p>Most people, however, will not see it that way. There&#8217;s a good chance their product doesn&#8217;t even have enough market demand.<\/p>\n<p>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.<\/p>\n<p>Related: <a href=\"https:\/\/www.exabytes.my\/blog\/trending-products-sell-online-malaysia\/\" rel=\"noopener\">25 Trending Products to Sell Online for Profits<\/a><\/p>\n<h3><b>6. Inadequate online marketing<\/b><\/h3>\n<p>Just because people have an eCommerce business doesn&#8217;t imply they\u2019ll start gaining consumers.<\/p>\n<p>One of the most common e-Commerce blunders is not applying online marketing to their website sufficiently.<\/p>\n<p>If there is no solid <a href=\"https:\/\/www.exabytes.sg\/digital\" target=\"_blank\" rel=\"noopener\">digital marketing plan<\/a>, 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.<\/p>\n<h3><b>7. Poor customer service<\/b><\/h3>\n<p>Neglecting customer service is one of the most terrible mistakes ecommerce business make.<\/p>\n<p>Of course, they must concentrate on the goods and <a href=\"https:\/\/www.exabytes.sg\/digital\">online marketing<\/a> but failing to provide <a href=\"https:\/\/www.exabytes.sg\/freshworks\/live-chat\">customer service<\/a> can severely limit their consumer base.<\/p>\n<p>Customers that are dissatisfied in the early stages will have a negative influence on their reputation.<\/p>\n<p>They have high expectations, and if they fail to meet them, business will not progress.<\/p>\n<p>Related: <a href=\"https:\/\/www.exabytes.sg\/blog\/customer-communication-tools-for-businesses\/\">Recommend these Best Customer Communication Tools for Businesses<\/a><\/p>\n<h3><b>8. Misconceptions about the internet<\/b><\/h3>\n<p>When one considers the number of people that start an online business, 90% failure rate of new online businesses isn&#8217;t all that unexpected.<\/p>\n<p>People believe that starting a successful online business is as simple as <a href=\"https:\/\/www.exabytes.sg\/websites\/ecommerce-website\">creating a website<\/a> and putting up an &#8216;open for business&#8217; sign.<\/p>\n<p>They couldn&#8217;t be more wrong. Self-discipline is required to run a successful online business of any sort.<\/p>\n<p>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.<\/p>\n<p>They can\u2019t succeed until they do proper online marketing of their business or hire <a href=\"https:\/\/www.exabytes.sg\/digital\">digital marketing company<\/a>.<\/p>\n<h3><b>9. Not using right online tools<\/b><\/h3>\n<p>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 <a href=\"https:\/\/www.exabytes.sg\/go-online-with-exabytes\">digital transformation solutions<\/a>.<\/p>\n<p><a href=\"https:\/\/www.exabytes.sg\/go-online-with-exabytes\" target=\"_blank\" rel=\"noopener\">SME Go online solution<\/a> plan is included with necessary online services which can benefit online businesses.<\/p>\n<p>When there is no market for a startup&#8217;s product or service, even the most innovative and well-executed online marketing campaign will fail.<\/p>\n<p>Extensive market research and digital marketing is required to establish product-market fit.<\/p>\n<p><!--more--><\/p>\n<p>If startup businesses avoid these mistakes and take advantage of <a href=\"https:\/\/www.exabytes.sg\/digital\">digital marketing services<\/a> for online marketing they can definitely succeed.<\/p>\n<p>For an online business looking to get best services in Singapore they should consider <a href=\"https:\/\/www.exabytes.sg\/go-online-with-exabytes\">SME Go online plan<\/a> 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.<\/p>\n<p>For more details, please contact Exabytes Singapore today!<\/p>\n<p><a href=\"https:\/\/www.exabytes.com\/contact\" rel=\"noopener\"><span class=\"td_btn td_btn_md td_default_btn\">Contact Us<\/span><\/a><\/p>\n<p>Related articles:<\/p>\n<p><a href=\"https:\/\/www.exabytes.sg\/blog\/why-need-digital-marketing-strategy\/\">Why You Need a Digital Marketing Strategy in 2023<\/a><\/p>\n<p><a href=\"https:\/\/www.exabytes.sg\/blog\/digital-marketing-tips-promote-online-store\/\">10 Digital Marketing Tips to Promote Your Online Store<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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\u2019t implement the correct marketing strategies. According to a study, 37% [&hellip;]<\/p>\n","protected":false},"author":75,"featured_media":24547,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[318],"tags":[78,328,441,330,329],"class_list":{"0":"post-24501","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-digital-marketing","8":"tag-digital","9":"tag-digital-marketing","10":"tag-digitalise-singapore","11":"tag-digitalise-your-business","12":"tag-go-digital"},"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.exabytes.sg\/blog\/wp-content\/uploads\/2022\/10\/90-online-businesses-fail-in-the-first-90-days.jpg?fit=1200%2C628&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/pbHhPQ-6nb","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.exabytes.sg\/blog\/wp-json\/wp\/v2\/posts\/24501","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.exabytes.sg\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.exabytes.sg\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.exabytes.sg\/blog\/wp-json\/wp\/v2\/users\/75"}],"replies":[{"embeddable":true,"href":"https:\/\/www.exabytes.sg\/blog\/wp-json\/wp\/v2\/comments?post=24501"}],"version-history":[{"count":2,"href":"https:\/\/www.exabytes.sg\/blog\/wp-json\/wp\/v2\/posts\/24501\/revisions"}],"predecessor-version":[{"id":24549,"href":"https:\/\/www.exabytes.sg\/blog\/wp-json\/wp\/v2\/posts\/24501\/revisions\/24549"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.exabytes.sg\/blog\/wp-json\/wp\/v2\/media\/24547"}],"wp:attachment":[{"href":"https:\/\/www.exabytes.sg\/blog\/wp-json\/wp\/v2\/media?parent=24501"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.exabytes.sg\/blog\/wp-json\/wp\/v2\/categories?post=24501"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.exabytes.sg\/blog\/wp-json\/wp\/v2\/tags?post=24501"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}