The Top 5 Ecommerce Errors

 In Ecommerce

Almost any one can set up an ecommerce site. Making an ecommerce site is relatively easy and quick. Running a successful ecommerce site however, can be very difficult. Attracting customers and generating sales, especially with the large amount of competition in the marketplace, can become very challenging. Businesses that avoid these mistakes will have a better chance at being successful.

We would like to thank entrepruer.com for this informative article about Ecommerce Errors.

1. Ease of Use

This includes almost everything that you can do to turn customers away. It begins with a site design that is not intuitive and results in tedious navigation. You also need to make sure you have mobile optimized website.

Only having one or two payment options, as well as having a poor purchase process will result in frustrated customers abandoning their shopping carts, even if they found something that they really wanted to purchase. Having low-quality images and poor product descriptions will also lead to poor sales.

2. Target Market

Acquiring a customer is one the main costs an ecommerce site will incur. If a business does not have a strategy for targeting specific market segments, as well as marketing to existing customers, then your business is doomed to fail. Many businesses also make the mistake of spending a large amount of money targeting the wrong audience.

Even though first-time visitors drive 73 percent of online conversions, these are less profitable because of the higher cost of customer acquisition. To effectively target customers, capture your customer’s information. Then you can market at a lower cost in a more personalized manner.

3. Low Profit Margins

Many new ecommerce sites operate at a loss until they reach a large scale (think Amazon). Ecommerce sites tend to have razor thin margins and have to rely on efficiency. However, many new sites are nowhere near as efficient as they need to be. Costs such as: inventory, payment gateway fees, shipping, advertising, staff and technology nibble away at profit margins.

Incentives are a great way to build a customer base but only when the financials are analyzed accurately. Customers are always on the lookout for discounts. Providing deals (such as free shipping after a certain dollar amount is spent), contests, giveaways, etc., are a great way to build your database and expose your brand to more potential customers.

4. Poor Marketing

Marketing an ecommerce company requires savvy search engine marketing, social media marketing and content that fulfills the latest search engine optimization requirements.

These activities are data driven and are costly/time consuming. Analytics plays an important role in just about every activity of an ecommerce site. The choice of products, customers to target, platforms to advertise on and even the choice of vendors is influenced by data.

It is important to take the time to become an expert with your on-site analytics as well as the data you’re capturing from marketing channels, social media and search engines.

5. Hidden Costs

Nothing will annoy a customer more than when they get to the end of the purchasing process and see hidden costs that pop up at the time of payment. This is perhaps the biggest reason why customers will abandon their shopping carts.

Providing poor security, compulsory registration to make a purchase and selling poor quality goods will not only annoy your customers but will also destroy your reputation. An ecommerce business must eliminate these. If your ecommerce business avoids these major errors, then your business will be more likely to succeed in the ecommerce world.

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Lindsay Brown
Lindsay Brown is Operations Director of the Small Business Center of Excellence (SBCoE). Lindsay is Director of Digital Marketing and a partner at Modern Marketing Partners. Lindsay specializes in startups of all types, along with experience with technology brands. She is Google Analytics and AdWords certified, earning a Bachelor of Science from the Illinois State University.
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