Not every business owner is born knowing how to get the word out about their business, and that’s fine. But when a business owner’s shortcomings put their business in jeopardy, that’s when somebody must take responsibility and take action. Starting an e-business or any online 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. The capitalization of pure click companies was at its peak lately. It was far exceeding the capitalization of some popular companies.
They were considered a major threat to some local business until the investing frenzy collapsed. The pure click failure in e-marketing business was as the results of the following reasons:
9 Reasons Why Some E-Businesses Failed.
- They had poorly designed websites with the problems of complexity,poor navigation process and downtime.
- A lots of online businesses failed as their inability to to conduct proper research, many of them rushed into market without a adequate business plans.
- They lacked adequate infrastructures for shipping on time and for answering customers inquiries.
- They believed that the first company entering a category would win category leadership.
- Many of them rushed into the market in the hope of launching an initial public offering (IPO) while the market was hitting.
- Most of the failed e-businesses spent a lots on mass marketing and some offline advertising to acquire customers. Instead of building loyal and more frequent users among their current customers.
- They are down today because they over estimated the revenue and under estimated the costs of starting up and maintaining momentum. The venture capital funders were also at fault committing funds without better business models.
- They failed to build a sound business model that would deliver eventual profits.
- They failed because they refused to understand customers behavior when it comes to online surfing and purchasing.