Startup Survival: Top 10 E-Commerce Business Mistakes

When starting an e-commerce business, you need to be aware of common mistakes. Explore how you can avoid them and strengthen your online business.


Key Points:

  • Conduct a market competition analysis to understand your rivals better.
  • Define your target audience, its pains, and preferences.
  • Invest in website design and optimize it for mobiles.
  • Use inventory management software and shipping logistics.
  • Follow new trends and technologies.

In the grand symphony of entrepreneurship, startups, and product owners play a unique and daring tune. They’re the composers, the visionaries, the ones who dare to dream and disrupt. But in the world of e-commerce business, even the most brilliant compositions can fall flat without the right guidance.

The painful truth is that the journey of e-commerce services is fraught with potential pitfalls, and the consequences of missteps can be felt on your balance sheet and in your sleepless nights. Despite your unwavering dedication, you find yourself facing the same daunting challenges that many who’ve walked this path before you have encountered.

Whether you’re just embarking on the exhilarating voyage of starting an e-commerce store or you’ve already set sail and encountered rough waters, this comprehensive guide is your lifeline. We’ll explore the top e-commerce mistakes that have ensnared many before you, unravel their mysteries, and provide you with the tools and insights to navigate the tumultuous seas of online business.

Common reasons why e-commerce businesses fails

Wear Crocks to a Theater by Shakuro

What are the common reasons e-commerce businesses fail?

There can be many of them depending on the situation but here’s the shortlist:

  • Neglecting market research
  • Creating poor website UI/UX
  • Ignoring mobile optimization
  • Not paying attention to SEO & SMM
  • Overlooking customer retention
  • Misguided marketing strategies
  • Poor inventory management
  • Inadequate customer service
  • Low security and safety measures
  • Skipping e-commerce trends

Let’s dwell on each reason and see how you can avoid it.

No prior market research

Before setting up an e-commerce business, it’s crucial to have a deep understanding of your target audience and the market you’re entering. Skipping this step is a grave mistake that can lead to misguided product offerings, incorrect pricing, and inefficient marketing strategies.

First, conduct a market competition analysis to understand your rivals better. What are their products? What are the pros and cons? Is there any distinctive strategy? This is not about being a copycat but borrowing strategies that work and fit your business.

Your product should resolve people’s problems or it won’t bring profit. Use customer surveys and feedback to identify the pain points and preferences of your target audience.

Alternatively, you can seek expert advice or consult professionals who specialize in market research. They give you tips on selecting the right niche, picking a target audience, and more.

Poor website design and user experience

Your website is your storefront in the e-commerce business. An unattractive or confusing website design can turn potential customers away before they even see your products. It should be visually appealing, user-friendly, and easy to navigate.

Here’s what brings your online store down:

  • Slow loading times
  • Unclear navigation menus
  • Overcomplicated product descriptions
  • Long checkout processes

That’s why you should consider investing in professional web design services before starting an e-commerce store. The team will help you build a responsive web page with a functional UI/UX. What’s more, the specialists will create a simple checkout process with one-click options, which is crucial for an online store.

No mobile optimization

Mobile e-commerce, or m-commerce, is on the rise. Many users prefer shopping on mobile devices due to convenience. In the previous six months, at least 79% of smartphone users have completed an online purchase using their mobile device.

Ignoring mobile optimization means missing out on a significant portion of potential customers. Your website must be fully responsive and optimized for mobile devices. Moreover, your team should ensure fast loading times on mobile devices by implementing AMP (Accelerated Mobile Pages) and reducing content size.

Another important thing to consider for e-commerce services is simplifying navigation for touchscreen and thumb-zone interactions. Also, use mobile-specific features like geolocation for local businesses.

Catalog screen UI app design Shakuro

Represent App Concept by Shakuro

Underestimating the power of SEO

What does Search Engine Optimization have to do with e-commerce business? SEO is the foundation of online visibility. Neglecting it can leave your online store buried beneath competitors in the search engine rankings of Google and low-performance metrics.

To get ahead, utilize tools like Google Trends and keyword research to identify market trends. Research corresponding keywords and incorporate them into your web pages. 

Apart from on-page SEO, try off-page tactics like guest posting, media interactions, etc. This way, you will increase your brand awareness and attract potential customers. Since you own an e-commerce store, apply optimization techniques to your product listings. The customers will have an easier time to find and browse the items.

Here are some tips for effective e-commerce SEO:

  • Conduct thorough keyword research.
  • Optimize product descriptions, meta tags, and images.
  • Build high-quality backlinks.
  • Regularly monitor and adjust your SEO strategy.

Overlooking customer retention

While acquiring new customers is essential, retaining existing ones is equally crucial. Repeat customers are more likely to make higher-value purchases and become brand advocates. A great way to keep customer retention high is through a loyalty program and personalized recommendations. By the way, personalization is a key trend in 2023 and 2024, so be sure to take advantage of it.

Offer personalized discounts on favorite items, services, exclusive access, or freebies from your e-commerce store. Recommend products based on their past purchases or browsing history. Repeat customers are a great source of feedback as well. Adhere to their suggestions to get even more loyalty in return.

Misguided marketing strategies

Digital marketing mistakes can drain your budget without delivering results. Many startups fall into the trap of investing in marketing channels that don’t align with their target audience. A haphazard approach to marketing rarely succeeds and mostly by chance.

Here are some tips for effective e-commerce marketing:

  • Identify your target audience.
  • Utilize social media strategies for marketing.
  • Invest in content marketing.

Monitor and analyze performance metrics to refine your strategy.

Food app for e-commerce business

Food Delivery App Design by Shakuro

Poor inventory management

Inventory management for an e-commerce store can be complex, especially when dealing with a wide range of products. If you fail with this task, it leads to stockouts, overstocking, and ultimately, dissatisfied customers. Imagine ordering a product online only to be informed later that it’s out of stock. Such incidents damage your reputation and erode customer trust.

To avoid this, use inventory management software. It will help you keep track of all products and restock them in time leveraging shipping logistics to its fullest. Also, conduct regular audits to avoid overstocking or stockouts, and monitor product demand trends to add them to the range. 

Inadequate customer support

It is the backbone of a successful e-commerce business. Horror stories of unresponsive support teams or rude customer service representatives can spread quickly and tarnish your brand’s reputation. At the same time, outstanding customer support can turn a dissatisfied customer into a loyal advocate for your brand.

The key is to train your team to be empathetic and knowledgeable. To shorten the response time, implement different tools like Artificial Intelligence, chatbots, FAQs, etc. Also, adopting a robust helpdesk software system is a must, as well as offering multiple support channels (email, chat, phone).

Neglecting security and trust

People disclose their personal and financial info when purchasing goods in an e-commerce store. So security breaches can lead to data theft, financial losses, and a severe blow to customer trust. And your brand. Neglecting security measures is a dangerous mistake.

Customers need to trust that their personal and financial information is safe when they shop on your site.

What steps can you take to ensure the security of your e-commerce business?

  • Use secure payment gateways.
  • Regularly update and patch your website’s software.
  • Educate your team on security best practices.
  • Employ SSL certificates to encrypt data.

Failing to adapt to trends

The e-commerce landscape is ever-evolving. Failing to adapt to new trends and technologies can leave your business stagnant.

Remember Blockbuster? It was a very popular provider of movies and video game rental services. With the growth of Netflix and on-demand streaming, Blockbuster’s business model became outdated and needed a change, but it failed.

Staying updated with e-commerce trends:

  • Continuously monitor industry news.
  • Attend e-commerce business conferences and seminars.
  • Experiment with new technologies and marketing strategies.
e-commerce business and trends

Street Fashion Product Page Animation by Shakuro


In the fast-paced world of e-commerce, you can avoid most of the issues and achieve success. By learning from the mistakes of others and proactively addressing common challenges, you can chart a course toward a prosperous e-commerce business. Remember, every misstep is an opportunity to learn, adapt, and ultimately, succeed.

Discovering e-commerce trends is half the way, you need to implement them strategically into your product. Contact us to create a functional product that leverages tendencies and solves user’s problems.

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