Almost every product is now being purchased online in 2024, with an 8% CAGR predicted for e-commerce retail from 2022-2024, showcasing the pervasive reach of e-commerce in our lives.
However, many new e-commerce businesses fail in their first year due to critical and avoidable mistakes. Having mentored numerous start-up founders, I have identified 7 common errors often made by e-commerce entrepreneurs.
1. Neglecting Operations: Initial Missteps
Entrepreneurs often overlook the importance of establishing Standard Operating Procedures (SOPs), leading to inefficient problem-solving and the inability to delegate tasks effectively.
Additionally, entrepreneurs may struggle to detach themselves from day-to-day operations, hindering the growth and management of their business.
A lack of trust in delegating tasks can result in crucial hiring decisions being delayed, further stalling operational progress.
2. Marketing Pitfalls: Costly Oversights
E-commerce entrepreneurs frequently fail to capitalize on free marketing channels available to them, such as Google My Business, Facebook Shopping, and Bing Listings, missing out on valuable visibility and potential revenue.
Likewise, they often neglect to track essential metrics like traffic sources and return on investment, crucial for evaluating the effectiveness of marketing efforts.
3. Sales Strategy Slip-ups: Final Hurdles
Entrepreneurs may not prioritize sales efforts enough, relying solely on referrals for initial growth, which hinders long-term scalability. Effective marketing strategies and a streamlined sales process are essential for sustainable growth.
Lastly, inadequate measurement of Key Performance Indicators (KPIs) or the absence of measurement entirely can lead to misallocation of resources and hinder the evaluation of sales department success.
In the rapidly expanding e-commerce landscape, avoiding these mistakes related to operations, marketing, and sales is crucial for entrepreneurs seeking success and growth in the competitive market.
Originally published on GritDaily. Read the original article here.
Featured Image Credit: Photo by Andrea Piacquadio; Pexels; Thank you!
