online business fail

10 Awesome Reasons Why online business fail within three months

Most online business fail within the first three months after startup. What makes these businesses fail. What can we do to avoid this high failure rate? With good knowledge of what to expect, you can turn your business away from this dragon of failure. We will analysis these ten reasons that make an online business fail.

online business fail

Reasons Why Online Business Fail

  1. Emotional Startups
  2. Lack of planning
  3. Low Capital investment
  4. Lack of SEO knowledge
  5. No marketing strategy
  6. Lack of participation in Social media
  7. Poor Website Design
  8. No professional input.
  9. No pricing Strategy
  10. Poor Customer care

1. Emotional Startups.

Most people rush to start their first online business after reading or watching videos of successful online business. After seeing an online business doing over 100, 000 dollars a month, they rush to start a similar business without a good knowledge of how it operates. They have no idea what has gone behind the scene for that business to start making money.

As most online e-commerce businesses have low entry points in terms of capital investment, they start the business hoping to make huge profits. Without any knowledge, they impatiently start the business.

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2. Lack of Planning

Lack of planning is another thing that makes an online business fail in the first three months. Most people start their store without a planning checklist. They don’t know what follows what. They are in a hurry to have the store up and running. Most important things are left out altogether. Stores are added products without research on how the product will perform in the market.

The product description is taken for granted. Most products are pushed to the store with their generic description. Good products photographs are not taken. You will find product bearing the logo from another supplier in the store. The product doesn’t have a good display in the store

3. Low Capital investment

Because e-commerce business doesn’t require huge capital to start, you will find anybody is willing to start one on a trial basis. Once they realise there are no sales in the first month, they conclude that the business is not good for them and close it. Would you close the business after investing more than 5000 dollars? Of course, you wouldn’t. You would do everything in your means to save it. But because you have spent little or no money, is the reason you close the business once you fail to get sales.

4. Lack of SEO knowledge

Knowing search engine Optimization SEO is key to your business success. You need visitors to your website. These are the visitors who will become customers. But how do you get visitors to your store? It is the hard part of any e-commerce business. Most people think that customers will find their store somehow.

With SEO Knowledge you can target visitor to your products. Lack of SEO Knowledge is one of the main reason why online business fail. You will need to communicate with the search engines in a language they understand. By using targeted keywords search engines will use these keywords to rank your store.

5. No Marketing Strategy.

Most people start their online business without any marketing strategy. They put the product in the store and hope customers will find them. You need to have a marketing strategy that is good for your products. Many paid marketing plans are good to get customers to your store fast. But this strategy is expensive and unsustainable. The long term marketing strategy is by use of SEO and social media. These are a slow method of bringing visitors to the site with minimal costs.

6. Lack of participation on Social media platform

If you need your business not to fail, you will need to participate in the most popular social media platforms. You will market your products directly through them and they will help you rank well on google SEO and other search engines.

Here are some of the most popular social media platforms that you can use.

Pinterest will get you traffic faster to your website than google. The platform has a unique way of targeting visitors with products photos pined on this site. The platform is Virtual SEO, not social media avenue. Most people visit the site looking for products to buy. It is a good platform to use for your marketing strategy. Pinterest supports ads in some countries.

Facebook groups can also be a good source of traffic. It will take time to build a good rapport with people in groups that you target. With trust, they may never visit your site let alone buy your products. Check the rules of these groups so that you can adhere to them. Don’t spam them with your products. You can also run ads on this platform.

Instagram is another good social media platform to market your products. Here you will need time to grow your followers. Once you have good followers you will be able to market your products at once. You can also use influencers on Instagram for shoutouts at a fee. Influencers are people already with huge royal followers. Their followers will see and trust your products once it’s posted by this influencer.

Twitter is another avenue to market your products. You will require followers to market your products. Twitter also offers ads which you can use. All these platforms take time to build. Most online businesses fail for the luck of these platforms. You will require to use most of them to make your business successful.

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7. Poor Website design

Good website design is key to the success of your online business. The website is meant to display your products. Your website should be navigable. Your products should be well displayed. The only way your customer will experience your products is by the photographs, videos and description on your website.

Visit many websites for inspiration. Get a website that is easy to use with a good product description. Don’t just go for impressive themes. Use themes that are customer friendly.

Get a good custom domain name. The domain name will be your identity in the market. Get a domain name that is easy for customers to remember. Use a name that resonates well with your products.

Brand your website by using colours that blend well with your logo and products. Use a well-defined logo.

8. No Professional input

Most people invest in online business without any professional input. They don’t get any training to run their business. Online business is different than conventional business by the way it is operated. To succeed in online business on needs to have the basic on the way to operate it. As you are dealing with Virtual products, you need to learn how to display them in a way that they will attract customers.

9. No Pricing Strategy.

Pricing is key to your product’s performance. You should know the best way to price your products to avoid making loses. Your product might look expensive or cheap by pricing alone. Learn how to make your product affordable to your customers and make a profit.

10. Poor Customer Care

Customer is everything to the success of your business. An online business fails by lack of communicating to customers. Reply to every inquiry from your customers. Make customers feel that they are part of this business. Do retarget marketing to customers who have already bought products from your store.


An online business fails because of start without a strategy on how to manage such a business. Business Startups are done without good planning, lack of SEO knowledge, poor website design and no marketing strategy that will deliver traffic sustainably. You will need to treat an online business like any other business to avoid failure in future.

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