Getting started with a proper strategy and a great team can take you closer to your goal and minimise the risk of failure

A startup is no longer just a business concept, but a global cult as aspiring entrepreneurs across the world are more than eager to jump into the bandwagon. But everything about launching a new business is not as exciting as it appears.

The e-commerce domain is particularly challenging, with the huge amount of competition and tech barriers it brings for newbies. The success stories out there are numerous, but the risk of sinking is equally daunting.

Unless you know the industry well enough and have the right resources, you cannot imagine survival, let alone sustenance and growth.

Additionally, there are some common mistakes that you need to be aware of before you take the plunge. Here are the ones that every startup needs to avoid.

Starting without enough resources and proper planning

Before you dive in, make sure that everything is planned stringently and you have all your resources in place. Start by working out on finances first while keeping in mind parameters such as taxes, shipping, platform cost, development expenses, marketing, warehousing, etc.

With e-commerce, new sellers generally fail to consider these expenses while planning and procuring their resources at the initial stage.

Also Read: Falling short: The 9 biggest tech blunders of 2016

As a result, they often fall short of resources or end up draining them sooner than anticipated. A roadblock right at the start can be fatal for your startup, which is the reason that you should be on top of the planning.

Not choosing the right development platform

Your online storefront is the main point of contact with your customers, which is the reason why it deserves a great look and feel. An apt choice of platform is the trick that gives you the right start.

You can opt for Shopify, WooCommerce, or Magento e-commerce development, depending on your requirements and budget. As a rule of thumb, your needs should be the basis of the platform choice.

Not building a buyer persona right at the beginning

Making your startup a success is all about earning high revenues and achieving your growth targets. This is only possible if you know your customers and their expectations. Building a buyer persona is the key.

Though a lot of research goes into establishing a persona, this will be a sustainable investment for your business. It gives you a complete understanding of the demographics, preferences, and expectations of the target audience.

Accordingly, you can tweak your marketing and product development strategies to win them with minimal efforts. Not having one, on the other hand, is a blunder because you may end up investing your efforts in the wrong direction.

Not knowing your competitors

Another mistake that e-commerce startups usually make is not assessing their competition well enough. The domain is huge, and you need to know about the offerings of your rivals before exploring a particular market or audience segment.

Unless you differentiate your product/service/pricing, you will probably not be able to convince the buyers to choose you over the rest.

Even before you start your business, do a detailed study of the market, competitors, and trends. Find out their strengths and learn from them. At the same time, identify their weaknesses and capitalise on them.

Prioritising sales rather than relationships

Startups often run after money because they are pressed to show tangible results, that too at a fast pace. They succumb to the pressure and often end up ignoring customer relationships, which is the biggest mistake they can make.

During the initial stage of the business, you need to be focused as much on both the aspects, selling and winning customers for the long run. The latter requires you to follow them carefully and listen to their comments.

Be willing to accept your shortcomings graciously and make improvements where you can. This approach will foster relationships with your customers and boost retention for your business.

Not having a proper marketing plan

As a startup, you may be confident about your products and services. But you will not reach anywhere without a proper marketing plan in place. While you need to avoid the mistake of moving ahead without a plan, not including the online element in it is another blunder to steer clear of.

Also Read: 13 indisputable benefits of internet marketing services for businesses

Essentially, making your e-commerce startup grow is all about using the right set of digital marketing tactics. While Search Engine Optimisation takes your store on top of web searches, paid advertising gets your visibility kick-started.

Similarly, social media marketing extends your reach across social media platforms. Don’t forget to have content marketing, influencer marketing, and mobile marketing in your mix.

Failing to pay attention to shopping experiences

Sometimes startups fail because they are doing too much but not one thing that matters. Even the best products and services will not sell unless the buyers get seamless shopping experiences.

Ensure that the shoppers have a great experience, right from the time they access your store to the checkout step. The products should be displayed appealingly and should be easy to look for.

Payments should be secure and simple, as well. At the same time, an omnichannel reach is mandatory because a store that is not accessible via mobile can lose a massive chunk of its customers. If you fail to follow these rules, the chances of success are reduced to a considerable extent.

Not paying attention to your team

Customers are undoubtedly the foundation of a startup business, but you cannot ignore your team because they are the launchpad. Invest in a team of committed and talented resources that would stand by the business through the initial hiccups.

A small team with the right mix of skills, talent, and experience could be better than a large one. The experienced resources bring in the right technical skills needed to handle the various complexities of this domain. On the other hand, fresh resources offer innovative thinking and creativity while being cost-effective.

Final thoughts

The e-commerce startup game is a challenging one, but that is what makes it exciting and rewarding.

Likewise, you should avoid these pitfalls because they can be extremely dangerous at the initial stages of the business. Beyond this, keep a constant track of your progress so that any wrong move is detected and addressed immediately.

Don’t expect things to be comfortable during your startup journey. However, one thing that you can expect is amazing results if you avoid these errors and do everything right.

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Image Credit: Brannon Naito

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