Cloud Computing

5 important reasons for an e-commerce businesses disaster

Ask any of the 90 percents of business owners who fail in the first three years of their business, will answer that, everything they were doing was according to a plan. While they had the passion and motivation, or “good intentions,” they lacked the necessary knowledge and tools to get out of the disaster. Even though they are so passionate about their goal to become successful, there should be some important checklists to make your pathways. You might be surprised at how many entrepreneurs fail to put a budget on paper. They figure that they have everything in their head and since a budget is a projection anyway, why bother? But you should never start an e-commerce business if you refuse to create an initial budget and sales/ expense projections. Here I would like to pin few points to take care which are the main reasons for the failure of an e-commerce business. 1. Lack of product profitability and margins Most of the entrepreneurs mainly focus on the volume of sales or revenue in the initial phase of their business. They may give too much emphasis on sales and not enough on profitability. The enthusiasm in the initial months will get subsided due to the erosion of capital and the absence of substantial margins to take care of the overheads. There should be an intense research on product profitability and margins in the early days itself. 2. Lack of specialization The excitement and enthusiasm of the new business owner will always lead to the mindset to the jack of all trades. He will try to make this site a platform to buy everything that he likes or he thinks that people like. In the process of trying to appeal too broad an audience, the business will lose focus and hence…

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