You’ve got the idea, the product, and the initial indications are positive that you could develop into a huge success. You pitch your ideas to investors, and they are on board and excited. But research from Forbes and Huffington post concluded that 90% of all eCommerce businesses failed in their first 120 days. So what can go wrong? – The answer is plenty, and to find out how not to fail, read the guide produced by Smoking Chili Media:- New Ecommerce Start-up – Top 10 Mistakes
You are listening exclusively to your friends and co-workers.
Heard the story of the Emperors’ new clothes? – If you only listen to friends and colleagues, you will get a rude awakening when you start engaging with consumers. You do not need your ego massaging; you are building a brand that connects to consumers.
Take advice and feedback from outside your usual circle, and they may tell you of something you have missed because no one is looking anymore.
You are not listening to your team.
Your team may know your business better than you. Their understanding and perspective of the company is not one of the top looking down, and they may have suggestions which could allow your brand strategy to take a new and better direction.
Your team are not as attached emotionally as you, and therefore their opinions and suggestions are more objective. Your employees live on the frontline, talking with customers and suppliers and receiving feedback daily.
Listen as much as possible. I was once told we have two ears and one mouth and should use them in that proportion.
You are not defining your audience.
Your product may be suitable for a vast audience, but finding a niche or specialised industry will allow you to target demographics and specific purchasing requirements.
Buying is an emotional interaction, and you must convey the correct emotion to your customer for your brand to grow and become meaningful.
A diverse staff recruitment policy, focus groups and experts from your industry will help you understand how to convey your message. Do not be afraid to ask the customer their options via email or social media.
Unable to state the benefits of your products.
Features tell, benefits sell. This old sales adage rings true just as much in today’s markets. Focus on how your brand highlights your product’s benefits to impact their lives positively. The first rule of good marketing is to ensure your message can answer the question, “What does this have to do with me?” your brand message must satisfy that in a manner that anyone could realise how your product can make their life easier, more efficient or just more fun.
Not making brand promises.
Brand promises are not about guarantees; it is about how your brand communicates the services it provides. Every Ecommerce Start up says their customer service is excellent, but what makes you exceptional? What can consumers expect from you regarding delivery or returns?
What company culture makes you different and, therefore, only you can deliver? You must state these differences in a way that becomes a promise. Your customers deserve to know exactly what they can expect from you.
Mismatching the look of the brand to the product.
Poor branding can leave your product and company brand looking mismatched. The logo you fell in love with may no longer convey the correct message and confuse your consumers. An inadequate packaging or branding choice can de-legitimise your products.
Not keeping your eye on the data.
Whilst you are new, you are just starting your journey in collecting data. Actual data from customers will drive important future brand decisions, but do not overreact too early. Just because you are seeing a concerning trend early on does not mean anything needs changing, and it could be a reaction to your presence in the market or an unfamiliar strategy.
You cannot please all the people all the time. You targeted your customer base and tailored your marketing towards them, but your customers will help you define it further.
As you collect data, trends will form that you will be able to incorporate into future strategies. Even the best companies and brands get negative reviews, learn from them and move forward.
Thinking the data will answer everything.
Your data is helpful but will never provide an inspirational moment itself. Remember: “Rubbish in, Rubbish out”. You can A/B test until the cows come home, but you can never know if “A” and “B” were good ideas. Be aware that fixating on data can make your brand jaded and uninteresting. Sometimes you have to take a risk even if the data says otherwise.
Not thinking about the future.
What is your vision for the future of your brand? – Whilst focussing on the present, you need one eye on the future. Stagnation has been the death of many a promising start-up. It would be best if you had a strategy of how the Ecommerce Start up will grow in culture, service and product.
A firm direction for the future will drive change and innovation to continue to push your business in the direction your customers want.
You are focusing too much on the future.
Be aware that too much focus on the future is detrimental to your present business. Staying grounded and not forgetting where you started will enable you to grow your brand asset. I’m sure Jeff Bezos has not forgotten working from his garage, and I’ll bet Elon Musk can recount his days running Zip2.
The Final Word
Avoiding these mistakes and heeding the advice we’re giving here will help you avoid the pitfalls emerging brands commonly fall into.
Enthusiasm is great, and you should never lose that spark. Tempering that optimism with practicality will give your brand the directional environment needed for success. Your brand is a living, breathing thing that must adapt to its world.
If you let it die on the vine before its time, all of your work will be for nothing.