Six reasons why e-commerce sites fail

The World Wide Web is exploding. Everyday thousands of new individuals are using the Internet to search out and purchase products. However, 95 percent of all Internet sites lose money. With so many customers online, why are the majority of Web sites losing money? Outlined below are six reasons:

1. Lack of time commitment:

This is the foremost reason Web sites fail. The entrepreneur is not truly committed to succeeding on the Internet. Success is expected within days, not months or years. This expectation is unrealistic, and interferes with the commitment needed to grow. The solution to this problem is to give your Web site the time necessary to mature.

2. Inaccurate marketing plan:

Internet marketing requires a different mindset from traditional brick-and-mortar marketing. This requires the creation of a detailed e-commerce marketing plan. Many entrepreneurs need to understand the different types of marketing strategies online. The quickest and least expensive way to learn cutting-edge Internet marketing strategies is to read the newsletters of the Internet called “e-zines.” E-zines contain some of the best marketing strategies on the Internet. You can locate some of the best sites by conducting a search engine query using the word “e-zine.”

3. Dysfunctional sites:

This type of site is plagued with technical problems and design flaws that can drive customers away from your site. Design flaws include illogical site navigation, poor combination of colors used in site creation, and improper use of text-size. Technical problems include slow-loading pages and/or complete site crashes.

To ensure your site is free from design flaws, get as much feedback on your site as possible. You could also hire a Web consulting firm to review your site for possible design changes. Technical problems can be solved by including fast-loading graphics and high-speed servers.

4. Misunderstanding the purpose of the Internet:

Many entrepreneurs believe the sole purpose of the Internet is to make immediate sales. While that is the goal, in reality, the Internet is much more effective for building a long-term, loyal customer base. This can be accomplished by adding value to your site. The best way to do this is to provide information and tips on how to use your products and services. You can achieve this by creating a special information page on your site or with a weekly educational e-zine.

5. Not keeping up with technology:

Internet technology is changing at light-speed. Internet entrepreneurs must be willing to keep up to date with ever-changing technology. The amount of information on the Internet can be overwhelming. The best way to overcome information overload is to continuously study a few high-quality sites and subscribe to select e-zines.

6. Inaccurate guidance:

Seeking professional guidance is always a wise decision. Since the Web is so new, many people believe they can read a couple of e-zines and become an expert. In some cases this is true, however, for the majority this is simply not the case. If you don’t have the time or inclination to learn about the Internet, consult a professional that truly understands it.

Andrew LaPointe is President and CEO of Your Online He is also the author of the Internet course “Your Online–A Step-by-Step Guide to Building an Online Fortune.” His Web site ( is dedicated to assisting Web entrepreneurs in generating an income from the Internet. BN