There are many reasons why e-commerce businesses fail.
But they aren’t what you think they are.
Here’s why you think E-Commerce businesses fail.
Most failed e-commerce brands will blame the failure of the business on external factors like:
- Competition
- Cost pressures
- Increased Advertising costs
- Changes in social media platforms
Sure, some of these are valid reasons. We all lived through the boom and bust of the last few years.
But they are not the main reasons.
The real reason why so many Shopify stores never reach escape velocity is because of internal rather than external factors.
Here’s why most E-Commerce Businesses Really Fail
Lack of Commitment
The first reason they fail is the founders don’t go all in and commit.
I don’t mean they need to quit their jobs and “burn the ships” type of commitment.
I mean, many founders hedge their bets waiting for something to happen so they know it’s going to be a “sure thing.”
The thing is, “sure things” don’t just happen. You build “sure things” on the back of 100% commitment to a business.
When things get tough and don’t go as planned, some founders aren’t willing to put in the hard work needed to succeed.
If you’re not prepared to grind it out during the challenging moments, your chances of success dramatically decrease.
If you are not 100% all in, then maybe this isn’t the opportunity for you.
Not investing in themselves.
The second reason success eludes many e-commerce brands is most people don’t invest in their entrepreneurial skill set.
They think all they need to do is build a Shopify website, throw up some generic copy, insert a few drop-ship products, and the money will roll in.
Sorry, but you’ve only begun.
At a minimum, you need to develop your
- Marketing skills
- Operational skills
- Product sourcing skills
- Financial management skills
- and most importantly, Personal Mindset skills
otherwise, you’ll never succeed.
And there are always excuses why they don’t take the time to develop their skills.
I’ve been guilty of many myself.
“I’m not a details person” is not a reason to not be close to your metrics and numbers (I was guilty of this)
“I’m not an IT person” is not a reason not to expand your knowledge and competency in your technology stack.
“I don’t know how to run Google Ads” is not a reason not to learn how to hold your paid ads people accountable for results.
Your e-commerce business won’t succeed if you don’t invest in your education and mindset.
The Key Insight
Skills and mindset are critical to the success of your e-commerce business. They give you the competency and fortitude to deal with the challenges this business will throw at you.
You simply cannot outsource this to others.
So, if you want to build a business that lets you live an autonomous life on your own terms, think about your missing skills.
Think about improving your mind, and you’ll significantly improve your odds of being in the 5% of e-commerce businesses that succeed.
