8 Common Ecommerce Mistakes To Avoid (+Lessons)

The global e-commerce industry is thriving. 

It is projected to reach from $6 trillion in 2024 to $8 trillion by 2027. That’s almost 10.05% compound annual growth rate (CAGR). 

While e-commerce is thriving, not every business succeeds in this competitive landscape. According to Forbes, an astounding 90% of e-commerce brands fail within their first four months of operation.

So why do so many e-commerce start-ups fail?

We decided to dive in and find out the truth. 

As an ecommerce email marketing agency, we’ve been fortunate enough to work with some of the most successful e-commerce brands. Hence, while we could analyze e-commerce failures, we are also able to articulate what can be done to avoid those pitfalls and follow the success patterns. 

In this guide, you’ll discover the most common yet catastrophic ecommerce mistakes. Not only that, you’ll also learn the best-practices to build a thriving e-commerce business.

Let’s dive in.

Mistake #1: Choosing the Wrong E-commerce Platform

In the past few years, numerous e-commerce platforms have emerged in the market. In such a crowded and cluttered marketplace, it’s crucial to choose the right platform. 

First, let’s talk about a few red flags to avoid while choosing an e-commerce platform:

1. Lack of Essential Features: Low-budget platforms often limit customization, preventing you from creating unique, engaging online stores. This can negatively impact user experience and drive potential customers to competitors.
2. Limited Scalability: Some platforms offer great customization but struggle to handle increased traffic or product volume as your business grows.
3. Hidden Costs: Certain platforms lure entrepreneurs with promises of affordability but come with hidden fees and transaction charges that eat into profits.

That being said, how do you choose a good e-commerce platform that fits your needs? We’ve found a simple yet proven way to help you choose the right e-commerce platform. 

Choosing the Right E-commerce Platform: A Simple Methodology

1. Define your business model: Some platforms cater to B2B (Business to Business), while others target B2C (Business to Consumer) or C2C (Consumer to Consumer) e-commerce.
2. Evaluate your product type: Physical goods, services, and digital downloads often require different platform features.
3. Consider your technical expertise and resources: Some platforms are more user-friendly for non-technical users, while others offer more customization for those with coding skills.

Here is a quick rundown on popular e-commerce platforms with recommended usage:

(Source: Forbes Advisor)

Mistake #2: Poor Website Design and Navigation

“Design is not just what it looks like and feels like. Design is how it works.” – Steve Jobs

That quote captures the essence of a good design.

When it comes to e-commerce design, we’ve seen two extremes. 

Some e-commerce merchants often ignore design or user experience altogether while others get too finicky about look and feel. 

The truth is – both these approaches are far from effective. 

Remember, your website is the first point of contact between the customer and your brand. Subpar design and user experience can be an instant deal breaker. At the same time, instead of being obsessed with colors, typography, or look and feel, it’s far more important to focus on user experience. 

According to a study by Baymard Institute, 88% of online shoppers say they’ve abandoned a cart due to poor user experience.

One of the most common issues causing loss of conversions is a cluttered home page. A confusing homepage can deter even the most motivated customer from exploring further. 

When we talk about e-commerce user experience, it isn’t just about design but also about page load time. 

Another research from BigCommerce cites that a one-second delay in page load time has been shown to cause a 7 percent loss in conversion. That means, if an e-commerce store is earning $50,000 a day, that one-second delay will turn into almost $1 million in lost sales each year.

Case Study: Walmart’s Website Redesign 

In 2018, Walmart redesigned its website, focusing on a cleaner, more modern look with personalized elements. The new design featured larger product images, a more intuitive navigation system, and personalized recommendations based on location and purchase history. 

The result? A 35% increase in e-commerce sales in the following quarter. 

So how can you improve your e-commerce user experience?

Here are a few action steps:

• Focus on User Experience (UX): Research and understand your target market to organize website content intuitively.
• Design for Conversion: Incorporate white space, clear calls-to-action (CTAs), and high-quality images to guide users toward desired actions.
• Test and Optimize: I can’t emphasize this enough. A/B testing is an indispensable way to identify what works best for your e-commerce store. So test often and keep tweaking until you see better conversions. 

Mistake #3: Complicated Checkout Process

A cluttered checkout process is the graveyard of e-commerce. 

Many online businesses unknowingly create friction during checkout by prioritizing customer retention over user experience. 

They make account registration mandatory for new customers or incorporate too many form fields on the checkout page. 

Others contribute to a strenuous checkout through sluggish pages or offering limited payment options.

These are surefire ways to lose customers. 

The most successful e-commerce companies around the world invest a lot of time and money to optimize their checkout process. 

A case in point is Amazon’s one click checkout. 

Case Study: Amazon’s One-Click Ordering 

Amazon’s patented One-Click ordering system is a prime example of streamlining the checkout process. This feature allows customers to make purchases with a single click, using payment and shipping information stored in their account. This innovation has significantly contributed to Amazon’s success, with the company reporting that it has helped increase their conversion rates by up to 5%.

How to Streamline the Checkout Process:

• Minimize form fields
• Offer guest checkout
• Use a single-page checkout
• Offer multiple popular payment methods
• Provide clear payment information
• Have a clear return policy to encourage customers to complete their purchase
• Offer multiple shipping options and always display shipping costs upfront
• Optimize checkout pages and images for fast loading times

Mistake #4: Ignoring Mobile Optimization

Consider this: 45% of consumers shopping on smartphones and mobile devices make up 60% of all e-commerce sales (source: Statista, 2023).

Can you afford to ignore mobile users? 

The sad reality is – many e-commerce brands still ignore this aspect and lose a large chunk of potential shoppers. 

The importance of mobile optimization can be understood from the following case study from Adidas. 

Case Study: Adidas Mobile-First Approach 

Adidas recognized the importance of mobile optimization early on. In 2017, they launched a mobile-first website redesign, focusing on speed and user experience. The result was a 36% increase in mobile conversions and a significant boost in overall e-commerce revenue. The new design featured faster load times, simplified navigation, and mobile-specific features like easy-to-use filters and size guides.

The truth of the matter is – mobile optimization isn’t rocket science.

It’s all about making sure your online store layout, menus, and buttons for smaller screens, and prioritizing clear and concise content. Even if you are on a tight budget, you can pick a pre-designed e-commerce template that is mobile-optimized out of the box.

How to optimize e-commerce store for mobile users:

• Implement a responsive design that adapts to different screen sizes
• Use large, easy-to-tap buttons and menu items
• Minimize form fields for mobile users
• Implement mobile-specific features like swipe gestures and touch-friendly navigation
• Consider developing a mobile app for a more immersive experience
• Complement your mobile-optimized site with targeted mobile marketing efforts (SMS marketing, social media campaigns)

Ecommerce Mistake #5: Failure to Manage Returns

“A happy customer tells a friend; an unhappy customer tells the world.” – Unknown

Returns are inevitable in e-commerce. Yet, many store owners lack efficient systems to manage them. 

Poor return management can lead to unhappy customers, negative word-of-mouth, disrupted inventory management, and financial losses.

Top e-commerce brands like Zappos relentlessly focus on this area and win the hearts of their customers. 

Zappos offer a 365-day return window and free return shipping. While this may seem costly, it has actually boosted their sales and customer loyalty. According to Zappos, their best customers have the highest return rates, but they also spend the most money and are the most loyal.

Another interesting case study comes from clothing retailer ASOS. 

They went one step further. 

By implementing detailed size guides and 360-degree product videos, they saw a 50% reduction in returns. Isn’t that great?

How to Effectively Manage Returns

• Provide detailed product descriptions and accurate images to prevent misrepresentation
• Establish a customer-centric return/refund policy
• Offer a generous return window and, if possible, make it free
• Develop efficient return logistics, such as a self-service portal for customers to initiate returns

Managing returns effectively will boost customer confidence in your brand and encourage them to be more careful in their selections. It also means that they won’t disrupt inventory management when returns are necessary.

Mistake #6: Lack of Effective Marketing Strategies

Many online retailers prioritize immediate sales over long-term brand building, resulting in inconsistent marketing efforts. Others, particularly those hosted on popular platforms like Amazon, Shopify, and Alibaba, often rely too heavily on their host platform’s marketing efforts without understanding customer behavior.

Both these approaches can be detrimental to your e-commerce success. 

While we can’t talk in-depth about effective marketing strategies in this article, I’d like to share important marketing case studies straight from Dollar Shave Club. 

Dollar Shave Club launched in 2012 with a hilarious YouTube video that went viral, garnering 26 million views. This unconventional marketing approach helped them gain 12,000 customers within the first 48 hours of launching. By 2016, the company was acquired by Unilever for $1 billion. Their success demonstrates the power of creative, targeted marketing in e-commerce.

I am not asking you to copy the tactics adopted by Dollar Shave Club. Instead, I am inviting you to look at your e-commerce marketing in a more holistic way. 

Here are a few important ecommerce marketing tactics to begin with:

• Adopt a multi-channel marketing approach, including social media, content marketing, and email marketing
• Build your marketing expertise through webinars, workshops, or online courses
• Test and optimize different marketing tactics
• Consider bringing in external expertise for specific campaigns or ongoing support
• Adopt email marketing automation to scale revenue on auto-pilot 

Mistake #7: Neglecting Customer Service

E-commerce platforms are the modern-day self-service stores.

Customers can browse products, complete purchases, and track orders independently. Despite the self-service nature of e-commerce, customer service remains crucial. 

Neglecting it can lead to lost sales, reduced customer lifetime value, and increased costs through returns and chargebacks.

Want to find out what exceptional customer service looks like? Chewy’s customer service case study is worth its weight in gold. 

Real-World Example: Chewy’s Exceptional Customer Service 

Chewy, an online retailer of pet products, has built a reputation for outstanding customer service. They’re known for sending handwritten holiday cards to customers and even flowers when a customer’s pet passes away. This level of personalized service has contributed to their rapid growth, with the company reaching $7.15 billion in net sales in 2021, up from $3.53 billion in 2018.

A few ways you can enhance e-commerce customer service:

• Build a team of empathetic customer representatives
• Incorporate live chat and utilize chatbots for real-time assistance
• Minimize bureaucracy for quick issue resolution
• Enhance self-service options (comprehensive FAQs, return portals)
• Regularly gather and analyze customer feedback
• Deploy a Customer Relationship Management (CRM) tool for personalized services

Mistake #8: Ineffective Email Marketing

Email marketing remains one of the most effective strategies for e-commerce.

According to research by OptinMonster, over half of consumers have made a purchase motivated by a promotional email.

While there’s no denying the allure of social media marketing (offers real-time engagement and feedback), neglecting email marketing is a bad idea. With over four billion active users worldwide, email remains one of the most widely used communication channels globally.

Consider this: 56% of email users check their inboxes first thing in the morning, making email one of the best channels to reach them.

Simply put, email marketing is among the most effective marketing strategies for e-commerce.

Yet, ineffective email marketing tops the list of common ecommerce marketing mistakes. As an e-commerce entrepreneur, it is important for you to become familiar with the tremendous potential of email marketing. 

Which brings us to the incredible email marketing success story of Brooklinen. 

Brooklinen’s Email Marketing Success 

Brooklinen, a direct-to-consumer bedding company, attributes 30% of its revenue to email marketing. They use segmentation to send personalized product recommendations based on browsing history and past purchases. Their abandoned cart emails have a 60% open rate and a 15% conversion rate, significantly higher than industry averages.

Effective Tips for Email Marketing:

• Implement segmentation to craft personalized marketing emails
• Optimize subject lines for higher open rates
• Plan strategic email timing
• Implement email tracking for performance analysis
• Create abandoned cart email sequences
• Use personalized product recommendation emails based on browsing history
• Implement dynamic content to showcase relevant products or offers
• Develop post-purchase email sequences to encourage repeat business

Ready to elevate your email marketing strategy? InboxArmy has a team of expert email marketers who can help you craft targeted campaigns that deliver results. Get in touch to begin maximizing this time-tested and proven strategy.

Avoiding mistakes is a great starting point to build a thriving e-commerce business. At the same time, keeping abreast of emerging trends is a great way to stay ahead and build sustainable success. 

Let’s take a look at some key emerging trends in the e-commerce industry. 

Five Emerging E-commerce Trends to Watch 

E-commerce site owners stay alert to dodge common traps and track the latest trends shaping the future of commerce. Keeping an eye on these changes helps online businesses not only survive but also thrive in a tough digital market.

1. Augmented Reality to Visualize Products

Augmented reality stands out as the most exciting advance in product visualization. It lets potential customers “try” products —from clothes to furniture and even accessories. This creates a richer more hands-on shopping experience. This tech reduces guesswork in online shopping leading to happier customers and fewer returns.

2. Voice Commerce with AI-Powered Shopping Assistants

As voice-activated gadgets and smart speakers gain popularity, voice shopping is changing the online retail scene. AI-powered shopping helpers make it easy to look for items, buy stuff, and get tailored suggestions—all through simple spoken instructions. In this way, e-commerce brands can keep their edge by always growing in the voice shopping field.

3. Sustainability and Eco-Friendly Practices in E-Commerce

Many shoppers care about sustainability and eco-friendly practices when they decide where to buy. Companies that go green—like using recyclable packaging, cutting down on carbon emissions, and backing ethical sourcing—will pull in earth-conscious customers and help make the world better.

4. Social Commerce Integration

The Social media sites aren’t just for sharing stuff anymore—they’re turning into powerful online shopping channels. Social commerce, which blends shopping into social media, lets businesses connect with customers where they hang out online most. By using social media to sell , e-commerce stores can reach new audiences and boost how visible they are.

5. Blockchain to Boost Security and Transparency

Blockchain technology has a big impact on e-commerce by boosting security and transparency in transactions. With blockchain, online stores can give customers records of their purchases that can’t be changed, which builds trust and accountability. This technology also helps to fight fraud and keep sensitive data safe, making it a key tool for the future of online retail.

These trends will drive the future of e-commerce and keeping them in hindsight will keep you ahead of the curve.

Conclusion

While starting an online business has never been easier, succeeding in e-commerce requires careful planning, strategic decisions, and a keen awareness of the competitive landscape. 

By avoiding these eight common mistakes – choosing the wrong platform, poor website design, complicated checkout processes, ignoring mobile optimization, inefficient return management, lack of effective marketing strategies, neglecting customer service, and ineffective email marketing – you’ll be well-positioned to thrive in the competitive e-commerce landscape.

Remember, the key to success lies not just in avoiding mistakes, but in continuously learning, adapting, and improving your e-commerce strategy. 

I hope this article has given you the insights for your e-commerce venture to overcome common pitfalls and achieve sustainable success.

Three cheers to the next e-commerce success story – YOU!

Frequently Asked Questions

1. What are the most common ecommerce mistakes?

The most common ecommerce mistakes include choosing the wrong platform, poor site performance, complicated checkout processes, ignoring mobile optimization, inefficient return policies, poor customer service, and ineffective email marketing. Each ecommerce mistake can lead to a frustrating user experience, security issues, or technical problems that drive customers away. To avoid these pitfalls, ensure your site is user-friendly, secure, and technically sound.

2. How can I reduce shopping cart abandonment?

Optimizing the checkout process is the most effective way to reduce or deter cart abandonment. 

To reduce cart abandonment:

1. Optimize the checkout process with an appealing UX
2. Provide guest checkout options
3. Accept multiple popular payment methods
4. Display shipping details clearly
5. Show trust badges and security seals
6. Provide clear return and refund policies
7. Implement abandoned cart email reminders

Don’t give up on customers who abandon their cart, either. Email them reminders of their carts and, if possible, offer them incentives such as discounts and free shipping to encourage them to complete the purchase.

3. What are the best practices for e-commerce website design?

The best practices for ecommerce website design run a wide gamut, but the most essential is the UX.

Ensure the site is responsive, mobile-friendly, and loads quickly. It should also be easy to navigate, so use breadcrumbs and provide users with a search function, a range of filters, and product comparison. 

Other best practices include: 

• Ensuring responsive, mobile-friendly design
• Fast loading times
• Easy navigation with breadcrumbs and search functions
• Streamlined checkout process
• Multiple payment options
• Regular site and inventory updates
• Transparent, customer-centric return policies

4. How do I improve customer satisfaction in e-commerce?

Here are the 9 things you can do to improve customer satisfaction:

1. Make your website user-friendly and have fast-loading web content
2. Provide a diverse, regularly updated inventory in your e-commerce sites
3. Ensure reliable and timely product delivery to attract customers
4. Incorporate order tracking
5. Establish clear, customer-friendly return policies
6. Offer multiple customer support channels
7. Personalize marketing communications
8. Reward repeat customers for more sales
9. Gather and implement customer feedback

When you follow these guidelines, you can build a sustainable and successful e-commerce business that stands out in the competitive online marketplace.