• Gentech Marketing

90% of eCommerce Start-ups Fail Within the First 120 Days

The vast majority of e-commerce start-ups are set to fail within their first 120 days of operation, new research has revealed.

A survey of 1,253 owners of failed start-ups in the US also reveals the top ten reasons why e-commerce start-up businesses are failing.

According to a number of sources – including Forbes and Huff Post – 90% of e-commerce start-up businesses fail within the first 120 days. The two main reasons for failure are poor online marketing performance coupled with an overall lack of search engine visibility.

Of those companies who were surveyed, a staggering 37% said that their failure could be attributed to an inability to compete or deliver online marketing, with 35% saying a lack of online visibility was the main factor.

Further research found that the same proportion of respondents (35%) felt failure was down to them being too small to compete or there being no market for their products/ services.

Completing the top five reasons for failure, was price and costing issues, with 29% of failed startup owners claiming this was the reason why they folded. When further quizzed on the reasons why their online startup business failed, 23% said that it was due to being outcompeted, whilst 19% blamed retail giants such as Amazon for dominating a large share of the consumer online retail market.