As many as 90% of new online brands fail within 4 months of having set up online
This post was written by Hannah Connor, Online Marketing and Social Media at Vouchercloud
When setting up an online business there is a wall of competition before you. It takes a significant amount of work and determination to succeed online and of course a healthy budget to work with. Online marketing efforts are incredibly beneficial for any brand looking to stand out in the sea of online businesses already established and trading successfully online.
Success is certainly not achieved overnight. However many brands who are thriving and attracting a healthy flow of regular traffic to their website might still find their sales are poor despite efforts to increase their online presence.
Recent studies indicate that average checkout abandonment rate is significantly high at 67.4%. This figure goes to show many brands (both the highly established and the new start up) are making big mistakes which are costing them precious sales and quite possibly even lead to eventual business failure. It is believed that as many as 90% of new online brands fail within 4 months of having set up online, this proves just how difficult it now is to claim a slice of e-commerce success.
Why do many brands fail to attract customers? Why is the checkout abandonment rate so high despite the rapid growth of e-commerce? Of course a percentage of consumers will always be accounted as window shoppers, merely browsing for potential future purchases, however the remaining percentage of consumers who abandon their cart have come to expect more from e-commerce retailers.
Consumers now inspect reviews, compare product prices, assess shipping fees, and expect information and high levels of customer service. If any of these aspects fail to impress, they simply navigate elsewhere to a competitor which offers them what they want. Online business retailers can’t afford to make any errors as the not so loyal online consumer has a growing amount of choice laid before them.
Vouchercloud has developed this infographic to highlight just how consumers are interacting with e-commerce stores indicating how quickly and easily consumers can become frustrated and abandon their carts: