The U.S. Bureau of Labor Statistics reports that about sixty percent of start-ups survive up to three years in the competitive world of business, and only thirty-five percent will make it past their 10th year. When it comes to start-up internet businesses, the failure rate is said to be even higher, with a few studies reporting failure rates as high as ninety percent. Some internet-based businesses even fail as quickly as within the first 120 days of operation. The internet is a booming business, and every quarter it is estimated that $43 million is spent in online shopping alone.
So why are so many ecommerce businesses not making the cut? The following infographic from Chargeback.com illustrates a few key reasons why most ecommerce businesses fail, outlining everything from poor marketing strategies and lack of direction, to mistakes in website design and lazy customer service. It also provides a handful of essential tips that new business owners can use to ensure sustainable start-up success.
[Click image for full size version]