Here are 2020 – 2021 stats on E-Commerce stores. Based on Shopify Stores but can be generally reflective of the other platforms as well.
95% of new E-Commerce stores eventually fail. They lack the ability to:
- Drive sales (Drive Traffic, High Bounce Rate, Low Conversion Rates, etc.)
- Keep customers (Bad Product Offering, Bad Pricing / Value, Poorly Designed Site, etc.)
- Provide a good service
The top ten reasons why E-Commerce startups end in failure:
- Poor online marketing – 37%
- Lack of online search visibility – 35%
- Little to no market for their products or services – 35%
- Running out of cash – 32%
- Price and costing issues – 29%
- Got outcompeted – 23%
- Retail giants dominating a large share of the market – 19%
- Lack customer service – 16%
- Poor team around them – 14%
- Product mistiming – 11%
Typical traits of successful E-Commerce stores:
- Customer experience above everything
- Brand appeal
- No unnecessary extra costs
- Social proof (testimonials and reviews)
- Accurate product descriptions and specifications
- Top-notch customer service
- Quicker website load speeds
- Abandoned cart recovery
Average conversion rate on non-promotional events is 3-5%.
According to Shopify statistics conversion rates for sales channels are:
- 4.29% for email campaigns
- 3.04% for organic search
- 2.93% direct
- 1.81% social media referrals
- Facebook is unsurprisingly number 1 as a source of social traffic and sales. Almost ⅓ of all social media visits to Shopify stores come from Facebook.
- Facebook has the highest conversion rate among all social media e-commerce traffic – at 1.85%. 85% of orders originating from social media from Facebook traffic.
- On average, email campaigns and general SEO efforts geared for general search engine (Google, Bing, etc.) queries produce the highest conversion rates. Small-budget paid ad campaigns did not fair well.