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5 reasons why entrepreneurs lose money in e-commerce

Even with the advancement of e-commerce platforms and the increase in the number of connected consumers, many Brazilian entrepreneurs continue to face difficulties in making a profit in the digital environment. In 2023, national e-commerce R$ 196,1 billions, according to the Ministry of Development, Industry, Commerce and Services (MDIC). Still, the mortality rate for digital businesses remains high, with an estimated 70% of online stores failing to survive their second year of operation.

According to experts, many failures could be avoided with quality information and strategic organization. “Selling online isn’t just about creating a virtual store and expecting results. It requires planning, technical knowledge, and attention to the customer experience. Many common mistakes end up compromising the entire operation,” he explains. Paulo Silva, CEO of Filtrify, the market’s first platform focused on intelligence for affiliates in digital marketing.

Below, the expert lists the five most common mistakes and provides guidance on how to avoid them:

1. Lack of financial planning: Separating personal and business accounts and maintaining a structured cash flow remains a challenge for many small businesses. “Without clear financial planning, entrepreneurs get lost between expenses and revenue, and this affects important strategic decisions, such as marketing investments or inventory replenishment,” he warns. Paul. Having a well-defined business plan, with realistic goals and market analysis, is essential for survival in e-commerce.

2. Poorly structured logistics: High shipping costs, long delivery times, and delivery issues are major contributors to abandoned carts, which reach an 82% rate in Brazil, according to E-Commerce Radar. “Consumers want convenience and speed. If shipping is expensive or delivery takes too long, they simply abandon the purchase,” explains the expert. Investing in efficient logistics partnerships and tracking systems can make all the difference.

3. Bad customer experience: Slow, poorly mobile-friendly websites with incomplete descriptions and few payment options hinder the consumer journey. “Today, more than half of purchases are made via smartphone. If the website isn’t responsive or requires too many steps to checkout, the chance of conversion plummets,” he notes. Paul. The tip is to simplify the purchasing process and ensure that the consumer finds what they need easily.

4. Disqualified traffic: Attracting more visitors to your website doesn’t mean more sales. “Many entrepreneurs invest in traffic, but don’t analyze whether they’re reaching the right audience. This leads to wasted money and a low conversion rate,” says the CEO of Filtrify. The ideal is to work with data and segmentation to reach consumers who are truly interested in what is being offered.

5. Lack of effective service: The lack of fast, personalized service, whether pre- or post-sale, drives customers away and damages the brand’s reputation. “Consumers want answers. Having clear contact channels and efficient support directly influences loyalty and the success of the online store,” he comments. Paul.

Despite the challenges, the expert points out that there are ways to reverse this scenario and improve results in e-commerce. “The good news is that all of these issues can be addressed with organization and access to reliable information. Educational content, support platforms, and management tools can help digital entrepreneurs correct their course and achieve more sustainable results,” he concludes. Paulo Silva.

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