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 to make a profit in the digital environment.In 2023, the national e-commerce moved R$ 196.1 billions, according to the Ministry of Development, Industry, Trade and Services (MDIC)still, the digital business death rate remains high, it is estimated that 70% of virtual stores do not survive the second year of operation.

In the view of experts, much of the failures could be avoided with quality information and strategic organization.“Selling online is not just about creating a virtual store and expecting results. It takes 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, first platform in the market focused on intelligence for affiliates in digital marketing.

The expert then lists the five most frequent mistakes and guides you on how to avoid them:

1. Lack of financial planning: separating personal from business accounts and having a structured cash flow is still a challenge for many small businesses. “Without clear financial planning, the entrepreneur gets lost between expenses and revenues, and this affects important strategic decisions, such as marketing investment or stock 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 freight costs, long terms and delivery problems are largely responsible for abandoned carts, which in Brazil reach a rate of 82%, according to E-Commerce Radar.“The consumer wants practicality and speed. If the freight is expensive or the delivery takes too long, he simply gives up on the purchase of”, explains the expert. Investing in efficient logistics partnerships and tracking systems can make all the difference.

3. Bad customer experience: slow websites, poorly adapted to mobile, with incomplete descriptions and few payment options hinder the consumer journey.“Today, more than half of purchases are made via smartphone.If the site is not responsive or requires many steps until payment, the chance of conversion plummets”, he points out Paulthe tip is to simplify the buying process and ensure that the consumer finds what they need easily.

4. Disqualified traffic: attracting a lot of visits to the site does not mean selling more.“Many entrepreneurs invest in traffic, but do not analyze whether they are reaching the right audience.This generates waste of money and low conversion rate”, says the CEO of Filtrify. Ideally, work with data and segmentation to reach consumers who are really interested in what is being offered.

5. Lack of effective care: the absence of a fast and humanized service, either in the pre or after-sales, drives away customers and damages the reputation of the brand.“O consumer wants answers. Having clear contact channels and efficient support directly influences the loyalty and success of the virtual store”, he comments Paul.

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