Did you know that a whopping 90% of eCommerce businesses fail within the first 120 days?

A scary number, but it’s a reality check. 

According to a study by Forbes, Huffington Post, and Marketing Signals, most online stores don’t make it past the four-month mark. 

The reason? 

Many stumble into pitfalls that could have been avoided. Whether it’s a confusing website, weak marketing efforts, or neglecting customer needs, these mistakes can quickly derail a promising business.

At doola, we’ve heard countless stories from entrepreneurs from the eCommerce industry, who’ve faced these exact challenges and learned the hard way. 

They’ve shared the late-night frustrations, the “if only I had known” moments, and the hard-won lessons that came too late to save their first (or even second) venture. 

These are lessons learned too late, but they don’t have to be for you. You can learn sooner. 

These blunders, while common, are entirely preventable.

By learning from the experiences of others — and with a little help from partners who understand the unique challenges of eCommerce — you can avoid these missteps and steer your business towards success.

In this guide, we’ll break down the ten most costly mistakes that eCommerce owners make, explain how they can hurt your business, and — most importantly — show you how to avoid them. 

Let’s get started.

❌ Mistake #1 Ignoring Customer Experience (CX)

One of the biggest mistakes in eCommerce is treating customers as mere transactions rather than building relationships. Your website might be aesthetically pleasing, but if it’s hard to navigate, slow to load, or confusing, customers will bounce — literally. 

And a high bounce rate equals lost sales. Neglecting the customer experience can lead to poor reviews, low conversion rates, and a declining customer base.

The Impact

Ignoring CX can erode trust and deter repeat business. It’s a domino effect — unhappy customers share their frustrations, leading to negative word-of-mouth and, eventually, a tarnished brand reputation.

How to Avoid It

Prioritize user experience (UX) by investing in a responsive, fast, and easy-to-navigate website. Offer seamless checkout processes, and multiple payment options, and ensure your site is mobile-friendly. 

Regularly gather customer feedback and make iterative improvements to enhance their experience.

Worth Your Time: How to Start an E-commerce Business

❌ Mistake #2 Failing to Define and Target the Right Audience

Casting a wide net might seem like a good idea, but without a clearly defined target audience, your marketing efforts could be as effective as throwing darts blindfolded. 

Misunderstanding your audience — or worse, not understanding them at all —leads to wasted resources and missed opportunities.

The Impact

Without a targeted approach, your message gets lost in the noise. You end up attracting the wrong crowd, which results in low conversion rates and poor ROI on your marketing spend.

How to Avoid It

Create detailed buyer personas to understand your ideal customer’s needs, pain points, and behaviors. Tailor your marketing strategies to speak directly to this audience, using data-driven insights to refine your approach. 

Remember, it’s better to be a big fish in a small pond than a small fish in the ocean.

❌ Mistake #3 Underestimating the Importance of SEO

If your website isn’t optimized for search engines, you’re essentially running a business in the dark. SEO isn’t just about keywords — it’s about making your site discoverable by search engines, which directly affects your traffic, leads, and sales.

The Impact

Poor SEO means less visibility, which translates to fewer site visitors. Without organic traffic, you’re left relying on paid ads, which can quickly eat into your profit margins.

How to Avoid It

Invest in a solid SEO strategy. Focus on keyword research, on-page optimization, and building high-quality backlinks. Keep up with Google’s algorithm changes and optimize your content accordingly. 

Don’t forget about technical SEO — ensure your site is fast, secure, and mobile-friendly.

❌ Mistake #4 Neglecting Mobile Optimization

With over half of all web traffic coming from mobile devices, ignoring mobile optimization is a recipe for disaster. 

A site that isn’t mobile-friendly is frustrating for users and can lead to a significant loss of potential customers.

The Impact

If your site doesn’t perform well on mobile, you’ll see higher bounce rates and lower conversion rates. Plus, Google’s mobile-first indexing means a non-optimized site could plummet in search rankings.

How to Avoid It

Adopt a mobile-first design approach. Use responsive design techniques to ensure your site adapts to different screen sizes. 

Additionally, test your website across various devices and browsers, and prioritize loading speed and ease of navigation on mobile.

❌ Mistake #5 Overlooking the Power of Social Proof

Social proof — such as reviews, testimonials, and user-generated content — is a powerful tool for building trust and credibility. 

If you’re not leveraging it, you’re missing out on one of the most effective ways to convert browsers into buyers.

The Impact

Without social proof, potential customers might be hesitant to purchase, especially if they’re unfamiliar with your brand. 

Plus, a lack of trust can lead to abandoned carts and high customer acquisition costs.

How to Avoid It

Encourage satisfied customers to leave reviews and share their experiences. Feature testimonials prominently on your site and consider integrating social media feeds to showcase real-time customer interactions. 

Reward customers who share their purchases on social media with discounts or other incentives.

❌ Mistake #6 Poor Inventory Management

Mismanaging inventory — whether it’s overstocking, understocking, or failing to track stock levels accurately — can lead to lost sales and dissatisfied customers. 

Stockouts frustrate customers and overstock ties up capital that could be better spent elsewhere.

The Impact

Poor inventory management can result in lost revenue, increased storage costs, and unhappy customers who may never return. 

Additionally, overstocked items often require deep discounts to move, which erodes profit margins.

How to Avoid It

Implement an inventory management system that tracks stock levels in real-time. Use demand forecasting to predict trends and adjust inventory accordingly. 

Keep communication channels open with suppliers to ensure timely restocking and avoid costly delays.

❌ Mistake #7 Skimping on Customer Service

In the digital age, where customers expect instant gratification, subpar customer service can be a deal-breaker. Ignoring customer inquiries, providing slow responses, or failing to resolve issues promptly can turn even the most loyal customers away.

The Impact

Poor customer service leads to negative reviews, high churn rates, and a damaged brand reputation. In an era where social media amplifies every complaint, a single bad experience can have far-reaching consequences.

How to Avoid It

Invest in a robust customer service strategy. Provide multiple channels for customers to reach you, such as live chat, email, and phone support. 

Train your support team to handle inquiries efficiently and empathetically. 

Consider implementing an AI-powered chatbot for instant responses to common queries and ensure you have a clear process for resolving customer issues.

❌ Mistake #8 Neglecting Post-Purchase Engagement

Many eCommerce businesses make the mistake of thinking the relationship ends after the purchase is made. 

However, neglecting post-purchase engagement is like leaving money on the table. You’re missing out on opportunities to build loyalty and encourage repeat purchases.

The Impact

Without post-purchase engagement, you lose the chance to create brand advocates who can drive word-of-mouth referrals. 

Repeat customers are often more valuable than new ones, and neglecting them can stunt your business’s growth.

How to Avoid It

Implement a post-purchase follow-up strategy. Send personalized thank-you emails, request feedback, and offer incentives for future purchases. 

Consider implementing a loyalty program that rewards repeat customers with exclusive discounts or early access to new products.

❌ Mistake #9 Inadequate Marketing and Advertising Strategy

Many eCommerce businesses mistakenly believe that simply setting up a website is enough to attract customers — like the idea that “if you build it, they will come.” Unfortunately, that’s not how online marketing works. 

If you don’t have a strong marketing strategy, your business will likely go unnoticed, like a hidden gem buried deep in the internet.

Without a clear plan to promote your business, you’ll struggle with low brand visibility, minimal website traffic, and ultimately, fewer sales.

It’s similar to opening a physical store in a remote location and expecting customers to find you on their own. To succeed, you need to actively draw people to your online store through well-planned marketing efforts.

The Impact

 A weak marketing strategy means poor brand visibility, low traffic, and ultimately, fewer sales. It’s like opening a store in the middle of nowhere and expecting customers to magically appear.

How to Avoid It

Develop a comprehensive marketing strategy that includes SEO, content marketing, social media, email marketing with newsletters, and paid advertising. 

Use analytics to track your campaigns’ performance and adjust your strategies based on data-driven insights. 

Don’t be afraid to experiment with different channels and tactics to find what works best for your audience.

Recommended read: How to Grow Your Business with Instagram

❌ Mistake #10 Overcomplicating the Checkout Process

A complicated, lengthy, or confusing checkout process is one of the biggest reasons for cart abandonment. 

Every extra step, form field, or unexpected cost during checkout increases the likelihood that a customer will abandon their purchase.

The Impact

Cart abandonment rates can skyrocket if the checkout process is cumbersome, leading to significant lost revenue. Once a customer leaves, the chances of them returning to complete the purchase are slim.

How to Avoid It

Simplify the checkout process as much as possible. Offer guest checkout options, minimize the number of form fields, and clearly display all costs upfront.

Implement one-click payment options like PayPal or Apple Pay and ensure your checkout page is secure and mobile-friendly. 

Consider using retargeting ads to bring back customers who abandoned their carts.

How doola Can Help You Avoid Costly Mistakes and Grow Your eCommerce Business

Navigating the world of eCommerce isn’t for the faint of heart. The road is filled with challenges and tiny intricacies, and it’s easy to stumble along the way.

But those stumbles don’t have to spell disaster. By recognizing the common pitfalls and making informed decisions, you can set your business on the path to long-term success.

And when it comes to those nitty-gritty details — like managing finances and dealing with taxes — it’s easy to feel overwhelmed. This is where doola can make a real difference for your business. 

We know that running an eCommerce store means wearing a lot of hats, and sometimes the financial side of things can start to feel like a heavy burden.

We are here to lighten that load. We specialize in helping eCommerce owners like you manage the financial aspects of their business, so you can focus on growing your store and delighting your customers. 

Whether it’s keeping your books in order, handling tax filings, or making sure you’re always compliant with the latest regulations, we’ve got you covered. 

In addition, if you are ready to form your LLC, we’ll make it all simple by handling all the paperwork and helping you set up a business bank account  so you’re ready to hit the ground running.

And what sets us apart? 

We believe in transparency and simplicity. With doola, there are no hidden fees or surprises — just straightforward support that helps you plan with confidence. 

Plus, with our proven track record of helping entrepreneurs around the globe, you can trust that we’re here to help you achieve your business goals.

So, as you work to avoid the mistakes that trip up so many eCommerce businesses, remember that you don’t have to go it alone. doola is here to help you turn those potential roadblocks into stepping stones on your path to success. 

Ready to take the next step? 

Book a free consultation with us today for long-term growth and success.