Top 5 Reasons Why Most Online Businesses Fail

Entrepreneurs are bold, determined and highly competitive people. Anybody would expect success in every sector these people appear. However, a large percentage of online businesses fail within a few months of operation. If you are starting a business or wish to start, you probably want to be among the few that succeed.

Examining the pitfalls that most online businesses get stuck will help you understand why it takes more than an educated and determined CEO to run and operate an online business. Although products and services can still be an issue, the following are the major reasons why most online businesses fail shortly after startup.

1. Lack of SEO-optimized websites

Search engine optimization (SEO) refers to the different ways through which websites are augmented so that they rank better in search engines like Google, Bing, and Yahoo. It plays a vital role in modern websites. Websites are optimized through internal and external links, content rich in keywords and text-like title tags.

Most business owners do not even know anything about SEO. Considering how vital SEO is, this could cost them a fortune. Without SEO strategies, it will be hard to rank in search results. This will work to the benefit of your competitors, and your business will eventually fall. It is advisable to consult an SEO firm like Click Intelligence for help.

2. Lack of enough important skills and concepts

Even with a brick-and-mortar location, selling online is far different from selling in a physical retail store. You need to learn and master a few online skills if you intend to succeed. Such skills may include testing your website and mastering various SEO strategies. Many people do not take time to master such skills, and therefore they end up failing terribly.

  • Writing website codes using HTML or CSS.
  • Evaluating Conversion Rate Optimization (CRO).

3. Lack of basic business knowledge

There are several platforms where you can sell products from your website, with few hours’ setups. However, if you do not have the basic business skills, you might end up failing terribly. Most online business owners do not know how to calculate operational costs. This makes them run out of money, and the business will eventually fall.

  • Record keeping
  • Keeping track of the profit margin.
  • Tracking sales costs

4. Lack of business goals

Several online businesses are failing for lack of well-defined goals. Without goals, you won’t know what you are working on. Additionally, there won’t be well-established directions to follow. Yes, the main aim is to make more money by selling your products or services, but you should have more specific expectations. Lack of such goals is one of the failure reasons.

5. Heavy competition

Sometimes the simplest answer can explain a phenomenon in a better way. Competition contributes to almost 30% of online business failures. As mentioned earlier, anyone can do online business. Therefore, there are thousands of online businesses selling products or services similar to yours. This makes it quite difficult to stand out in the market.


Technological advancements have made it easy for most people to open online businesses. However, maintaining a business is not a walk in the park. It requires a lot of efforts and regular modifications. Failure to master the basics of online businesses has led to the closure of several online stores. Why not master the skills first?

All opinions expressed on USDR are those of the author and not necessarily those of US Daily Review.