Why Ecommerce Businesses are Being Unsuccessful in Bangladesh: Part 1
Starting of an ecommerce business can be fast, relatively easier, and less expensive but with an average 80-percent failure rate, creating a successful ecommerce business is more challenging than most entrepreneur’s imagination. Although, the establishment of an ecommerce business might seem easy and a good idea for starting as a fresher businessman but it’s not so easy to attract new customers and sell them your products even for the existing giants of the industry. A statistics showed that 80% of entrepreneurs starting an ecommerce business just with an ecommerce site fail within the first 18 months. A very obvious question comes-What could be the possible reasons?
Well, the reasons for this colossal failure rate are-
At the very basic level, cash flow shows the movement of money in and out of a business especially as affecting liquidity. Most of the time people jump into ecommerce startups as a beginner and gets into trouble because they don’t have enough cash to keep the operation running. But most importantly they fail to track the operation system down which cause the most loss in ecommerce business. An example of this is when an entrepreneur invests all his cash in inventory and there is no money for marketing or operation and so on, it’s certain sales won’t rise and the business will stay stagnant.
To avoid these problems, business people have to divide all the area of expenses wisely, so that everything is not due at once.
In most cases, i.e. Order management system, customer support system, dispatch system, order tracking system, etc are applications that can streamline the experience of the customer across the buying journey. But if these systems start working scattered rather inclusive, could ruin customer experience thus can fail the business. So the most rational solution to this problem is to integrate an ERP system. So that all the data can be visible right before the business owner’s eyes.
A well-integrated, properly setup and correctly implemented ERP solution can provide tremendous benefits to any company no matter their size or scope.
The ability to instantly run status reports with no manual data entry in spreadsheets can provide companies with invaluable information on business operations and allow for more timely reactions to the changing business environments. Hence, ecommerce companies that have been deemed successful with low, average, above average or high-profit levels in relation to their industry frequently attribute their success, at least partially, to their ERP solution. Progressive smart ecommerce business uses its investment strategy focused on the system that concerns about both the retention strategy and creation of the new markets. Thus, the company achieves sustainable growth and constant customer retention in the competitive market.In the fast changing world of business, an advanced, modern ERP system is no longer just a key to business success, but a core element of survival. If your ecommerce has difficulty running reports in real-time, if your employees waste time re-entering the same data into multiple systems, or key business metrics are calculated manually on spreadsheets, your firm could benefit from a modern ERP package.
Progressive smart ecommerce business uses its investment strategy focused on the system that concerns about both the retention strategy and creation of the new market to achieve sustainable growth and constant customer retention in the competitive market.
Brain Station 23 has been the pioneer in developing ecommerce sites and mobile apps on various ecommerce platforms for the reputed ecommerce companies in Bangladesh. If you look into the Top e-commerce Sites in Bangladesh According to Alexa you’ll be able to see the top three out of those ten sites were developed by us. And after serving the ecommerce industry both at home and abroad, we found out that a standalone website or mobile app is not good enough for your ecommerce business to be successful or sustain in this competitive online marketplace.
In the fast changing world of business, an advanced, modern ERP system is no longer just a key to business success, but a core element of survival.
In my next article, i’ll try to add some more deep dive research shedding some more lights on the reasons that lagging our local ecommerce businesses being a successful profitable industry in Bangladesh.
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