8 Reasons Most Shopify Stores Fail

August 12, 2019 0 Comments
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A lot of people are making millions with e-commerce stores, but that doesn’t mean e-commerce success comes easy. Most people that launch an online store will fail. Below are 8 common mistakes people make when launching an online store. If you can avoid these errors you can increase your odds of building a successful e-commerce store.

Unrealistic expectations/Get rich quick mindset

Many people open online stores dreaming about quitting their jobs to take trips, purchase mansions and drive supercars. When that stuff doesn’t come overnight they assume that e-commerce doesn’t work.

You have a better chance of having success with your Shopify store if you look at it as a long term venture rather than something that can change your life overnight.

That means having a plan before you launch your store. You should know what you plan to sell. You should know what you plan to charge. You should know who your target market is. You should know your return policy. You should have an advertising budget. You should have logo and design ideas. You should know what you will charge for shipping. You should have performance goals.

Remember an online store is not a money tree or an automatic teller machine (ATM), it is a business that could take months or years to be profitable. If you are not prepared for the wait don’t even bother launching an online store.

Pricing too low

Many people seem scared to price their items where they should be priced. People buy items for $10 and sell them for $15. You cannot make money like that.

Even if you work alone, your store has to pay for advertising, it will have per transaction fees and the cost of the items you sell. You also have to take into account the time you spend on your store.

In my experience your item should be priced 2 to 3 times higher than it costs you. If an item cost you $10 it should be sold for $20 to $30 dollars.

When you are setting your pricing, it is important to see what your competition is charging. If they are charging less than you, don’t assume you have to charge the same exact price that they charge.

People don’t always go with the lowest price. If your store looks more trustworthy or has been in business longer than your competitor, people will pay the extra money for the comfort they get purchasing from your store.

Not building an email list

Most people that visit your store will never comeback. You need to get their email address before they leave so you can contact them in the future. Having a little opt-in box at the bottom of your store is not enough.

You need a popup that offers people a discount in exchange for their email address. You could also use a spin for a discount app that is popular in the Shopify app store. Those seem to get emails at a higher rate than a regular popups.

Focusing on free traffic instead of paid traffic

Their are dozens of ways to promote your online store without spending money, but none of those methods will bring you the traffic you desire. If you think spamming forums, Reddit and Instagram comments will help your store, you are wrong.

You need to understand paid traffic if you want your store to be successful. Facebook ads, Google Adwords, Pinterest ads and Snapchat ads are the ad networks with the highest volumes of traffic and the highest quality of traffic.

I suggest you spend time studying each of the advertising platforms above so you can get a better understanding of their features, rules and targeting options.

Personally I go to Facebook ads first when I need to promote something. They have nearly 1.5 billions users so I know whatever I am selling, I can find my customer on Facebook.

Make sure you have a monthly advertising budget for your store and stick to it. Start small and raise the budget as your store starts to see more sales.

Giving up too soon

Shopify has a 14 day free trial. Would you believe that people actually open stores and think they can make those stores successful in 14 days. Basically they are giving themselves 14 days to be successful before they quit.

I don’t think you should put a time limit on your stores success. The only reason you should shut you store is if it is performing poorly.

The best way monitor you stores performance is by setting performance goals. If you constantly fail to meet those goals you should consider shutting it down and moving on to something else.

A good goal for a new store on the first 250 vistors. would be a 2% conversion rate, meaning 5 people placed orders.

You should also have a goal for email subscribers. A 15% opt-in rate is realistic. That means you collected 38 email addresses.

As you move forward and make adjustments to your pricing crate better ad campaigns, and figure out what sells best you should be able to raise your conversion rate and opt-in rate.

Selling products individually

A lot of people are selling the exact same items you are selling. You need to have a competitive advantage. Bundling different, but related products together can give you a bit of an edge over your competition.

It can also help you increase order amounts while decreasing transaction fees and shipping costs.

Here are few examples of bundling that I think would perform really well:

An online hat store selling a 3 pack of hats.

An online beauty store selling a manicure set, a heel scraper and foot cream in one package.

An online yoga store selling a mat, a yoga block and yoga mat carrier as a bundle.

Those are just a few examples I thought of off the top of my head. I am sure you could think of a lot more creative ways to bundle products.

Not building a retargeting list

You know when you visit an online store, look at a product and start seeing ads for that product and that online store everywhere. Those are retargeting ads. Their intent is to get you back to their store again.

To build a retargeting list all you have to do is place a pixel from one of your favorite ad networks on your online store. Facebook ads, Pinterest ads and Outbrain are just a few networks that offer retargeting pixels

At that point everyone that visits you store can be retargeted unless they have cookies turned off, which most people don’t.

Your retargeting list will allow you to promote your store to people that have already been to it. If you offer them a discount or a coupon code on their follow-up visit you will have a better chance of getting them to convert.

Selling stuff people don’t want

Just because you are selling something doesn’t mean that people want to purchase it. You can’t launch an online store assuming your items will sell just because they look cool.

My rule is if other people are selling it and making money, you can too. Studying other online stores, eBay, Wal-Mart and Amazon will tell you what people are buying. That should make it easy to decide what products to sell.


E-commerce is a competitive game and you have to limit your mistakes if you want to succeed.

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