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Ansh Malhotra

Ansh, the visionary founder behind Nexist, Up & Gro, and Socialite, has garnered multiple awards for transforming business landscapes globally. His expertise in app and website development, alongside innovative software and video content creation, has led businesses from adversity to market prominence. Known for his problem-solving prowess and commitment to excellence, Ansh has significantly impacted Australian businesses and beyond, establishing himself as a leading figure in entrepreneurship. His revolutionary approach has not only driven companies to achieve beyond their goals but also redefined industry standards.

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Jul 15, 2024

80% – 90% eCommerce businesses fail in their first year. Are Website Design Agencies to be blamed?

Ever heard of a website design agency taking responsibility for your negative cash flow? Or for your abandoned carts? I haven’t and neither have most eCommerce store owners I’ve spoken to. eCommerce website design agencies play an integral role in the overall success of your business, and underestimating their importance can lead to dire consequences.

The Real Role of an eCommerce Website Design Agency

Many eCommerce business owners view their website design agency as technical experts tasked with building an online storefront. While this is true, it’s only a part of the story. Consider this – a well-designed brick-and-mortar store relies on its location, layout, and accessibility to attract and retain customers. Similarly, the success (or failure) of an eCommerce business depends heavily on its online store’s architecture and user experience.

Yet, most businesses treat their online store as an afterthought, rushing to launch without proper planning and strategy. This often leads to the adoption of shortcuts, such as using premade templates, (blindly) copying competitor stores, and implementing poorly thought-out technology setups. Imagine opening a physical store on an unpopular street, with a haphazard layout and randomly placed shelves. It’s a recipe for disaster.

Why 80-90% of eCommerce Businesses Fail

The statistics are sobering. Approximately 80-90% of eCommerce businesses fail. One of the primary reasons is the poor foundation of their online store. Unlike a brick-and-mortar store, where you wouldn’t hire a local carpenter to plan the architecture and design, finding the right agency to design your eCommerce site is crucial.

Shortcuts Can Lead to Long-Term Problems

Many businesses and their agencies resort to shortcuts to launch quickly. They are often told that a Minimum Viable Product (MVP) needs to launch quickly and fail even faster to learn valuable lessons. While this concept holds true for products, it doesn’t apply to your online store. An MVP is defined as a Minimum Viable Product, but your store is not a product; it’s a platform for selling your products.

Using premade templates, copying competitor stores, and haphazard technology setups are common shortcuts that can lead to long-term problems. These shortcuts might save time initially, but they can cost you dearly in the long run.

The Importance of a Solid Foundation

Just like a physical store’s success depends on its location, layout, and accessibility, an eCommerce store’s success relies on its online presence. The architecture and user experience of your online store play a crucial role in attracting and retaining customers.

User Experience (UX) Matters

User Experience (UX) is a critical component of your online store. A well-designed UX ensures that customers can easily navigate your site, find what they are looking for, and complete their purchase without any hassle. A poor UX, on the other hand, can lead to frustration, abandoned carts, and lost sales.

The Role of Technology

The technology stack you choose for your online store also plays a significant role in its success. A robust and scalable technology stack ensures that your store can handle increased traffic and transactions as your business grows. It also provides a seamless and secure shopping experience for your customers.

The Right Agency Can Make All the Difference

Finding the right website design agency is crucial if you want to be among the 10% of eCommerce businesses that survive past the first year. A good agency will not only build an aesthetically pleasing online store but also ensure that it is functional, user-friendly, and scalable.

What to Look for in a Website Design Agency

When choosing a website design agency, consider the following factors:

  • Experience and Expertise: Look for an agency with a proven track record of designing successful eCommerce stores. They should have expertise in UX design, technology stacks, and eCommerce best practices.
  • Customisation: Avoid agencies that rely heavily on premade templates. Your online store should be customised to meet your unique business needs and goals.
  • Strategy and Planning: A good agency will take the time to understand your business and develop a comprehensive strategy for your online store. This includes planning the architecture, design, and technology stack.
  • Ongoing Support: Your relationship with the agency shouldn’t end once your store is launched. Look for an agency that offers ongoing support and maintenance to ensure that your store continues to perform well.

Measuring the Success of Your eCommerce Store

If you already have an eCommerce store, the best measure of its success so far is by calculating its ROI. Here’s how you can calculate your website’s ROI.

A positive ROI indicates that your online store is generating more revenue than it costs, while a negative ROI indicates that your store is not performing well.

Conclusion

In conclusion, your website design agency plays a crucial role in the success of your eCommerce business. A well-designed online store with a solid foundation can help you attract and retain customers, increase sales, and achieve a positive ROI. On the other hand, shortcuts and poor planning can lead to long-term problems and ultimately, failure.

Don’t make the mistake of treating your online store as an afterthought. Invest in a good website design agency that can help you build a functional, user-friendly, and scalable online store. By doing so, you’ll be setting your business up for long-term success.

If you’re ready to take your eCommerce store to the next level, contact my team and learn how we can help you build a solid foundation for your online business. Let’s make sure you are among the 10% of eCommerce businesses that survive and thrive.

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