Tristan Walker is a successful entrepreneur.
He intends to stay that way by positioning and packaging his startups as technology companies. Not online retailers. Here is the coverage by Recode.
Ecommerce newbies just aren't getting the funding, Walker noticed.
A major reason why ecommerce retail has fallen out of favor with investors is that the one-time stars such as Shoes.com can fall to earth with a thud. The statistical reality is the 80% failure rate of ecommerce enterprises.
Because of the low barriers to entry, there are and will be many startups in ecommerce retail. The reason so many tank, reports Applied Innovation, include:
- Not paying attention to the user experience. That could be as basic as setting up a platform which is difficult to navigate.
- Inadequate staffing. For success, all those functions used offline such as marketing and operations are required.
- Poor inventory management. Too much and profits are depressed. Too little and the customer has to wait.
- Lack of cybersecurity. Shoppers have to be reassured they are on a secure site.
Of course, ecommerce retailing is not alone in having a high level of failure. In general, 90% of startups crash and burn.
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