This is a great talk from Sean Percival on the problems he had when launching an e-commerce business. He actually did very well by generating millions of revenue for his company. The problem that sank his startup underwater are common in the e-commerce space. This is a great opportunity on being aware of these issues.
Especially if you are new to this industry. Here are the 5 problems that hindered growth for his e-commerce business:
1. Thinking that passion outweighs experience
2. Shipping problems
3. Margins that are troublesome
4. Fundraising screwups
5. Not being good at marketing
One of the biggest take aways that I got from this talk was discounting your products. While it is nice to give a discount to get a new customer in the marketing funnel. The problem is that when you reduce your price so significant that it reduces the value of your brand. Even if a someone takes your discounted offer their value to your company as a customer may be next to nothing. In fact they may be a customer service nightmare.
Watch the video and make sure your e-commerce company does not walk the path to failure.