Failed e-commerce projects costing £174k a year
Written by Peter Walker
Failed e-commerce projects cost direct-to-consumer (D2C) retailers an average of £174,000 last year, according to Greenlight Commerce and BigCommerce research.
The pair commissioned a survey of 100 D2C retail decision-makers in the UK, finding that 98 per cent were facing some sort of e-commerce challenge, with nearly three quarters expecting the number of projects they carry out to increase this year.
However, just under a third predicted the key objectives of these e-commerce projects would be missed, while around half believed they were falling behind competitors because of these failures.
Budget issues were the key barrier to success in launching e-commerce projects, with 68 per cent putting it down as the main cause of failure, followed by half citing lack of planning and 42 per cent blaming a lack of flexibility.
Greenlight Commerce managing director Kevin Murray commented: “Digital has completely transformed the shopping experience and it is a positive to see that D2C retailers understand this and are investing in e-commerce, however it is worrying to see so much of this investment is being wasted.”
To rectify failures, just under half of respondents said they needed better planning, while 46 per cent thought better budget management would help.
“There is a huge opportunity within D2C for businesses to connect directly with their customers, however brands need to start making investments that are going to provide a superior customer experience and ultimately improve the bottom line,” Murray added.