The pandemic shook the world as we knew it and gave way to new ways for different ventures. The rise of the pandemic also marks the rise of online purchasing. Online was a beacon of hope when everyone was locked inside their houses. And many e-commerce sites soar to heights during this period. However, it’s not all a bed of roses; there are thorns in the way too. 

Investing in e-commerce startups is a costly affair, and if it is not done right, it can become quite stressful. There are high returns on investment expected. However, it all depends on execution. 

Currently, only 25% of the consumers are loyal to the brand, while the remaining are still testing the waters. Therefore, the main focus is on customer retention, and if companies are not able to provide a top-notch experience, we cannot expect customers to hang around. 

Here are some potential roadblocks that can hinder the process and potentially make the startup fail. 

Tech-centric startup

Now providing high-quality technology is not at all a bad thing. However, it cannot be the only and top-most priority. Technology development is crucial, no doubt about that; however, operations and channel management are just as important. Therefore, D2C startups cannot neglect the latter while focusing on the former. 

If the website is super cool, but you always run out of products, and customers cannot find the items they are looking for, they will soon leave after disappointing experiences.

Restrictive internal affairs

Many consumer-product-based companies have reported that launching new digital products has become difficult without the right talent. The issue wasn’t that they couldn’t find the right candidates. However, they were required to work from places that were far away from their home or did not have the freedom to operate in a DTC startup setting. 

Keep an eye out for internal policies or rules that might actually be harming the production process, thereby creating unnecessary delays in the entire process. 

Underinvesting

Funds and resources working on the product are extremely crucial to any business, especially a DTC startup. Many companies try to reduce the possibilities for losses as much as possible by investing less and hiring only the bare minimum number of employees.

 Having limited funds and then insufficient employees may work before the product launch. But, it can prove problematic once the business takes off and the company cannot scale with the rising demands. Moreover, if the funds cannot last a long time or if companies haven’t planned for issues, then the money might dry out before they start generating revenue. 

Not learning economics in advance

Not understanding the economy and how everything works out financially along with the business aspects of a product-based company can lead to loss-making companies. D2C startups need to have a grasp of how all the costs come into play along with the revenue, or else when it comes to scaling a business, one tiny error could cause a big loss. 

Therefore, understanding how the dynamics change in case the company has to scale or other similar scenarios cannot be left to be done on the spot or on short notice. 

So, these are some of the traps DTC startups can avoid while building their startup. Granted, there can be new roadblocks along the way, but at least avoiding these pitfalls gives you a good headstart and room for new possible errors. 

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