As the e-commerce industry continues to grow, many entrepreneurs are venturing into the online retail market by setting up Shopify stores. However, despite the platform’s user-friendly interface and extensive features, many businesses fail to succeed. Roughly 95% of Shopify stores fail within their first year.

In this article, our trusted digital marketing agency will explore the major reasons why these stores fail:

1. Lack of Market Research

One of the main reasons why many Shopify stores fail is the lack of market research. Before launching a store, it is essential to conduct thorough research on the target market, competitors, and consumer behavior. This will help you understand your customers’ needs and preferences, and enable you to tailor your products and marketing strategies accordingly.

2. Poor Website Design

The design of a website is crucial in attracting and retaining customers. A poorly designed website with slow loading times, confusing navigation, and unattractive visuals can drive potential customers away. It is essential to invest in a professional website design that is visually appealing, user-friendly, and responsive.

3. Inadequate Product Selection

Another major reason for Shopify store failure is an inadequate product selection. It is essential to offer a range of products that appeal to your target market. Focusing on too narrow a niche or offering too few products can limit your customer base and reduce sales.

4. Ineffective Marketing Strategies

Marketing is crucial in driving traffic and sales to your Shopify store. However, many businesses fail to implement effective marketing strategies. Without proper marketing efforts, your store is unlikely to reach its target audience, resulting in low sales and revenue.

5. Lack of Customer Service

Customer service is crucial in building brand loyalty and trust. Many Shopify stores fail due to poor customer service, including slow response times, inadequate communication, and unresponsive support. Providing excellent customer service can help build a loyal customer base and promote positive word-of-mouth marketing.

6. Insufficient Financial Planning

Financial planning is essential in running any business, including Shopify stores. Many entrepreneurs fail to plan their finances adequately, resulting in cash flow problems and unsustainable operations. It is essential to budget for expenses, including website maintenance, marketing, and inventory management, to ensure your store is profitable.

7. Over-reliance on Paid Traffic

While paid traffic can generate quick results, over-reliance on it can be detrimental. Many Shopify stores fail due to overspending on paid advertising without considering organic traffic sources. It is essential to balance paid and organic traffic sources to ensure sustainable growth.

8. Poor Inventory Management

Inventory management is crucial in ensuring your store has sufficient stock to meet customer demand. Many Shopify stores fail due to poor inventory management practices, including inadequate stock levels, slow shipping times, and low-quality products. It is essential to monitor inventory levels, fulfill orders promptly, and only stock high-quality products.

9. Lack of Search Engine Optimisation (SEO)

Search engine optimisation (SEO) is essential in ensuring your Shopify store ranks high on search engines. Many businesses fail to optimise their website for SEO, resulting in low visibility and reduced traffic. It is essential to implement SEO best practices, including keyword research, meta descriptions, and quality content creation.

10. Failure to Adapt to Changing Trends

The e-commerce industry is continually evolving, and businesses need to adapt to stay relevant. Many Shopify stores fail due to a lack of adaptation to changing trends and customer preferences. It is essential to stay up-to-date with industry trends, customer preferences, and technology advancements to ensure your store remains competitive.


There are multiple reasons why Shopify stores fail. It is crucial to conduct market research, invest in professional website design, offer a range of products, implement effective marketing strategies, provide excellent customer service, plan finances adequately, balance paid and

organic traffic, monitor inventory levels, optimise for SEO, and adapt to changing trends.

By addressing these common pitfalls and getting the help of a trusted digital marketing agency, your Shopify store can achieve success and longevity in the e-commerce industry.

Lethal is a top-notch digital marketing and web design firm in Perth that focuses on providing clients with more than just a basic website but rather a complete online business solution. Our approach includes developing websites with lead generation, email nurturing, and conversion strategies in mind. As a results-oriented company, Lethal aims to inform our audience about the advantages and value we bring to the digital business landscape.