5 reason Why Online Businesses Fail in South Africa




In Layman’s terms,

you go to Google and type in “Blue Widgets”, and a website comes up number 1 selling blue widgets, this is due to an effective SEO strategy.


4. Leading the Horse to water (Conversion)

You can lead a horse to water, but you cannot make it drink. The same can be said online. All the traffic in the world will not guarantee sales. More traffic does not always correlate to more sales.


Website effectiveness is measured using a simple metric called Conversion

or a website Conversion Rate. To work out your site’s conversion rate, you divide the total amount of unique visitors (NOT hits) by the total amount of sales.


For Example:

100 unique people visit your site, 2 people buy out of that 100, you have a 2% conversion rate.
Conversion Rate = Desired Action/Total Number of Unique Visitors The average global conversion rate is 2.4%.



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The average South African website conversion rate is under 1%.

What does this mean? If you are spending an average of R10 per Click (PPC), driving 100 people to your site will cost you R1000. If only 1 in 100 purchase, that sale (cost per acquisition) has cost you R1000.


Let’s hope that you made more than R1000 profit

or you will generate no return whatsoever. The reality is that most websites suffer from terrible conversion rates. Usually,


their sites generate zero returns and actually lose money as their advertising costs exceed their profits.





Did you know that 75% of browsers back out of a shopping cart?

It’s even got its own term, called “shopping cart abandonment”. People enter the shopping cart, and something freaks them out to the point that 3 out of 4 run away. Was your delivery cost too high?


Did they think your site was a fly by night?

Was the return policy not clear? Were they worried about submitting their credit card details? These are some of the reasons that can lead to this.


5. A website is a website, or is it?

The first step before spending vast amounts on marketing is to refine your site’s conversion ratio.
There are websites and then there are online selling machines.


Laura Geller


The difference is linked to the conversion ratio, one sells and makes money, and one does not.


By effectively increasing a website’s conversion rate,

you generate more sales, and more profit without spending more on marketing.



By following these key guidelines and contacting an expert company with a great track record, online success should not be contributed to luck.


Proper planning and execution will ensure long term sustainable success.




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