Top 5 reasons why startups fail

Failure rate of eCommerce business is as high as 80%. Primary reason for such failure is the competition with known brands like Amazon.com (product) or Walmart (company)

Now it fails because of the following reasons too

1. Lack of investment/fund or failing to raise funds
2. Ability of the founders to spend less and manage finance better
3. Scaling up - This is major reason for fund depletion. Inspired by competition and in the urge to scale up, spending money to attract customers which is normally the strategy deep pocketed organizations or startup.
4. Lack of trust : You being new to the market, the credibility building mechanism with a short span is not efficient or not followed.
5. Lack of innovation: Why would a customer buy from you versus his/her natural choice of Amazon or Walmart subsidiary?