Common Mistakes Small Businesses Make When Moving Online

BY Kajal Pandya,

COVID-19 drastically changed shopping habits. With even more customers now buying online than before, this trend is set to continue. Therefore, most companies have decided to have their own online shop.

But all is not as it seems to set up an online store. When any e-commerce company opens a shop, it is necessary to make careful planning and detailed attention to be successful. Mistakes are easy to make along the way, but common small business mistakes might hurt your possibility of success.

If you want to grow your business, avoiding these mistakes is the key. The next step is to ensure that your business has an online shop. For small businesses, an online store is required to compete in the current digital world and market on a global scale. In this guide, we’ll cover some of the most common pitfalls and how you can avoid them to create a strong foundation for your e-commerce business.

5 Common Small Business Mistakes to Avoid

There’s a difference between having “an online store” and having “an online store that gives users an awesome experience.” Any business owner should be focused on the latter, and we’re here to help you achieve it.

First, let’s quickly consider why it’s important to avoid the mistakes. People have many choices on where to spend their money. If retailers make it too complicated or frustrating to use their shop, customers will simply go elsewhere. 

If they make a purchase, they’re less likely to return if the experience was unpleasant. They might even leave a poor review, convincing others to avoid your e-commerce store.

This highlights the importance of reducing friction in the shopping experience. From compelling product images to an easy-to-use website design, every detail matters.

We’ve categorized the following common online business mistakes into four sections:

E-commerce Mistake #1: Not Knowing Your Target Audience

One of the common small business mistakes is failing to pinpoint your audience or not taking the time to discover what drives your customers' decisions.

If you don’t fully understand your product or who your customers are, you’re just guessing what people want. You can’t expect buyers to magically find your website and start shopping. Without proper research, you might end up selling something that nobody needs.

Successful businesses first study the market, understand what problems customers face, and offer a product that solves them. When you understand your audience, selling becomes much easier.

Research shows that 56% of shoppers want brands to understand their needs, but 51% feel overwhelmed by irrelevant ads. Instead of guessing, create a clear picture of your ideal customer:

  • Who they are (age, gender, income, etc.)
  • How do they shop and make decisions?
  • What do they like and do for fun?
  • Where do they spend time online?

When you truly know your audience, you can sell smarter and make more sales. Avoiding small business mistakes like this will help you grow your business.

E-commerce Mistake #2: Not Knowing Which E-commerce Channel to Choose

It's not enough to know who your target customers are. One of the common small business mistakes in the early stages of business is choosing the wrong e-commerce platform. 

This often happens due to budget restrictions or problems with integrating necessary tools. However, today there are many online store website builder options to choose from.

Selling online is an ongoing process of trial and error. Mobile devices are now the main way people access the Internet, with an estimated 75% of web traffic coming from phones and tablets. 

This means that having a mobile-friendly website is essential for any successful business. Understand how new channels work and don’t be afraid to try new ways of reaching potential shoppers.

E-commerce Mistake #3: Pricing Without Research

Setting the right price for your products is very important. If you don’t research properly, you might charge too much and lose customers, or charge too little and lose profit.

One of the common small business mistakes is setting prices based on guesswork instead of market research. Many businesses just copy their competitors’ prices, but that’s not always a smart move. If your product is better, people might be willing to pay more. Some customers will spend extra for better quality, convenience, or special features.

To avoid common online business mistakes, do proper research, test different pricing strategies, and ensure your price reflects your product’s value. This way, you can create a better online shopping experience and grow your business. 

E-commerce Mistake #4: Failing to Provide a Great User Experience

A smooth and simple shopping experience keeps customers on your site. One of the biggest small business online mistakes is not organizing products properly. If shoppers can’t quickly find what they need, they’ll leave and buy from a competitor.

Another mistake is ignoring social media. Businesses that use social selling are 40% more likely to hit sales targets. Social media isn’t just for ads—it builds trust, grows brand awareness, and helps you connect with buyers.

Many shoppers aren’t actively looking for products, but the right social media content can spark their interest. Make your website easy to navigate and use social platforms to engage with customers. A great user experience keeps them happy and coming back.

Ecommerce Mistake #5: Providing Poor Customer Care

Your customers are the heart of your business. Keeping them happy isn’t just good practice—it’s more profitable. Happy customers return to buy again and even recommend your store to others.

Poor customer care—like slow responses, impatience, or refusing refunds—drives people away. If shoppers feel ignored or mistreated, they’ll go elsewhere.

Good customer service means:

  • Quickly responding to messages on your website.
  • Answering questions and comments on social media.
  • Handling complaints with patience over email or phone.

Since small business needs online store solutions that are user-friendly and scalable, making the right choices now will set you up for long-term success. That includes providing great customer support, which builds trust and encourages repeat sales.

Be available, attentive, and supportive. Great service turns one-time buyers into loyal customers!

Learn from These E-commerce Mistakes and Grow Online

Understanding common small business mistakes made by both new and established e-commerce companies is crucial for your growth.

If you learn from these mistakes, then you are less likely to make them in the first place. However, even if you do get the hang of them, that doesn't necessarily lead to the failure of your business.

The solution is to recognize the mistake, correct it, and proceed. If you do this, your business will just keep getting bigger and bigger. Not only will your eCommerce website be optimized for success, but you’ll also build a loyal customer base. 

Happy customers will return to buy from you again and again!