Everyday I see struggling e-commerce hopefuls try and build their online empire and achieve their financial dreams. Whether they are selling wallets, lures, skateboard wheels or clothing, I constantly see similar problems with everyone who is starting an e-commerce website. Here are the ten biggest mistakes made by the struggling e-commerce entrepreneur.

1. Trying to build / design the site yourself

This has to be the biggest and most frequent mistake I see. For some reason people think that building a website is easy and they can just do it themselves or pay their neighbor's kid $10 an hour to build a full e-commerce website – he took a class on HTML right? Wrong. If you choose to build the website yourself, not only will it take you ten times as long as a professional, but it also won't look good, and it will drive customers away.

I have been doing this for years. I can immediately determine which sites were done professionally and which ones the owners tired to create themselves. You are not a programmer, and you are not a designer, you are a business owner. You need to focus on what really matters to your company, and learning HTML is definitely not one of them. People go to school for years to learn good design and programming practices, it is worth every penny to hire a good web company / individual to build your site. On the web, people are more confident in buying from a site that looks legit and not like it was built by a third grader. The investment you put out up front will pay for itself in the long run with higher conversion rates and more products sold. Skip the HTML for Dummies books and hire a professional.

2. Not willing / able to put money into your site

This has a direct correlation with number one above. If you are not willing or just not able to put a significant amount of investment into your new e-commerce store then you are doomed to fail. Most people try to build the site themselves because they want to save some money in startup costs. As I mentioned above, this is a bad idea. You are going to get out of your site what you put into it. This means that if you put a part time effort into building and running your site, you will get part time results – You will be constantly struggling to make a profit every month.

Here is a good rule of thumb that I like to tell my clients: If you aren't willing to put at least $10,000 into building and starting your new e-commerce website, then you shouldn't be starting at all. Treat your e-commerce store as a business, not a hobby.

3. Choosing the wrong e-commerce platform

This is a crucial decision you must make early on, and most often if you are new to e-commerce you have no idea of where to even begin. Make sure you do your research. There are hundreds of shopping cart platforms out there. Read the forums, read reviews ask others their opinions, do not just blindly choose something because it is free. Write a list of features you would like in you site, and look for a shopping cart platform which has most, if not all of those features built in. Doing your research before hand, will save you a lot of time and money down the road. You do not want to get 6 months or a year into your new e-commerce business just to find out you have to redo your entire site because the features you want are not possible with you current shopping cart platform.

This is also another reason you should have a professional create your site. Most likely they have been doing this for years and they know the ins and outs of e-commerce. They can suggest a good shopping cart platform for you to use, based on your needs.

4. Not doing market research / competitor research

This is a very important step that is often overlooked by new e-commerce entrepreneurs. Before you even sell your first product, you have to know the field you are playing against. Research your competitors – look at their sites. See what you like, see what you don't like and see what you can do better. You need to get a clear picture of what it’s going to take to compete in your online niche. You do not want to get in the situation where you build your entire site and later come to find out that your product simply does not sell well online. The more prepared you are before hand, the better your chances to succeed.

5. Bad Product Photography

Most people do not give their product photography a second thought. The cheapest method is what they are going to use. This usually means that they take out their digital camera and take the pictures themselves. This is a very bad idea. Why this might be cheap, you are going to end up with terrible photographs that are dark, poorly lit and overall just bad. When you are selling products online the two most important selling tools you have are the product photography and the product description. This is what sells your product. Having good looking pictures and multiple views of each product increases your conversion rate greatly. Spend the money on professional photography. It will pay for itself in the long run. Again, if you aren’t willing to put money into your site it will show.

6. Not collecting emails – Not sending out email campaigns

According to recent market research email marketing is the most effective form of marketing, bringing in a return of $51.45 for every dollar spent. This is something that you MUST be doing if you own an e-commerce site. It is essential that you have a spot on your page for your customers to sign up and give you their email addresses. This is the most targeted marketing that you can do. Email campaigns market to an audience who have purchased your product, or are interested in your product. This is a “Win-Win” situation. The customer is happy because they are getting a product they want (or information about that product), and you are happy because you are making more sales.

How do you collect customer emails? Offer your customers something free. Offer them a free monthly newsletter, offer them a chance to win a free product...do whatever it takes to get them to fill out that form.

Once you have your email list of customers, use it wisely. Not more than once a month. Send out special offers, sales, coupons...These are marketing tools which drive sales. If done correctly you will see a huge jump in sales for every email campaign you send out.

7. Not doing SEO (Search Engine Optimization)

Let’s face it – You can spend thousands of dollars on a top of the line website, but without visitors your site means nothing. When trying to make money online, whether it is e-commerce, ad based sales, or affiliate marketing, traffic is the driving force behind all revenue streams online. In order to get traffic to your site, you need to rank well in the search engines. Most new e-commerce owners often do not give SEO any attention early on and this is a big mistake. Pick up a book and learn the basics of SEO, because it is actually something you can do yourself if you are so inclined to do so.

A quote I always tell my clients is, “If you build it, they will not come” - Meaning just because your site is there, does not mean people will come visit. You have to direct them, and 70% of people online use a search engine to find a site they are looking for. Take the time early on and make sure your site is optimized for the search engines.

8. Not effectively marketing your product – PPC / Shopping comparison sites / coupons

In the e-commerce world, it does not matter what you are selling, but how you are selling your product. How you market your product will deiced whether you succeed or fail. The question you need to answer is, “How are you going to get your product in front of the people who want to buy it?” Many new e-commerce site owners have no idea what Pay-Per-Click is and how to effectively use it. Or how to create a Froogle feed (a free shopping comparison site). These are online sales tools which will drive sales at your site.

Why do huge retailers, online and brick and mortar, offer sales and coupons? Because it works. It effectively drives people to their site/store and brings in revenue. In order to succeed in the online world you have to learn how to effectively market your product.

9. Not tracking website statistics

It is essential that you know the statistics behind your website visitors. You need to know where your traffic is coming from, how long they're staying, how many pages they are looking at and what they are buying. This information will help you fine tune your site and get a much higher conversion rate.

Sign up for a free Google Analytics account – It is free, easy to set up and will provide you with the information you need to turn your struggling e-commerce site into an online powerhouse.

10. Bad Customer Service

The easiest way to lose customers is with bad customer service. People like to know that there is a company behind the product they are purchasing that will help them out if they have any problems. Always post your phone number on your website, along with your email address, physical address and fax number. Clearly state your return policy on your site. Do not make it difficult for your customers to get a hold of you. Answer emails promptly and be sure to go above and beyond your customers expectations when dealing with unhappy or upset customers, it will always help you in the long run. Word of mouth advertising is the best advertising you can get.

Always remember that starting your online store is not going to be easy. You have to put in the time, and the money to make your store succeed. Follow these 10 basic principles and you will already be way ahead of your competition.

About the Author: Brennan Heyde is an e-commerce consultant working in San Diego, California. He specializes in online marketing and SEO for e-commerce. Have a struggling e-commerce website? – Contact Brennan today for a site analysis.