This is why 7 out of 10 webshops fail in Hungary
A well-functioning webshop with promising passive income is the dream of many entrepreneurs. We can read success stories when, with minimal capital, a Sufni soap/DIY/baby clothes webshop became a superpower with billions in sales. However, it is rarely mentioned that currently only 3 out of 10 online stores in Hungary survive one year. Online marketing expert Dávid Kukoly, founder of Fluid Digital, reveals why many domestic webshops fail and how to prevent this.
What makes a webshop viable depends on many things, but in the long term, one of the basic conditions for success is consistent marketing activity. At the dawn of artificial intelligence, the emergence (and rising prices) of increasingly complex digital devices and platforms demand data-based decision-making from e-retailers and more and more serious technical knowledge from marketing specialists. According to Shoprenter’s 2022 research, Hungarian webshop owners still believe in the holy trinity of search engine optimization (SEO), Google advertising, and social media. In addition, more than half of those surveyed (57%) still handle marketing in-house, which, according to the specialist, is problematic from several points of view.
“For a while, we can get by with a couple of ten thousand HUF Google ads, but that won’t be enough for growth. We have entered an age where maintaining a successful webshop requires a more conscious marketing presence, which is very difficult to provide at a suitable level in-house. In addition, we must be aware of who we want to sell our product to and where we can reach them most effectively. It’s a trend here or there, what’s a good TikTok video worth if the people coming from there only stay on the website for 3 seconds, don’t buy anything, but in return it took 3.5 hours and hundreds of thousands of forints to make the video?”
– the specialist believes.
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