Did you know that 90% of new merchants fail within their first 120 days?

The vast majority of e-commerce merchants are set to fail within their first 120 days of operation, according to recent research. That's a staggering failure rate that leaves thousands of entrepreneurs wondering what went wrong.

You started your online business with high hopes. You had the perfect product, a sleek website, and dreams of success. But somewhere between launch day and month four, reality hit hard.

The major reason new merchants fail isn't what most people think. It's not lack of funding or poor products. It's the inability to convert browsers into buyers because of payment barriers at checkout.

Why New Merchants Fail

Cart abandonment kills more new businesses than any other factor.

When you're starting out, every potential sale matters. But here's what happens to most new merchants:

• Cart abandonment reaches epidemic levels - The average cart abandonment rate sits at 70.19%

• Customers can't afford full upfront payments

• Limited payment options drive buyers away

• High-ticket items remain unsold

Think about it. A potential customer finds the perfect product on your site. They add it to cart. Then they see the total price and realize they can't afford it right now. They leave. That's ₦50,000, ₦100,000, or ₦500,000 walking away.

How many times can your new business afford that scenario?

The math is brutal. For every 100 potential customers, 70 of them will leave without purchasing. Most new merchants watch helplessly as their conversion rates plummet because they can't offer flexible payment options.

How Smart New Merchants Are Avoiding This Trap with Vida AI

The successful 10% of new merchants have figured out the secret: AI-powered Buy Now, Pay Later solutions.

Smart merchants don't force customers to pay everything upfront. They use Vida AI to:

• Offer instant BNPL options at checkout

• Make faster, safer credit decisions with AI

• Enable customers to buy now and pay later

• Reduce cart abandonment dramatically • Increase average order values

Sarah launched her jewelry store six months ago. Instead of watching customers abandon expensive pieces, she implemented Vida AI's BNPL solution from day one. Result? Her cart abandonment rate dropped to 45% and her average order value increased by 60%.

What's the difference between Sarah and the merchants who fail?

Sarah recognized that payment flexibility isn't a luxury - it's essential for converting browsers into buyers.

Major Reason New Merchants Fail: They Force Upfront Payments

Failed merchants demand full payment upfront. Smart merchants offer payment flexibility.

Here's what typically happens to new merchants without BNPL solutions:

Monday: Customer browses ₦200,000 product, can only afford ₦50,000 today

Tuesday: Customer leaves without buying anything

Wednesday: Same scenario repeats with different customers

Thursday: You realize you're losing sales every day

Friday: Your conversion rates are terrible

By contrast, merchants using Vida AI enable customers to buy immediately and pay over time. The AI makes instant credit decisions, ensuring you get paid while customers get what they want.

The smart ones understand this simple truth: Every payment barrier is a lost opportunity.

Why New Merchants Fail Without AI-Powered BNPL Solutions

Traditional payment models don't work for new merchants in emerging markets.

You can't afford to lose customers over payment timing. You can't wait for customers to save up money. You can't ignore the buying power of customers who need flexible payment options.

But your customers need:

• Flexible payment options

• Instant credit decision

• Buy now, pay later opportunities

• Affordable payment plans

The gap between customer needs and your payment options is where new merchants fail.

This is exactly why successful merchants turn to AI-powered BNPL solutions like Vida AI. They bridge that gap while protecting themselves from default risks.

How Smart Merchants Use Vida AI to Prevent Failure

Vida AI transforms how new merchants handle payments and credit decisions.

Instead of watching potential customers leave because they can't afford upfront payments, smart merchants use Vida AI to:

Enable BNPL instantly - Customers buy now, pay later with confidence

Make AI-powered credit decisions - Advanced algorithms assess creditworthiness in seconds

Reduce default risks - Comprehensive identity verification and fraud prevention

Increase conversion rates - Payment flexibility drives more completed purchases

Scale sales operations - Handle more transactions with reliable credit decisions

Take Marcus, who sells electronics online. Before Vida AI, customers abandoned carts when they saw ₦500,000 smartphone prices. Now, his BNPL option lets customers pay in installments while Vida's AI ensures he gets paid.

His sales increased by 85% in the first quarter.

The Major Reason New Merchants Fail

Payment options determine success or failure in today's market. High upfront costs account for 48% of cart abandons. But many other abandons happen because customers simply can't afford to pay everything at once.

Customers think:

• "I want this but can't afford ₦300,000 today"

• "If I could pay ₦75,000 monthly, I'd buy it now"

• "This store doesn't offer payment plans" • "I'll look somewhere else that offers BNPL"

These aren't unreasonable requests. But unaddressed, they become business killers.

Smart merchants using Vida AI ensure every visitor can buy what they want, when they want it. They've learned that enabling purchases is easier than losing customers.

Why Smart New Merchants Choose Vida AI Over Failure

The difference between success and failure often comes down to one decision: how you handle payments.

New merchants who succeed understand that BNPL isn't just a trend - it's becoming essential. Vida AI doesn't just enable BNPL; it makes it profitable and secure through AI-powered credit decisions.

You get:

• Instant credit approvals with AI accuracy

• Advanced identity verification and fraud prevention

• Reliable repayment collection systems

• Seamless integration with your existing systems

• Higher approval rates and lower default risks

The merchants who fail? They stick to outdated payment-only-upfront models until customers stop buying.

Don't become another statistic. Join the smart merchants who use Vida AI to turn payment barriers into competitive advantages.

Ready to avoid the major reason new merchants fail? Learn more about how Vida solves the cart abandonment crisis for merchants and keep your business out of the 90% failure rate. Your customers are ready to buy Sign Up On Vida AI Now to make sure they can afford.