3 Mistakes to Avoid in New E-commerce Business

Over the years, the e-commerce industry has rapidly flourished. According to IBEF’s report, India's e-commerce orders volume increased by 36 per cent in the last quarter of 2020, with the personal care, beauty and wellness (PCB&W) segment being the largest beneficiary. This shows that the e-commerce sector holds immense opportunities for young minds.

While embarking on the entrepreneurial voyage, there are a plethora of mistakes that you have to avoid. Suppose, if water is flowing in the opposite direction, then your ship would be wrecked. The same goes for unforeseen business events as well. Young entrepreneurs, despite being innovative and brainy, sometimes cannot take right decisions and get into pitfalls. In the early phase of the business, guidance plays a pivotal role and helps avoid mistakes.

There are some common obstacles that e-commerce businesses in India face. These problems if left unaddressed then they can challenge the business as well. Here are those mistakes: 

Benefits of Your Product are Very Common 

While envisioning your e-commerce brand, you contemplate making it unique and different from other products in the market. In this process of making it unique, you begin targeting a wide audience. However, in the process, you forgot working on the product and made it distinctive from the rest. 

You spend on marketing and sales channels but the benefits of the product are ordinary, thus, draining interest of the customers. In such a scenario, your boat will sink down instead of tiding over the sea. The best way to attract an audience is to focus on a distinctive group. Allure that group of people by telling them how your product will give them a seamless experience. In addition, create a connection with that cluster of people by understanding their needs. Gradually, expand your target consumers after a thorough research.

Using Wrong Channels 

Once you work on the product and decide the audience type, then you begin selling in the business marketplace. You dwell deeper and analyze the needs of the consumers as well as ways to allure them. In the research process, you gather knowledge about the changing consumer behaviour. 

Although, you can still meet failure and ruin your prospects by investing immensely on sales channels. If infusion on sales channels does not give satisfactory results, then you make a bigger mistake by paying for Facebook, Instagram or Google ads. This results in money wastage and poor outcomes. 

In such a condition , it is recommended to take a back seat and observe the market. You can check what your competitors are doing and accordingly, compare with your current business strategy. Afterwards, you can embrace their strategy and begin catering needs of the consumers. 

Expecting a Passive Income 

It is a common perception of building a product that consumers buy again and again. It is believed that such products will give the ultimate booster to the business, in turn, generate profits. Having such aspirations is good, however, building products is daunting. Therefore, rather than focusing on passive income, you should think of increasing customer base.