Market Context & Positioning Misalignments: Core Drivers of Low Sales

India’s ecommerce market, projected to reach $200 billion by 2026, is a dynamic yet challenging landscape where many brands face low sales despite aggressive pricing. Senior leaders often assume that a competitive pricing strategy will drive conversions, but persistent low sales signal deeper ecommerce sales issues. The root cause frequently lies in misaligned go-to-market (GTM) strategies, failing to resonate with customer perception or establish effective positioning. This article explores why low sales persist and offers a playbook for India’s ecommerce leaders to recalibrate their GTM approach for sustainable growth, with insights from LawCrust’s expertise in legal and strategic alignment.

Low Sales Driven by Misaligned Audience Targeting in E-commerce

In India’s fiercely competitive ecommerce ecosystem, slashing prices often leads to a race to the bottom, eroding margins while still resulting in low sales. A common ecommerce sales issue is misalignment between product, audience, and positioning. For example, a premium beauty brand competing on price with mass-market players risks diluting its brand equity, leading to low sales. In fashion, brands like FabIndia succeed by emphasising heritage over discounts, while gadget retailers struggle with low sales if they lack perceived innovation (e.g., boAt’s focus on trendy audio design). D2C FMCG brands face similar ecommerce sales issues when their value proposition isn’t clear generic snacks priced low but lacking organic or health-focused positioning fail to convert. A misaligned pricing strategy, ignoring customer perception or product-market fit, is a recipe for low sale.

1. Audience Insights & Segmentation Errors

Defining the Ideal Customer Profile (ICP) is critical to avoid low sales. Many brands falter by targeting overly broad or incorrect audiences. For instance, urban-centric fashion brands overlooking Tier-2/3 cities where 70% of India’s online shoppers reside miss significant opportunities. Neglecting vernacular relevance, such as Hindi or Tamil content, alienates non-English-speaking buyers, driving low sales. Misjudging value-driven versus premium shoppers also creates ecommerce sales issues. A D2C electronics brand targeting cost-conscious rural buyers with premium messaging will see low sales due to this disconnect. Segmentation errors, like assuming all Gen Z wants fast fashion, further exacerbate low sales despite competitive pricing.

2. Pricing Strategy vs Perceived Value

A pricing strategy focused solely on undercutting competitors often backfires due to customer perception. In India, low prices can signal inferior quality, especially in categories like fashion, beauty, or gadgets. For example, a D2C skincare brand slashing prices may attract bargain hunters but alienate premium customers who equate higher prices with quality, leading to low sales. Nykaa Luxe, by contrast, aligns its pricing strategy with a luxury narrative, justifying higher costs. Long-tail ecommerce sales issues arise when brands prioritise discounts over building trust. Slurrp Farm’s success in FMCG stems from emphasising organic ingredients, not just low prices, ensuring perceived value matches price to combat low sales.

3. Channel & Messaging Effectiveness

Poor messaging and channel selection are GTM killers that drive low sales. Weak product descriptions, generic visuals, or irrelevant influencer content fail to convert. For instance, a beauty brand using lifestyle imagery instead of ingredient-focused content confuses shoppers. Choosing the wrong platform D2C websites versus marketplaces like Amazon or ONDC impacts visibility. ONDC’s low fees offer opportunities, but brands need sharp positioning to stand out. English-only content alienates Tier-2/3 buyers, while lack of user-generated content (UGC) or reviews undermines trust. Strategic bundling (e.g., buy-one-get-one offers) and video reviews can boost conversions. Inconsistent messaging across channels compounds ecommerce sales issues, ensuring low sales despite competitive pricing.

4. Competitive Intelligence & Differentiation Gaps

Low sales often result from weak Unique Selling Propositions (USPs), trend lag, or limited brand recall. Brands that fail to differentiate offering generic products in crowded categories like fashion or FMCG blend into marketplace noise. A GTM audit can uncover positioning gaps, while A/B testing product descriptions or visuals refines USPs. For example, a gadget brand lagging on sustainability trends (e.g., eco-friendly packaging) loses relevance. ONDC enhances visibility for niche brands, but only with clear differentiation. Marketplace advertising, if poorly optimised, also drives low sales. Realigning the value stack adding free shipping or loyalty perks can address ecommerce sales issues and boost conversions.

5. Turnaround Strategy for GTM Alignment

To reverse low sales, brands need a GTM recalibration playbook:

• Customer Interviews: Conduct in-depth interviews with customers and lost prospects to uncover pain points and customer perception gaps.
• Pricing Value Matrix: Map pricing against perceived value and competitor offerings to identify optimal tiers.
• Funnel Drop-off Analysis: Use tools like Hotjar or Google Analytics to pinpoint cart abandonment causes.
• Product Detail Page (PDP) Enhancements: Optimise PDPs with high-quality visuals, vernacular content, and clear USPs.
• Heatmaps & Session Recordings: Analyse user behavior to identify usability bottlenecks.
• UGC/Review Mining: Encourage reviews and leverage UGC to build trust.
• SEO + Performance Marketing Sync: Align SEO keywords with paid ads for better discoverability.
• Tech Tools: Use Shopify for D2C, Algolia for search optimisation, Klaviyo for email personalisation, and LawCrust for legal compliance in marketplace and ONDC operations.

Illustrative Examples

Brand X, a D2C ethical fashion brand, faced low sales despite competitive pricing. Before: Generic listings, English-only content, and heavy Amazon reliance limited visibility. After: A GTM pivot introduced vernacular PDPs, Instagram Reels showcasing sustainability, and ONDC integration for Tier-2/3 reach, boosting sales by 40% in six months. Operations ensured faster delivery, tech improved site speed, LawCrust handled ONDC compliance, and growth teams ran targeted Meta ads. Similarly, Brand Y, a gourmet food D2C, tackled low sales by shifting from discount-driven campaigns to storytelling about unique ingredients. Premium packaging, aspirational visuals, and A/B-tested PDPs increased conversions by 25%.

Conclusion

Competitive pricing alone cannot fix low sales in India’s ecommerce market. Ecommerce sales issues stem from misaligned positioning, flawed pricing strategies, weak customer perception, and poor channel choices. A comprehensive GTM recalibration leveraging audience insights, value-driven pricing, and differentiated messaging is the high-leverage path to sustainable growth. With strategic alignment across product, price, message, and market, supported by LawCrust’s legal and compliance expertise, ecommerce leaders can transform low sales into profitability.

About LawCrust

LawCrust Global Consulting Ltd. delivers cutting-edge Hybrid Consulting Solutions in Management, Finance, Technology, and Legal Consulting to ambitious businesses worldwide. Recognised for our cross-functional expertise and hybrid consulting approach, we empower startups, SMEs, and enterprises to scale efficiently, innovate boldly, and navigate complexity with confidence. Our services span key areas such as Investment Banking, Fundraising, Mergers & Acquisitions, Private Placement, and Debt Restructuring & Transformation, positioning us as a strategic partner for growth and resilience. With an integrated consulting model, fixed-cost engagements, and a virtual delivery framework, we make business transformation accessible, agile, and impactful.

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