7 E-commerce Mistakes that will make you broke | Insights from my career

Everyone loves an additional income and even I was no different. So, I started an E-commerce business 5 years ago, thinking that I would make a lot of money.

But did I make a good amount of money initially?

No, not at all. I did a lot of mistakes in my journey. But I was determined to learn from those mistakes.

So over the time, I have realized that learning from mistakes is a task by itself. It comes from analyzing our plan sheets, detailing on our outputs, identifying the flaws, and finally aggregating our mistakes from the failed/not-so-progressing business ventures.

My E-commerce mistakes and the steps to overcome -

Here, I will be sharing the e-commerce mistakes I did, including the safety measures to prevent them.

Mistake #1: Lack of accounting knowledge and filing process

I agree that I did not have sound knowledge in taxes when I started my business. It was the era where we had VAT/ CST. It was really complex and confusing to consolidate them. Many auditors were not aware of E-commerce taxations, and also there was less resource and valid data on Google.

It took days for me to consolidate one month report, yet it was in a clumsy state. I was not able to validate the records. Ultimately, I ended up paying the tax penalties for showing wrong calculations.

However, today we have a lot of YouTube channels, facebook groups, blogs for GST, TCS, etc. Thanks to the development in technology, we now have automated software to do the same.

Again, I am not emphasizing here to master the taxation policies - but do make sure that you know the basics before starting a career in E-commerce.

It is important to hire a proper auditor for your company. He/she should have sound knowledge in E-commerce filing. One can also try automated software and add an additional resource to validate the records as a final check.

I am sharing one of the blogs which clearly explains about TCS/GST. Click here to understand the taxation policies.

Also, you can join E-commerce facebook groups and ask queries to the community. Click here to join my group

Mistake #2: I did all works myself

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