What are the challenges faced in Product-Market-Channel fit?

An e-commerce platform specializing in sustainable goods has a high engagement rate on Instagram (average 25% interaction per post) but a low conversion rate (0.5%) from this channel.

The platform’s overall conversion rate is 4%, and the customer acquisition cost (CAC) on Instagram is three times higher than other channels. What should be the primary focus to diagnose Product-Market-Channel Fit issues?

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