Are you also wondering how to start an e-commerce business in India?
First of all, let just take a look at why e-commerce is booming in India. The affinity towards online commerce and high economic development in India has opened new corridors for business opportunities the world is witnessing the latest trends through eCommerce.
With the advancement of technology, India also is marking tremendous growth in e-commerce. The fast-paced lifestyle forces people to buy products online.
Meanwhile, most millennials have the habit of closely monitoring multiple online stores like; Amazon, Flipkart, Snapdeal, etc, keenly looking out to snatch a lucrative offer.
Studies show that India will surpass the US in E-commerce and will become the largest marketplace for E-commerce by coming 2034. Even market statistics suggest that the Indian eCommerce market is growing at a rate of 25%, all set to hit the $100 billion mark by 2022.
So, without wasting any more time! Let’s jump into this blog.
Setting Up your E-commerce Business
Basically straight to the point, there are two ways to set up an e-commerce business in India; firstly by joining an established e-commerce marketplace and secondly by building your own e-commerce website. Commonly known as:
1. Multi-vendor marketplace
The multi-vendor business model refers to an e-commerce store where multiple numbers of vendors sell their products to multiple customers.As multiple vendors are involved in this marketplace if any time a specific vendor is not available and there is and high demand for any particular product, you do have other vendors to fulfill this demand. So, you won’t be in loss.
If you do not want to go to any other marketplaces, you can even go for already built marketplaces such as Flipkart, Amazon, Paytm, Snapdeal, Paytm, and Shopclues. It only requires a bank account and a VAT registered account. And the seller portal is provided in this marketplace.
2. Single-vendor marketplace
Single vendor business model refers to an e-commerce store where a single vendor sells to multiple consumers.So only two entities are involved here. It can be defined as a one to many relationships. The handling is very simple in this model as only two entities are involved here.
By establishing an e-commerce store for your brand or service, the chances of increased business sales opportunities are high, and placing your brand online will keep your customers close to your business. E-commerce business enables them to reach out to you with just a few mouse clicks.
However, keeping these points in mind would help you set up and run a successful e-commerce business of your own, and for that follow the mentioned tactics:
Set A Strong Business Idea
Like every kind of business venture, one needs to have a strong idea about their plans and goals to achieve.
Be patient and ready to spend ample time to make your plans work out in the best way, choose a perfect niche to accomplish your business goals in the best way around the corner.
For flourishing business growth, you need to ensure that your priorities need to be set accurately.
Plan Everything
Advance and straight planning will definitely help you keep your entrepreneurial journey a success.
Right from putting your priorities straight to familiarizing your product across the globe, you need to plan everything and set at the proper time. Given below are some of the things you should include in your pre-business plan to set up an e-commerce business in a brilliant way.
Choose The Right Design Your Brand Name & Logo
“A brand is the set of expectations, memories, stories and relationships that, taken together, account for a consumer’s decision to choose one product or service over another.” -by Seth Godin
Many entrepreneurs fail to recognize the importance of customizing their electronic commerce store to meet the expectation of customers.
They underestimate the importance of the eCommerce logo. But logos are meant to be a quick, but full, representation of your brand.
Do you want your product to be perceived as youthful and silly or serious and professional?
You can implement all these with the use of font. The font you choose for your logo can align and reinforce your style meanwhile, it communicates a message about your brand and what you do.According to a study by the New York Times, some fonts are perceived as being serious and factual while others are perceived as “fun”.
The shape and style of the symbols you include are just as significant as your business’ name. Even simple shapes convey messages.
Registering Your Company
When you start your own website, you need to register your company and make sure that the establishment is registered and operates within the set guidelines.
Only after the LLP registration, you can open a bank account for your company. Also, only then you will be able to easily get your GST documents.
Find these essential steps that need to be involved while Registering a Company or LLP:
1. Apply for the Director’s Identification Number (DIN), using the official website of the Ministry of Corporate Affairs.
2. Ensure that you have your Digital Signature Certificate along whit the Permanent Account Number (PAN).
3. After setting the DIN, either apply to the Registrar of Companies (ROC).
4. Then through the official website of the Ministry of Corporate Affairs, ensure that the domain name you have decided for your company is available.
5. Once you get the confirmation on your business name availability, you can incorporate the proposed company within six months.
6. Apply for Shops Establishment Licence and GST certification, that will be beneficial for Professional Tax (PT) and Payment Gateway Integration.