How to start your own eCommerce business in India
Jack Ma says all it takes to make a successful eCommerce business may be a great vision. Here’s a step-by-step oriented way to start your own eCommerce business in India.
Bill Gates once said: “If your business isn't on the net, then your business is going to be out of business.”
The eCommerce industry is debut the subsequent wave of change for the Indian economy and if you’ve been wondering about venturing a foot into its world of infinite profits, then the clock is ticking...the time is ripe to begin your own eCommerce business in India.
Amazon, Flipkart, Snapdeal all showed us that eCommerce truly is that the future. and therefore the only way they became as big as they did was because they realised and experimented with the brimming potential of the eCommerce market.
“We weren't puzzling over numbers then, but we knew something big may be built out of eCommerce,” Binny and Sachin Bansal, co-founders of Flipkart, had once said.
Still not convinced? Let’s take a glance at the numbers to form a stronger case.
According to the Economic Survey of 2017-2018, the eCommerce market in India was estimated at $33 billion - a full 19.1 percent rate of growth since 2016-2017!
What’s more, the Nasscom Strategic Review of 2018 estimated the eCommerce market at $33 billion in 2017-2018 and claimed that it reached $38.5 billion, indicating a commendable rate of about 17 percent within the yr 2018-2019, The Business Standard reported.
These numbers are the encouragement you wish to start out your own eCommerce business in India. Keep at it, and who knows? Maybe you may build the subsequent ‘Alibaba’.
After all, as Jack Ma puts it - all it takes to form a successful eCommerce business - may be a great vision. “My dream was to line up my very own eCommerce company. In 1999, I gathered 18 people in my apartment and spoke to them for 2 hours about my vision. Everyone put their money on the table, which got us $60,000 to start out Alibaba. I wanted to own a world company, so I chose a world name,” he said.
So, are you ready? Here’s step-by-step orient the way to start your own eCommerce business in India.
Step 1: choose the right business plan and model
The first thing you have got to try to do is to think long and hard about narrowing down on the proper eCommerce business plan and e-commerce business model.
Like Tobias Lutke says: “Ecommerce isn't an industry; eCommerce may be a tactic.”
There are two kinds of business models that you simply can choose. you'll associate with either one vendor or a multi-vendor eCommerce store.
To this end, you'll choose either one product or have multiple product lines supported the budget you've got set for yourself for your eCommerce business.
Single-vendor marketplace
The advantage of going for this kind of eCommerce business model is that it only involves two entities - one seller who is selling his or her product to multiple customers. to the present end, it's not only easier to stay track of the transactions between the 2 entities, but administrative costs also are lower once you must pay only 1 supplier, and you furthermore might have more control over the inventory at hand.
Multi-vendor marketplace
This kind of model involves multiple vendors to sell their products to multiple customers, with the vendors all being required to be registered along with your site.
The advantage of following this type of eCommerce business model is that it gives you security in terms of creating a procurement - for example, if one in every one of your suppliers is unavailable to sell his or her products for whatever reason, you've got others to fall back on. This not only helps you accommodate demand fluctuations but also helps prevent a pause within the supply process.
It is important to notice here, that within this also, you'll value more highly to either sell a novel product yourself - either through your own online business or the same platform or can value more highly to allow other sellers to sell their products on your store.
In the first situation, you'll earn high margins. within the second, you'll earn a commission, whenever one in all the sellers registered together with your brand makes a successful sale.
Step 2: Brand your brand
Once you’ve selected which business model you want to follow so as to make your eCommerce business and have narrowed down on the merchandise or products you want to sell, moreover because of the audience you want to sell to - the subsequent step is to return up with the proper name for your brand.
Now, you will be thinking - “What’s in an exceeding name?”
Tim Ferries has the answer: “Personal branding is about managing your name—even if you don’t own a business—in a world of misinformation, disinformation, and semi-permanent Google records. happening a date? the likelihood is that that your “blind” date has Googled your name. visiting employment interview? Ditto.”
Your name should be:
Short and straightforward to recollect
Reflective of your brand
Unique and typically does not have another meaning in another language
Along with this, you ought to also come up with a finalised design for your company logo.
Once you have got selected a reputation for your brand and its logo, the following step is informing your company. In India, there are usually four popular types of companies:
Sole proprietorship (no limitation of liability)
One-person company
Limited liability partnership (LLP)
Private Ltd.