2021 is about to be over, and if you still don’t know how to start ecommerce business, then you are missing too many potential features and factors in your business.
Ecommerce industry is too wide in itself, in fact, ecommerce is not just an industry, it’s a tactic.
There are many talks being circulated about an ecommerce business, e commerce industry, building successful ecommerce business, and many more.
But the basic thing is to understand what is ecommerce business, what is the meaning of ecommerce business, what are its pros and cons, right?
Revolution is the unchanged law of the universe, and our planet comes under it, so we also have to accept it.
There was no existence of Ecommerce business ideas before some years, but with the passage of time, it evolved, and nowadays, it has covered almost the entire business industry. Do you agree with me?
According to the economic survey of 2017-2018, the estimated ecommerce market of India is $33 Million which is a hike of 19% from 2016 .
What is Ecommerce Business?
Ecommerce business stands for the electronic business in which you can sell and purchase every product through the medium of internet.
If you are a seller, you can sell your product to the customer who is located anywhere in India, or the world else.
And if you are a customer or consumer, you can purchase any product from your desired seller and store located anywhere.
Both of them are not supposed to move anywhere from their shop or home, and a local location, the utilization of the internet will do everything for you.
There are multiple payment methods and online payment gateways from where you can pay and receive the payments to the sellers and from the customers respectively.
Benefits of Ecommerce Business
Revolution is the mother of easiness, and similarly ecommerce business ideas have committed too many advantages for people including sellers and well as consumers and customers.
Amazon, Flipkart, Myntra, Walmart, eBay, and many other sites have done many experiments, and concluded and proved that it is the future trend of the business world.
Moreover, the ecommerce business model has come with a lot of advantages and has transformed the face of the business chain.
Removed The Area Barrier
Limitation of area for selling products can create the saturation after a certain time unless you are selling the daily routine products.
But what if you can sell your products anywhere in your country without moving from your business location?
It’s quite beneficial, right?
Yes, and the ecommerce business has made it possible, hike of selling means hike of revenue and hike of profit.
Delivery of your products anywhere in your country without paying more expense enhances your business and generates more revenue.
Saves Time and Energy
Until you provide value to your customers, your business will not grow up according to your efforts.
By starting an ecommerce business, you provide the ease of time to your customer, where he can just open your store on the internet, and order the product whatever he wants.
You are saving the time of your customer which is a very important factor for everyone, and you get a massive profit in return.
Covering The Domestic and International Market
When the ecommerce sites were not available, you could sell your product only to your local customers, and you could not target the intercity or interstate customers.
Now, with the trend of the ecommerce business model, you can break the box of locality, and you can cover all India domestic and the international market.
Export business is a different business, where you send bulky products to your international clients.
But if your business is retail natured business, you can sell your products to abroad clients via an ecommerce site.
Fetching The Maximum Profit
As you are saving the time and energy of your customer, you deserve something extra in rewards of that value given to the customer.
By ecommerce nature business, you can generate more profit than a traditional selling approach.
If you tie up with an ecommerce site like amazon and flipkart, those sites are supposed to bear the expense of delivery of product to the customers.
Those ecommerce sites also need to maintain their reputation to survive in the market, and that’s why they do not compromise in services, which positively impacts your business indirectly.
How to Start Ecommerce Business in India
Starting an ecommerce business is not much tough if you follow the complete procedure of its chain system.
Before you start Ecommerce business, it’s quite advisable that you understand all the fundamentals about starting ecommerce business.
See, the different people have their different strategies to start ecommerce business, and amongst them, some can work, and some can not.
In this article, I am going to explore the strategy to start an ecommerce business idea on the basis of very deep research and conversations.
How to start an ecommerce business, what will you be required to start an ecommerce business, which kind of action you should avoid while running ecommerce sites, all questions are going to be answered in this article.
Ways to Start Ecommerce Business
You can start your ecommerce business in three ways.
- Create your own Ecommerce Store
- Tie up with existing ecommerce sites like amazon, flipkart
- Use the Dropshipping concept
If you have a perfect business plan and you want to start an ecommerce store for your product, you can set up your own ecommerce business.
By establishing your ecommerce site, you have to take charge of all business aspects like uploading the products on an ecommerce portal or site, taking orders, dispatching, delivery, return and exchange, and all things.
The second way to run an ecommerce business model is that you can tie up with already existing ecommerce sites like amazon, flipkart etc…
The third way is to locate your business on the dropshipping sites where you can buy a space for displaying your products for your worldwide customers.
Many people think that they will create an ecommerce site for their products, spread it on social media platforms and they will start earning much.
But it does not come true, because this is a business, and business ideas can not be executed without a proper strategy and planning.
Create a Perfect Business Plan and Model
Many people do not make a proper business model before starting an ecommerce business, and commit the changes while execution which causes the mess creation.
Before starting an ecommerce business, you are supposed to create a perfect business plan with the proper strategies.
According to the CEO of Shopify, the ecommerce business is not only an industry, it’s a whole planning and tactic.
The biggest barrier can be an investment to start ecommerce business, some people do not have enough investment, some could have medium capital of investment and the rest can have a huge investment.
If You Have Low Investment
If you are amongst those people who do not have enough investment, you should become a social seller first.
It means you should not start ecommerce site directly by investing in inventory and products, you should sell the third party products first by using social media for which you will not be paying anything.
That means, you will be collecting some products or product details from the third party sellers and promoting their products on social media, and building your potential audience.
If you will have existing customers while starting ecommerce business, you will not face the chaos of the money rotation.
If You Have Medium Investment
If you have a little bit more investment and want to start an ecom business on medium or big level, then two factors are very important.
- Social Commerce Website
- Knowledge of Digital Marketing
After executing these steps, you can create your online store on shopify, where you will not need any developer, you can create your own.
Here, you can manage your entire business without any external resource dependency. If you do not have a knowledge of digital marketing, you can hire a person who will do the same for you.
If You Have High Investment
If you do not have any issue of investment capital, and want to launch your own brand, you have proper idea about digital marketing, how to generate the sales, you can launch an ecommerce website of a single vendor.
In the single vendor website, you are only the seller, you will not be promoting any product of a third party, you will be managing and selling your own inventory.
Here, I suggest you keep a maximum of 4 to 5 categories of products, and do not keep over inventory, instead of that, you should bring the products from the wholesaler or manufacturer on demand.
The benefit of this ecommerce business strategy is you will be able to save your time & energy, but your investment will decrease which you can invest in other needy factors.
Branding Your Business
Once you execute the first step about starting an ecommerce site, making your brand is the second important point.
Brand does not mean only your best product quality and service, hence it is the first mandatory factor, but there are also many supplement factors, without them your branding will take more time to be popular.
Your brand name must be easy to remember for people, like Paytm, which is very easy to read, write and remember for everyone.
Your business name, logo, designing of color, cover pic, catalog, business card, email address or your brand, social media pages of your brand, whatsapp account, these all things are responsible for branding.
Apart from these, your legal documents like PAN No, GST No, Proprietorship Firm, these also are responsible for branding.
In fact, a GST number is not mandatory while starting an ecommerce business, but when your business becomes stable, it’s recommended to apply for a GST number.
Moreover, it’s also most recommendable that you should have the best photography of your products, and post the best and honest reviews on your ecommerce site given by your existing customers.
Create Ecommerce Website
If your online ecommerce business on a small scale, you don’t need to invest in creating the ecommerce website, you can use the whatsapp business and social media paid ads to generate the sales.
If you are quality conscious and want more precision for your customer in terms of quality and service with display, you should go for creating a dedicated website for your starting an ecommerce business.
Here you have two options which I mentioned earlier in this article, either you can create your own website by hiring a developer or you can use Shopify where you will not have any developer.
Shopify provides you everything for your online ecommerce business along with many plugins which allow you to customize your site according to your business plan.
In addition, if you are getting more leads from the social media platforms, you can also use small applications like meesho, dukaan, popshop, where you can create a small web store and share links to your customers.
Research The Product and Suppliers
This is another most important and mandatory checkpoint that you have to take with care while starting an ecommerce business plan.
You need to find the high quality product which is demandable in your country (if you start on a domestic level), and second is the supplier who can supply you the products on demand, instantly, and he must have enough stock of the product.
Many people think that they will be able to sell anything on an ecommerce website, hence, it’s right, but building a business and building a successful business are different things.
But you should focus more on the ecommerce trend and which kind of products are being sold more, here are some ideas.
- Unique Products
- Not available offline easily
If you have such products and you start an ecommerce business online, your business will grow very fast.
But, what if you don’t have one?
Then you need to do a deep market research, and find the best supplier who can supply you a significant product for your customers.
So, if you plan to sell the common and non branded products on an ecommerce site, it can create chaos for you, so it’s recommended that you choose the products which contain the above mentioned characteristics.
Product selection is the next mandatory and important part of an online ecommerce business which is the cause of the profit generation.
While starting an online ecommerce business, you should keep the product which has the minimum margin amount of Rs. 250/- so that you are profitable.
Second important aspect is that the product must be of high quality, because if you are going to sell low quality products, you will bear a loss from the beginning.
The selling price of the product must not exceed the value of 2k-3k, otherwise you will not be able to build even a customer base.
Select the easy shippable product in terms of size, because heavy weighted products consume more delivery charges, which will affect your profit margin amount.
Marketing and Sales
Before, while, and after starting an ecommerce business, marketing is the must factor, not even only in the online ecommerce business, in every business you must do the marketing of your products to your potential audience.
I recommend you to wait for some time to invest in the paid ads, meanwhile you should invest money and time in the content marketing.
You should drive the quality traffic on your site first by free or low investment strategies like blogs, YouTube, or social media platforms.
Once you grab the interested audience for your business and related products, after time is the best time to run the paid ads because at that time, you would have the reviews from the existing audience which impress the new audience.
What some people do is that they directly run the paid ads, and spend too much money. Now, gaining the customers for the ecommerce business is a time taking process, and they invest the potential money in it.
Instead of investing in paid ads, you should do the content marketing from which you get the consistent traffic on your site then you should collect the contact information of your users.
Then you can do email marketing to promote your product to those people who actually need it.
Retarget The Customers
This is one of the most important steps to start an ecommerce business in India, or anywhere as well.
The customers who have purchased anything from your store, or take any action on your email or visits your site, you should retarget them because they are the most potential customer of your online ecommerce business.
You are supposed to send them new content, ask for feedback, send the whatsapp messages for new products, ask for reviews, and send the new update to them on the first priority.
Conclusion on Starting Ecommerce Business in India
By reading the entire article, I hope it’s clear that starting an ecommerce business online is not too tough , especially for India.
In Addition, the concept of starting an ecommerce business is in its initial state in India, which is the most beneficial point for you.
You can start an ecommerce business with very low investment if you don’t have more by going through this article, and if you have enough funds to start an ecommerce business, you can go for your own ecommerce site.