Ecommerce businesses transact items, services, and money through the Internet, ranging in size and variety from retail behemoths such as Amazon to small-scale creative platforms such as Etsy.
The Indian ecommerce industry is approaching the next phase of rapid development. If you’ve been fantasizing about entering the world of boundless profit through Ecommerce, the clock is ticking for you.
From developing a business plan to establishing your website, we’ll make sure everything is step-by-step and simple to understand. So, if eCommerce interests you, keep reading and get started!
1. Find the right business plan
When you get an idea for a new Ecommerce business, the first step is to do the research required to bring it to life and discover its feasibility. Just like starting a restaurant, you would like to look at various places, food choices and subjects in the e-commerce sector that you are interested in and make some decisions about your particular business.
For example, you should precisely think what your Ecommerce business is going to deliver. Are you going to market goods or services? Are they physical or digital products? Where are the goods going to come from? You will also be thinking about the type of business you want to use in this respect — are you going to propose single items, bundles, subscriptions or anything else?
You can choose between two different styles of business models. Either a single seller or a multi-seller e-commerce store is available.
- Single-vendor marketplace – The benefit of this business model is that it only includes two companies – a single vendor who sells its product to other consumers. To this end, tracking a transaction between the two companies isn’t just easier. Operating costs are lower if only one supplier is payable, and the inventory is controlled more effectively.
- Multi-vendor marketplace – This model entails multiple vendors selling their wares to various customers, with each vendor needing to register with your platform. Here you can either sell your own unique product through your own business online or choose to allow other sellers to sell their goods on your shop.
2. Register your Business
Once you’ve decided on the business model you want to use to build your Ecommerce business, as well as the products you want to sell and the target audience you want to sell to, the next step is to come up with the perfect name for your brand. Along with this, you should create a finalized logo design for your company.
Next, decide on the legal framework of your business. The legal and financial consequences of the business entity form you choose for your e-commerce business are essential. In most cases, you’ll form a sole proprietorship, single-person company, limited liability partnership(LLP), or private limited company. Each of these organization forms have advantages and disadvantages, so you might want to seek legal advice from an attorney or another legal professional to determine which is the best choice for your business.
Let’s look at some of the legal formalities for operating an Ecommerce business in India:
- Request for the DIN number of the Director, available for download on official Ministry of Corporate Affairs websites, or via the DIN application (DIN 3 form).
- Ascertain that you own your Permanent Account Number (PAN) and Digital Signature Certificate.
- After you’ve obtained the DIN, you should contact the Registrar of Companies (ROC) to inquire about the availability of the company name you’ve selected.
- Apply for Goods and Services Tax (GST) qualification, a Shops and Establishment Licence (required for Payment Gateway Integration), and a Professional Tax Licence (PT).
3. Build your Website
Your e-commerce website, like a physical shopfront, will be the face of your company — it’s what your customers will first see and use to find and buy your goods or services. In this respect, the development of your website will be one of the main elements of your ecommerce business.
Your ecommerce platform, whether it’s all-in-one software like Shopify or an open-source platform like Magento, will be the foundation on which you create and expand your online store. Most ecommerce platforms let you customize your template, add your domain (or buy one), manage inventory, take and ship orders, accept payments, and more.
Although there are hundreds of these platforms on the market, you may want to start your ecommerce business with one of the following standard options:
- Shopify – Shopify, perhaps the most well-known and popular e-commerce software, provides an all-in-one, user-friendly solution with a range of add-ons. Shopify subscriptions are available in four different plans, starting at $9 a month for Shopify Lite (which does not include a complete online store).
- WooCommerce – If you already have a WordPress account, you can get WooCommerce to build and manage your online store. In the e-commerce world, this piece of software is 100% free to use, download and contains all of the e-commerce functionality. WooCommerce is particularly well-suited for business owners who know how to code, as it is built on an open-source platform.
- Magneto – Finally, if you want complete control over every aspect of your online store, the open-source version of Magento could be the way to go. You can control every feature and customize your site with this e-commerce platform, but you’ll need technical knowledge (or pay for it) to do so. While this platform isn’t ideal for newcomers to e-commerce, whether you have the technological know-how or the funds to hire a developer. Magento provides the most features of any open-source solution on the market, and it’s free to download.
4. Select Payment Methods
You must ensure that your fully functioning online store allows your customers to make online purchases when setting it up. Payment methods come in various shapes and sizes, and they differ from one company to the next. You must determine which payment method would best serve the essence of your company while still appealing to your customers. It can be considered a crucial step in achieving profitability and success.
5. Find Logistics Partner
Choosing the right logistics partner is critical for your ecommerce company because it provides you with an efficient and consistent method of tracking the goods being shipped at every stage. This will assist in preventing goods from going missing and assisting you in effectively responding to consumer inquiries about the planned delivery.
A third-party logistics provider must be dependable, as the brand’s image is at stake. When selecting a logistics partner, it is important that the company is capable of delivering the products on time and in good condition—as well as adhering to your company’s standards.
6. Market your Ecommerce Business
To build a customer base and an online presence, you’ll need to market your e-commerce business effectively. Customer engagement is not always easy; the average cart abandonment rate is 69.2 percentage. To meet your audience and raise sales, it requires patience and a range of marketing tactics.