How to Start an E-commerce Business in India
Owning a sustainable e-commerce business can not only help you be your own boss but can also generate wealth in the long run.
To top it, operating a venture with an online platform for sales of products has only become cost-efficient over time, thanks to the innovative supply models like drop shipping.
However, when planning on how to start an e-commerce business in India, proper execution is quintessential to giving it a power-packed start.
Let’s walk you through the essential steps for the establishment of an e-commerce business beyond the brick-and-mortar sphere, a storefront that brands and sells virtually.
Steps to Start Ecommerce Business in India
Research on business ideas and arrive at a niche
A critical step to starting an online venture is conducting in-depth research based on a particular business idea. It extends to the product, its uniqueness and viability in the market, the scope for expansion and such other groundwork.
Establish a niche to obtain clarity over the demand from a targeted customer segment, identification of the market for operation, and product-market fit. Also, outline details regarding other peripheries like the cost to incur, competitor research and the likes, to sculpt a forte for your e-commerce business.
Choose the supply model
Supply under e-commerce business is primarily arranged via two models:
- Inventory maintenance - It requires you to maintain a stock of products. You must meet the existing regulations or permit requirements to ship products both within India and to international destinations.
- Drop shipping - It serves as a third-party facilitation model whereby tie-up with suppliers across locations helps in the order delivery. The seller does not handle the products directly but purchases the items from a third party and delivers them to the customers.
You can choose either depending on whether you want to focus on higher margins or capital efficiency. Once you are aware of these compliances, confirm the logistics flow to destinations for deliveries.
Fulfil structural and initial legal requirements
Once you complete the initial steps, next in line is setting up the website and complying with the legalities to venture into e-commerce.
Fulfilling the structural and legal requirements for a digital business more or less establishes its identity to initiate operations. However, brand identification is an essential groundwork you must complete before getting on with legal compliances.
Start with naming your brand and selecting a logo; identities that remain in the closest proximity to your product, the business mission and vision, as well as customer segment it would serve.
You can proceed with the following steps to complete the legal requirements for e-commerce venture -
- Decide on the structure of a business entity, whether it is a partnership structure, a sole proprietorship firm, a private limited company or a limited liability partnership.
- Choose a domain name and register. Proceed with website hosting, either through a self-hosted or third-party hosting platform.
- Invest in website building and get one ready with some help from professional developers.
- Register your business with MCA (Ministry of Corporate Affairs), Government of India, and acquire the DIN or Director’s Identification Number. Once registered, proceed with business incorporation.
- Acquire licenses and permits to run a business online as per the product or service offered.
An e-commerce seller must necessarily also acquire a GSTIN to comply with tax requirements.
Online tools and resources to be used
Once you have set the outline for your e-commerce business, it is equally essential to take measures that help extend your business’s reach to the targeted audience available online.
To do so, you can utilise a few essential tools and resources the digital world is endowed with.
- Put Analytics in place
A well-integrated Analytics suite (such as Google Analytics) allows you to track and maintain essential stats related to your site visitors, which can help you make informed decisions.
- Define your SEO plan and integrate accordingly
On and off-page SEO done right draws in the audience to your online store, increasing chances of multiplied sales. So, hand out the task to a digital marketer for sufficient integration.
- Chart out a marketing strategy for your online store
Create your marketing strategy and include essential details like design, techniques to advertise, monetising on the website, analysis of online traffic and the likes.
- Define the details of products and upload
Publishing the relevant content on your website is as essential as utilising the resources right. It may include dedicated sections for products that sell fast along with their details and pictures. Other integrations can include company objective, interactive shopping cart addition, blog section and more.
You can also cash in on resources like social media to boost the reach of your e-commerce business.
Establish payment gateways
A secured payment gateway establishes the customer’s trust in completing payment with minimum hassle. Also, customers can opt for payment via multiple online methods like net banking, payment cards, online wallets, UPI and more.
A well-executed plan not only gives the necessary thrust towards the success of an e-commerce business but also increases exposure. Follow the steps mentioned above to launch your online store and begin selling right from the word go.
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