According to market estimates, the Indian eCommerce business is developing at a 25% annual rate and is expected to reach $100 billion by 2022. The e-commerce industry is flourishing in India, thanks to increased Internet access and a booming smartphone market.
The low cost of internet connections is a boon to the e-commerce business, encouraging even tiny retailers to enter the market. In this article, you will learn how to start an eCommerce business in India?
Many small and medium shops in India realize the benefits of eCommerce due to the new trends of doing business online. Due to this, they are prepared with their online stores to get started on their new company venture.
The Rise of eCommerce Business in India
Several ways selling online in India might benefit you. Here are a few examples, the order processing time is reduced, reach out to a larger audience, rise in the marketing channels, order management has been improved; hence there are possibilities for expansion.
Thanks to rising smartphone and internet usage, India’s e-commerce industry is booming. With more internet service providers and the debut of 3G and 4G services at reasonable costs, the e-commerce and m-commerce industries are expected to grow even faster.
Whether you want to establish an eCommerce business or you currently have one and want to learn more about the sector to improve your business plan. This article will teach you the fundamentals of e-commerce and the steps on how to start an eCommerce business in India.
The various options for starting an eCommerce Business in India begin with your business plan and requirements. This process determines how you want to set up your new eCommerce firm.
When it comes to how to start an eCommerce business in India, you need to consider these two options:
- Creating an E-Commerce Website
- Getting involved with a well-established eCommerce marketplace
Two Ways of Starting an Online eCommerce Business in India
1. Creating Your Online Store
Starting your own eCommerce business is a challenging alternative to select because it necessitates website construction, payment gateway integration, online marketing setup, logistics implementation, and other tasks.
On the other hand, having your online store will help you establish a brand and is a long-term profitable business approach.
Before we start on How to Start an eCommerce Business in India, let us check the definition of an eCommerce store?
E-commerce, often known as electronic commerce, refers to the online purchase or sale of goods or services.
Suppose you’re buying all of your fashion items from Flipkart or acquiring a household item from Amazon. Even if you pay for your Spotify and Netflix subscriptions monthly, you engage in eCommerce.
The eCommerce industry is rapidly expanding worldwide, with every company focusing on placing its product or service online to reach a global audience.
As a result, you may buy nearly anything online at your leisure, which is not possible in traditional retail.
By joining an online digital marketing course, you will not only learn how to develop a user-friendly eCommerce website but also how to grow and improve your brand on the digital platform.
2. Getting Involved with a Well-Known eCommerce Marketplace
Joining an established eCommerce marketplace is a relatively simple approach to selling your things online. To join an eCommerce marketplace, you need a bank account and a tax identification number, which you can obtain online.
Everything will be handled by the market, including website design, development, technology, marketing, payment gateway, and so on, lowering the strain for new merchants.
A seller can also join various e-commerce marketplaces to establish their online profile, making it easier to launch their online business. The following are some of the most well-known eCommerce or m-commerce marketplace Flipkart, Amazon, Snapdeal, Shopclues and Paytm.
Consider the following factors before deciding on a marketplace for your goods:
- Evaluate your product
- The popularity of the marketplace
- Check if the marketplace has an online presence.
- The marketplace’s followers
- Support for logistics and shipments
- Competition is supported by marketing.
But remember, don’t jump on how to start an eCommerce business in India without understanding the types of E-commerce Models:
Types of eCommerce Models in India
Business to Consumer (B2C)
B2C sales refer to the conventional retail model in which companies sell products or services directly to consumers. When a customer orders a product from a marketplace or an eCommerce site, the product is delivered instantly, and the transaction is B2C.
Business to Business (B2B)
Business to Business (B2B) refers to a business model that sells products from one company to another. Many industries are based on this model: software companies develop programmes for other businesses, while logistics companies assist businesses in shipping their products.
Bonus Read: Top Digital Marketing Tips for eCommerce Brands
Consumer to Consumer (C2C)
You’re moving to a new city and need to transport furniture and other electronic devices. Consumer to Consumer (C2C) exchanges are based on people using a marketplace to trade, buy, and sell things for a small commission paid to the site. You put those products up for sale on the market and found purchasers willing to pay the price you set.
Consumer to Business (C2B)
Consumer to Business (C2B) is a business model in which any professional or skilled individual monetizes their skills to make money by providing their skills as a service to various businesses. One of the most typical examples of the consumer to a company is freelancing.
Building an eCommerce Platform
If your products are ready to enter the market and reach potential buyers, you should build an e-commerce platform. And that’s the end of your market research and marketing strategy.
Now is the time to take the most significant step: creating a platform for your items. You may either employ a team of developers to develop a bespoke e-commerce platform or use any pre-built media, which are less technical and easier to set up than custom platforms.
Pre-built platforms – Platforms that have already been built
Custom Build platform – Customizable Platform as per needs and requirements
Choosing the best e-commerce platforms for your product launch
The e-commerce platform industry isn’t tiny; there are a lot of possibilities to choose from, some of which are inexpensive and others that include a few more features.
You’ll only comprehend and select the ideal platform for your demands when you’ve explored the various available platforms, their features, services, and support system.
Top Pre-built E-commerce Platforms: WooCommerce (WordPress), Wix, Shopify, Magento, BigCommerce and Squarespace.
Building a Customized eCommerce Platform Starts With:
Specific methods, processes, and technology are used to create your platforms. Before deciding on the steps to create an e-commerce platform, you must first assess your needs and the scalability of your firm.
To create your e-commerce platform from the ground up, follow these steps:
- Select a Domain Name
- Select a web hosting company.
- Creating a design for your e-commerce store
- With an SSL certificate, you can make your website more secure.
- Create a Payment Gateway
- Choose a logistics partner for product packaging and shipping.
7 Steps to Start an eCommerce Business in India Online
The following are the first steps in the process of starting an internet business and selling things right away:
1. Registration of a Business
Before you begin, you must establish your business or limited liability partnership (LLP) so that you can open a bank account in the firm’s name and acquire GST registration documents quickly.
All eCommerce marketplaces allow online sellers to sign up to sell on their platform, but there will be no limited liability protection in the event of a lawsuit. As a result, it’s advisable to start with an LLP or a corporation.
2. Establish a Business Bank Account
After you’ve successfully formed your company or LLP, the next step is to open a bank account in your online venture’s name. If you’re starting a business, you’ll need a GST certificate in the company’s name before you can create a bank account.
3. Registration for Taxes
Whether you’re launching your own online business or selling on a marketplace, you’ll need to register with the GST and other tax regulations before you can start selling online.
4. Integrate a Shipping Solution for eCommerce
After receiving the order, you’ll need to set up the logistics section. An eCommerce logistics business can assist you in getting your sold products to your clients at the specified location. Many dependable shipping and delivery solutions in India are provided for all eCommerce businesses.
You do not need to purchase a separate payment gateway or delivery solution provider if you wish to sell through the marketplace. These marketplaces meet these specifications on their own.
5. Payment Gateway
The next step is to integrate a payment gateway with your eCommerce website so that clients may pay using credit cards, debit cards, internet banking, and other methods. Customers can make payments online through a digital payment gateway, which is then automatically sent to your business’s bank account.
When a consumer makes a payment, the amount is sent to the business’s bank account via the payment gateway within one or two business days.
As a result, accepting various online payments with just one payment gateway is adequate.
The marketplace will accept payment through their payment gateway and credit the money directly to the seller’s bank account when selling online. In this case, no payment gateway is required, and only a bank account is required.
6. Solution for eCommerce Fulfillment
You’ll need a fulfillment system to help you handle orders smoothly with the whole eCommerce fulfilment process.
Warehouse management, inventory management, picking, packaging, and shipping are all included. These can help you process orders three times faster and deliver products to clients significantly quicker.
eCommerce fulfilment solution allows you to store items in fulfilment centres throughout India. You can keep products closer to clients and distribute them faster with PAN India storage.
In addition to these fundamental measures, before beginning an online business, one must confirm that all legal requirements are met. To maintain corporate openness, you must provide your company’s policies, contact information, and disclaimers.
7. Documents in the Legal System
If a company sells through an online marketplace, the marketplace will give a legal document called a seller’s agreement, which the seller must follow. Before agreeing to a seller’s agreement, any firm must read it.
India’s eCommerce Future
India’s e-commerce journey on How to Start an eCommerce Business in India began when Suvir Sujan and Avnish Bajaj, two Harvard Business School graduates, decided to explore the eCommerce market area in India. They took advantage of the opportunity and launched Baazee.com, an online auction site modelled after eBay. Later, in a $55 million deal, eBay purchased the company.
India holds one of the best startup ecosystems in the world, with a steady stream of innovative firms and new products flooding the market. As new companies join the ranks, this list of unicorn businesses continues.
The eCommerce business is gaining fresh hope as demand grows and the affordability and accessibility of online buying. In India’s startup ecosystem, a lot is going on, with a growing number of firms drawing top worldwide investors.
Likewise, a few of them are experiencing financial difficulties and find it challenging to stay afloat in this competitive business.
We hope you found this article helpful on How to Start an eCommerce Business in India, do share your feedback with us.