How to Start E-commerce
Electronic Commerce popularly known as E-commerce is a method or activity of buying/selling products on online services or Internet.E-commerce attracts or draws attention technology like Electronic Fund transfer, Internet Marketing, EDI, Online Ticket, Internet Banking, and Automated Data Collection. By Increasing the influence of Smart Phones, mCommerce or Mobile Commerce uses increasing day by day due to comfort in working on a smartphone.
Types Of E-commerce
1- Business To Consumer (B2C)
It is the Company when it sells its product/Services directly to the consumers on online platforms like a website or an app. When a customer sees a product on any website/app if he wants to buy that product so he can buy this on that platform and pay the bill through that website, This process is done via the Internet so he does not have to go anywhere and that's the easiness of E-commerce. There are many companies you see using this method such as Amazon, Flipkart, Myntra, Snapdeal, and many more.
2- Business To Business (B2B)
When a Business in this method deals with other Businesses or Buy/Sells with other Businesses via the Internet with the help of a website or an app and also pay with an online payment gateway.
In this method, A Company/Wholesalers usually buys a product of other Companies/Manufacturers and to make their own product and sell onwards.
Import/Export has become easy for them, Buyers/sellers determination is easy and this makes encourage business online which helps them to grow and expand fast.
Alibaba, Exporters India, and IndiaMart are such websites examples of B2B E-commerce.
3- Consumer To Business (C2B)
In this type Consumer act as a seller and company as a buyer, means Consumer can post his product/services online on the website and companies can bid to that product/services, you can clearly see that it is just reverse type as we discussed above i.e B2C.
There are many websites you can visit and give services to any company like Upwork, Fiverr, Freelancer, and many more.
4- Consumer To Consumer (C2C)
Imagine a person wants to sell his product but he didn't find the best deal according to him and wants to broaden his search field. For that, he has an option to go online and post his product on websites like eBay or OLX, and due to this, a second person who lives miles away from him finds the product of the first person on these websites.
This is the example of C2C type where consumer sells his product to the other Consumer, you can say this is also C2B2C means product from the person first go to a Business website(eBay or OLX) then sent to the second person who buys it.
Imagine a person wants to sell his product but he didn't find the best deal according to him and wants to broaden his search field. For that, he has an option to go online and post his product on websites like eBay or OLX, and due to this, a second person who lives miles away from him finds the product of the first person on these websites.
This is the example of C2C type where consumer sells his product to the other Consumer, you can say this is also C2B2C means product from the person first go to a Business website(eBay or OLX) then sent to the second person who buys it.
How To Start?
Before you start you have to decide whether you are work with Marketplace or Start with your own site. Here you can have your own product to sell which means you are going with niche(sell a single product) or you can go for multiple products which you buy from somewhere and sell them to your consumer, so it's up to you with which method you choose.
Below are two methods which you can decide to go with
Below are two methods which you can decide to go with
1- Work with Marketplace
It means you approach other eCommerce company to sell your product and you can get cut of each product is sold, but here are a few points you have to remember before you approach anyone-
(A) The Marketplace key strength
If you are going to sell your product on the marketplace so find out which is the best platform for your product, let's take an example- you manufactured jeans/shirts/T-shirts so you have to choose those platform which they are best for like Myntra and Lifestyle for Fashion.
(B) Check What Others are Doing and their Level and Quality
You have to look for your competitor's product strength, Quality, Value, Pricing, Discount they are giving, and their policies in a short look for the Behaviour of your Competitor.
(C) Make Catchy Presentation & Catalogue (Catch the Eyeball Attention)
You must prepare your catalog wisely because the customer can't touch your product or feel its quality, which means you have to clarify all details about your product or we can say give maximum details of your product in a catalog. eBay is most popular with showing all catalog of yours rather than other E-commerce.
(D) The support system of Merchant
CHECK
(E) Check Fee & Margin
CHECK
Decide whether you can Deliver your product OR you want the company itself to deliver, In your starting, you will see your delivery addresses are in your nearby so you can deliver the product BUT if you want company can deliver by taking some charges like Flipkart can charge up to 10%.
(G) Access Control The System
Check your marketplace allows accessing control the system, many don't do that even they cannot let you show all of your product to their marketplace
Find Out which marketplace is best on these terms are-
Check your marketplace give your payment on time if you did not get your payment then how you buy raw material for your product.
Check Payment Timing such as
Some of you might be heard that the person purchases online and return it after purchasing with no reason or without a valid reason, these cases we called Fake Orders and happened many times.
Many cases of the damaged product so that product also returns in this case. Keep in mind that with every time your product will return the penalty will also pay by you, not by your marketplace.
Always check their penalty charges when your product returned for any reason.
Let's take an example of Flipkart, they cut up to 500INR on returned and 1000INR when customer use then returned, so choose wisely on this matter of a penalty.
(J) Dispute Resolution Process
Be Prepared when Some disputes arrived whether to customer Or Marketplace, always ready your legal document so that you do not have to face a problem with your side.
2-Launch Your Own Website
Buy a Domain name & Hosting for the website if you are not that technical then hire a web developer so that he can do all whatever you want for you. Now Register your E-commerce company name, In this case, hire a Charted Accounted and he will help you to register like an individual firm, partnership, private limited company, Current Account, G.S.T number, so that you will never face a problem on a legal matter and can sell your product on all over India. Sometimes govt. amend some rule for the E-commerce industry then here also Accounted will help on this matter.
Let us talk about pricing of making a website, so it will start from approx 15000INR to Lakh as per your needs, Adding you also must have an app so that customer access your market on their smartphones and it help you to grow fast. Find Courier Agencies, there are many you can talk with like DHL Express, Blue Dart, FedEx, DTDC, TNT Express, etc.
Now you are selling your product and you have an option to add wholesalers or manufacturer, you can tell them that our website will your product for sell in all over India even shipping will also our concern, In return, we need 10%, 15%, or 20% as per the settlement of your profit.
Promotion
You can see many companies like Flipkart, Amazon, Big Basket, Shopclues, Myntra are promote their Businesses by displaying T.V ads, Hoardings, cricket matches like IPL, and many other places.
We are not saying in starting you spend so much money which crores in these advertisements, You can select an alternate option to go with the SEO (Search Engine Optimization) and SMO(Social Media Optimization) which costs much less than that, their work is to index your website on Google and display your ads on Social Media like Facebook, Instagram, etc.
Let us talk about the 1st option, in this case, you don't need to do anything just approach Marketplace and join them, Literally, I do not have to do anything just manufacture my product and shipping is also in their hands with no extra pay, But here is also a problem if you choose a wrong marketplace according to your product, Refund product penalty has to given by you and sometimes the penalty is more than the product price.
The best way is that you need an Investor or Partner so that your risk-taking capability will be high and in this case, you can choose the 2nd option and starts your own website. Keep in mind that if your partner is a technical man means if he can make a website and even do SEO so that's the best way to start E-commerce and make Really a Big MONEY.
Note- The more you add Investors or Partners, the risk-taking ability will also more but your share will down as partner increases so add investors according to your need.
(B) Check What Others are Doing and their Level and Quality
You have to look for your competitor's product strength, Quality, Value, Pricing, Discount they are giving, and their policies in a short look for the Behaviour of your Competitor.
(C) Make Catchy Presentation & Catalogue (Catch the Eyeball Attention)
You must prepare your catalog wisely because the customer can't touch your product or feel its quality, which means you have to clarify all details about your product or we can say give maximum details of your product in a catalog. eBay is most popular with showing all catalog of yours rather than other E-commerce.
(D) The support system of Merchant
CHECK
- how fast they are interacting with you
- Your Discount
- Policies
- If they understand your Product
- whether they display your product in a proper way or even help you
- Market Response
(E) Check Fee & Margin
CHECK
- Or Ensure your margin on your Product
- what type of fee they charge (1) On return (2) Cancellation Policies (3) Product unavailable
Decide whether you can Deliver your product OR you want the company itself to deliver, In your starting, you will see your delivery addresses are in your nearby so you can deliver the product BUT if you want company can deliver by taking some charges like Flipkart can charge up to 10%.
(G) Access Control The System
Check your marketplace allows accessing control the system, many don't do that even they cannot let you show all of your product to their marketplace
Find Out which marketplace is best on these terms are-
- Maximum & Minimum number of listing they control
- Restriction on a specific region for your product
- Customer's Data Access they providing or not like Some marketplace don't give the buyer Email address
Check your marketplace give your payment on time if you did not get your payment then how you buy raw material for your product.
Check Payment Timing such as
- Amazon- 14 to 90 Days
- Shopclues- 30 to 90 Days
- Flipkart- 45 to 90 Days
Some of you might be heard that the person purchases online and return it after purchasing with no reason or without a valid reason, these cases we called Fake Orders and happened many times.
Many cases of the damaged product so that product also returns in this case. Keep in mind that with every time your product will return the penalty will also pay by you, not by your marketplace.
Always check their penalty charges when your product returned for any reason.
Let's take an example of Flipkart, they cut up to 500INR on returned and 1000INR when customer use then returned, so choose wisely on this matter of a penalty.
(J) Dispute Resolution Process
Be Prepared when Some disputes arrived whether to customer Or Marketplace, always ready your legal document so that you do not have to face a problem with your side.
2-Launch Your Own Website
Buy a Domain name & Hosting for the website if you are not that technical then hire a web developer so that he can do all whatever you want for you. Now Register your E-commerce company name, In this case, hire a Charted Accounted and he will help you to register like an individual firm, partnership, private limited company, Current Account, G.S.T number, so that you will never face a problem on a legal matter and can sell your product on all over India. Sometimes govt. amend some rule for the E-commerce industry then here also Accounted will help on this matter.
Let us talk about pricing of making a website, so it will start from approx 15000INR to Lakh as per your needs, Adding you also must have an app so that customer access your market on their smartphones and it help you to grow fast. Find Courier Agencies, there are many you can talk with like DHL Express, Blue Dart, FedEx, DTDC, TNT Express, etc.
Now you are selling your product and you have an option to add wholesalers or manufacturer, you can tell them that our website will your product for sell in all over India even shipping will also our concern, In return, we need 10%, 15%, or 20% as per the settlement of your profit.
Promotion
You can see many companies like Flipkart, Amazon, Big Basket, Shopclues, Myntra are promote their Businesses by displaying T.V ads, Hoardings, cricket matches like IPL, and many other places.
We are not saying in starting you spend so much money which crores in these advertisements, You can select an alternate option to go with the SEO (Search Engine Optimization) and SMO(Social Media Optimization) which costs much less than that, their work is to index your website on Google and display your ads on Social Media like Facebook, Instagram, etc.
Stats Of Some E-commerce Company
1- Amazon
According to recent industry figures or sources like statista.com Amazon is on the lead in the United States with close to 280.5 billion U.S dollars and net income was 11.95 billion U.S dollars in 2019.
2-Flipkart
Flipkart private limited Company has 436 billion in INR in the financial year of 2019, by the source of statista.com.
What I Think?
According to my Opinion If I will going to start the E-commerce, I will choose the 2nd option which is to make own website and add manufacturers to come with us so that my website variety will increase which in result I make big Money But wait a minute in 2nd option we clearly see that the budget is also high and required more research and Money because we required a web developer for the website and for maintaining the website also, even we need SEO to promotion.Let us talk about the 1st option, in this case, you don't need to do anything just approach Marketplace and join them, Literally, I do not have to do anything just manufacture my product and shipping is also in their hands with no extra pay, But here is also a problem if you choose a wrong marketplace according to your product, Refund product penalty has to given by you and sometimes the penalty is more than the product price.
The best way is that you need an Investor or Partner so that your risk-taking capability will be high and in this case, you can choose the 2nd option and starts your own website. Keep in mind that if your partner is a technical man means if he can make a website and even do SEO so that's the best way to start E-commerce and make Really a Big MONEY.
Note- The more you add Investors or Partners, the risk-taking ability will also more but your share will down as partner increases so add investors according to your need.
No comments:
Post a Comment