In this era of advanced technology, who thinks to build an on-land shop to start a business? Every person intends to start up his own E-commerce business, dreams to raise an online web store where he can showcase his products in front of millions of customers. And when people vision to sell their products online, they start looking forward to working on something novelty with enthusiasm. But, despite the zest and passion, they end up with no action taken.
What is wrong with these people?
We can guess three reasons:
- Issues in sourcing the product.
- They hold great ideas but, don’t know the exact way to execute them.
- Unable to find the best platforms to sell.
It is easy to build a website, but, selling something has never been easy, especially on online. Starting online e-commerce business is a hard and tedious job to do, with so many hurdles to accomplish and decisions to take on the right moment. But there is nothing to get frightened and step backward. In this article, we are going to put all the necessary information together, you will need to know before you start your online business.
Dive in with us.
What is All the Fuss about Online E-commerce Business?
- Compared to the shops at the bricks and mortar location, selling your products online, you will get the access to open your business up to much larger consumers.
- On-land shops are open for only 8-10 hours. But, you will be able to run your e-commerce business for 24/7. It will enable you to welcome your customers for round the clock and enjoy a continuous flow of sale and profit.
- If you run an offline business, you need to pay the rent for a physical location, or the salary of your employees.
- Instead of running for a brick-and-mortar pursuit, if you start an online e-commerce business, it will cut down your inventory expenses. And you can even make your inventory costs zero by reaching out to dropshipping facilities available on websites like Shopify.
GST and E-commerce Sector
Is the vague idea about Goods and Service Tax (GST), is becoming a hindrance to your wishful thinking to flourish online e-commerce business? Do you think it would be a barrier in your way to bloom as an e-commerce entrepreneur?
Well, since, GST has shown its face in the world of economy, like all the other sectors, the e-commerce sectors in India feel messed up, seeing this new tax reform as a topsy-turvy. Honestly speaking, there is no room for hesitation, while talking about GST; it has in fact, tied up the whole nation with one single tax structure. This has brought transparency to the trade; GST has freed the online sellers from the burden of multiple taxations of different states.
If you intend to run your online e-commerce website in India, then you have to make it GST compliant. On the web, you will find out many simple accounting software, to generate GST compliant invoices, record expenses, and of course, GST-ready tax returns.
Which Products to Sell Online?
With numerous products available to showcase and sell online, ending up with one or two products to sell, is a daunting task to accomplish. But, deciding what to sell and how is a must to do on the ground of tough competition in the online marketplace. You should follow your passion, and try to find out opportunities in trending keywords. Because the rightful selection of products will lead you to the new windows of opportunity in this digital world. You can start selling products from health and fitness niche, or fashion and accessories. First, set your mind about the niche, and then choose your products, following the Google trend.
How to Source Your Products
If you are done with which products to sell online, now it is the time to think how to manage the sourcing of your products. And in terms of making a decision regarding your product sourcing, you need to come up a wise decision, which type of sourcing you want: a manufacturer, wholesaler, or a drop shipper?
There are three types of options available for the online sellers.
- A manufacturer who can construct your own product-related ideas.
- A supplier, who can either be a manufacturer, a wholesaler, or a distributor, who will supply the already existing products of different brands.
- A drop shipping company, who will take your orders, work as a supplier of the products of the already existed brands, take all the hazards of the shipping process, and deliver them to your customers.
Hence, we see that there are different types of methods helping the online sellers to source their products. But, studies on digital marketing show that many of the sellers go for a combination of methods of drop shipping, wholesale, together with the print of demand and customized manufacturing.
Domestic Vs. Overseas
Whether to choose a domestic supplier or a supplier from the overseas, this has been the most intriguing and confusing decision to make, regarding the product sourcing. For, both of them hold their own advantages and pitfalls.
- Easy to verify the reputation of a manufacturer
- Higher product quality level
- Easy to maintain the labor standard
- No difficulty in making communication
- Quick shipping
- Higher manufacturing cost
- Confined product choice
- Comparatively lower manufacturing costs
- Many suppliers to choose from
- A vague idea regarding the product quality
- Lower labor standard
- In case of making communication language becomes the barrier
- Almost impossible to verify the reputation of the supplier.
- Longer shipping period
Read my article on How to source products from Alibaba
Choose a Domain Name
Once you are done with making the decision regarding your products supplier, the time comes to gift your e-commerce website a place over the internet, buy it a domain name. A domain name doesn’t cost the earth; you can buy one from GoDaddy along with hosting services. You can either choose a brand based or a keyword-based domain name for your website. If you are an entrepreneur in this e-commerce sector, wants traffic to your website, without burning hole in your pocket, a keyword-based domain would be best for you.
Create Your Website
It is one of the most crucial parts of setting up an online business. The presentation of your website along with its user-friendliness, these are the two main pillars on which your whole business planning and ideas will get a shape. The presentation of your website must be mesmerizing and lucrative to glue the visitors to the site. You can build your website all by yourself by using WordPress or go to an experienced web designer for professional and assured assistance.
Register on A Third Party Website like Amazon/Flipkart
If creating your own website sounds challenging and too difficult to execute, no need to feel a heartbreak. There is another way that will help you to fly with your dream to start online e-commerce products. And that is, get registered on a third party website like Amazon, Flipkart, Shopify, etc. They are the online marketplaces on a large-scale, securing every individual brand, business or seller with its own page, but of course, within the third party website.
The main advantage of this third-party websites is that the seller or business persons, do not need to buy a domain, create a substantial e-commerce website, or take the hazards of the online payment accepting procedure. Any seller can register to the third party marketplace, get his own page and start selling his products.
Moreover, the visitors and shoppers of the sites like Amazon, Flipkart, eBay, usually search for a wide range of products. This holds both the positive and negative impact on the seller. A wide range of products gives the seller the opportunity to extend his products and reach out to more customers worldwide. But, on the other hand, the variety of products confirm various and numerous sellers. There are certain possibilities that the other sellers can drive the traffic to another direction.
Additionally, these third party websites like Amazon, Flipkart, charge the hosting fees and product listing, 20-25 cents per item, and a specific percentage of each sale you make. This can be 3-10% of the net sale price.
Do You Need Product Listing Ads?
Product listing ads are closely like CPC or Cost per Click that the online business holders buy via Google Ad Words. These Ads come into sight either to the right, left, or at the top of the Google search pages. Product listing Ads are mostly featured ads, holding the product image and are customized with keywords related to the products.
Product Listing Ads are important for both the seller and buyers; they provide the sellers another opportunity to appear in front of the customers, while they are scouting the web, for a specific product.
Benefits of Product Optimization
Product optimization is the current hot topic, breezing through the air of e-commerce sector. For both the mid-range and large scale business, product optimization holds great importance, making a noticeable difference in the business. Product optimization is nothing but making constant changes to a product so that it becomes more desirable to the customers. Even a slight variant of a product can make a considerable profit. Suppose you are selling fruit juice with high nutritional values. Your product can have different attributes or characteristics, like packaging variations, different flavors, etc. Besides making the product more prominent and desirable, product optimization is very much useful for the hike in the purchase intent and frequency of purchase. If you want to make your customer’s interest remain to your product, then you will need a modified metamorphose that will satisfy the desire of your target consumers.
Do You Require a Printer?
Yes, the user should require a printer at his home or office. Why? You can print the shipping labels from your home or office. Most of the e-commerce entrepreneurs as well as established businesses package their products from home. Instead of depending on the third party courier service to print the labels on the package, owning a printer, you can save both the time and money. On the web, you will find out many websites and mobile applications that will allow you to print shipping labels. You will no longer need to spend money on buying shipping labels. So, maybe it seems like trivial, but buying a printer is a must to do.
Even a few years back, people did not show any importance to packaging and shipping of products. They were a part of the online purchase. But, now, it has become a part of the shopping experience of a buyer. The customers look for the presentation of the e-commerce company through the delivery package. Therefore, before you ship the products, it is your duty to check whether the packaging is presentable as well as safe for the transport. There are many types of boxes, padded, or unpadded, are available for the shipment of products. You have to choose the boxes according to the products you are going to sell online.
Tip : Buy Packing materials from Amazon
Remember, you don’t need to stress your brain too much thinking to do or not to do. Just start up your e-commerce website, based on your ideas, and get going. If challenges come in your way, just feel free to comment below and I will be happy to assist you.