The E-commerce space in India has grown by leaps and bounds over the last two decades. The market is currently valued at billions of dollars, with additional room for growth and penetration into rural markets. It has also generated substantial employment opportunities all around the country. With more players entering this market every year, the competition is getting more challenging by the day. It is essential to enter the market only when you have a proper plan of action. A robust strategy will help you to experience the potential benefits of E-commerce for your business in the long run.
Niche Down and Decide
Any E-commerce business needs to decide the product/service category and target audience beforehand. Structured knowledge about these two aspects before venturing on the E-commerce journey helps you plan your steps. Your niche should not only be profitable in the long run but should also be aligned with your interests and skills. It will also help you build a Unique Selling Proposition (USP) that your target market will find attractive. Here are some additional tips on niching down like a cherry on top.
Research Other E-commerce Businesses
Once you have decided on the niche to proceed with, the next step is to know who your competitors are. You can realize the potential benefits of E-commerce only when you have the right kind of business model. For that, you need to observe what your competitors are doing right. In detail, you need to study their product/service line (whether they are selling a single item or multiple products), target market, supply chain, marketing, and social media strategies. In-depth research will help you in building a sustainable and efficient E-commerce business venture.
Chalk Out Sources for Your E-commerce Products
You can realise the actual benefits of E-commerce with the right strategies in terms of the marketplace. You can be a Single vendor business where one seller deals with multiple customers, it is cost-effective, and the transactions are easier to track. Or you can opt for the Multiple vendor business models where various vendors are selling to different customers on a single website. It ensures at least one supplier for a product, which helps when there is higher demand. This E-commerce model also prevents disruption/cancellation of orders.
Technical Requirements for Setting Up an E-commerce Business
Here are some of the technical requirements to start your E-commerce venture:
- Building a Website – Most E-commerce businesses prefer to make a customisable website. Creating a website on their own gives them greater flexibility vis-a-vis a pre-built option.
- Setup Payment Gateways – This is mandatory for any E-commerce business. It helps to process payments made through credit/debit cards, net banking, or e-wallets. You need documents like Certificate of Incorporation, PAN Card, and Bank Account details to get this facility for your website.
- Logistics – E-commerce companies prefer outsourcing this role to third-party agencies. Specific transport or warehousing vendors are better qualified to handle the supply chain needs of your company.
Legal Requirements for Starting an E-commerce Business
The legal formalities for starting your E-commerce business include applying for the following:
- Director’s Identification Number (DIN), Permanent Account Number (PAN), and Digital Signature Certificate
- Registrar of Companies (ROC) for registering your company’s name- Once the name is approved, you can incorporate your E-commerce venture within six months
- Goods and Service Tax (GST) certification, Shops and Establishment Licence, Professional Tax (PT)
- Certification of Company’s Incorporation to officially register your company
Learn more about the legal requirements.
Let People Know You Have Started
The concepts of E-commerce and its benefits for your business will only be realized if it leads to a greater volume of transactions. Marketing and promotions allow your business to reach your target set of customers if done the right way. Utilizing the suitable social media channels and paid advertisements and tools like SEO, PPC, email marketing helps you lower the cost of bringing customers to your website. You must also focus on enhancing customer service, improving website content, and launching attractive offers for your customers to get the real benefits of E-commerce for your company.
Help Us Help You
E-commerce can work wonders for your business if you know how to plan the steps correctly. At Eunimart, we provide specialised consultation to help increase revenues while cutting down on day-to-day expenses. Let us help you grow.