How to Start an Ecommerce Business?
There are many folks right now thinking of selling online due to the current COVID-19 epidemic and the resultant impact on business. The small to the medium-sized business may have constraints in opening and operation hours for their stores and offices. If you are planning to earn money by selling products and services on the internet, then may probably thinking of starting an eCommerce business. You are trying to skip brick and mortar system to sell your stuff. That is possible through the eCommerce business model. Starting an eCommerce business is a systematic process that requires a high level of attention to the needs of users. There are many steps in which you must pass through for launching an eCommerce business. In this article, we will try to help you understand how to start an eCommerce business. There is nothing wrong with your thought. Many like you are looking to become their boss and want to take charge of their career and future. eCommerce business is one of the best routes on those lines. This article attempts to give you a logical approach and streamlined process to pursue your eCommerce business. Let us try to understand how to start an eCommerce Business like Amazon.
Ecommerce Business on Amazon
If you planning to become an Amazon seller, then this section will help you understand the process and benefit it offers. Let us understand this process step by step in detail.
- Register your Seller Account
If you are planning to start your eCommerce business on Amazon, you would require becoming a member by creating your seller account. You need to obtain your PAN and GST number based on the category of products. Also, you need to ensure you have an active bank account linked to your amazon account.
- Upload your offerings
In the second step, you need to upload your catalog that describes your product offerings. Amazon seller app helps you systematically list your products. Amazon always helps you in case you require their support in uploading images or videos to promote your products.
- Customers view and buy your products
Amazon enables you to reach millions through listing products. You will not just reach your clients; you also reach many potential clients. Remember, if your offerings are good and fulfilled by Amazon, you can become an Amazon Prime Seller which gives you an edge in the eCommerce business. You also have an option to advertise your products with the help of sponsored products and target audience relevant to your business.
- Deliver products to the customers
This is an important stage in the eCommerce business process. Taking orders from clients would not be a major challenge since technology has the power to assemble the orders for you. The challenge arises when you try to deliver your products to the clients who are geographical spread. Amazon makes it easy for you.
When the client places an order, Amazon triggers a notification to your mailbox and sends an order description to your Amazon Dashboard. If you become a fulfilled Amazon seller, the Amazon will take care of the following activities:
If you are not a fulfilled seller, then your eCommerce account will have limited services. For example, you are given an Easy Ship option in which Amazon pick up the product from you and deliver the same to the consumer.
- Receiving Payments
Payment received from the customer will be directly credited to the Amazon account. Then Amazon deducts the transaction charges and other fees. The remaining amount will be transferred to the seller’s bank account within 7 days of pay and delivery confirmation.
If you are wondering about understanding how to start an eCommerce business like amazon, then you need to understand the infrastructure required to run an online store. You need the following:
- Your domain
- An email ID exclusively for your online business
- An attractive website with a cart option enabled
- Cloud-hosted online store package
- Built-in Search Engine Optimisation built-in
- SSL certificate (in case you plan to accept credit card payments)
- Payment Gateway integration
- Web analytics to track visitors
- Social Media Accounts to promote your products and connect with clients
Thankfully, you need to worry too much about organizing all these things to build your online store. There is a platform that already has these infrastructures in place. I hope you now have a rough idea of the approximate cost for starting an online eCommerce business.
How Much Does It Cost to Start an eCommerce Business?
Let us say you are a housewife making high-quality handicrafts at home. Now you are interested in converting your hobby into a business opportunity, but you do not have funds to start your brick and mortar shop to sell your products. Thanks to advancements in technology.
You can start your virtual store to sell your handicrafts online. By setting up an ecommerce site you can run your business from the convenience of your home. Below is a description of cost factors, stakeholders to your eCommerce business, and the cost of each function.
|Sl No||Cost Component||Stakeholders||Average Cost (INR)- Bangalore|
|1||Registration of Company (Pvt Ltd)||Accountants, Auditors, and Secretary||500000|
|2||Creation of Website/Payment Gateway||CC Avenue, EBS||Initial Fees 25000 and Transaction Fees 2%-4%|
|3||eCommerce Software||Shopping Cart (Big Commerce, IQ eCommerce, Shopify)||Rs 1000 to 11000 per month in the beginning|
|4||eCommerce Team||Two members||Rs 50000 per month for each member|
|5||Computers and other Hardware||Computers, GoDaddy website||Rs 40000 and Hosting fees 15000 per month|
|6||Office Space||Small Room with storage space||Rs 6000 per month|
|7||Shipping||Blue Dart, Professional Courier||Rs 20000 for Deposit and Rs 20- Rs 50 per transaction (500 Grams)|
|8||marketing Expenses||Assuming you do it yourself||Reserve Budge Rs 10000 per month|
|On an Average, you would Require INR 3,00,000 to 5,00,000 for starting your eCommerce Business in India|
How to Start an Ecommerce Business on Shopify
Shopify started in 2004 by a group of snowboarding champions and now it is one of the most popular eCommerce platforms having its base in more than 175 countries. The platform is more suitable for small and medium-sized business organizations. The features and functionalities can be altered to your requirement and some of the plug-ins can be brought in for your requirements. Shopify is the upgraded version of Shopify with the added features. Those who have the requirement for limited features in a particular segment can buy Shopify which would be enough for your requirements. Shopify is designed for large companies and companies with wide areas of eCommerce operations.
Well! Many of you must be thinking about starting a business-like Amazon. But only a few of you must be having your blueprint ready to launch your business in Amazon format. How do I start? What will I need to start? How and where do I start the Website? Here is an attempt to help you find the answer to these questions.
One thing you need to remember about Amazon, Flipkart, or eBay is that they are multiband marketplace under a single virtual roof. Many times, the vendors assume the responsibility of packing, shipping, and delivering products. However, if you want to promote your products in the same style, you may have to build your website from the scratch and start with readymade supply chain solutions. This is the best method to follow until your business is accepted in the market. Thankfully, eCommerce companies like Shopify ease your life in starting an eCommerce business. You can decide to launch your eCommerce business in a matter of a few hours.
Other Related Articles:
- Do you want to formulate a winning business strategy?
- What all you need to know about marketing strategies? 4 best examples
- How to Save Income Tax? 5 most important methods
- Need a low investment best business idea? Here 7 best business Ideas
- What is a Business Plan?
- What is PESTEL Analysis? Examples, templates and PESTEL analysis in marketing Explained with the examples of 3 popular multinational companies
- What is Blockchain Technology?
Follow us on Facebook: Billionaire Sayings