4 Easy Tips on How to Sell Online in India
The E-commerce industry in India is developing rapidly. According to a study, there were 35 million online shoppers in India in 2014 and is expected to grow up to 100 million by the end of the year 2016. Mobile phones and more people online are fueling their growth.
Companies like Amazon, Flipkart, Myntra have become the marketplace to sell products online. There are other companies like Meesho, GlowRoad, Shop 101, Wishbook etc are into reselling business and thus making it the best time to sell your products online in India.
Tips on selling your products online:
Here are a few tips for selling your products in India:
Choose a business model - There are two ways of entering the online business in India - first is through building your own website/brand, secondly through the giant marketplaces like Amazon, Flipkart, Paytm, Myntra etc.
Website - If you want to be an entrepreneur, setting up your own eCommerce website is a great way to enter the market. The best part about this setup is it gives the benefit of making your brand name. The downside is that it is expensive, time-consuming, requiring the setting up of an online store, having a secure payment gateway, setting up inventory, having a marketing plan in place and shipping.
Marketplaces - This business model is the easiest and fastest way to sell your products online in India. The biggest marketplace in India is Flipkart along with Myntra which has 38.5% market share. Amazon is in the second position with a 29% market share. If you choose to sell products through marketplaces - a lot of things are taken care of by them and you just have to register your company, obtain a tax number and open a bank account.
Registering your business - Once you have chosen your business model, the second step would be registering your business. There are three ways of registering your business: a sole proprietorship, a private or public company and a limited liability partnership. The best option in India would be a private company, especially for smaller companies.
Once you have successfully registered your company, you will get a valid PAN number, a goods and services tax identification number, open a bank account and set up for a payment gateway. Hiring a lawyer is a good idea as the process is a bit tedious and complicated.
Managing end to end process and inventory - When you start a business the best thing would be to get organised from day one. You have to plan out everything well in advance and lay out a well-defined process from getting an order to shipping the goods. It could be a simple checklist like checking the product, shipping, packaging, storing, marketing, invoicing etc.
Managing your inventory is a big part of your business, so when you are scaling up or there is high demand you cannot manage inventory manually so start using a good inventory management system to track it properly.
Payments - There are two modes of payment that can be used - online payment gateway and cash on delivery. Setting up a payment gateway is hassle-free but Indians like to use the COD mode of payment which is an expensive method for the merchants as they have to pay courier charges and return charges (if any). But avoiding the cash-on-delivery model is nearly impossible. Digital payments are slowly gaining acceptance and expected to grow five folds by 2023.
Related: Become an Online Reseller | Reseller Business Opportunities in India 2020