How to start an e-commerce business in India–{ for beginners }

Before starting an ecommerce business in India, what things do you need and what are the steps that you have to follow, you will try to understand them through the heading, so let’s start.

What is e-commerce in simple words?

E-commerce in simple words means that any product or service is bought and sold using the internet without visiting any physical store. Examples are online websites or apps like Amazon, Flipkart, Zomato, A-Jio etc.

Start an ecommerce business in 8 steps

Nowadays, ecommerce business is growing at a very fast pace because the presence of online shopping has increased in the last few years. People are using online mostly to fulfill their daily needs like shopping, entertainment, gaming, etc. Today we will tell you about 8 steps through which you can make ecommerce business successful.

Step:1  Find a profitable product to sell on the ecommerce store:-Before starting an ecommerce business or store, you need to find a product or service that satisfies the customer’s needs and generates sales for the business, making it profitable. For example, if a customer’s hair is falling out, the solution is hair fall oil, the customer needs to eat it immediately, Zomato fulfills that, etc.

Step:2  Competition Research & Target Audience:-After selecting a product or service for your ecommerce store, do market research before launching it to find out who the competitors are for the same product or service, what kind of services that product provides, how to strategize for the audience, as well as what kind of audience you want to target for selling e-commerce products, such as on the basis of age, professionals, employees ,local customer  etc., who can relate to your product. It is important to gather all this information.

Step:3 Create a business plan:-Planning plays a vital role in any ecommerce business or any other business to grow it for a long time. You know what to do while selling the product, like how to reach the people, its marketing, import-export and other information are also there. Without planning, direction cannot be obtained.

Step:4 Register your business:-Registering an e-commerce store is a simple process. First, you’ll need to select a sole proprietorship or partnership, fill in your details, and complete other formalities like your PAN card and Aadhaar card. Next, you’ll need to open a GST number so you can legally sell products. You can run your e-commerce store using online platforms like Shopify, Dukan App, and WooCommerce, and create seller accounts on apps like Amazon, Flipkart, and Myntra. This was for small stores. For larger stores or brands, the process is different.

Step: 5 Set up Payment Acceptance Method:-In your ecommerce business, you should have the option to accept online payments. To create this, you need to open a current bank account in the company’s name. Then, submit your KYC and other details in Razor pay, Paytm, Cash free, Phone-pay and other payment apps. After getting the KYC approval, you will be able to accept online payments through UPI, credit card, debit card, net banking and wallet.

Step: 6 Set up logistics/shipping:-Setting up logistics and shipping is also essential in an ecommerce business. For this, you need to decide whether you will do self-shipping or take the help of a courier partner. In self-shipping, you will be able to deliver products only to the local area. For long-distance delivery, you can get the product delivered by creating a seller account with trusted platforms like , Blue dart, E-com-Express, Xpress bees or India Post. They charge shipping based on weight, pin code, and product type.

Step: 7 Launch your ecommerce Store:-Before making the ecommerce store live, make sure the product is added, has high-quality photos, descriptions and correct pricing. Place a demo order to test it and check that the payment details + shipping charge email notification are correct and running smoothly. Then make the store live.

Step: 8 Market your e-commerce business:-In the last step, it comes to advertising and marketing. In this, you can make customers aware about your product by using traditional means like TV ads, banners, hoardings and digitally by using email, influencers, social media like Instagram, Facebook, WhatsApp. In the beginning, you can quickly attract customers with special offers, discounts or giveaways. By clearly mentioning the payment gateway, shipping partner and return policy, the e-commerce store becomes professional and customer trust is built from the beginning.

types of ecommerce business models?

In ecommerce business, only four types are considered to be main: B2B, B2C, C2B, C2C, but this article describes six types. Let’s understand this in detail.

Business-to-consumer (B2C) models–

B2C Ecommerce is a business model used by companies to deliver their products or services directly to their customers. It is the foundation of online shopping, through which customers can buy products by comparing prices and quality on websites or apps. Examples are online platforms like Amazon, Flipkart, AJIO. Its main focus is on customer experience, fast delivery, secure payment system, discount offers and product variety, etc.

Business-to-business (B2B) models–

In business-to-business types, only one company sells its products or services to another company. The advantage of this is that businesses can easily find their raw materials, equipment, tools, or resell products at competitive prices. India MART, Trade India, Alibaba, Udaan, and Monglix are popular B2B companies.

Consumer-to-business (C2B) models–

Customer-to-business is a distinct type of business in which consumers offer their services, skills, or products directly to businesses, and the business pays them. This business model promotes self-employment, including freelancers, YouTube creators, designers, photographers, influencers, and Google AdSense, among other skills and services.

Consumer-to-consumer (C2C) models–

Ecommerce is a type of ecommerce where both buyer and seller are customers. Its biggest advantage is that it allows for low-cost selling, monetizes unused items, and provides buyers with affordable prices. Examples include OLX, Quikr, eBay, Facebook Marketplace, Meesho Reselling, and Etsy.

Consumer-to-government (C2G) models–

Consumer-to-government is a unique model of consumer digital interaction through which citizens directly perform online transactions, services and communication with the government, including online bill payments, tax filing, certificate application, digital grievance submission, online RTI, toll payments, metro cards recharge, etc. Examples include UMANG App, DigiLocker, BHIM UPI, Passport Seva, e-Mitra, etc.

Business-to-government (B2G) models–

In this unique type of business system, a private company or industry sells its products, services, or solutions to the government, such as infrastructure projects, IT services, software systems, security equipment, medical supplies, construction materials, smart city solutions, and provides large aggregate products to the government. This is done through tendering, bidding platforms, and digital procurement.

7 components of an e-commerce business model?

1. Online sales channels– are many mediums for online sales channels, which are explained point by point below:

1. Own e-commerce website – In this, the business or company has complete control over product display, pricing, promotions, and customer experience.

2. Marketplaces – A large mass audience resides on a single platform, such as Amazon and Flipkart.

3. Social media – This includes major platforms like Instagram, Facebook, and LinkedIn. These also have a large customer base, making it easier to boost sales

 4. Email marketing – This works to indirectly generate revenue for a business by targeting an audience through messages.

There are other online marketing methods through which a company generates sales.

2. Digital marketing strategies–Digital marketing strategies are not just about SEO, SMM or ads, but also focus on customer engagement and unique touchpoints, and to attract them, discounts are offered using AI and data analytics. Intent conversions are generated using small intent-driven moments like “buy now” or “compare price” from the user. 24/7 support is provided through chatbots and WhatsApp, etc.

3. Customer relationship management (CRM)–Customer relationship management is crucial for ecommerce businesses. It provides personalized experiences to attract customers, such as special offers, giveaways, and discounts. This increases repeat sales and engagement. By providing superior service and quality products, customers can build trust and loyalty to the brand. Analytics helps boost marketing and sales campaigns by understanding customer behavior patterns.

4. Fulfillment and logistics–Fulfillment and logistics track the movement of products in an ecommerce store, ensuring they reach customers on time and in the right condition. Monitor the entire process from ordering to delivery. It effectively increases customer satisfaction and repeat purchases. Automated warehouses, AI route optimization, and tracking systems simplify ecommerce businesses.

5. Technology stack–Technically, the stack is an advanced system of e-commerce in which software, tools and frameworks all together run the website app and the backend of the system. Pages contain HTML, CSS, JavaScript which in the backend are Node.js, Python, PHP or Java. Database, MySQL, MongoDB or Firebase. All these together make the e-commerce business strong. They all have different specific functions.

6. Sales and internal communication–In an ecommerce business, coordination between salespeople and the employees working under them is crucial as it ensures both revenue growth and team coordination. Tools that provide real-time communication include Slack, Microsoft Teams, and Zoom. Strong sales systems and transparent internal communication help e-commerce scale with speed, accuracy, customer satisfaction, and growth.

7. Data analytics and performance monitoring–Data analytics and performance monitoring simplify my business significantly because analytics helps us understand customer behavior, needs, wants, and what they prefer. This information helps us make better marketing decisions. Performance monitoring helps us understand which product is performing best and how it improves. Regular tracking and measurement of metrics like website speed, conversion rate, cart abandonment rate, ROI can help us improve business strategies and increase profits.

difference between e-commerce and traditional business model?

The difference between these two is shared through a table.

E-commerce	traditional
1.Ecommerce business is completely online, its resources are websites and apps through which it runs.	1.Traditional businesses operate completely offline or without the internet. They provide products and materials manually.
2.The advantage of e-commerce is that it can reach customers all over the world, and it is time-consuming and low-cost.	2.Traditional doesn’t have this advantage, it only has limited reach like religious customers and local ones and its cost is high.
3.In e-commerce, payment is done through wallets, UPI, COD and its delivery is done through courier or shipping.	3.In traditional payment methods, the payment is through cash and cards and the customer goes to the store to make the purchase.
4.Ecommerce marketing is done through social media and is available 24/7	4.Traditional marketing methods are based on TV ads, hoardings, and posters, with fixed opening and closing times.
5.Ecommerce is showcased through catalogs, photos, videos online and it is easy and fast to scale	5.Traditional products are typically displayed in a small display, and scaling them up takes more time and costs more.

Traditional marketing can also affect your business, especially your local and religious customers. Click the link to learn traditional marketing practices.

conclusion:-

Online presence has increased today, and running an ecommerce business can become a profitable and income-generating source if planned and executed properly. Opening an e-commerce store requires a few processes. If you’re interested in starting an ecommerce business, you can use the information in this article to start your own ecommerce business and make it successful with hard work and consistency.