How To Start E-commerce Business In India

The e-commerce industry in India is growing rapidly and it provides a golden opportunity for small and big entrepreneurs. The digital revolution, the growing reach of smartphones and the availability of the Internet have made online shopping the first choice of Indian consumers. If you want to start your own e-commerce website in India or are thinking of starting it, then this blog post is a detailed and useful guide for you. In this blog post, we will explain you step by step the process of starting an e-commerce website. This blog post is in a simple, clear and human style which will not only inspire you but will also help you to make your business successful.

What is an e-commerce website

E-commerce i.e. electronic commerce is a business model in which the purchase and sale of goods and services takes place through the Internet. It can be anything from clothes, electronics, grocery items, jewellery or services like online courses to digital products. In India, big platforms like Amazon, Flipkart, Myntra and Nykaa have taken e-commerce to new heights, but the good news is that small industrialists can also step into this field through their own website or market place.

In this blog post, we will tell you in detail about all the important steps, challenges and strategies for starting an e-commerce website in India. We will ensure that the information is simple so that even the new industrialists can understand it easily.

Choose an idea for your business

Understand your interest and market demand

The first step is to choose the right idea for your business. It is not the idea on which your whole business will be based. While listening to the idea, pay special attention to the following things.

Interest and passion: – Your business should be such in which you are interested. For example, if you like fashion, then selling clothes, shoes or jewelry can be a good option. If you are fond of food, then you can sell organic fertilizer production or spices. Your interest will keep you motivated for a long time.
Market demand: – Is there a demand for your product or service? For this, you can use Google Trends, social media platforms like Instagram and Facebook or local market surveys. For example, if you see that people are looking for environmental friendly products, then you can sell toothpaste or ritual straws nearby.
Competition analysis: – Understand your competitors, study their product, price and marketing grand policies. Can you offer something different or better than them? For example, if your competitors are selling normal portal shirts, then you can sell organic cotton or customized design. can you sell shirts with

Niche selection

It means choosing a niche instead of selling a general product in a specific market area. Choosing a niche makes your business different. For example,

If you want to sell clothes, you can focus on children’s clothes, yoga or traditional Indian food.
If you want to sell fertilizers, you can focus on organic spices, sugar-free snacks or regional cuisine.
If you are providing services, you can focus on online yoga classes, freelance writing or digital marketing.

Benefits of choosing a niche :-

You can reach your target audience easily.
Marketing costs less because your focus is specific. Customers see your brand as a subject truth.

Product Quality and Sourcing

The quality of your product is the key to your business. Poor quality products can harm your brand image. So decide where you will get your products from.

Local Manufacturers:- Get in touch with local small factories or handicrafts. For example, if you are selling handmade jewellery, you can get in touch with the manufacturers of Rajasthan or West Bengal.
Wholesalers:- Buy from Chandni Chowk in Delhi, textile markets in Surat or wholesale markets in Kolkata. This helps in keeping costs low.
Drop Shipping:- If you do not have the space or capital to keep inventory, then you can choose the drop shipping model. In this, you order goods from the supplier on receiving the order and the supplier directly delivers to the customer. In India, platforms like Ship Rocket and Meso provide drop shipping facility.
Self Manufacturing:- If you have a unique product like handmade soaps or designer candles, then you can manufacture it yourself.

While buying the product, make sure that it is durable, useful and affordable for your customers. Be as per your requirement and also pay attention to the packaging of the product as it forms the first impression of the customer

Market Research and Business Plan

Market research is the key to the success of your e-commerce website. It helps you understand your customers, their behavior and market needs. For research, follow the following methods:

Online Survey: Ask your potential customers questions through Google Forms, Search Monkey or social media. For example, if you are selling toys for kids, ask parents what kind of toys they prefer for their kids.
Competitive Analysis: Study your competitors’ websites, product prices and customer reviews. It will help you understand their strong and weak points. For example, if your competitors are not offering free shipping, you can position your business on it.
Keywords Research: Use tools like Google Keyword Planner, Suggestions or Samaras to find out what people are searching for related to your product. For example, if you are selling handmade sarees, see how many times people search for terms like Banarasi sarees online or Kanchipuram sarees.
Social Media Trends:- Analyze the trending #India posts on Instagram Twitter and Facebook. This will help you understand what your target customers want.

Create a business plan

A strong business plan will give direction and structure to your e-commerce website. It will not only help you in getting a business but also in attracting investors. Include the following in your business plan.

Objectives and Keychain:- What does your business want to achieve. For example, an online store of most selling organic fertilizer products in India.
Target Customer:- Who is your target audience? What is their age, gender, location and height. For example, if you are promoting yoga, your target audience can be health conscious people aged 18 to 40.
Budget and Financial Plan:- How much you will have to invest. Include the cost of business development, marketing, inventory and logistics. Also decide how you will fund your business. Through your own savings or investors.

How you will monetize. Some common models are:

Each sale of your product will help customers get the most out of it. Sell

Commission based :- Sell on market place and pay commission
Subscription :- Monthly or yearly subscription motor like monthly screen boss box
Affiliate marketing Earn commission by promoting other branch’s products
Marketing strategy :- How you will promote your product it can include digital marketing social google ads offline marketing and content marketing
Milestones :- Where do you want to be in first year third year and fifth year for example 1000 grams in first year and 10 lakh rupees worth of juices

SWOT analysis

Do SWOT analysis of your business

Strength What is the specialty of your business like unique production low price or fast delivery
Weakness What are the shortcomings in your business like limited budget lack of experience
Opportunities What opportunities are available in the market like increase in sales during festivals
Threats What are the challenges to your business like high competition or changing rules

Legal and Registration Process

To start an e-commerce website in India, you have to complete some legal formalities. This will differentiate your business and create trust among customers.

Choose the structure of the business

The structure of your business depends on whether you want to run it alone or in partnership. There can be some common options.

Suitable for property receivers:- Where you are the sole owner, this is the simplest and low cost option.
Partnership:- If you are starting a business with someone, then register a partnership firm. It is necessary to make partnership deed in it.
Private Limited Company:- Suitable for large scale business which demands more investment and responsibility. It requires minimum number of directors and shareholders.
Liability Partnership:- Popular for small and medium business as it is a mixture of proprietorship and private limited company. In this, personal property can be saved from risk.
Personal Company:- If you want to start a business alone but want a structure like a private limited company, then OBC is a good option.

Registration and License

GST Registration: If you are selling goods or services in India, then GST Goods and Service Tax registration is mandatory. If your annual sales are more than Rs 20 lakh, then you have to get a GST number.
Shops and Accessibility Act: Register your business in the local municipal corporation under the state government. This license is necessary for small business.
Trade Mark Registration: Register a trade mark to protect your brand name logo or tagline. This protects your brand from being copied.
FSSAI License: If you are selling food products like snacks or packaged food, then Fast Food Safety and Standards Authority of India license is necessary.
Import Export Code: If you want to import and export goods from abroad, then it is necessary to give IEC code.
MSME Registration: Get Micro Small and Medium Enterprises registration for small and medium industries. This can give you the benefits of government schemes.

Bank Account and Payment Gateway

Current Bank Account: Open a current bank account in the name of your business. This will help you in your business transactions. Helps to keep the money separate
Payment Gateway :- Partner with payment gateway like Paytm or CC Avenue on reserve to make easy and secure payment to your customers so make sure you provide all popular payment methods like UPI Debit Credit Card and Net Banking
Cash on Delivery :- Somewhere in India customers prefer cash so include it in essential business but in court related issues like order cancellation keep in mind

Build your website

Your online store is the face of your business. An attractive user friendly and fast loading website will attract your customers and make your brand famous.

Domain and hosting:- Choose a memorable and reflective domain name for your brand. For example if your domain name is Pran Shanti Sansar then you can use a good domain name like Godrej or use a platform like Google Romance to buy the domain.
Choose hosting service like Blue Host. Make sure that the hosting service is fast, secure and provides 24*7 support.

E-commerce platform

You have two main options.

Own website with e-commerce WordPress or use a platform like Sofify or Magentato or Big Commerce. It gives you full control but may require technical knowledge for maintenance.
Marketplace:- Show in Amazon Flipkart or Etsy. How to start selling on market place? It is easy for beginners as you do not need to build a website. However, you have to pay commission per sale. You have limited control over branding

Website design

User experience: Navigation of the website should be simple and intuitive. Customers should not face any problem in finding products, adding to categories and checking out
Mobile optimization: More than 80% of online shopping in India is done through mobile phones, so your website must be mobile friendly and use responsive design
Seo optimization: For better ranking on Google, pay special attention to the following things like searching keywords, applying metatext, creating a website with fast loading speed and providing block areas
Security: Install SSL certificate on your website so that customer data remains safe, it is necessary to ensure HTTP protocol

Inventory and Logistics Management

Inventory Management

Inventory Software:- Use a platform like Inventory Delhi or Ciprocket to track your stock. This will save you from stock shortages or excess stock.
Drop Shipping Model:- If you don’t have the space or capital to keep inventory, then drop shipping is the best option. In this, you order goods from the supplier on receiving an order and the supplier delivers directly to the customer.
Minimum Stock:- Always keep a minimum stock so that customers do not have to face out of stock goods. Avoid keeping excess stock as it can lock up capital.
Regular OTT:- Audit your stock every month so that you know which products are performing well and which are not.

Logistics and Delivery

Courier Partner:- Partner with a global courier service like Blue Dart DC or Indian Post to ensure that they deliver to your target area.
Cash on Delivery:- Customers anywhere in India prefer cash on delivery. Incorporate it in your business but make clear return and refund policies
Local Warehouse :- Use local warehouse to reduce delivery time and cost for example if most of your articles are in Delhi then have a small warehouse in Delhi for that
Tracking System :- Will give order tracking facility to customers, trust increases and customer service works better
Returns and Refund :- Have a clear return and refund policy for example returns are acceptable within 7 days unless the product is used

Marketing and Branding

Digital Marketing

Digital Marketing is the most effective way to grow your e-commerce website. Some of the popular ways of digital marketing in India are

Social Media Marketing

Instagram and Facebook Share your product’s picture rails and stories. Showcase your products using Instagram Rules and IGTV
WhatsApp Business to send offers, discounts and order updates to customers
YouTube Create videos showing the use of your products. For example, if you are selling sarees, then create a video like five ways to style a saree
Google Ads Run Google’s Search Ads, Display Ads and Shopping Ads online so that customers will be directed to your website after seeing those ads and your chances of getting orders increase and your branding shines

Customer Service and Retention

Customer Service

Dedicated Team Create a small customer service team that responds to customer queries and complaints promptly
Multiple modes of contact Connect with customers via Whatsapp Email Phone and Live Chat
Fast Response Respond to customer queries within 24 hours Use on-demand jet board for live chat if possible
Complaint Solution Prioritize customer complaints and resolve them as quickly as possible

Audience Tension

Discount Loyalty Program:- Start a loyalty program like discount coupon point system or free shipping
Special Offer:- Give special offers to regular customers like 10% off on next purchase
Qurie ligation Send personalized top-ups based on customer purchase history If someone buys a saree then send them a matching blouse top-up
Customer Reviews:- Encourage customers to leave reviews and ratings You can give small rewards for this like discount codes

Conclusion Of E-commerce Business In India

Starting an e-commerce website in India is an exciting and profitable opportunity but it requires proper planning, diligence and hard work. So we have told you in detail about all the important steps of starting an e-commerce website: Research, Legal Formality, Website Creation, Inventory, Market, Marketing, Customer Service and Sterling.

If you are just starting out, start small and slowly grow your business. India’s e-commerce market brings a lot of opportunities for you. With the right strategy, you can build the online business of your dreams. So start your journey today.