- Are you thinking of starting an e-commerce business?
- Do you know how to start an e-commerce business?
According to a survey, in the next 3 years, that is until 2021, the market size of
e-commerce will expand by more than double from what it is right now.
E-commerce will help you to expand your business at a minimum cost.
Here are some 10 points that you need to prepare on before starting an e-commerce business.
Tip #1: Key Strengths of the Marketplace
If you are making a product that you want to sell to the entire world, then you should choose your marketplace wisely.
First, choose your marketplace according to the nature of the product, you want to sell.
If you want to sell apparel, then Koovs, Myntra, Jabong would be best; if your product is related to electronics to transportation, then Yatra, MakeMyTrip would best and henceforth.
Other than this, before starting an e-commerce business you should also look for a marketplace that has good reach, transaction ease, customer friendly, goodwill, good customer base and best for your product.
Tip #2: Look for the Quality and Level of your Competitor
In a marketplace, you will find a lot of competitors. So, before jumping in, carefully analyze the behavior of the competitor, the pricing and range of their products, their policies, shipment processes and the discount they are giving. This will help you to make your own policies and strategies to market your product and beat the competition.
Look for a marketplace where there is a large number of customers and competition is low.
Tip #3: Catalog and Presentation Catches the Eyeball Attention
The presentation and catalog play a vital role in the online market because the customer cannot touch or feel your product. So, work hard on what you have presented in the catalog.
If you properly give details about your product in a presentable manner, then you can grab the attention of your customers and they will definitely buy your products.
Tip #4: Merchant Support Service
You will get different types of merchants in the marketplace like small, big, niche, and expert merchants.
You need to select a merchant which handles your customers’ queries and help you in making policies, displaying your products, and giving discounts.
Tip #5: ROI, Fee, and Margins
Before starting an eCommerce business, you need to identify:
- How much margin you are getting from it?
- What fees they are charging on returns?
- What is their cancellation policy?
- Which product is not available in the marketplace?
You should also determine which marketplace is providing better ROI in terms of visibility and sales.
Tip #6: Shipping Charges and Mechanism
Do you prefer shipping your products all by yourself or you want the marketplace to do it for you?
Different online portals have different schemes and charges for shipping your products.
If you are selling your product in the regional market, then it is better that you do the shipping yourself.
However, if you do not want to get into the fuss of shipping, let the marketplace do it and you just need to pay the charges for it.
Flipkart usually charges 10%, if you ask them to ship your product.
Tip #7: System Access and Control
Before selecting a marketplace, you should know how much system access and controls a marketplace is giving to you.
Some marketplaces will not give you good access control and some will not even let you showcase all your products.
Amazon never shares the email Id of their buyers, as they say, it is not your buyer it’s our buyer. They are just taking your product over others.
Tip #8: Payment Mechanism
While starting an e-commerce business, do take care of the payment mechanism that the marketplace offers because you are investing in it; so, you’ll like to get good returns at a fixed interval of time.
If you are not getting the payment on time even after your stocks have sold out, then you won’t be able to buy new stock.
Amazon takes 14-90 days to pay back their customers, Flipkart takes 45-120 days and ShopClues takes 30-90 days.
Tip #9: Returns and Refunds
Sometimes, the marketplace gives a very small margin and it takes away all your money from the refund and return cycle. How? Let us study some cases.