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How to setup an ecommerce company in India?

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ecommerce startup in india

India is a land of budding entrepreneurs. The youth of India is disillusioned from the lure of getting a job and they do not mind taking risks to reap greater rewards. The internet boom in India has also caused some young people to take to the internet to fulfil their dreams of moneymaking. However, there are many formalities and legal proceedings, which must be addressed before a person, is able to own an online store.

To start a business in India is definitely no cakewalk. However it has improved a lot over the last five years. Legal, taxation and other process are not streamlined.

-Saurabh Nangia. Founder, Targeting Mantra

From Market Research to legal registration to selecting appropriate tools for business management, if you aspire to become an entrepreneur then you need to have nitty gritty of all business and legal matters. Market research will help you prepare a plan for your company, legal registration will be required when you are satisfied with your business plan and want to start it as your career, finally tools such as version management,  account and records management will help you manage your business effectively and securely. A good record holding service will also help you in maintaining your sales records and thus you can always do taxes right and your operations are more efficient. Also all the legal requirements can be satisfied with good record keeping. Access to some documents should be controlled or they might be a major security breach and your trading secrets can be compromised.   To setup an ecommerce company in India a proper procedure should be followed.

1. Market research and testing – The market for the idea must be extensively researched and narrowed down. Most of the ecommerce websites in India fail because they try to cater to a bigger market than they can handle and thus their customer service suffers. In addition, they lose out to big online department stores like Amazon and EBay and their business is forced to shut down. However if the market that is being catered to is small and the products that is on offer is specific the company can survive.

2. Legal Registration of the Company– In India, to set up an ecommerce business one must fulfil many formalities with the Ministry of Corporate Affairs. Unlike in other countries it is mandatory to register an ecommerce business with a legal address. To register an ecommerce business a company must have complete these formalities

  • A valid address – The team must provide a valid address for the business. It can be a private address of a team member too. Nevertheless, to rent a certain office space is advised.
  • Two Board of Directors with DINs – There must be at least two board of directors with valid Director Identification Numbers. A person can register himself as director for a company by paying a sum of around 300rs to Ministry of Corporate Affairs. Any competent lawyer can draw up documents for the DINs.
  • A sum of 100,000 Rs Capital – At the end of financial year, the company must show a capital of 100,000 Rs in its books.
  • A valid company name – A valid company name has two components. The first word denotes the unique name of the company. The second word denotes the nature of the company. For example Tata Consultancy Services, Reliance Telecom, Sapient Consulting etc.
  • Other Laws – Certain laws are to be taken care of by a company. Laws like labour laws, taxes like VAT and GST might be applicable on the company and a competent chartered accountant is often required to take care of these.
  • Many times employee insurance etc. has to be taken care of, but small teams run most of the ecommerce startups and hence it might not be required.

Many online law companies can help you in setting up an ecommerce company.

3. Tools required – It is perhaps the most ignored part in the setting up of the ecommerce company. Most start up teams do not spend enough time on research for tools that are required and hence their productivity remains low. Because of low productivity, their competition has an advantage over them and it causes the company to incur losses. A startup should make sure that they have the right tools for setting up an ecommerce company.

These tools are absolutely required by the startup companies. Get the complete list here

1)      Online conferencing tool -Most of the ecommerce sites are setup by the people who are already working somewhere and thus cannot meet often. To ensure that there is no gap in communication a good conferencing tool is required. Tools like Skype and Yahoo Messenger can actually help a person as they allow group conferences with audio and video calls free over the internet and are easily available.

2)      A file sharing Service- There must be a central file repository or else there definitely will be a gap in research and data. Without a central file sharing system, all the data will be scattered and thus productivity will be very less. There are many solutions for this in the market. However, Skydrive and Dropbox are the most widely used and easily available services.

3)      Records Management Service – This is often the most neglected service by the ecommerce website owners. There is a wrong perception that data is managed easily online. However, they neglect the security of their data. SaracenDataStore is one such service provider, which can really help you in making your data secure. Such a service is very safe and data is stored behind the safety of impenetrable firewalls. A formal record management policy is necessary for any company.

I am a software engineer in a prestigious MNC. I am NSE certified derivatives professional and I like to dabble in money making schemes a lot. I like to read, play subway surfer on my tab and I am always connected to internet.

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Six Tips For New eCommerce Businesses

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eCommerce is a constantly evolving sector, and as a new business, it can feel overwhelming. In this post, we’ll take a look at six of the hottest eCommerce tips to help you get your new eCommerce business up and running. 

Your website is your first impression. 

As a new eCommerce site, customers will have very little knowledge of your brand, and so you have just a fraction of a second to make a good impression. A website that is slow to load, poorly designed, and difficult to use will not build trust and confidence and will lose you sales. Take the time to make sure that you create the best website that you can for your budget and conduct the necessary UX testing to ensure that it is functional. 

Make sure that you’re mobile-friendly.  

The average person spends more than 100 minutes on their mobile phone every day, and so it is essential that your eCommerce site is fully functional on mobile and tablet devices as well as on laptops and desktops. With more and more people now using their phones as personal computers, shopping is becoming increasingly mobile, so having a mobile-friendly site is key. 

Invest in quality stock 

It should go without saying, but quality must always be put above quantity when purchasing or making items to sell in your store. There are a number of different wholesale sites out there, such as Alibaba, Oberlo, and Doba, and they can be a minefield to navigate. Learn how to buy from alibaba.com here. 

Social media will be your best friend.

It is virtually impossible to launch a thriving eCommerce business without a social media presence. Social media gives you a glimpse into the wants and needs of your potential customers and target audiences, but it is also an invaluable free and paid marketing tool. In particular, Instagram is now known as the number one social media platform for eCommerce sites, but for maximum reach, don’t forget to build a presence on other social media networks such as Facebook, Twitter, and TikTok too.

Invest in your images 

Pictures tell a thousand words, and when it comes to eCommerce, they are also processed by your customers much faster. With 60% of people being visual learners, images are invaluable to your business, so do invest in a good photographer and take some professional pictures to ensure that your customers have all the pictures they need to make their decision. 

Use a live-chat

Lastly, as a small eCommerce business, you likely do not have a customer service department, but that doesn’t mean that you can neglect customer interactions. A live-chat feature makes it easy for you to answer customer questions and to speak with customers while they are on your site, just as if they were shopping in a real store. 21% of people who shop online say that live-chat tempts them to buy, 46% of people think that live-chat is the perfect digital communications tool, and 62% of shoppers say that they are more likely to return to a site that has live-chat installed. 

So there you have it – six tips for new eCommerce businesses, did you find them helpful? Why not share your own suggestions in the comments.

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3 Tips For An Easy House Move

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Moving home is so exciting, right? A fresh start, a lovely new place, a new neighbourhood to explore. You feel like a little kid again – those night-before-the-move jitters and arranging all your furniture into a great new space is an unbeatable feeling. However, as we all know, moving can also be expensive and stressful. Especially with lots of furniture, children, pets and a limited amount of time, the task can feel insurmountable. Here are three tips for an easy house move.

1. Hiring Your Own Lorry

Removal companies are great if you have all your own furniture, and no way of transporting it. However if you have a partially furnished let, wherein you’ll have some,but not all of your furnishings already set up in the new property, you could hire your own truck. This will save a lot of money and will ease your move. You can hire the lorry for as long as you need it, and you can have a fun road trip all of your own!

Ensure that when you hire or buy your own lorry, you look into lorry insurance and invest in proper precautions. 

2. Asking For Help With Child And Pet Care

If you are moving with young children, dogs or cats, the move can become infinitely more complicated and difficult. If you have close friends or family who can take care of your children or pets for you, this would help your move immensely. Having to take care of small children whilst lifting heavy boxes and organising a million things at once can be a big challenge, and can even lead to accidents. Children can be overwhelmed by moving house, so it is much better to have them come to your new home when you have had a chance to organise the space and make it feel like home.

Similarly, dogs and cats can become stressed by a change in location. If the place is in disarray, the animals can become even more frightened and restless. It is better to have a friend, family or professional pet care company take care of them whilst your house move is taking place.

3. Time Off Work

Although it can feel wasteful to take holiday from work just to move house, you’ll thank yourself later for taking the time. Moving into a new house might only take one day, but the unpacking, organising and cleaning process can take far longer. If you take a few days, or even a week, to complete your move, you can return to work with a fresh slate, knowing you’ll be coming back to an organised, calm home!

Plus, this way you can actually enjoy your move, rather than treating it as a stressful nightmare! You can make the most of the new space, experiment with the layout, and truly transform this house into a home which you will be enjoying for years to come.

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3 Issues Repair Workers Are Facing During The Corona Pandemic

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It’s fair to say that the whole economy and multiple industries have taken a hit due to the coronavirus pandemic. Lockdown forced many companies to close their doors while others were forced into administration. At the same time, numerous businesses have also struggled with how to restart their respective models and get things firing on all cylinders once more. However some companies have been hit harder than others. 

Maintenance and repair workers such as plumbers and electricians are facing significant difficulties right now. Here are some of the issues that they are dealing with and the potential solutions. 

Social Distancing 

One of the greatest issues right now is that it seems social distancing is key to preventing the spread of the virus. Ultimately, this means that people are wary about being around others and potentially letting individuals into their homes. That’s a definite problem for repair workers who often require access to complete their jobs. Now, you might assume that people will call repair workers out regardless because it’s an emergency. However, a lot of time a repair doesn’t seem like an emergency and people will put it off for as long as possible. 

The challenge here is convincing customers and clients that safety can be maintained in this type of situation. More often than not, this is about ensuring that PPE is used and readily available for workers. Businesses also need to be clear about the things they are doing to keep everyone safe. 

Getting Supplies

We have seen numerous factories and businesses forced to close due to coronavirus outbreaks. The issue here is that this leaves a lot of companies unable to get the products that they need. It can cause businesses to grind to a halt, particularly plumbers and electricians that often require access to spare parts. 

Luckily, key parts such as a 3 way ball valve can still be found online and at reasonable prices. But, repair companies may still need to expand their search and look to companies that they haven’t used before to ensure that they have the parts they need. 

Financial Losses

It’s like that repair companies and maintenance workers, particularly freelancers, have sustained substantial losses over the past few months. While there has been government support to help mitigate the damage, this may not have been enough. Companies will also need to consider how they can protect their model from future damage. This does mean that they need to think about insurance options. There is insurance coverage that could potentially help if there is a dreaded second wave or a new outbreak. By getting the insurance in place now, companies like this will be able to keep their business afloat and the lights on. It could also help if the coronavirus pandemic does cause a massive economic disaster as many analysts seem to fear. 

We hope this helps you understand the challenges that these workers and businesses are facing. It’s like that many will bounce back eventually but there could definitely be some rough roads ahead before things are able to snap back into place.

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