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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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You Can’t Afford An Employee Scandal In Your Business Model

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Employee Scandal

There are countless issues that business owners encounter when they are trying to aim for greater levels of success on the market. Some of the problems can knock you out of the running completely and leave your business dead in the water. That’s certainly true for an employee scandal. If you’re not worried about an employee scandal in your business, then you’re not seeing the bigger picture. A problem with your employees can cause a drop in sales, leaves you struggling to hire talent for your company and hurt the reputation of your business all at the same time. To understand the ramifications of this issue, you need to be aware of the scandals that can hit your company.

Criminal Activity 

It is possible that a member of your team is involved in criminal activity while working for your company. If this does happen then they could target your business as a whole or your clients. Unfortunately, clients won’t blame the individual employee for this issue. Instead, they’ll blame your company as a whole for not taking the right steps to vet the people that you hire. That’s why you should think about using a professional service to ensure your hiring standards are at the right level. A construction labour hire agency can help you here and guarantee that you don’t end up with any shady people on your team. 

Injuries

You also need to make sure that you are avoiding issues with injuries in your business model. Injuries can and often will occur if the right steps are not taken to avoid them. Indeed, if you want to dodge injury claims in your business, then you will need to hire a health and safety officer. They will check for hazards and ensure that you don’t have to worry about your business environment being unsafe. Businesses will bounce back for the occasional personal injury claim if they have the right insurance in place. However, if injuries are a constant occurrence in your business, then your company will struggle to get new hires. No one wants to work for a business where employee well being isn’t a top priority. 

Harassment 

Finally, you need to make sure that you don’t have an issue with harassment in your business model. Harassment can occur in a variety of forms. For instance, you could find that individuals are being harassed due to their gender or they might be being bullied. If you are worried about this problem in your business, the first step will be to set up HR support. This will provide a structure that employees can use when they have an issue that they need to deal with in your company. You should also consider adopting a zero tolerance policy for this type of problem. 

We hope this helps you understand the potential employee scandals in your business model and what they could mean. In doing so, you will be able to make sure that you avoid them and keep your company on the right track for the future. 

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How To Reduce Your Shipping Costs As An Online Seller

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Reduce shipping costs

Shipping costs are something that you are stuck with as an online seller. This makes finding innovative ways to reduce your expenditure on shipping a necessity. This keeps your profit margins high and your stream of revenue flowing steadily. Thinking strategically to reduce shipping costs for yourself and your clients is a major requirement if you want to be successful as an online seller. This is because your customers and clients expect to spend less on shipping and want free shipping in most cases. Here are five smart ways to reduce shipping costs.

Choose lighter packing materials

Protecting items in transit is important, and this means you must get the best packing materials to secure them. However, not all packing materials are the same. To lower shipping expenses, consider lightweight, protective materials that offer the same level of protection as the heavier ones. In this regard, use air pillows and bubble wrap to secure the boxes’ empty spaces—the lighter the package, the lesser the cost.

Use flat-rate shipping

Make the most out of flat-rate shipping. Most major logistics businesses offer some sort of flat-rate shipping, and you can take advantage of this to save some money. If you happen to ship heavy items frequently, this could present a great opportunity to save a lot. Be sure to research your options and make the best choice that makes it economical for your business. You can get significant savings on UPS prices here.

Improve your negotiation skills

Great negotiation skills are key to saving money anywhere, and in the shipping business, your ability to negotiate will save you some expenses. You can negotiate the terms and rates of your parcel volume even if it is on the low side with your shipper to slash your shipping costs. With competition high amongst shipping vendors, being a good negotiator could secure you a good deal. However, note that not all shippers can provide certain services or guarantees. So, be sure you settle on one that can fulfill all your shipping obligations and satisfy your customers’ demands.

Buy in bulk

Buy packaging products, from cartons to air cushions, to bubble wraps, and even pallets in bulk. Buying in bulk usually comes with volume discounts that can save you some money. One more thing to consider is your product packaging. Your packaging is part of your brand, so find suitable branding methods that do not alter your products’ weight by much.

Recycle and reuse shipping supplies

It is more likely than not that you also have items shipped to you before you resell. It is best to recycle and reuse such shipping supplies, to save money on shipping costs and packaging materials. You can repurpose the cartons and packaging material for your own packages. Simply replace the shipping labels with your branded ones. This also ensures you run a green business as you reduce the effects of possible environmental pollution.

If you decide to offer free shipping to your clients, that is fine but remember that it will eat into your profits. In this regard, you must find smart ways to save money on shipping expenses as well as packaging. If not, then as much as possible, find ways to reduce the shipping costs for your customers so that they can continue purchasing your products.

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Ensuring The Best Quality For Your Customers

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Best Quality for Customers

For all businesses big and small, customer satisfaction should be the number one goal, as they’re the ones who make everything possible. Without customer satisfaction, you’re going to see sales decrease, and it’s going to be hard to operate with efficiency! There’s a lot you can do to ensure that your customers are satisfied, and it doesn’t hurt to put in that extra effort to make sure of it!

Data security

Data security is very important for many reasons, but most importantly you want to make sure customer information is not at risk! It’s a legal requirement to protect the sensitive information of customers and employees, and you’re likely going to lose sales if you have a data breach. Make sure that all of your data is secured and away from people with ill intent, else you’ll be risking your reputation and the trust of your audience!

In-house guarantees

If you work in retail, the only way you can ensure customer satisfaction is from product testing, and making sure everything is the quality you want it to be! Whether it’s by tasting products as a food retailer or making sure customers are getting what they pay for. If you sell by weight, consider investing in some scales to make sure you’re selling what you advertise – ones like these: https://www.arlynscales.com/scale-knowledge/industrial-weighing-scales/. You don’t want any mixups with customer satisfaction, and many brands have faced criticism for inaccurate advertising.

Promotions and loyalty cards

Loyalty cards and promotions are a great way to reward your customers for buying from you, they allow you to give back to the customer for their repeating patronage! Make sure to set it up so that you don’t lose out, while also giving back to your customers – you’re trying to please the customer, not sink the business!

A lot of businesses offer credit instead of a loyalty card, finance that can only be used in their stores, encouraging them to come back and buy from you again! These deals are great for building lasting relationships between you and your audience, and should be used by every retailer if they can afford it!

Customer feedback

Allowing customers to give feedback is very important if you’re trying to please them, as they can tell you exactly what you did wrong and how you can do better! A lot of businesses do this through their website with a review feature, allowing them to collect data on their customers and find a general consensus on what the audience wants. It’s never bad to hear what your customers have to say, and you might end up pushing yourself a little closer to success with each change based on customer complaints! You can read more at https://survicate.com/customer-satisfaction/tips/.

You can’t please every customer, but trying to please the majority of them is what’s going to help you climb closer to success. Trying to keep an honest relationship with your customers, and not driving your prices up too high is important if you want to keep loyalty between you; people can tell when they’ve been overcharged – and that’s not something you want!

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