With the rise of internet penetration in India, it’s no secret that today, people scroll online to purchase anything rather than go to brick-and-mortar stores. India’s eCommerce market will grow from $83 billion in 2022 to $150 billion in 2026. Don’t you want a slice of this billion-dollar market and make a fortune?
Although starting your eCommerce brand may seem like an unconventional idea a decade back, today, with so many tools and resources available, it is possible to run a successful eCommerce business more than ever.
In this blog, you’ll learn how to start an eCommerce business and how to run it successfully.
Why Should You Start an eCommerce Business in India?
Growth Prospects in Indian eCommerce
India’s eCommerce landscape is witnessing an unprecedented surge, positioning it as a digital retail powerhouse. The current market size is impressive, but the projected growth captures the imagination. With estimates suggesting a market potential reaching into the billions by 2025, the eCommerce sector in India is thriving at an exponential rate. This growth is underpinned by solid statistical evidence, pointing to a rapid expansion that’s reshaping the retail landscape.
Impact of Increasing Internet and Smartphone Penetration
A pivotal factor driving this eCommerce boom is the dramatic rise in internet usage and smartphone penetration across India. The correlation is clear: as more Indians go online, particularly through mobile devices, the eCommerce sector benefits significantly.
Government Initiatives Fueling Digital Business
The Indian government’s proactive approach to supporting digital business is another catalyst in this growth story. Initiatives like ‘Digital India’ have been instrumental in enhancing eCommerce infrastructure, making the internet more accessible, and fostering a digital-friendly environment. These policies have also encouraged entrepreneurs to venture confidently into the eCommerce domain.
Opportunities in Niche Markets
The Indian eCommerce landscape also shows a rise in niche markets like jewelry, everyday shoes, and street clothing. These sectors offer untapped potential for startups and established businesses alike. The key to success in these markets is a focused strategy that caters to specific consumer needs and preferences. To enter a niche market, you can simply start dropshipping, which requires less capital.
Start your eCommerce Business: Step-by-Step
Research Your Idea and Find Your Niche
The initial stage of establishing an eCommerce business in India is about exploring ideas and rigorously assessing the feasibility and viability of your business concept. To effectively conduct market research, use quantitative and qualitative methods. Surveys, focus groups, and interviews can provide valuable consumer behavior and preferences insights. Online tools such as Google Trends, SEMrush, and social media analytics are also instrumental in understanding market dynamics.
After your initial research, the next step is to pinpoint a niche – a specific, targeted part of the market that you can serve best. To find your niche, analyze current market trends and consumer behavior. Look for patterns in consumer interests, unmet needs, or areas where competitors are not fully meeting customer expectations.
Choose Your Product and Target Market
Choosing the right products and identifying your target market is a strategic decision that requires a deep understanding of market demands and customer profiles. It’s about matching what you can offer with what the market needs.
When selecting products, consider market demand, profitability, availability, and your ability to source or produce them. Think about your product’s unique value proposition and how it stands out in the market.
Source Your Product
When evaluating suppliers, consider their production capabilities, quality control processes, lead times, and cost structures. Ensuring they meet your quantity requirements while maintaining quality standards is important. Additionally, assessing their reliability and responsiveness, is critical for maintaining a smooth supply chain. Building a relationship with suppliers based on mutual trust and communication can significantly impact your business’s efficiency and product quality.
Write a Business Plan
A well-structured business plan is the backbone of your eCommerce startup. It should clearly articulate your business objectives, market strategies, financial projections, and operational details. Begin by defining your business’s mission and vision. This will guide your strategic decisions and help you focus on your goals.
Decide on a Name and Legalise Your Business
Choosing the right name for your eCommerce venture is more than a creative exercise; it’s a critical business decision. Your business name is the first point of contact with your customers and sets the tone for their perception of your brand. It should be unique, memorable, and reflective of your brand identity. A compelling name can significantly influence customer recall and brand affinity. Utilise brainstorming techniques, consider your brand values and research to ensure the name resonates with your target market and stands out in the competitive eCommerce landscape.
Choose an Online Selling Channel
The choice of your online selling channel is pivotal in determining the reach and success of your eCommerce business. Selling through your website offers complete control over your brand, customer experience, and data. On the other hand, leveraging established marketplaces like Amazon, Flipkart, or Snapdeal can provide instant access to a large customer base, easier setup, and less upfront investment.
Weighing the pros and cons of each channel is essential. For many businesses, a combination of both – an own website for brand presence and marketplaces for broader reach – works well. Consider your product type, target audience, and resources while making this decision.
Build Your eCommerce Website
Your eCommerce website is the digital storefront of your business, and its design and functionality can significantly impact customer experience and sales. Prioritise a clean, intuitive design that reflects your brand and makes navigation effortless for users. Ensure your website is responsive and mobile-friendly, as most online shopping occurs on mobile devices.
The content on your website, including product descriptions, images, and blog posts, should be engaging, informative, and optimised for search engines to drive traffic. Invest in a reliable hosting service to ensure your website loads quickly and experiences minimal downtime.
Payment Gateway
In digital shopping, the payment gateway is your cashier. It’s crucial to choose a payment gateway that offers security, ease of use, and diverse payment options, including credit/debit cards, net banking, and mobile wallets. When setting up your payment gateway, consider the integration process with your eCommerce platform. Ensure it’s seamless for both you and your customers.
Setup Your Logistics Network
Your logistics network is the backbone of your eCommerce business. Begin by outlining your shipping, handling, and delivery procedures. Consider factors like shipping costs, delivery times, and return policies. Partner with reliable eCommerce logistics companies that align with your business needs and have a proven track record of timely deliveries. You may also use NimbusPost to manage all these challenges, especially if you’re new and inexperienced.
NimbusPost allows businesses to find the best courier services that suit their goals, provide smart warehouses strategically located across the country, help calculate shipping costs, manage bulk shipments, track multiple orders, and much more within a single platform, and with zero subscription and set up fees.
Marketing Your Product and Business
Effective marketing breathes life into your eCommerce business. That’s why you should develop a comprehensive digital marketing strategy encompassing SEO, social media, content marketing, and email marketing. Utilise SEO to enhance your website’s organic visibility on search engines. Engage your audience on social media platforms where your target customers are most active. Create valuable content that resonates with your audience and positions your brand as an industry thought leader. Consistency and relevance in your marketing efforts are key to building a loyal customer base.
Customer Engagement and Support
Implement customer service practices that are responsive, empathetic, and solution-oriented. Use customer feedback to continually improve your products and services and engage with your customers through various channels, including social media, email, and your website.
Conclusion
In essence, the Indian eCommerce sector is a goldmine of possibilities. Entrepreneurs equipped with the right knowledge, eCommerce technology, an adaptable mindset, and an unwavering commitment to customer satisfaction are well-positioned to thrive in this dynamic digital marketplace. The time is ripe to embark on your eCommerce journey and carve a niche in this ever-expanding digital bazaar.
FAQs
How much does it cost to start an eCommerce business in India?
Starting an eCommerce business in India typically requires an initial investment ranging from INR 85,000 to INR 1 lakh. However, for individuals on a tighter budget, it’s possible to begin with a minimum of INR 20,000. This cost includes essential aspects like website creation, legal registrations, initial marketing, and basic operational expenses.
How can I get an eCommerce license in India?
To register an eCommerce business in India, you must register under the Companies Act, 2013, or the Limited Liability Partnership Act, 2008. This involves:
- Obtaining a Director Identification Number (DIN)
- Getting a Digital Signature Certificate (DSC)
- Registering the company with the Registrar of Companies (ROC)
