E-commerce, with no apprehensions is the future of retail business. Many of the well-established businesses are adding an online segment to their retail sales and have experienced remarkable growth in sales with an average of 20% and reaching as high as 40% in a very small timeframe. It has become a universal tendency to look up online for brands and business and the ones which do not have a website, are considered obsolete by the consumers. It is expected, that in coming years most of the trading would be done online with no complications and physical monetary transactions. Meanwhile, a very famous online business in India namely, Flipkart launched its amazing 100 million dollars sale in a period of just 10 hours in which they offered huge discounts to their consumers. At the end of 24 hours, it fell a little short of its claims for the day and did business of a billion.
Many of its customers actually wanted to buy products during the sale but were left disappointed and irritated because the system was on the verge of crashing making it very slow when a huge population tried to gain access in this short duration. The company was taken by a surprise as they did not expect such a fiasco and also apologised for the same, still leaving some of its loyal customers disappointed.
Another step taken by Flipkart to pacify its discontented customers was that it started giving away products at prices that were lower than the cost price of the products which is against the laws of the industry, displeasing a lot of its competitors. It did another blunder to cover a small mistake. On the flip side, the entire scenario also highlights the immense potential of this business starting from the ease to attract and hold consumers to tap into such a large targeted audience due to the easy purchasing this platform offers to people by just clicking sitting at home. The article focuses on the online business start-ups in India.
HOW TO REGISTER YOUR ONLINE BUSINESS?
Once you have placed the idea and planned it strategically, you are all set to start. Registering the business and incorporating your company, should be the following step. Some obligations that exist in an offline retail business may not be applicable for an online one simply because of the differences in the way they are operated. An office that is registered is still required depending on the convenience of space for the entrepreneur. In order to open bank accounts, trade and conduct other business activities, registration is needed. For example, Flipkart was incorporated as a Private Limited Company and many others follow the same trend, if they wish to become big. For other small businesses start-ups, they can begin with a registration under a Limited Liability Partnership (LLP) by completing the Shops and Establishment formalities at the nearby municipal office.
HOW TO START AN ONLINE BUSINESS?
Some of the essentials to start an online business are listed below:
- Identify the demand to fill in the void and target it.
- Constantly try to attract traffic to your website by using search engines.
- Make and design the website in a user-friendly manner to drive and retain consumers.
- To fulfil consumer orders, build proper processes and mechanisms.
- Make sure you establish a good reputation in the online market.
- Try to follow up with your subscribers and consumer with personalised e-mails.
- Income can be increased by back-end-sales as well as up selling.
WHAT ARE THE ADVANTAGES OF AN ONLINE BUSINESS?
To start with, when most of the retail shops open for around 8-10 hours in a day, online business runs round the clock. It is a huge advantage as everybody likes to make money throughout the day if possible.
Running a business online on an exclusive basis can also help cut down costs. You need not pay any rents like a physical retail store, the number of employees needed are less and can be hired on low-wages as and when required. All these factors make the business more profitable, productive and efficient.
Furthermore, the cost of inventory is quite low for online stores. An online store does not need to be stocked with products all the time unlike an offline retail store, that have to maintain stocks in order to satisfy the demands of the customers at all times. Online stores can keep their stocks and inventories low by using the drop-shipping method, in which the products are delivered to the customer directly from the manufacturer. All it requires is careful planning and strategy to manage the inventories.
An ultimate advantage of online business is that it is easily scalable in the sense that it can be expanded in a short duration from the setup. Up-scaling becomes quite complicated in a physical retail store as you need find a bigger location, more employees etc causing additional expenses.
SOME THINGS TO KEEP IN MIND..
- Solid logistics should be in place
- Deliveries and other execution details should be well-planned in order to keep the consumers satisfied and business running.
- Marketing and advertising strategies should be figured out in order to create a brand and make it popular in the market.
- Social networking can be used to attract and retain customers.
- Constant creativity is necessary to differentiate your brand from other competitors in the market.
- Efforts to be made to make the business independent and sustainable in the long-run.
Company Mantra Team
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