How to Start an ECommerce Business in India?

Overview 

The emergence of E-Commerce Business in India is rising rapidly from the past 10 years. The impact of Covid 19 and the awareness have turned the consumer towards online shopping in India. From groceries to fashion, consumers can pick up their favorite product just by scrolling in the online stores. According to the latest report released by Statista, the revenue generated by the e-commerce market amounted to about 51 billion U.S. dollars in India. Therefore, the Ecommerce business is the better opportunity if you want to open an earring source from home. Read this article to get complete insights on how to start the e-commerce business in India, registration required for E-commerce business. 

What is E-Commerce Business in India?

E-Commerce is the medium to buy and sell various products in India. This business form is an alternative to mortar and brick shops that operate from online only. The digitization brought up the trend to deal with the selling of goods and services in India. Since the E-Commerce business doesn’t necessarily need to purchase or gather the stocks of products for selling. 

Types of E-Commerce Business in India

E-commerce businesses do have various e-commerce businesses which are followed according to which the seller provides their services to the ultimate consumers. According to the type of person market is selling to their ultimate consumers, the e-commerce business have the common types of ecommerce businesses based on the selling to the consumers, which are as follows:

• B2B: Business to Business.
• B2C: Business to Customers. The Delivery of product dispatches from business to customers 
• Multi-Product E-Commerce: Some ecommerce brands offer every type of products under one roof. 
• Single product e-commerce: Some ecommerce brands offer buying and selling of products in one product line. 
• C2C: Customer to Customer. Some ecommerce websites offer products from customers to sell to another customer.

Top 10 E-Commerce Brands in India

Here’s the top 10 e-commerce emerging brands in India, which are as follows:

• Snapdeal
• Myntra
• Fynd
• Flipkart 
• Ajio
• Meesho
• Shopclues
• IndiaMart
• Nykaa
• MakeMyTrip

In India, the demand for buying the products that belong to the best- evolving shopping brands drive the customers' satisfaction. This ecommerce doesn’t reach its position of brand on its own unless the customers mark their highest satisfaction after buying the product. 

You can also start your own e-commerce business brand in India. By following the step-by-step process to start your ecommerce business in India, your brand will also gain its popularity.

Registration Required for E-Commerce Business in India 

Here is the legal and administrative requirement for E-Commerce business, which are as follows: 

• Requirement of GST Registration: In case your threshold limit exceeds Rs. 20 lakhs through the E-Commerce business, a taxable person needs to pay taxes by registering under GST registration. 
• Requirement of Business Registration: It is important to recognise in which business structure does your E-Commerce line fall. Since there are 5 types of business structure which includes: OPC registration, sole proprietorship, LLP registration, partnership registration and private limited company registration.
• Udyam Registration: As you are beginning your business from home whether it is an ecommerce or selling through shops, your business would fall under the category of Micro, Small, and Medium Enterprises. For getting government incentives without heavy investing on your business for inventory stocks, etc. you are required to get Udyam Registration.
• Trademark Registration Online: The trademark registration protects the rights and identity of your brand and logos of your E-Commerce business. 
• Shop and Establishment Act Registration: Even for online E-Commerce business, the registration for Shop and Establishment Act Registration is essential.

For getting multiple benefits from legal and financial regulations, you are required to get assistance from experienced CA and CS experts for easing your application. We at Bizfoc team will dedicatedly serve your needs to make your business compliant to legal and financial regulations.

How to Start an ECommerce Business in India? Follow these 6 steps

Here’s the step-by-step procedures to start e-commerce business in India: 

Step 1: Conduct Market Research:

Marketing research is the blueprint to get the idea which brand product is best to launch in the market. Therefore, conducting the market research is an essential base to strategize the plan to respond in the dynamic business environment. 

Step 2: Determine the niches of your product:

Knowing the niche of your product is an important base to set the business plan also. Identification of niche is an important job to know which product creates the high demand in the market. 

Step 3: Plan Your Logo and Brand Name

Planning your logo and brand name is the first step for putting the base to start the business in India. Make sure your brand name and logo doesn’t go similar to any other brands that exist in the market. It should be unique and easy to pronounce. 

Step 4: Business Registration 

After getting the brand and symbols of your product/services, the next is to register your business in India. There are 5 types of business registration in India:

• OPC Registration
• Private Limited Company Registration
• Sole Proprietorship 
• Limited Liability Partnership Registration
• Partnership firm registration

Step 5: Strategize your Social Media Presence

Developing strategies to create the online presence of your brand is the additional plan to stay ahead in the competition. Through SEO strategy, social media, promotions of product and advertisement, you can launch your ecommerce business easily. 

Step 6: Providing Customer Service 

The customer service mainly includes communications with customers, serving the after sale service, tracing customers behaviors and how they respond to certain trends is the key to assess and helps to provide customer service. 

Step 7: Prepare and Customize your E-Commerce Website

Building your own website, posting the relative SEO contents daily, updating the website designs and content regularly will boost the presence of your brand online. E-Commerce website is itself a store where your customers buy and sell the product through online presence. 

Major Challenges for Branding E-Commerce Business in India

Here’s the 5 major challenges for branding ecommerce business in India, which are as follows:

• Indian Customers Return Much of their Product than they Buy
• Delivery issues due to remote areas 
• Low Conversion Rates
• Leaving Shopping cart without adding the products poses a risk. This is the most complicated ecommerce problem. 
• Fear of Online Payment by Indian Customs 

Conclusion 

E-Commerce business is the dominant business which makes shopping easy for a wide demographic. Branding with the help of an E-commerce website helps the product to grow in the international market also. For starting the ecommerce business in India is the best earning option, there are certain licenses and registration to avoid illegal operations. 

Frequently Asked Questions 

1) Do you need to register your eCommerce business legally?

Yes, you need to register your ecommerce business legally in India.

2) Is it important to have a user-friendly website for ecommerce business?

Yes, it is important to have a user-friendly website for ecommerce business. 

3) Is it necessary to obtain a GST registration for your eCommerce business?

Yes, it is necessary to obtain a GST registration for your eCommerce business. 

4) Can you operate an eCommerce business from home?

Yes, you can operate ecommerce business from home.