Monday, 26 November 2012

Starting online business in India


Starting Online Business in India
India's Information Technology (IT) and information technology enabled services (ITeS) segments are aligned in a way that the growth in one avenue has ripple effects on another. The IT & ITeS industry, as a whole, is the mainstay of Indian technology sector as it has driven growth of the economy in terms of employment, revenue generation, standards of living etc and has played a major part in placing the country on the global canvas areas.
In the recent times, it has been seen that emergence of internet retailing and e commerce is driving the growth of number of online shoppers resulting in more and more number of internet retail companies being attracted towards Indian Markets. There are about 17 million online shoppers in India and the number is projected to grow over three times in the years to come.
The online shopping trend is not just restricted to mass market shopping, but also extends to luxury goods, the fastest growing segment. However, the online market still continues to be dominated by shoppers looking for premium, affordable products at the cheapest prices.
The digitally-enabled environment is fast changing consumer shopping habits.

Starting the Online Store-----
·         Find a niche market and products that can make a profit selling online
·         Identify the gap in the market
·         Obtain the Domain Name
·         Find genuine wholesale vendors
·         Design the website as attractive as you can
·         Obtain Payment Gateway at your website
·         Market your store through Multiple traffic sources and get customers in the door without spending a dime
·         Convince your customers to buy once they land at your website
·         Sell goods online and earn huge profit

Legal Steps to start the online Business:
       List out the different Business Entities i.e. Company (Private or Public Limited)/ LLP
       Compare and Choose the Best Suitable Business Entity
       Incorporate and register your Business Entity with the Registrar
       Obtain Income Tax Registrations such as PAN, TAN, Service Tax, and Sales Tax.
       Make sure that you apply for the Sales Tax Number if in case you are selling goods online
       Hire Legal consultant to draft legal agreements, website policy and terms & conditions

Other things to be kept in mind;

  Arrange a web designer for designing your web portal to sell goods or else logon to www.indiagetonline.com and get free domain name, hosting, and templates. But, it is strongly recommended to get a web designer hired for designing the website because your business’s demand is based on online. So, the website should be very attractive and understandable.

       Tie up with the vendors/ distributors for sourcing the goods
        Tie up with the courier agencies
       Employ the Delivery staff to deliver goods
       Protect your Brand name by registering the Trademark, Patents, etc.

          What is driving e-commerce adoption on small towns of  India?                    
·                            Rising Living Standards
·                            Increased awareness
·                           Greater Wireless Internet Access
·                             Lack of goods offline channels
·                             Improving online availability
·                              New payment options
·                             Cash on delivery as payment option
 
 


 Demographics of Internet Market

       Total Internet users with over 121 million as of December 2011
       Much of the tech savvy population is now buying online though the numbers lag far behind neighbor China
       Almost 75% of India’s Internet users are under the age of 34
       Large number of mobile users access data services
       Women are increasingly important presence online- 20-22% of India’s Internet Users are Women
       Top 10 products bought online are Books, Electronic goods, Railway tickets, accessories, Apparel, Gifts, Computer, Airline, Music, Movies
Source: Nasscom, Wikipedia

1 comment:

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