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.
|
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
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