First of all kudos to all of you and my special thanks to Mr.Alok for this initiative,although this is my first post I keep a follow up on all the activities and discussions happening on Rodinhood.
After listening and getting shared by so many innumerable journeys of members over here..
I am taking a plunge to start a E-Store of mine.
Let me introduce myself..I am Ashish Baharani an alumnus of 2010 batch of MBA...From the first day itself enrolling into MBA I made up my mind of starting something of my own..So as the blessings of friends and family..I started my own retail store in 2010 of Tees in the most reputed mall..Initially I was retailing only Tantra tees (A bombay brand) as an EBO and lately added more brands of tees in store which got a tremendous response..Right now most of our customers are either NRI's or People based in other cities but belonging to hometown..
Now I am looking forward to start my E store as I am already having the stocks and all the other requirements (VAT,Tin No.etc) which are needed ready..I really want to build a website of repute to cater the younger audience as our major clientele is of that age group..
How can I go about it ?? I have seen many E stores starting and closing up soon as sales dint pick up much...??Where should be my main focus??Initially I want a trial run before spending much on the webstore as to test run the response..??
You guys are really doing a good job...."RESPECT" is the right word..
Good to know about you, and well let me Help you
1) for trial run, you can have seller account with ebay, jabong, myntra, yebhi and other popular indian e commerce sites, so once you get agreement copy, check few things 1) make sure that you are not paying for listing your product ( ebay costs less than 10/- for listing product ) so check in agreement copy that for FREE in listing the products 2) Commission Structure, E Commerce companies add commission structure for each and every successful product sale, and each e commerce company will have its own commission structure. so before listing the product work on commission structure and put the best costs so that people can start buying. 3) logistics part, make sure that you get good costs from DTDC, Bluedart to deliver to any place with in INDIA. and also you have to check if e commerce company wants to arrange pickup how much they are charging or if you want to deliver the product to end customer how much it costs for you. so work on the logistics charges and select the best option.
2) as you always knows images are the only option to attract the customers, post good images with good resolution and also necessary product description along with your email ID, where people can have email conversation with you regarding your products
3) its regular exercise to check each and every website to make sure that what ever the products you sell today only those products need to be displayed, remember customer can buy your product at any time, and once you know that specific product is not available it really gives bad impression on your store. so its regular exercise task
Thats it simple, so once people start buying your products, you will be getting your final amount ( MRP - e commerce commission ) to your bank account, make sure that you provide exact details like, order handling time, order dispatch time, provide the tracking numbers etc etc
Hope this helps you, let me know your feedback
Where are you based, I plan to open my e-stor soon and need facilities like
1) Lead Generation
2) E-Mail support
3) BPO support
4) Flashy web-site
5) IT development
Are you the right person for the purpose?
I will call you shortly
To setup the store, you need 3 things - domain & hosting (www.something.com), the ecommerce website software ( u can take Zepo, Smartstore, buildabazaar, magento, etc), a payment gateway (ccavenue, payU, ebs, zaakpay, etc)
You also need a courier company to do your shipments and a packaging provider to buy boxes / envelopes / packets from to make sure your goods dont get spoilt on their way. REMEMBER to add these costs while planning a store, these can get pretty high.
For my e store www.travellerkids.com (which sells innovative educational games for kids), we use Zepo with PayU. The whole setup cost us Rs. 20,000 to setup and it requires no technical knowhow or maintenance.
The bigger thing to worry about selling online is - How to get people to your store? Just like going to a big mall made sure you had existing mall walk-in customers, on the internet you have to attract them to your store. You can do this by facebook, google ads, through friends and family, coupons, etc. Think about this aspect as you have to first attract people onto your website and then only some of them will end up buying a product.
Hope this helps you and others who are planning of doing this.
Hi Shitij,Thanks for the info..I am in talks with Zepo as how can I start with..Just a small question for you...Can you tell me how many hits do you get ?? How much spending on adwords etc ??
The ecom market has already passed the peak point. From my talks with investors, getting funding could be a problem. It is extremely difficult to survive unless you're selling something niche, eg. - Cutom message printed tees or something. Make sure you will be able to compete with Cash-On-delivery, 30-day-returns, etc. and all the other goodies offered by the big players. In my opinion, starting with serving a single local area/city-wide is a better idea. That way, you develop a small but good loyalty base, don't have to compete with everyone and don't have to spend on pan-India marketing effort. In fact I believe that is the only way anyone can enter ecom rit now.
U r very much right swapnil..Just like some grocery selling sites in bangalore are targeting only a small area where they can cater with their own delivery boys...Good point..
There are websites which provide ecommerce platforms so you just focus on selling and marketing portion of it. There is Shopify and also an Indian player in this market, 39shops. Both are pretty awesome and lets you do a month's free trial. You just have to focus on getting products delivered and marketing your site. For any more details, contact me on my twitter. All the best!
Hi everyone,Thanks for the replies...The problem which lies with me is I am going to sell products which provide me a rough margin of 30-40%..Now coming to the Gateway charges 3%,Shipping charges 10%,Hosting and other charges-5%,Adwords without which I dont think we'll be able to attract customers to the site will be 10&...That lands me with 5% of profit from the total sales..Can you advice me how to become successful by reducing the cost...???
Ok let me clarify you step by step
1) Go ahead and get account with professional couriers - these people charge less than DTDC and got national coverage . or if you want to have complete track details get price quote from your area DTDC person .
2) If you start selling your products through myntra, yebhi, ebay all these portals charge standard commission rate which includes the payment gateway charges, hosting etc etc
3) So suppose if you are selling 100/- product and you might get 40/- as margin. so simple put 150 as the product cost where for e commerce they might take 30/- as commission that comes at 120/- 20/- for logistics and you will be getting your 100/- diverted to bank account
It might take some time for you to understand but for learning sake start selling your products through ebay and other online platforms , it really works, even it helps you to work on costing structure and other details relating to
Thanks a ton Sai..I was also thinking the same to start a trial run on Ebay and other sites...to see the response..
Before Getting into any thing, first test it and once you feel that you can do business then get into reality, with out test if you enter into reality its like 99% chances that you might run out , it will give negative impact on future projects.
Hope you got my intention