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plywood estore? how realistic is it?

hello friends , 

we have plywood wholesale business as our family business. was thinking of setting up an e-commerce store of the same. something which people have to go in rushy markets to get . it would just be limited to delhi ncr. online store of such a kind have not opened in india before. but the problem i feel is why would someone order it online? n if he does for his ease he will still have to go to the market to buy other hardware products not present on my site such as decorative laminates , fevicol n ol? because setting up all that would require huge investment (stock)

bring up your thoughts? how cool is it practically? pros cons? 

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16 Comments

  1. Hi Shubham,

    It’s really a great idea.

    Please analyse your customer base. Do they have online presence (I am not talking about their presence on FB or other social media or on News websites only)? Do they search?

    Now we come to delivery method. Can a buyer wait for the product to be delivered, that is when carpenter need it immediately or within 2-3 days? People can wait for cloths, shoes, camera or other consumer durable products.

    Will customer really buy 7-8 days before starting the working? You run this business that’s why you know better.

    Would it be feasible for you to run the business pan country. Although nothing is impossible.

    Benefits for the customers:

    • They would have great variety to pick.
    • They can compare the price from local market.
    • They MAY get original brands. (Even duplicate is sold at the price of original.)

    Benefits for you:

    • Later you can think to start your own physical stores in Major cities.
    • You will think to start franchisee to fulfil the order on time.

    I think the idea is not great until it is executed. Analyse your customer, delivery method, CSAT factors (CustomerSATisfaction).

  2. You must know who your customers are – if most of the purchase happens in your shop from the end user (and not the carpenters) – then I think you might have a viable business. But my experience here in Bangalore is that mostly carpenters go to the wholesale plywood shop (they might be accompanied by their clients) and fetch the plywoods etc. Moreover they like to have everything else (fevicol/thinner/primers etc) in one place. So, I dont think its something that might work here(Bangalore) – but I dont know muh about Delhi/NCR region.

    However, you could start something for DIY enthusiasts. I being one – have faced several problems in getting material for my DIY projects. One example if – if I have to make a small table – I would have problem getting plywoods of that exact dimension (lets say 3×3 ft, as mostly plywoods come in standard sizes – like 4×8). Also, I dont have a place to rent some tools (which I wont use all the time, but once in a while for these projects – like a glass cutter or other heavy tools). If I could find a place on web where I could order material in custom sizes and rent tools etc – I would love to use that service.

  3. Very viable. 

    Every hardware and plywood store keeps commission of the interior decorator as costs. Being in the brick and mortar market their is no running away from giving the commission. An E-store could possibly save such commission for the customer. 

  4. Shubham, who buys plywood from you now? I suppose contractors mostly?  I can only see a prosumer wanting to buy plywood and that too in very limited quantities.  But I do see a great opportunity for a hardware store focused on contractors.  Something like flipkart marketplace for hardware.  Will be very tough to sell initially but once you get a few large hardware wholesalers to agree to sell through the site then the rest will follow.  

  5. Hey a client of our on http://www.kartrocket.com is running a store in same category check out https://www.myhomesol.com/

  6. Hi Shubam,

    In my opinion, it is a great idea. I have attempted to share my plywood buying experience below so you can get a fair idea of this project’s viability..

    Last year, I bought Plywood for my home & I was confused to HELL about the brand / quality / pricing etc! It was some crazy experience! And for all the ROPO hype (research online purchase offline), there was not a SINGLE online resource to research or compare. Ultimately, after talking to various store owners and attempting to understand ply quality, thickness, raw material etc, I ended up asking my contractor only for the final word. I noticed that every plywood shop owner had a different brand to promote, which meant the no. of plywood shops = the no. of plywood brands! And NONE of them were promoting the most well known brands like Century, Greenply etc., which I am quite sure, would be due to the low margins on those brands.I preferred going in for a well known brand (Greenply), despite the higher pricing. Store proximity from my home was not too much of an issue as any store was willing to give delivery the same or next day.

    So, as a couple of others have replied, you will have to make your web store for both the contractor (easy to sell) and for the customer (easy to research and compare). 

    And the accessories play an integral role with better margins & increasing cart value. I bought the fevicol, basic white laminates, the lakda (burma teak) everything from the same store. However, the quantity, sizes etc. was obviously given to me by the contractor. When a project starts, it is not possible to have an exact requirement & thus, I remember ordering at least 3 – 4 times.

    Thus, the website will have to stick to those standards & terms used by contractors while keeping it easy to understand for the consumer too. And my suggestion would be to keep the contractor’s commission intact as their recommendation in purchase is a key deciding factor.

    All d best for your venture 🙂

  7. Now , mostly retailers and no contracters! Yes , even I see that it wud b tough to sell! But a hardware store will require huge investment !

  8. Keeping atocks of

  9. Thanks a lot for you suggestions n experiences 😀 @jitendra

  10. Allow me to give you an end user perspective. When I got my raw flat , I need to do the required wood work in kitchen. At that time I had a hard time finding up plywood and more than that arranging required hardware for the same to create required cupboards. Many people outsource the entire work to carpenters. In that case, carpenters take all required material from one or two wholesale shops or retailers from where they get cheaper material. Now carpenters still don’t use internet, so that’s not the segment you can target. Few cost sensitive people like me do all the staff on their own to save few bucks. 

    In your case, as you are telling us that mostly retailers buy from your stores. In that case why they will order online? Which problem of theirs will be solved if they order online? Easy of placing an order might be one problem that you will be solving.But correct me if I am wrong, In Indian business market mostly transactions are based on credit?

    Another question is how much amount retailers pay in one transaction when they come to you? If its huge then why they will pay it online?

    ~Vikram

  11. It would be better if you start with getting your business first on indiamart..tradeindia..etc. Websites ! And if the response is good then you can THINK of opening the e-store !

    And yes Century Ply has its own application for the same ! Look for some inspiration from there !! 🙂

  12. @vikram- with the estore I dnt target retailers as my clients , thats working well n it will go on . Now through the estore direct customer is targetted!

  13. @nitin batra , thanx but how is that possible , how shud I analyse my customer base , such ahardware store is not popular in our country , this is the only risk , will people order such a thing ?

  14. @kumar kapil thanx frstly I had to google DIY , i dnt thnk such a concept is practised much in delhi . Even if it does in very small % of population n also it’d be required in very small quantity.

  15. Anything can be sold online. In your case how will you ship a single sheet of plywood ???
    Will it be cost effective ??? If its only in delhi ncr it does make some sense.

    I went ahead with my ecomm portal on tech accessories two months back without checking out of selling it on other portals.
    I registered on ebay and amazon also.
    Today i get orders on both but not on my portal.
    Would suggest you to try selling on ebay and amazon as they have option of local shipping.
    This would also save you of spending on marketing and advertising.
    Try this.
    All the best
    Amish

  16. Really nice idea anish but plywood is such a thing noone has an idea it can sell on ebay or amazon. Nobody will search plywood on it , there is a difference of products. Do they provide a way by which we can ad or spread to people about our product?

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