eCommerce in India is booming. With the expansion of mobile and broadband connectivity, online shopping has seen tremendous growth. This creates massive opportunities for anyone looking to sell online. This guide will walk you through everything you need to know to start selling online in India.
Why You Should Sell Online
The Indian eCommerce market has grown exponentially over the years, with millions of online shoppers actively buying products every day. Mobile and broadband expansion are driving this growth, creating unprecedented opportunities for online sellers. If you have products to sell, now is the perfect time to tap into this growing market.
Before You Start Selling Online
1) Calculate Costs Involved
Before diving into online selling, understand all the costs associated:
- Shipping Cost: Typically 5-15% of product cost
- Packaging Cost: Around 0.5-2% of product cost
- Payment Gateway Cost: 1.5-5% of transactions
- Storage Cost: Warehouse or storage fees
- Marketing Cost: Paid advertising investments
2) Find Viability
Calculate your profitability using this formula:
Selling Price – (Sourcing Cost + Packing & Shipping + Transaction Fees + Marketing Cost + Variable Costs) = Profit
Make sure your margins are healthy enough to sustain your business after accounting for all expenses.
3) Create Digital Catalog
Prepare a comprehensive digital catalog that includes:
- Product codes/SKUs for easy tracking
- Detailed descriptions and categories
- Accurate pricing information
- High-quality product photographs (3-4 angles recommended)
Good product photography is crucial – clear, professional images significantly increase conversion rates.
4) Setup End-to-End Process
Establish documented workflows for:
- Order management
- Quality checks
- Packaging standards
- Invoice generation
- Returns handling
Having clear processes ensures consistency and helps scale your operations smoothly.
5) Use Inventory Management Software
Track stock movements and synchronize inventory across all your marketplace accounts. BillingFast helps you manage inventory efficiently, track stock levels, and avoid overselling or stockouts.
6) Be Discoverable Online
Maintain your online presence through:
- A professional website
- Active social media profiles
- Business listings on Google
- Engaging content marketing
Selling on Marketplaces vs. Your Own Web Store
You have two main options for selling online – marketplaces or your own web store. Let's compare both.
Marketplace Options
Popular marketplaces in India include Flipkart, Amazon, eBay, Snapdeal, Shopclues, and PayTM.
Advantages:
- Access to millions of daily visitors
- Established trust with customers
- Built-in payment gateway
- Lower marketing costs initially
- Ready infrastructure for selling
Disadvantages:
- Higher commissions (15-20% typically)
- Limited control over product display
- Fierce competition
- Less brand visibility
Your Own Web Store
Platforms like Zepo, KartRocket, Build a Bazaar, MartJack, and Shopify allow you to create your own online store.
Advantages:
- Fully customizable appearance
- Complete control over branding
- User-friendly interfaces
- Lower transaction fees
- Direct customer relationships
Disadvantages:
- Requires significant marketing investment
- Takes time to build customer trust
- Need to handle payment gateway setup
- Responsible for all technical maintenance
5 Tips For Your First Sales
Getting your first few sales can be challenging. Here are proven strategies to kickstart your online selling journey:
1. Email Your Contacts
Use email marketing services like Mailchimp to reach out to your existing contacts. Let friends, family, and acquaintances know about your new online store. Personal connections often lead to your first sales.
2. Facebook Promotion
Share product photos with friends and family on Facebook. Create engaging posts showcasing your products. Personal recommendations carry significant weight on social media.
3. Facebook Ads
Leverage Facebook's powerful advertising platform to target specific demographics. You can narrow down your audience by age, location, interests, and behaviors to reach potential customers effectively.
4. Google AdWords
Use Google AdWords to reach people actively searching for products like yours. Search ads put your products in front of customers with high purchase intent.
5. Deal Sites
Submit discount coupons to Indian coupon listing platforms. Deal-seekers are always looking for good offers, and this can drive significant traffic to your store.
Focus on Product/Market Fit
During the initial phase of your online selling journey, prioritize understanding your market and perfecting your product offering over immediate profits. Focus on:
- Understanding customer needs
- Gathering feedback
- Refining your product selection
- Building a loyal customer base
Once you achieve product/market fit, scaling becomes much easier and profits follow naturally.
Conclusion
Selling online in India offers tremendous opportunities for entrepreneurs and businesses of all sizes. Start by understanding your costs, setting up proper processes, and choosing the right platform for your needs. With persistence and the right strategy, you can build a successful online selling business.
Use tools like BillingFast to manage your inventory, create professional invoices, and keep track of your finances as your online business grows.
