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5 Things Before You Start Ecommerce Website


In this article, we are not covering registering a business or any legal advice on whether you should register a sole proprietor or LLC or Pvt. Ltd. We are talking about things you should take care of before you  are thinking of starting of e-commerce business

Vendor Management: Vendors are the most important part of the entire supply chain when you are starting an ecommerce site. Should you buy products and create inventory or should you rely on the vendors and give them the responsibility of getting things delivered or Just pick it up from the Vendors as and when you receive the order. Multiple things can be worked out, each have its own pluses and minuses. It also depends on the types of products you are selling on your website.


Web Portal :  Should you have your own customized development or should it be SaaS(Software as a Service) based product platforms like Martjack, Shopify,  Buildabazaar etc.  Typically, all these Platform players also provide customized platform to suit your needs. Cost may vary from INR 25k – 1 Lac per month. Also, you can explore the option of getting it done from small IT companies those who have partnered with Magento, OS Commerce etc.

Payment Gateways: There are multiple payment gateways available in the market like CCavenue, Ebs.in, Directpay, ICICIpayseal, HDFC, PayU.in, Zaakpay.com, Linkpay.co.in. It’s better to integrate with two payment gateways, may be CCavenue/Ebs.in, both are good. But they are just an intermediary between banks/credit card processor and the merchants. Removing intermediary will improve payment success rate and reduce commission charged. So as you grow its important to integrate directly with credit card gateways like Axis bank/HDFC/Citi/ICICI. Success rate will be much higher in this case.

These payment gateways charge one time setup fee vary from as low as 0 to 40k depending upon how much transaction charges you are willing to share. More the transaction charges less is the setup fee.

Product Display:  If you are selling branded stuff like electronics, watches, consumer durables etc. it would be easy to get product images and you don't need to incur any additional cost. But if you want to sell any unbranded or creating a white label product such as apparels, handicraft items etc. better show it properly. Getting a product image from studio will cost INR 100 -350 per image. It can be reduced depending on the quantity. You can do it by yourselves too.

Delivery Mechanism: Delivering goods in good condition and within stipulated time is always the key thing for any business. Bluedart, Indiaontime, Firstflight, Aramax and Chottu.in are some of your delivery boys you can trust upon. While company like chhotu.in follows altogether a different model, they claim to be not just your courier company but one step ahead that helps your sales happen. Where companies are burning lot of cash by offering COD and rejection, they make sure you lose the less.

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