How Effective is a Buy-Sell Online Business in India?

India is a land of rich culture and the second-largest populated country in the world. The Indian business has undergone a major change. People traditionally preferred to shop physically, checking the material before buying a product, but E-commerce has transformed the trend, with many making their purchases online.

Since 2020, especially since the COVID times, people are staying at home and doing business online. Everything has turned virtual from buying a product to selling it. Many people have lost their jobs and have started small-scale businesses.

E-Commerce Business

Any business conducted online is called an E-commerce business. You can buy or sell a product online and have a self-owned business strategy. Certain e-commerce sites specialise in specific products.

Helios Lifestyle Private Limited, also known as the Man Company, makes products for men, like shaving creams, shampoos, face washes, etc. It was founded in 2013. Men need essentials to groom themselves and hence companies like these will find their way into the market. ‘Ferns N Petals’ started with selling flowers and also started delivering gift items and cakes for anniversaries and birthdays for their loyal set of customers. It is India’s largest gifting solution provider and has been in the market since 1994. FNP has revenue of 51 million USD. It has outlets in most of the major cities and towns across India. Now it has gone international with its market in Southeast and Middle-east.

OLX is also known as Online Exchange; it is a Dutch company that has been in the Indian market for some time. It is one of the best examples of buying and selling products online. The only difference is that most of its products are second-hand. People effectively buy products, use them and later sell them online. Other marketplaces like Amazon and Flipkart also sell pre-owned products. These online stores have made a tremendous profit over the years and are live examples of an efficient business in India. They have grown over time and have flourished over the years due to their unique ideas and innovation. Things need to be done differently to establish a name in the Indian market. Other successful online stores are ‘PharmEasy’, ‘Netmed’, etc., which sell medicines online.

eBay failed in the Indian market since customers were not happy with the quality of the product delivered. There was no guarantee of buyers and sellers on the platform. It is a 25-year-old foreign company but yet could not be successful in India and had to sell the operations partly to Flipkart.

Pros and Cons

It is possible to earn extra by selling a product. Besides, online businesses have made it easier for retail stakeholders to bring their products online. In Covid times, most of the buying is being done online. Flash sales pop up from time to time during festivals, which India is known for, and this is the best opportunity for a business.

The downside of this business is that you might not always be able to get fixed returns. There is always the risk of the product not being delivered properly, not satisfying the customer needs and then being returned. In the process of delivery, the product can get damaged and hence there is a loss which needs to be addressed.

Steps to Start a Buy/Sell Business in India

Create a website

1. Launch your website by choosing a website name, get your hosting and domain, and create an account. The website will be available for the next year after you made the payment.
2. Start building your E-commerce site.
3. Set up your store. It is a place where customers can see your products and then purchase them.
4. Change the look of your website to attract customers.

Marketplaces

Amazon

Amazon has many sellers who sell their product with a marginal profit and one can register for free in the Amazon seller Business. Amazon lets Indian sellers showcase their products and are one of the most trusted websites in India.

Being customer-centric the main objective of Amazon is to satisfy customer needs. Hence that is the key factor and driving force for the company.

Flipkart

• Flipkart Marketplace is India’s leading platform for selling online. Be it a manufacturer, vendor or supplier, simply selling your products online on Flipkart one can become a top e-commerce player with minimum investment. Through a team of experts offering exclusive seller workshops, training, and seller support, Flipkart focuses on empowering sellers across India, according to its website.
• Selling on Flipkart.com is simple and free. All you will need is to register, list your catalog and start selling your products.
• They have third party ‘Ecommerce Service Providers’ who provide logistics, product photoshoot and packaging materials. The Seller Protection Fund aims to safeguard sellers from losses through compensation. They provide services through which you can ensure faster delivery of your items, quality check by their experts and a delightful packaging.
• Payment can be done after everything is done.

Investment versus Income

Like all retail shops, one can buy products in bulk online and sell them after little to no modification. E.g. you purchase a T-shirt for Rs. 200 and sell it for Rs. 250 after getting any slogan printed on it. The profit made here will be Rs. 50, which will directly get added to your bank account.

This can be done with other items like cups or ceramic pots which can be modified and sold online.

Conclusion

Businesses need sheer hard work and persistence to succeed. Overall, one can start an online business and then slowly rise. It is quite profitable to start an E-commerce business.

Also Read:

1) Business Idea: How To Start An Online Distribution Business?
2) How To Start A Tech Support Customer Care Company?
3) What Type Of Businesses Need Lead Generation?
4) OkCredit: Simple, Paperless & Secure solution for businesses

FAQs

Q. How to start a zero investment online business?

Ans. There are platforms where one can sell products online. The marketplace takes care of picking up the product and delivering it to the respective places. The most trusted apps are Meesho, OLX which help in this. You can add a marginal profit price and circulate among groups.

Q. How did Covid 19 affect E-commerce?

Ans. During the lockdown, people started shopping online. They not only ordered clothing items but also grocery online. In a positive move, people started buying masks, sanitisers and cleansers, which were mandatory to use during this time. E-commerce has gained currency during the Covid 19 pandemic. A win-win situation for both the seller and the buyer.

Q. Do social media handles support an online business?

Ans. Many individuals buy products online and give reviews on their channel. They give the link in the description and are already registered as sellers in various marketplaces. Once another person views the product and purchases it, the seller gets money for it. Yes, social media handles like YouTube, Instagram and Facebook support such businesses.

Q. How to become a seller in a Marketplace?

Ans. First you will have to create a seller's account and list your products on the website. Fill in your personal details like PAN number or Aadhaar and an active bank account. You might need to fill in the GST details as well. When you sell on any marketplace like Amazon or Flipkart, you can choose how storage, packaging, delivery, exchange and returns are handled. With FBA or Easy Ship, they will handle delivery and customer returns. You can also choose to ship the product yourself. Lastly you will get paid for your sales.

Q. What products can one sell online?

Ans. Online one can buy and sell many products. The two main types are:

1. Hardline- These products consist of automobile parts, household furniture, electronic products and kitchen items.
2. Soft line- These contain cosmetics, clothing items, jewellery items, bags, purses and bedcovers.

Few states specialise in different products and can be shipped from anywhere. For example, Kashmiri Shawls, ‘dupattas’ from Rajasthan, Solapur ‘Chaddars’, Bengaluru Silk and Kerala cotton sarees, etc. A person from another state of India can easily buy something which is miles away. Isn’t it great?