E-commerce website for Under ₹5000/-
Recently Tata launched their brand new TATA CLIQ, and you must have seen the ads on TV and Youtube, OONT (Camel), a pathetic one (my personal opinion). The reports say that the total money spent on building the site and app was around 57 Crores. With that an aspiring online entrepreneur need not to get discouraged or de-motivated. A functional, user friendly, robust, good looking e-commerce website can still be owned for less than ₹.5000/-.
There are 2 ways of building e-commerce website –
Ride on the ready to use shared platform.
In both the cases you need an account to accept payments – with credit cards and with net banking as well as cash on delivery.
That’s very easy, go to payumoney.com – you need a business registration, VAT registration, or service tax registration etc. your PAN, ADHAR or any other identity. Also you will need a current bank account, It will take around 4 to 15 days to get the user ID and Password of your payment gateway from Payumoney. You can also try to get other payment gateways like CC avanue etc, the process is same.
Needless to say you will need a domain name as well as hosting – which you can buy from www.godaddy.com, easiest for inexperienced users. Once you get your payment gateway, you can build a site yourself with
- WordPress – with woocommerce, easiest e-commerce site.
- Open cart
- ZEN cart
Google them all to know more about it.
You can hire a freelancer to build the site – should cost you from Rs.5000/- to Rs. 20,000/-, if you know a little bit of HTML/PHP or if you have basic understanding of webdesign, you can use the video tutorials on youtube and build it yourself.
Get your products photographed and build your catalog. Since you are on budget, you can actually use your mobile phone camera to shoot your products. Also you can use online free image editing programs to adjust the brightness etc. Remember to write a good description, take reference from big sites on how to write product description.
The 2nd method is to use the ready platform. Go to the following sites and within a couple hours you can start selling online.
To sell on these sites all you need is read the process carefully. People have a lot of misunderstanding about these sites, but in one word I can say it is worth trying and as you grow shift to your own website independently. The best part is that these sites have easy and professional shipping options.
The most important thing you need to understand is that you need to have a good product and you need to source it from the right place. Also you need to buy a good bulk lot in order to make reasonable profit.
The basics of selling goods of any category, like electronics, fashion, accessories or art and craft; you need to understand that if you buy 100 pieces it is almost impossible to sell all 100, therefore you need to source and price it sensibly so that you cover your cost + profit and also absorb the shock of the lot you will not be able to sell.
Let’s have a look at mathematics – First thing first, if you start your home based e-commerce business – no matter what you sell and how you sell, on big sites, or on your own humble site; your ultimate profit will not be more than 2% to 10%. Which actually does not make any sense in the world of retail. However if you source a good lot with variety and fresh trend you can make good money on basis of volume. Needless to say that you can not expect any profit at least for first few months to a couple of years, it’s simple basic of retail.
The sustainability of your small e-commerce business is customer acquisition. A repeated customer on your site actually brings the real profit. Therefore you need to keep your customers happy so that they come back to your site and also bring their friends and relatives.
In the next article you can learn the basics of online marketing for your small e-commerce startup.