Friends, internet has revolutionized the concept of doing business. Today most of the transactions are done through the internet and that too at a very fast speed.The concept of having brick and mortar shop is losing its relevance. Today; one has the advantage of opening one’s shop online through the internet. This is called an E-shop. These e-shops do not require or very minimal start up cost as compared to the brick and mortar shop.
Also, the e-shop has a presence all over the world where there is access to the internet, whereas the physical shop’s reach is limited to the customers of the nearby location. You can take the example of Flipkart, Snapdeal, and Shopclues. All these are online shopping portals which provide products to its customers through the internet and whose turnovers are running into crores. From here you can understand that the internet is a very powerful tool of doing business.
Anyone can start an e-shop who has basic knowledge of the internet.
(1) Set up your online shop in the e-portals
You can set up your shop in e-portals like e-bay, flip kart, snap deal or shopclues.These portals offer to set up your store at free of cost. You can display your products in this portal. These portals are well established having the huge traffic of visitors on their websites. They have their own payment gateways, technical and customer support team. Once the order is confirmed, they collect the product from your place and deliver it to the destination. Even though they offer listing of the products at free of cost but they charge their commission when your product is sold. To set e-shop here, all you need to do is provide all your relevant details like name, e-mail, bank account number (for disbursement on selling of the product) and to accept their terms and conditions. Remember that they have a different fee structure for different categories like books, electronics, home appliances, and health & nutrition etc.Read the commission structure relevant to your category. Always set the price of the product in such a way that after deducting the courier charges and their commission, you get your profit margin.
(2) Setup your own website and the online store
The other option is to have your own domain name and hosting. The cost of having your own online shop is around 5000/- annually. Here you have to integrate the payment gateways ,arrange for the logistics, increase the traffic to your shop through online marketing. Here you are having more freedom to design your shop and display the product as per your requirements. These efforts are worth doing because in this way you are building and creating your own brand.
Or, you can choose the first one, which when starts generating income and then subsequently shift to the second option. In this way, you will not feel the burden of extra cost and extra efforts require for setting up e-shop with your domain name and hosting.
(3) How to setup your e-shop?
(4) Investment required
(5) The Payback period