Things to Know Before Starting an e- Commerce Business
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1 Things to Know Before Starting an e- Commerce Business By Atul Jain
2 Copyright 2013 Atul Jain All rights reserved
3 Table of Contents About the Author Introduction 1. Understand Your Product Well 2. Calculate the Economics 3. Create a Unique Selling Proposition 4. Create a Business Plan 5. Plan your Supply Chain Well 6. Check the Legalities Involved 7. Identify your Target Audience 8. Identify your Target Geography 9. Calculate the Market Size 10. Research your Customer s Buying Behavior 11. Identify your Competition Well 12. Position your Business Differently 13. Plan your Investments 14. Plan your Resources Well Conclusion
4 About the Author Atul Jain has vast experience in internet marketing, specializing in digital marketing, e-commerce business strategy and e-commerce marketing. For over a decade he has been setting up, managing and promoting e-commerce businesses for a host of premium brands that are market leaders in their respective industries like Auto, Apparel, Fashion, Consumer Goods, Electronics, Software, etc. Atul has also helped numerous entrepreneurs and digital marketers to create strategy and set up their own online business operations in India and abroad. He is now in a unique position to write this book and share his experiences through his blog Here the reader can understand the concepts of online marketing, view upcoming trends that inspire new ideas, and various other internet related topics such as social media, e-commerce and much more.
5 Introduction As a marketer exhaustively involved with the digital industry since the year 2000, I have closely interacted with many entrepreneurs and digital professionals throughout my career. This has led to numerous discussions revolving around the potential of e-commerce business and its impressive rise in India. Entrepreneurs, both budding and mature, have shown keen interest in taking or re-positioning their business or brands online, and selling their products and services through the e-commerce medium. Yet, at the same time they are somewhat confused as to how to get started or whether this is the right channel for them or not. However, what is clearly apparent is that as much as they want to go online, these entrepreneurs are hesitant to take the first step. Fear of losing money is not the main reason for their doubtfulness; in fact it is lack of awareness on how to get their own e-commerce business started. In these nascent years of e-commerce in our country, most entrepreneurs do not have the right know-how or real guidance as to how to run an online business successfully. They have apprehensions about creating a successful online business, wondering if consumers would buy their products on the net or not. This is a handbook for all aspiring online entrepreneurs that will guide them to take the right approach forward in creating a successful business over the internet. This book will not only help you understand what to consider before starting your e-commerce venture, but will also help analyze whether you should be selling your products online or not in the first place. This again will benefit you in developing the right approach for your business. I have shared relevant examples wherever possible to help you understand and relate your business better with the context.
6 I have purposely kept the contents of this book short, simple and to the point so as to make it a helpful, easy to read guide for all aspiring e-commerce entrepreneurs. Hope that you will find this book helpful. Since this is my first ebook, I would appreciate your feedback. You can send your comments on my blog at Enjoy Reading!! Atul Jain
7 1. Understand Your Product Well Before you decide to start selling online, it is important for you to understand your product well, with all its market dynamics. Knowing this is a crucial step as it helps you to understand whether your product can be really sold online or not. Imagine yourself to be an end customer who is looking to buy the product you wish to sell. What you need to analyze is why would you, as a customer, really like to buy these products from the internet, only from your site, and not so from a physical retail store close to you. There could be multiple reasons for this. For instance, maybe your product is not easily available to a customer in any retail outlet nearby. There could be other reasons such as you find greater discounts for the same product online; obtain more value in terms of warranty; gain additional freebies along with the product for the same price, etc. Along with the above, you also need to understand whether your customer is willing to pay the full price for your product online, before actually seeing the product in person. This is another important factor to consider since it may not be always possible for you to offer a Cash on Delivery or Credit Card on Delivery service, in every location that you cater to. It is also possible that your product might not be available in physical stores at remote locations, and you intend to reach out to people at such locations through your e-commerce website. For instance, if you are planning to sell a range of electronics, which are imported from some other country and are not readily available in every retail shop, then creating an e-commerce website for these products is certainly a good option. This will not only help you increase your market penetration but will also increase awareness about your products.
8 However, if you are planning to sell groceries or any other regular use product on the internet, then you will have to offer some additional value to the customers, to convince them to buy these products online through your website and not from their nearest retail store. Without doubt, an online facility is always more convenient for a buyer since he / she can simply order it without leaving his home / office. But again, is this convenience good enough for your customers to buy your product online? Can you add something extra to this convenience? Can you offer extra value additions if people buy online? You must ask these questions before you set up your online business. Another option is that you could consider doing a sample survey with a few prospective buyers as this will provide an insight as to whether your product has a good online selling proposition or not.
9 Preview Ends Here Visit to buy the full version of this ebook
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