When you want to enter the E Commerce Business, the biggest and same time smallest question is that what you want to sell online? When selecting a product to be sold online, you also have so many questions along by the product selection. They are
Find if you already have your family involved in that product
These questions are the necessary and basic questions you must scroll at least once before starting the e business. Once you have tweaked these questions, it will be lot easier for you to gain success. The E Commerce market demands a lot of presence and patience. It is suggested that if you have patience, only then enter into the ecommerce business. There is a wide range of products available in the market. All you need to examine is that what will fit your selling strategies. Let us begin evaluating above points and get to the conclusion that what best suits you.
Find if you already have your family involved in that product
This can be a great luck or we can say the best for you and your business that any of your family member is involved in some product manufacturing. These products can be apparels, fashion industry, beauty and lifestyle products or fitness or healthcare products or some services. If you have such product you want to sell online is already being manufactured in your house, then definitely you will have link with other varieties of that product. You can choose to sell that product. You will have certain benefits of it. That may be related to stock, availability of the product, Purchase cost, profit of margin, taxation and many other things. You need not to keep the stock of the product in warehouse and you need not to have a separate warehouse for your eCommerce. You can have the guidance from certain eCommerce developers or ecommerce development company that what is the trend and what product will have to be sold in the market.
How easy is the product available to you?
Yes, this is also the major question of concern. How easy is the product available to you? If you are selling those products which you have to buy from other state or some far distance, then you have to keep the stock because the availability of the product is also the major concern. Like in some case, if you get order of 3 or 5 piece and you have 2 or 4 pieces in stock then you have over 70% chances to miss the order because then they buyer will look for the product in the desired quantity on some other ecommerce portals. If you have the facility in your portal that the buyer can order the product in desired quantity and you don’t have that much in stock, then again there will an issue. Now either you will have your order cancelled, or you will refund for one product or you will try to provide an alternative to the missing product. Once you will be able to manage anyway but you cannot make it your practice and will avoid to make it a routine. So the case comes to be that you have to either manage the stock in good quantity or the best way is to sell the product which is easily available to you. If you will have the availability of the product easily then you must consider that product to be sold online.
Stocking of the product
Yes, that is right, stocking your product is a major issue of concern. As I mentioned above the issue of unavailability of the product at the time of big order. This thing can be done even if you don’t have the stock. But at the same time stocking product may lead to a big investment. Let us suppose an example, you want to sell imitation jewelry online. Now this industry has a new design every day and the ticket size of the product may vary from 2000-5000 INR. Now if you are selling your product online, you must be selling or offering at least 50-80 options minimum. So calculating that will lead to a big figure. Now you have to consider this. Are you ready to invest this amount for your starting business? This thing varies from product to product and their categories. So keep this as a major point of consideration the amount of money you want to invest in your stock.
Is it Under your Budget?
Hope you have read the last paragraph carefully. The amount of money you want to invest for your stock. Now stock is not the only thing you have to look for. There are other things you also have to see while considering your investment. Stock is just one part. The other part is the shipment you will be sending before your first payment. The amount you will be paying as a commission to big companies like ebay, amazon or others. If you are developing your own ecommerce portal from various companies like ecommercedevelopers how much they will charge for your ecommerce portal development. How much it will take as a government fees for registering your business, getting VAT, having tie up with shipment companies, freight material cost, labor salary, rent of the place, electricity, maintenance, IVR for answering calls, payment gateway for your ecommerce portal. So there are many things which you should calculate and then decide that what way you want to proceed.
Online Competition of the product
In the market, there are many people running different business online. In the market, the competition is getting high and high every day. If you want to sell electronics online, you can see that there are many people selling electronics online. And if you consider fashion accessories, even that has a good competition online. So if you are entering ecommerce, then you must know that what is the market share of the product you will be selling online. But at the same time, you also have to consider that the product which you will be selling, does that product sold in good quantity online. Competition of the product in ebusiness is also important factor to be considered.
Profit of Margin
Now that you been through the points mentioned above, you must have decided what product you will be selling online. Now if you have decided what to sell online, this is one more factor to be considered, the profit and margin.
Yes, the profit on the product sale. If you selling a T Shirt online, then you have to calculate many things to get your profit of margin. Starting from the cost of the product purchased, then the amount of money spends on packing of the product. You should also include the payment gateway charges if you are selling online using your own
eCommerce portal developed by certain eCommerce portal development companies or if you are selling it on other portals like eBay or amazon. At the same time if the product you are selling online has a low profit of margin but it has a bulk sale then you should not ignore that. This will be a great choice because you will have a bulk order and you can succeed with your business plan.
So there are many factors which you must consider because these factors really help you deciding your product that which product you will be selling online.