Electronic Commerce is the trading or selling of products or services through computer networks, such as the Internet. The e-commerce business is observing an enormous growth in India upheld by growing smartphone and internet penetration. With increase in internet service providers at affordable prices – the e-commerce and m-commerce industries are set to record even higher growth.
Set-up an E-commerce Business
Business conducted across the internet is called ecommerce. In recent years, mobile commerce or m-commerce – trade managed through smartphones has become very prevalent. There are two primary forms to starting an ecommerce business-
- Joining an established marketplace – Joining an established marketplace is a simple way to sell services/products online or start an ecommerce business. E-commerce marketplace as a retailer often needs only a bank account and VAT registration, making the process easy and straightforward. Further, on e-commerce platform aspect such as development, marketing technology, logistics, payment gateway, etc., are taken charge by the marketplace platform, reducing the workload on the seller. Besides, traders can often join multiple marketplaces and sell their products, making it the simplest way to start an online or ecommerce business.
- Creating a Proprietary E-commerce website – Building a proprietary ecommerce website is one of the most challenging method of starting an ecommerce business. Starting a proprietary ecommerce business requires an online marketing team, a web development and a payment gateway for accepting payments. Starting a proprietary ecommerce website is a long-term initiative and needs the right amount of investment in terms of money and effort to build up a successful business.
To start a proprietary ecommerce website or ecommerce business or to become a retailer on a marketplace, following registration is required-
While starting an ecommerce trade, it is good to have a registered business. It is required so that, you can establish a secured payment gateway and improve the ease of doing business. In case, the retailers wish to start a proprietary ecommerce website, then it is best to start with a Company, as it is the only type of entity that can allow for equity funding or angel funding – a must for successful ecommerce enterprises. You can register your E-commerce business as a sole proprietorship, Partnership, LLP, and Pvt Ltd registration. A VAT registration is mandatory for becoming a trader on an e-commerce portal. VAT registration is required for selling goods or services in India. Once the company is incorporated, a bank account should be opened in the name of business. Opening a bank account is essential to obtain payment gateway.
The Indian States have various policies on taxes and registration. Again, each of these taxes depends upon the type of services and the range of yearly turnover. GST Registration Online India will require for trading on E-commerce marketplace or Selling on the proprietary website. Tax Registration is needed if an owner wishes to hire the services of one or more full-time professionals. In case of sole proprietorship, you can use your own pan card for taxation purposes. Service tax is applicable only on service-based business. For the sale of goods, sales tax, excise and VAT are applicable. These taxes are required to paid, when your business crosses the turnover of 10 lacs per annum.
The expanding influence of the Internet, the ready availability of the tablets/smartphones and the low subsistence cost of the various sites, due to this reason it has created the ideal environment for the flourishing of online business. A recent study shows that the e-commerce trade in India is assumed to grow at a rate of 40 % each year. These are reassuring hints for growing entrepreneurs who want to build their online business. The convenience part plays a significant role in turning the scales for e-commerce. People no longer wants to face the inconveniences and wait in queues. E-commerce has revolutionized online marketing techniques. More enterprises are entering into the segment of e-commerce with the help of SEM, SEO tools, pay per click marketing, affiliate marketing and other related techniques.
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