With e-commerce boom in India, there is ample scope for lot of those individuals who are looking to increase their monthly income or entrepreneurs who are looking for an alternate channel to sell their products. E-Commerce giants such as Urbancalp, Uber Big Basket, Amazon, Flipkart who sells various range of products/Services including Grocery items, FMCG, Handicrafts, Electronic Items and services such as Cab Services, Company Registration Services etc.
We will highlight some of the points you have to keep in mind so that you can gain maximum out
1- Register new company if you do not have any existing form of registration of company in India. Also get company registered close to your location. For eg. if your business is situated in Delhi, get your Firm Registration in Delhi or One Person company registration in Delhi or Partnership firm registration in Delhi or LLP Incorporation in Delhi. We will suggest a Private Limited Company Incorporation as it is most Tax Efficient
2- Get your Tax Registration (VAT/Service Tax Registration) done. Not only it is mandatory compliances of Government but it also is a requirement for many a e-commerce companies. Infact you can get some Credits for these Returns
3- Keep a robust accounting and book-keeping system (even it is excel based) as you are dealing with conglomerates and it becomes very difficult to sort out small issues or discrepancies which crop up later
4- Try to be enrolled in as many competitors sites as possible. E-Commerce companies are known for meteoric rise as well as fall and hence never out your eggs on 1 basket and try to partner with as many competitor website as possible
5- Look for right balance of margin and volumes without compromising on either. Never compromise much on Margins as you don’t have VC’s money to ‘burn’
6- Try to have a strong account book as this will enable you to get Working Capital loans later on
7- Inventory Management is the key to success for such businesses and try to use tools and software provided by the e-commerce companies to best of your advantage.
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