“How to sell online?” is the most common statement we hear from offline retailers, Students, House Wives and People looking for an extra source of income. So here are some quick guide and steps to sell Online on Marketplaces in India.
Firstly What are the requirements to sell things online in India for companies like Flipkart, Amazon, Snapdeal, PayTm, Shopclues Etc.
1. Tin Number – Also known as VAT Certificate.
2. Current Account In Any Bank. Savings or salary account is not ACCEPTED.
3. Pan Card Of an Individual or a Company
4. Address Proof ( Voter ID , Adhar Card, Passport etc)
5. Cancelled Cheque of Current Account
And Finally you Need PRODUCTS to Sell. At least 5 to 10 products to start listing.
Once you have all these you can go to the websites of the companies and register yourself as a seller and list your products, start selling right away.
All you have to do is to visit seller-registration pages of these sites by clicking on the links above and submit your business details. You will need to keep VAT registration number, PAN number and Bank details and address proof as well. You can upload scanned copies of these documents. Verification is completed normally in couple of days.
Top Benefits and advantages of selling on Marketplaces:
Reduced Marketing Costs –You can save big on the marketing cost. All of these marketplaces attract millions of visitors everyday and have a loyal user base. You also don’t need to worry about the payment gateway and shipping. Most of these portals provide packing material as well. (Additional Cost)
Zero Setup Costs – By listing on marketplaces, you only have to pay when you receive the order. You do not have to pay for setup, the platform, advertising, etc. even when the order volumes are low. There is no fee or charges involved until you get an order. And no Monthly Subscription Charge.
Ease of setting up operations – Easy to setup and get going you can start right away; all you need to do is register, list products and sell. This is one of the reasons why selling online on marketplaces such as Amazon and Flipkart is such a popular option for most business owners and to make an additional source of income for salaried People.
High Profit Margins – Selling on a marketplace is the easiest, quickest way to start selling with minimal costs and high margins as you do not have any initial investment on website, advertising , marketing and promotions. And there are no fixed monthly or yearly charges which can reduce your margins.
No need to tie up with Shipping/Courier Agencies : You need not worry about contacting various courier agencies to get the best quote. All the marketplaces have a tie up with leading courier companies with very reasonable prices and they will handle the entire logistics of your product from pickup to delivery to the customer.
What are the costs involved in selling online on these Marketplaces?
Commission Charges- These are the charges or the fees that you will be paying to the marketplaces on your each sale. The commission fees varies between 2% to 20% per order depending on the category you are selling. All the marketplaces have a similar commission fee structure.
Packaging Cost – Depending on the type of product you are planning to sell, you will need to consider the packaging cost. Branded Packing material can be bought from each of the marketplace at discounted prices. An average courier bag to pack a T Shirt will cost anywhere between Rs.3 to Rs.10 per piece. For other products you might also need bubble wraps or carton boxes and cello tapes.
Printer— A printer is needed to download and print the invoices and shipping labels which have to be packed along with the product.
What to Sell Online??
If you are wondering or still thinking what to sell online then there are 30,000 bags and 100,000 T-shirts already listed on marketplaces. If you start out with these products and think that your design is better than the designs of those already listed, chances are you’re wrong. It will be difficult for you to even get discovered. Find a product category that is yet untapped, and make sure your product is unique compared to other sellers’ products.
Also, you can start of with products which are light weight – to avoid high logistic charges.
How and when will you get paid?
The payment will be made directly to your bank account through NEFT transactions by all the marketplaces within 7-14 business days of dispatching an order. The actual payment period will vary depending on the marketplace, Amazon takes 7 days to transfer the amount and Flipkart and Snapdeal Take 14-15 days.
Shipping and commission charges are deducted automatically by the marketplaces and the balance amount is transferred to your Current Account.
SO what are you waiting for? Start selling now…