How to Start Online Business in India

How to Start Online Business in India from Home?

Are you thinking about How to Start Online Business in India?

Want to know how to start Online Business from Home and earn 6 Figures of Income from your Online Business?

Wondering which type of online business should you venture into?

Before that, let’s understand some basics.

What is an online business?

An online business is a type of business that happens entirely on the internet. The online business consists of selling products and services, SaaS solutions, and getting paid for goods. Online business is known as e-business. 

In this digital world, online business is gaining popularity day by day. All the commercial transactions are shared over the internet. For an online business, a website is vital to handle operations on the internet. It acts as an interaction and communication point between the venture and the consumer.

Why go for online business?

The popularity of e-commerce is increasing in the world. It is one of the main reasons to begin a business online. More than two billion people are digital buyers. 

An online presence of Businesses always elevates the trust level. The online business makes consumers more confident while connecting online effortlessly. 

According to research by Microsoft, most people want to get in touch and communicate with the business online. An online Business helps in creating a long-lasting and strong relationship with the consumers. Go for an online business to run a hassle-free venture.

You can rest all your queries and concerns because here we provide a wide variety of options to choose from as the scope of e-commerce is huge and lucrative. With numerous online business opportunities available in India, we will help you in making the right choice that best suits your business requirements & finding perfect online business ideas in India! 

Before that, let’s have a look at the future of E-commerce in India & get a better understanding of online business ideas in India.

Future of E-Commerce in India:

With increasing smartphones and internet penetration, the e-commerce industry is witnessing tremendous growth.

  ‘Growing At an exponential rate, Indian Ecommerce Market To Reach $99 Bn by 2024: Report’’

Looking at the aforesaid statistics, the future of e-commerce in India looks really bright and promising. Isn’t it? Let us have a look at some interesting facts that will incline you more to set up your online business in India:

Are you looking to start/expand your business with Digital Marketing? 

Check out the industry’s leading Digital Marketing course designed for Entrepreneurs. 

• Interestingly the Indian e-commerce industry has been on an upward growth trajectory and is expected to surpass the US to become the second largest e-commerce market in the world by 2034.
• The e-commerce market is expected to reach US$ 200 billion by 2026.
• With growing internet penetration, internet users in India are expected to increase from 481 million as on December 2017 to 1134 million by 2025. Rising internet penetration is expected to lead growth in e-commerce.
• Growing at an exponential rate the market value of the e-commerce industry is estimated to reach 200 billion U.S. dollars by 2027.

After going through the data, you must be lured to kick-start the process of how to start an online business in India, aren’t you? So, let us now know the basic steps involved in the process of ‘how to start a startup in India.

Advantages of setting up E-commerce Business in India:

A.) Growing Demand

India is the fastest-growing market for the e-commerce sector. Being involved by a young demographic profile increases internet penetration and relatively better economic performance. India’s E-commerce revenue is expected to reach US $162,805 million by 2025, growing at an annual report of 18.75 percent.

B.) Increasing Investment

The recent rise in digital literacy has led to an influx of investment in e-commerce firms, leveling the market for new players to set up their base, while churning out innovative patterns to disrupt old functioning.

C.) Attractive Opportunities

India’s start-up ecosystem is growing supported by favorable FDI policies. Government initiatives like Startup India and Digital India, as well as rising internet penetration, are driven by market players like Reliance Jio.

To sustain the stiff competition in the industry, online e-commerce business startups must surely take a sneak peek into the do’s and don’t of Digital Marketing for E-commerce.

If you wish your e-commerce business to make a mark in the industry, understanding of market and consumers is a must. For that, take care of the Don’ts of Digital Marketing for E-commerce:

Don’ts of Digital Marketing for E-commerce:

• Do not set up your E-commerce business to sell a hoard of products out there in the market.
• Do not build a website without a strong Digital Marketing plan.
• Make sure you do not spam your customers with multiple pop-ups.
• Don’t decide on your E-commerce marketing strategy based on assumptions.

Do’s of Digital Marketing for E-commerce:

• Speed Up Your Online eCommerce Website
• Always use quality product images
• Build a handy email list
• Showcase precise product information: features, price, etc.
• Have more human-oriented offers instead of competition-oriented offers.

Enlisted below are the basic steps involved in the process of ‘How to Start an Online Business in India’.

Steps to Start Online Business in India:

Step 1: Design an E-commerce Business Model

Planning out and designing an e-commerce business model is the base when thinking to set up an online business. The business model should be drafted such that the details pertaining to the business concept, market research, marketing plan, operations plan, and financial planning are all taken care of, adequately.

Step 2: Choose Product/Service to Sell Online

Making a choice of the product/service you wish to sell is one of the crucial moves.

The next important step is to identify the platform for selling the product/service. Either sell on your website or sell on marketplaces. Interestingly, opting for the latter paves an easy way to start an e-commerce business as the sellers can join multiple marketplaces to sell their products.

Some of the popular marketplaces are Flipkart, Amazon, Snapdeal, Paytm, Shopclues, etc. If you want to sustain the competition in the online business industry, you must know how to sell on Flipkart, how to sell on Amazon India, How to sell on PayTM, and how to sell on Snapdeal.

Above everything else, you must ensure to choose the most demanded products in India.  

Step 3: Do Market Research

Wondering how to do Market Research? Worry not, here is the quick checklist:

• Decide upon the product/service you plan to offer
• Study the demand for that product/service
• Identify the possible number of competitors
• Conduct customer surveys either via phone or personal visits, as is feasible
• Find out if there is a market need that has not been met.

Formal marketing research simply makes this a familiar process orderly. It provides a framework to organize market information for the best-selling products online in India.

Step 4: Understand the dynamics of the Online Business Model  

Moving on further in the process of how to start an online business in India, it is important to list the capital to be invested besides other costs involved in setting up the e-commerce business in India.

The cost of starting an online business in India varies basis the type of service being offered. However, there are a few costs involved that are incurred by online businesses in India, generally:

• Market research cost
• Web-hosting charges
• Email Marketing Services
• Website designing cost
• Human resources
• Cost of manufacturing product(s) offered
• Warehousing expenses
• Logistics charges
• Traditional Marketing cost
• Business taxes
• Accountant and financial institution fees
• Rent and utilities

So, make a thorough provision of funds to ensure smooth workflow.

Step 5: Establish Your E-commerce Business Legally

a.) legal requirements for Online Business in India

Legal formalities must be duly fulfilled before you start running your e-commerce business. For this, decide upon the structure of the business entity you wish to run: sole proprietorship, partnership structure, Limited Liability Partnership (LLP) or a Company format.

b.) Enquire if you need to get a tax identification number for your business

Once you’ve finalized the business structure, the next important thing is to inquire about tax return details. If you’ve opted for a corporation or a partnership-based structure, then you must file tax returns and have a tax ID number. While the sole proprietors need not have a tax ID number instead, they can use the Social Security number allotted.

c.) Get the necessary licenses and permits to run your Online Business

Furthermore, it is equally important to obtain the necessary licenses and permits to run your online business, which may vary depending on the city’s requirements. For instance, if you are offering to account for financial services, you will need a license in most states.

Step 6: Set up your E-commerce Website

a.)  Decide whether to do Self-hosting of the website or outsource

Self-hosting a website is beneficial for the simpler form of e-commerce businesses in India like content writing, parenting tips, motivational thoughts, etc. While, if your e-commerce business is exclusively online, you must consider hiring a professional or outsourcing the website hosting task to get a polished website. The latter being a little more costly than the former option, accordingly define your budget.

b.) Upload the product & services details

Once the website hosting is completed, jump on publishing the relevant content:

• Details of fast-selling products in India – pictures, and descriptions in detail
• Company objective (to differentiate you from your competitor)
• E-commerce business history and personal bio
• Blog or any other additional content you plan to add
• An engaging shopping cart and details defined on the payment gateway

c.)  Work on the SEO of your Online Business website

Trading in the e-commerce business in India will be incomplete without defining the SEO plan. Both on-page SEO and off-page SEO activities carry importance

• Add relevant keywords, that prospects must be searching for. You can do this by accessing tools like Google Keyword Planner, SEMrush, etc.
• Have both internal as well as external links on the website. The external links must be to authoritative websites such as Wikipedia, or other relevant websites based on the type of your online business.

Step 7: Draft Marketing Strategy

Everything sorted, said and in place, it is now time to take the actual action! And that is- spread the word about your newly launched e-commerce business. Elements of a successful online business strategy are:

• Eye-catching design
• Advertising techniques
• Email Marketing activities
• Website monetization
• Analytics & online traffic analysis
• Online PR
• Search Engine Optimization – on the page and off-page
• Social Media Marketing

Amongst the aforesaid, we’ll highlight 2 important activities:

a.) Identify free sources- Social Media

After the website, it is the social profiles of a business that customers check out! So, cash upon the free sources to make a mark in the minds of your prospective customers:

• Create a Facebook page.
• Have an active Pinterest account (especially if dealing with fashion, travel, or food-based business)
• YouTube is another most effective platform that generates interest via audio-visual interaction.

Most of all, being active on social channels is what matters the most instead of merely having a presence. So, understand the fact that it is important to keep your followers updated with the new product launches, sales or any other important business information that they must know. 

b.) Make money from AdSense

Another assured way to start making money from your online business in India is to start running ads on the website. The following steps will help you start making money from AdSense:

• Join an affiliate network (Commission Junction, ShareASale ClickBank, and so forth).
• Apply for different affiliate member programs in a specialty (e.g. Payday Loans, Web Hosting, and so on).
• Promote the affiliate program that offers the most extreme payout and with a decent reputation.
• Sign-up for Google AdWords (utilize free coupons)
• Start your promotion campaigns by making advertisements and correct keywords (use long-tail keywords)
• Your advertisement(s) will show up on real Pay Per Click web search engines like Google, Yahoo, Bing, etc.
• Potential clients will click on your advertisement and finish a deal.

You will learn how to make money online in India from Google AdWords, as you will earn the commission by means of an affiliate network that ensures a lot of best-selling products online in India.

Step 8: Test & Launch  

Well, now it’s time to do the test run of your website and check for any loopholes. Once sorted, you know how to make money online in India & are all ready to launch your online business.

20+ Online Business Ideas to Start Online Business in India

It is normal to get confused about which business idea to select for an online business. It is best to think about strengths first and then opt for online business. Best online business ideas are:

1) Affiliate marketing 

Affiliate marketing is the best commission-based business model run online and part-time online business ideas in India. It helps in getting income by sharing products or services on social media or blogs etc. One can receive a commission when a lead gets converted into a consumer.

2) Professional Blogging

Professional bloggers earn money from blogging. They maintain a website or blog. 

Bloggers publish continuously applicable content on specific topics. It can range from traveling, business, cooking technology, etc. After establishing a blog as a reputed one, bloggers can register for various ad networks.

3) Writer

If a person is good with words and sentences and can motivate people to take a particular action, opt for content writing. It is one of the best online businesses for professional writers. An E-book is an option that you can opt for as a writer.

4) Direct sales

Direct sales can occur at home or in a cafeteria. It makes a perfect situation for online businesses. Try to provide services being a sales representative. Three advantages of adopting direct sales:

1. a) Good customer relationship
2. b) Solid business model
3. c) Less investment amount

5) Selling the domain names

Vending domain names is the oldest kind of online business. Here you can buy brandable domain names as well as sell them in auctions. Be particular and research-oriented to observe which domains are helpful to others. Godaddy, Sedo is such a marketplace that auctions sell and buys domains online.        d

6) Start an eCommerce business 

E-commerce is a tempting arena to begin an online business. It allows you to reach international audiences too. Make a list of the products you want to sell online with Wix or Woo commerce and create a good online store. The advantages of e-commerce stores are:

1. Simple
2. Cost-effective
3. Good services

7) Selling photos

“A picture says 1000 words”. Stock photography is one of the growing online businesses all over the world. If you are an expert in photography and know post-processing pictures, you can earn money by selling those pictures online.

8) Social Media Manager

Social media has the power to elevate business and thus provides people with a great career. The requirements for social media managers are growing day by day. If you are creative-minded and understand the media users, then opt for your career as a social media manager and work online.

9) Outreach agencies

Outreach agencies create strong connections with people. They use various tools like social media messages, and emails to connect with many people. If you are best at connecting with many people online, then build an outreach agency and work for MNCs remotely.

10) Digital marketing agency

Social media and SEO are the best tools for making a business profitable. A digital marketing agency can help to earn a good income online. If you are best to optimize a website, build an SEO agency of yours. 

11) Developing app

The mobile apps provide us with achieving precision in doing everything. Behind these apps, app developers work a lot. Mobile app development is one of the best online jobs one can do after studying app development.

12) Virtual Assistants

If anyone is good in Microsoft and data entry can work as a professional virtual assistant. This job gives good earnings and it’s a zero investment business online in India. They can even learn a lot from this job.

13) Web developer

A website is the most vital digital property for any business. 

Websites represent your brand online. Web development is a great option that has a huge demand nowadays in this digital era. 

14) Creating a podcast channel

A podcast is an evolving format for publishing good audio content for listeners. You can earn a good income by speaking about something which you like.

15) FBA Business of Amazon

Amazon offers the best opportunity for local vendors to elevate business by using e-commerce sites in any part of the planet. Create an account as an Amazon seller and use the fulfillment services. 

16) Be a Youtuber or Vlogger

Videos have ideal advantages and have creative storytelling capacity when compared to pictures. You can try recording your daily routine and then upload it on the Youtube channel. Create some great content and, you can become the next viral person.

17) Selling digital course

The Internet allows people to enhance skills via self-paced courses. You can upload them and sell those courses. You can even share notes, guides, and documents and sell kits online to people.

18) Dropshipping

Dropshipping is a great e-commerce opportunity for business owners who don’t have their inventory. Collaborate with any of the vendors and build an online store and then enlist the goods. Your job of yours is to bring sales and promote products.

19) PPC Expert

PPC markets generate conversions for business within less time. Persons who are best with search engine ads can search and display ads to become PPC experts for ventures.

20) Be an influencer

To be an influencer nowadays is the best career option. If you possess good representation skills and are knowledgeable about specific topics, build social media content to attract an audience and become an influencer.

How to promote online business?

Several ways are there to promote an online business. Best business promoting options are:

1. Search Engine Optimization

Search Engine Optimization allows a website to be in the top position on a search engine page. High ranks in the search results are vital for an online business’s triumph in driving audience and sales. Around 70% of digital marketers say that SEO is fruitful in driving clicks, web traffic, etc.

Adopt the given methods:

1. a) Adopt voice search method– Approximately 30% of people are using voice search and, the number is elevating.
2. b) Be mobile-friendly– Mobile users help in generating half of the web traffic worldwide. It’s essential to make the site compatible with mobile devices.
3. c) Embracing SMM – Social media marketing is the best marketing channel alone. It drives good traffic and enhances ranking factors, bounce rate, etc.

2. Web Push marketing

Web Push Marketing is a kind of advertising by short notification in a mobile application or browser. It is best for engaging audiences with a business. Web Push Marketing helps in elevating sales. 

Adopt the given methods:

1. a) Be correct with timing and frequency– It is best to send the notifications below five times per day. Try considering every user’s lifestyle and time zone.
2. b) Categorize the subscribers– Categorization can work best with marketing efficiency. Divide subscribers into many groups by taking into account their language, region, etc.
3. c) Adding multimedia – Picture works wonders for web push marketing. Multimedia allures users to watch it fast.

3. Email Marketing 

Traditional email marketing is still one of the effective ways to promote a business. Email marketing helps businesses to enhance leads, increase sales, etc.

Adopt the best practices:

1. a) Personalize the emails – Personalization of emails have more open rates. Try to personalize the email body.
2. b) Implement new formats– Simple texts can sometimes be old. Use some interactivity emails by adopting Gifs and sliders. It increases click-through rates.
3. c) Automation of emails– Email automation helps in saving time for business owners. 

4. Chatbot marketing

Chatbot marketing helps brands enhance and nurture customers at no cost. This software cuts 30% operational costs.

Best Practise to adopt:

1. a) Make chatbot personas
2. b) Use chatbot along with email marketing
3. c) Make the bot proactive

5. Instagram Marketing

Instagram is the 2nd most famous social networking site. It is best for business promotion purposes and customer interaction too. 

Adopt best practices:

1. a) Use Instagram stores and memories
2. b) Avail interactive elements

6. Whatsapp Marketing

Whatsapp marketing is another famous message platform with 2 billion active users per month. It is the best channel for promoting small businesses with various options like statues and many more.

Now, you are all aware of the tit-bits on how to start an e-commerce business in India. Do not miss out on any step to ensure the smooth set-up of your online business. While setting up an online business, do not forget about the dropshipping business model that acts as an extension to your online business model.

Here is a list of small business ideas in India that you can look forward to while starting a new business.

Final Thoughts

Now, you are all aware of the tit-bits on how to start an eCommerce business in India. Do not miss out on any step to ensure the smooth set-up of your business on an online platform. While setting up an online business, do not forget about the dropshipping business that acts as an extension to your setup.

It is advisable for you to check out the ultimate guide for small business ideas in India that you can look forward to while starting a new business.

Good luck!

FAQS

1. What is the best online Part-time business in India?

       Some of the best business ideas to start an online business are-

• Start a dropshipping business. …
• SEO consulting. …
• Virtual online training. …
• Become a freelance app developer/web designer. …
• Freelance graphic designer/writer. …
• DIY craft seller. …
• Affiliate marketing. …
• Become an influencer, etc     

2. Can I start my business from home in India?

Many individuals desire to start their own home-based company in India since it is a difficult task. However, if you plan things ahead of time, things may become quite simple and straightforward. If you work from home already, you’re probably aware of the marketing skills required in your business. In today’s time, learning basic digital marketing skills can help you run and promote your business from home effectively.

3. How do you start up an online business in India?

Some of the easy steps to follow to start an online business in India are-

• Deciding on the perfect business plan and model
• Branding your business
• Registering your eCommerce business
• Opening a bank account. 
• Building your eCommerce website
• Adding Payment gateways, etc

Image Credits: slideshare.net, brandsvietnam.com, bluefountainmedia.com