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E-Commerce refers to electronic commerce. It is the most important source of business globally. E-Commerce is playing a significant role in the paperless exchange of business information using Electronic Data Interchange, Electronic mail, Fund Transfer electronically and other new technologies based on the network. E-commerce business in India is playing a vital role in covering a wide range of businesses.
It refers to the electronic exchange of goods and services with no barrier of time and distance. E-Commerce involves both product and services. It provides countless opportunities to the startups and existing entrepreneurs to open a new platform of sales market electronically.
There are certain key factors of E-Commerce Business –
E-commerce has four models which represent a range of various transactions which varies from participant to participant –
B2B requires two or more business entities. The application is utilized to facilitate Supplier & Buyer centric market electronically. The parties of B2B are Business Partner. It is the most extensively developing E-commerce trend nowadays.
B2C commerce has gained popularity to a simplified way to buy products. It refers to buying and selling of products i.e. goods or services on the website. In B2C Commerce goods can be easily transformed into the digital format.
It refers to online dealing of goods and services between people where two people deal online on the basis of their requirement and needs and are becoming more popular these days. It promotes consumer dealings with other consumers on the website.
It enables a consumer to interact with the company for the price of product and services offered by a company. This provides consumers with market strategies.
Also Read: E-commerce Business Model in India
In E-Commerce, the business person expects matching of the requirements of the consumers in the best possible way. It reduces the time and flexible for both the merchant and consumers
To start an E-Commerce business, it is required to fulfill the following compliances –
It is good to have a company or LLP before starting the e-commerce business for the ease of doing business and for transparency of records.
In case of partnership and proprietorship business, it is difficult to have limited liability protection in case of litigation, so it is safer to incorporate a company or LLP for smooth functioning.
To process the customer payments in the E-commerce website business a payment gateway is necessary. It provides a route to accept the debit cards and credit cards and net banking payments from different banks and credit cards issued by the companies. For every e-commerce business, it is necessary to have a payment gateway to accept online payments. By payment gateway, the amount receive from the customers is sent/ transferred to the bank account of the business.
It is convenient in case of Company or LLP to open a bank account in the name of Company or LLP in any bank. To receive the payment from the payment gateway it is necessary to open a bank account in the name of the business i.e. name of the company or name of the LLP. In Partnership or proprietorship business it is important to have GST registration before opening a Bank account.
To start an E-commerce business GST registration is mandatory. A business having a turnover of more than Rs.40 lakh annually and doing business interstate outward supplies of goods, irrespective of turnover is required to have a GST registration. Through online GST portal, GST registration can be done by attaching all the required documents in the form.
It is necessary to protect the business of the business for that every businessperson is required to do legal documentation for future perspective. The agreements and the legal documents are provided by the market place where the seller and customer have to stand by the agreement and read the term and conditions before signing.
E-commerce starts with launching the online platform through a mode of website and includes:
For any type of business Electronic commerce involves the transfer of information across the internet globally. It provides a platform where two business persons, consumers interact directly and fix the deal without a physical meet. Electronic mail, Mobile commerce and electronic data interchangeable are playing a vital role in the E-Commerce business.
Businesses move sections of their operations onto the internet which as a result blurred conventional commerce. As E-commerce is a business strategy where technologies are used to achieve the goal of business and for-profit maximization by facilitating the delivery of goods and services.
Also Read: How to Start e-Commerce Business in India