Introduction:

What Benefits does color: eCommerce Website like Flipkart or Amazon offer:

• Multiple Vendor Onboarding:

An eCommerce website allows your platform to invite multiple businesses to do their business on your platform. This gives users myriad options to choose from and vendors the opportunity to expand their customer reach. Your platform earns commission through the vendors, so the more the merrier.

• Chance to Sell Numerous Products & Services:

Since technology has spread its wings in every industry, a wide range of products and services can be made available to users. This also increases the number of vendors and service providers who account for an increased revenue generation.

• Personalized Page for Vendors:

Flipkart, Amazon, Snapdeal, and the likes offer a personalized page to sellers that keep a list of all the items that they sell. It also provides additional information about the vendor that they provided to the platform at the time of registration. This feature promotes the vendor while offering complete information about them to the users. The increase in their users results in increasing your bank balance.

• No Middlemen:

With online shopping, the platform directly connects the customer with the seller. So, the intermediaries that used to earn commission by helping the product reach the retailer and then the user, get eliminated. This is beneficial for the user as they can buy products at a cheaper rate and/or avail of various offers and discounts.

• Outreach:

Your platform can be seen and used by millions of people, this is one of the prime benefits of going online. But with the help of professionals, you can use additional services like Search Engine Optimization (SEO) and get listed in the top 10 websites on search engines like Google or Bing.

As soon as you start listing in the top results, there will be an exponential increase in the number of users as for millions of people your website would be one of the top choices to opt for.

• Offers and Discounts:

When there is no middleman, one gets to earn a higher profit. This also helps sellers present their users with various offers and discounts. This attracts new customers instantly. For example, Flipkart’s ‘Big Billion Day’ sale offers an almost 80% discount on electronics and accessories.

Checklist to Start an eCommerce business:

• Business Name:

After you decide what you want to sell, you should decide on your business name. A name that is in congruence with the services or products that you’re going to provide. The name that sticks into people’s minds like glue. A name such as ‘Amazon’ resembles the jungle where everything is available. It’s important to brainstorm names that represent your business perfectly.

• Domain Name & Website:

In most cases, we see that the domain name is generally the business name. But if it’s already taken, you can try a name that’s relatable, and easy to say and spell. For example, if you’re business name is Parth’s Accessories and parthsaccessories.com isn’t available then you can also try accessoriesbyparth.com.

Your website design would be the most important and expensive investment for your business. You must make sure that you make use of a proper tech stack, and a sound development team to create a visually tempting, intuitive, and functional website.

Want to create your own eCommerce website? Let’s connect!

• Business Structure:

You can choose your business structure from several options such as:

1. Partnership (With a business partner)
2. Sole Proprietor
3. Corporation
4. LLC

Here if you are working as a sole proprietor, your assets are at risk. If ever your company gets sued, the court has the right to seize your assets if your business can’t cover your debts. Choosing ‘Corporation’ or ‘LLC’ as your business structure would separate your assets from the business while providing other tax benefits.

• Employer Identification Number:

To file your business taxes next April and to open a business bank account you’d need an Employer Identification Number (EIN). You can considere EIN as your business’s social security number. It helps file important paperwork and acts as an identification number for your business.

• Permits and License:

You’d need certain licenses and permits to open an eCommerce business. So, before you start operating, check with your city and state authorities about the licenses or permits you’d be needing.

• Trustworthy Vendors:

If you’re starting with an eCommerce business, you’d need to sell products that have the best quality and prices. So, you must choose vendors that are trustworthy, capable, and ready for doing business in the long term.

• Stock and Manage your Inventory:

If you’re entering the eCommerce business for the first time, you might not be able to predict how much you should stock your inventory. But as experts say it’s always better to have too much in stock rather than having too little. You should also pay extreme attention to how your sales turn up as it will decide on how much stock you need to re-order.

While having a stocked inventory is important, it’s more important that you introduce inventory management software right from the beginning. This would take a load off your shoulders as you don’t have to remember every time a product needs a stock refill. The software would automatically send alerts to the respective authorities which can then take the necessary actions.

Essential Features to consider while developing eCommerce Website:

• User-Friendly & Intuitive Navigation:

76% of the users believe that the most important feature of an eCommerce website is ease of use while it should also promote intuitive learning. The only aim should be to get the users what they’re looking for, using the shortest path, and avoid unnecessary complexities that can frustrate the user and force them to leave.

• Mobile-Friendly Website:

Almost 50% of online transactions are carried out through mobile. Some websites function well on desktops and PCs but falter when subjected to mobile use. Due to constant availability, most of the things that we search for are primarily searched on our phones and then on desktops. Hence, you must develop a mobile-friendly website.

• Premium Quality Photos & Videos:

In today’s age, with the availability of high-resolution cameras, product presentation has gone to a whole nother level. You can post high-quality videos and photos of your product that are taken from multiple angles and offer a complete view of the product from all the different places.

Augmented Reality is also an emerging technology. We can use creatively use AR in product presentations. For example, websites like Lenskart and Warby Parker that sell glasses online allow their users to try them on the screen in real-time. This helps users make informed decisions by examining how the glasses look from different angles. Amazon also offers an up-close view of the product when you place your cursor on the image.

According to Adobe, there is a 39% drop-off rate of consumers, with photos and videos that don’t load or are of poor quality. Also, ‘Vanity Planet’ proposes a 24% increased check-out rate with users uploading their Instagram clicks on the web pages.

• Legit Customer Reviews & Product Descriptions:

You can examine the websites of the giants in the business like Amazon or Flipkart. You’ll observe how detailed product descriptions are made available to the user for even the smallest of products. Let’s have a look at what product details are extremely important for your users.

1. Detailed physical description of the product
2. Product specifications
3. Major details like delivery options, stock details, seller options, EMI options, ‘Ask your question’ section, and FAQs.
4. Authentic customer reviews
5. Infographics

• Engaging Content:

Most companies don’t realize it from the start but uploading relevant, informative, and engaging content is the key to build trust among your users. Clear and simple content containing only the required information when served with a winsome delivery style can convince users instantly.

• Communication Panel:

Users need to have a place where they can seek answers to any queries they have. Today, with the advent of Industry 4.0 tools you can use a bot-powered chat that reduces human efforts while providing optimal solutions. Other contact methods include a toll-free customer care number and mail options where the user can inquire directly.

• Secure & Multiple Payment Options:

Since COVID-19, almost all the eCommerce companies have stopped offering ‘Cash on delivery’ as a payment option. But you must use secure payment gateways like PayPal, or SecurePay to make payments. Other than this you can include other payment options like UPI payment, credit or debit card payments, or net banking.

Offering fewer safe payment options is always better than offering too many options that don’t function well or compromise the user’s private information.

• User Profile & Account Settings:

Your website will need to gather all the necessary information related to the user. This information can be then used for faster check-outs or managing multiple addresses for users and the likes.

The account section will contain a record of all the orders that a user has made, multiple addresses, payment info, and other site-related settings.

• Data Security:

With the exponential increase of cyber-attacks, it has become necessary to take measures to protect the user’s private information and the site’s functionality. Some features that can enhance the security measures on your website are:

• SSL Certificate:

This certificate helps establish a connection between the website and the user. You can verify this by looking for a green lock and HTTPS in the address bar. You can try a recognized company like Symantec to get your certifications.

• Authentic Login Practices:

The conventional id-password login serves well but to add additional layers to security you can use the OTP technique by sending it by mail or text.

• Firewall:

A firewall is a gateway between two networks that permits authorized traffic and blocks malicious traffic.

• Privacy Policies:

You must provide a link for users to observe the Privacy Policies of your website. The privacy policies should be written with the utmost care, especially the sections mentioning information to customer’s data and data sharing practices.

We saw the prominent features that would account for an effective eCommerce website. Now, let’s understand the business model that would monetize your website.

Flipkart’s Business Model:

1. Sellers list their products on Flipkart.
2. A buyer orders an item X from Flipkart.
3. The buyer pays Flipkart and the platform notifies the seller that a buyer has ordered a particular item X.
4. The seller packs the ordered item and Flipkart organizes the safe delivery of item X to the buyer.
5. Flipkart then pays the seller after taking its commission cut.
6. Flipkart also has its retail store named WS Retail. If you receive a delivery from seller WS retail it means Flipkart has shipped the product from its warehouse.
7. Flipkart’s Pricing can be bifurcated as:
   Settlement Amount = Order Item Value ( Selling Price & Shipping Charge paid by user)-
   MarketPlace Fee ( Commission Fee, Shipping Fee, Collection Fee, Fixed Fee)
   Service Tax on MarketPlace Fee (15% of MarketPlace Fee)
8. Flipkart saves a lot of money as it delivers its products through its courier named ‘EKART’ and has also established its secure payment gateway to process online payments.
9. If you visit Flipkart’s website, you’d see a ‘Sell on Flipkart’ option that allows you to enroll as a vendor by providing the necessary information and documents to the website.

Cost to Develop an eCommerce Website like Flipkart or eCommerce Website like Amazon: