Hello Friends, How are you? Hope you all are well. If you want to start online selling, and you are struggling to calculate the minimum investment.
to start your online selling, then I will tell you in this video the basic requirements to start an online selling business.
And, I will show you how to calculate so that you can make your estimate by yourself. Do not skip this video. If you skip, then the calculation will also skip. So let's start.
Every new seller asks this one question of what will be the minimum investment.
So, let see exactly what will be the exact minimum budget is tough
Every seller has their own budget & investment capacity.
We cannot tell you the exact amount of investment. For some, Rs.50,000 is more whereas Rs. 5,000,00 is less investment capital.
Do this video I will tell how to calculate minimum to minimum investment amount, basic requirement, how you have to do, and what you have to avoid.
So, let's dig in and kets know pointwise that how you will start your online selling business.
The first point is Product Research. Before starting product research, set your criteria.
Like what will be the procurement price of the product.
When you are starting, keep the price bracket of the product from Rs.400-Rs. 600 because products in this range generate sales more in the marketplace.
If you target this price, it increases your sales. So, this price bracket is the best for your business.
So you need to procure your product in that price so that you can easily sell your products within 400-600 rs in marketplaces
In the coming videos, I will tell you how to set the price.
But, to fit in this price bracket your product should not be of compromised quality. It must be of an average quality not too expensive and not too cheap.
So from wherever you are procuring the products, it should target mid-range. It should be of average quality and sell at a decent price.
Next, you have to stay away from a fragile item. Do not sell fragile items when you are starting the business.
When you sell a fragile item, the chances of damage increase during transit. You cannot sell that product in the future.
If you sell a fragile item, and when a damaged product is s received by the customers, then it is obvious that customers will return and it strongly affects your matrix.
For New Sellers, pay attention, your performance matrix should be top-notch from Day 1.
Many sellers complain about low business performance. Why I am not getting any order, marketplace selling is not good
So you need to improve your account performance and properly follow marketplace guidelines.
In my upcoming videos, I will tell you how you can improve your performance
Many sellers say no we can pack the fragile item safely and then sell it to the customers.
But, in that case also especially for new sellers, you have to keep everything in minimum range.
So, if you increase your packaging cost, then automatically you have to increase your product price. So, all in all, stay away from fragile items.
Next, your product weight must be below or about 500 gms. Stay away from heavyweight items.
Every logistic company starts its billing slab from 500 gms. So, your product's actual weight and volumetric weight should remain below 500 gms.
It will keep the shipping cost minimum & you can calculate easily.
Next, you have to register for GST for online selling. It is mandatory for online business.
Now, many of you will ask why is it necessary because if the turnover is not Rs. 20,000,00 then you do not need it.
It is right, and you do not need GST if you are selling online, offline within your state up to 20 lacs turnover.
But, if you are selling online, offline Interstate, then you have to take GST or else you are doing business against Government rules.
If you are choosing a Flipkart marketplace to sell products, then you are selling all over India. And, GST registration is mandatory. You must put this in mind from Day 1 of your business otherwise you cannot do the business.
Next, you need a place to start a business from where you start your online selling business and to stock your inventory.
Start your business from home. You will get GST at home or even rented property.
It is cost-effective because you do not have to spend on office miscellaneous costs.
In case, you cannot do business from home, then you can look for office space or mall space to start your business.
Do not take rented office at a prime location because it will be very expensive.
So, try to rent a space in a nonpopular space to reduce miscellaneous costs.
My advice is to start a business from home. so that your initial day's cost can be reduced
Next, you need a laptop or computer. These days, everyone has a laptop but incase if you do not have one. you need to purchase a computer or laptop with a basic configuration.
so that your system can run Excel, you can browse and you can work on photo editing software. So this basic configuration is enough to start.
Next, you need a printer because when you will receive an order, you need to print a shipping label, invoice.
It is not possible to go to a cyber cafe every time and get the printout. If you are getting 5-10 orders in a day. It is not possible to visit a cybercafe for a printout. It is time-consuming.
Buy a printer with laserjet. You have to buy a black and white printer. no need to buy a color printer initially. no need to buy a wi-fi printer with a scanner,
You need a simple, basic black and white printer you need.
Next, you need an internet connection. You do not need hi-fi net speed. You only need 10 Mbps internet to upload the products and sell online. You can buy this range from any internet service provider.
You will get many providers online. You can check. It will price from Rs. 500-700 or 10 Mbps internet. This will be an additional monthly cost
You must have these office miscellaneous that are necessary for business.
You need to buy packing material. If you want to sell on Amazon or Flipkart you need to buy packaging material according to the marketplace.
if you dont buy packing material then you can not ship your order.
Packing material depends from category to category. Like for example clothing you can buy polybag.
If you some item that you cannot pack in a polybag, then you can buy a correlated sheet or correlated box.
You need to buy them as per the product dimension.
You can see on the screen you can buy different packing materials as per your product needs. Next, as per the marketplace, you can buy the brand tape. Like if you are selling on Amazon and correlated sheets, you can use amazon brand tape. You can easily handover the products.
As per my suggestion, buy non-brand packing material and then you need to buy the only brand tape. It will not cost you much. In the initial stage, you can purchase 2 or 3 tapes.
If you are buying polybags, you can buy 50 quantities to 100 quantity the same as for correlated sheets or boxes. It will be minimum for your starting business. You do not know how much you will get in order at first, so the minimum purchase is the best option.
These are the basic requirements for your online business starting.
Now let me show you how to calculate, minimum budget as per basic requirements.
First, Product cost is variable here, let's assume the product cost is Rs.10000.
Second, GST registration you need Rs. 2000.
Third, you need workspace or rented space for 10000.
Now, you need a laptop or desktop Rs. 15000.
Next, you need a basic laserjet printer of Rs. 6000
Now, for the internet, you need around Rs. 700 depending on the locality.
Office stationery you need Rs. 1000.
For packing material, you need a minimum of Rs. 1000. So, round off you are getting Rs. 45,700 to Rs. 50,000.
You can reduce GST registration if you are doing your own,
you can remove office space rent if you are doing from home.
If you have a laptop already, then you do not need to buy one. These prices you can add to your products. This is just an estimate that I gave you and now you can calculate and start the business.
Hope guys you get the idea about how to start an online selling business. You come to know what are a basic requirement, what is the budget. And, you can calculate through this video.
And, please do like this video and if you really know someone can get help from this video please share the video. So, lets meet in next video. Till then Have a great time!
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