Hello friends, welcome back to this interesting training program where we are going to learn ‘How to sell effectively on E-Commerce’.
Yes! In this strategic program, we are going to teach you how you too can join the E-Commerce industry & you too can take your product online in this internet era, how you can promote your business at many places.
So we will learn it step by step.
Let’s start today's topic.
Today’s topic is ‘Registration and Onboarding of E-Commerce’.
One might think how to register, is the registration done with the government enough for this?
Or if your company is a Startup, then you must be thinking how are you going to understand so many legal terms & conditions.
Who can give you a proper consultation through which you can enter E-Commerce.
So don’t worry, we have made this step by step learning program just for you.
Yes! So let’s begin.
So what are the legal procedures through which you can join your business to the E-Commerce industry.
There is a possibility that someone watching this program has already launched their business, or someone might be having a start up, okay?
So if you are having a start up, you should know that you will have to legally make a partnership with the government that you are doing a business.
Whichever state you belong to, whichever state you belong to, maybe it’s Maharashtra, maybe it’s somewhere in South India, maybe MP, or if you are from outside of India, you will have to register your business with your government through legal terminology, yes!
Then you won’t have any issue in starting your business.
My first topic for Legal Term, for Legal Procedures is - ‘Business Registration and all Necessary Details’.
Yes! Business Registration like I have told you in the previous topic that there are different platforms such as WooCommerce, Shopify, Zomato, Alibaba, Flipkart, Amazon, Ola, and many other platforms out there, okay?
Right now for the training purpose, I have taken some of them as examples.
So with this reference, I’d carry on with today's topic.
First of all, you need to know that your business should be registered, okay?
So firstly, register your business with your government’s legal terms, okay?
You can take the help of online legal consultants regarding laws & legal terms.
Just go to Google, search & you will get a consultation firm at very nice rates who can consult you in a proper way through the step by step registration process of your business, okay?
If you still are not able to understand the registration process, go to a government office, the people there will explain nicely to you how to register your business, what documents you will need.
So firstly, you will need to do physical registration, then you have to submit a registration copy to this platform that yes! I run a business & this is its physical location, it can be that you run your business from home, then you will need to enter your home address or if you have officially registered your business, then you can give its details, you can have an official number, official email ID, etc etc.
There are so many things.
Yes! You should have all the necessary details regarding your business.
For instance, someone tried to call you, where will they call? Your number, right?
If someone wants to send an email, we will surely need an Email ID for that.
Yes or no?
So the owner’s name or a representative’s name comes under necessary detail.
If you are using WooCommerce or Shopify, you will need to make your business & website, so for that you will require a ‘Representative Name, Number or Email ID’ friends.
But if you are joining Alibaba, Amazon, or Flipkart, these kinds of platforms, then don’t worry, they have their own number, representative team, so don’t worry about the backend.
They have the backend team ready.
But if you are launching your own website, that is from WooCommerce or Shopify, you will have to ready your backend team.
Because sometimes your customers might call you to complain, perhaps to make a request, or maybe someone wants to take an order in bulk but firstly they want to talk to you.
So you will have to give your number & email ID.
That’s why, business registration is necessary as well as all the necessary details which would help to communicate your business with others, that is your target audience, okay?
So this is the first step that you will have to clear, okay?
Then if you want to know more about it, then you can get to know through this slide.
‘Picking the right company structure for your business is as important as any other business related activity’.
When you are making a business structure, you might even be starting, you can do the business registration, company registration, for example: if you are doing from OPC - One Person Company.
If there’s only one person working in your business, that is 1 person company.
So you can register with 1 person company.
Plus if you belong to a partnership firm, then you can launch LLP, Private Limited, can launch Public Limited Company.
I urge you to search on your government’s official website.
Look, every state has its own rules & regulations which you will have to follow.
Indian rules & regulations are different, company act will be different, so please search it once & patiently read it once & then after understanding the legal terminology, do register your business online or offline.
This is a very important step.
Many people will advise that you can come to the online industry of E-Commerce without registration also but I highly recommend you to register your business.
What if you got famous within a month or a year?
And after that if the government implies some legal action on you, what will you do then?
That is why, to avoid that situation , you will have to finalise all the legal terms.
Yes! You will need to do business registration.
I highly recommend you register your business, okay?
It won’t cost much, it will be covered in your budget.
So the 2nd topic in legal procedure is -
‘PAN & GST Details’.
Yes! PAN & GST Details.
What does PAN mean?
PAN means our Permanent Account Number.
What does Permanent Account Number mean?
There is a tax number allotted.
If you are a professional, then you need to make a PAN Card.
And if you have a business, then GST is mandatory.
What does GST mean?
GST means Goods & Service Tax.
Take any product or service, you will have to buy a tax amount & this tax amount is very necessary for the government through which the government takes certain action such as roads are made, or any kind of development in the country, state, whatever is the cost of development through government, from where does this cost come?
That comes through tax.
You must have seen whichever government industries, rules & regulations, government employees are there, where do they get money from?
Government pays them.
And from where does the government get it?
Through this tax only this money is rolled out.
And you being a responsible citizen, you will have to launch your business, you will have to register for tax & the tax that will be applicable right now is, GST.
Some businesses do GST registration while some don’t.
But let me tell you one thing, that in the E-Commerce industry, it is very necessary to have GST Registration.
Yes! It is very important to have a GST Document, GST detail number, okay?
How will you register for GST?
See, whichever state you belong to, its rules & regulations will be different.
Every Indian state has a different website, government body regarding its rules & regulations.
Get connected with them online or offline and take details on how to register for GST.
I urge you to go to the government website & register your business for GST.
It will take a minimum cost & there’s a step by step procedure, you will get all the documents in 10-15 days, it might take a little more or less time, depending on your state, okay?
GST Registration is very necessary.
So this was the 2nd most important point that you needed to understand.
Then comes the third point, which is Delivery Agent, yes! Delivery Agent.
You must have seen multiple times that whenever you order any product from Amazon, Flipkart, Alibaba or Zomato, do the Alibaba’s, Zomato’s, or Flipkart's owners come and deliver it to you?
Or does Ola’s owner come & take your ride? Not at all, right? This never happens, okay?
So who brings you the products & services? Delivery Agents.
Who are the delivery agents?
There are many delivery companies who do this work of delivering your products to your target audience.
Look, I have made a cross mark on the right hand side & made a tick for the delivery agents on the left.
In WooCommerce & Shopify, if you are launching your own business, you yourself have to sign a contract with them, make calls & sign a deal that they are going to provide these many services at this cost, okay?
But if you are joining an online platform, an online marketplace such as Amazon, Ola, Alibaba, Flipkart, Zomato, you don’t need to worry about anything at all as they have their own delivery agents.
So let’s see about Delivery Agents. So what and who are Delivery Agents?
For every E-Commerce, Delivery Agents are a necessity.
Why so? Because who will deliver your product to your customer?
There are many delivery agents, okay?
You will have to sign a contract with them, you will have to talk to them, if you are running your own business and website, it is important to manage.
But if you are using online platforms, online marketplaces, such as Zomato or any other E-Commerce websites, Alibaba, Amazon, Flipkart, they have their own delivery agents.
If you do your business with them, if you do the business with Amazon, then you don’t need to worry about anything.
You have to only register, give your GST number & that’s it, okay? And if you are launching your own website, then you will need to register with the delivery agents, and will need to make the contract, okay.
It is very necessary to remember this.
I have a couple of examples for you such as FedEx, DTDC, Ecom Express, Blue Dart, Delhivery, DHL, India Post, etc.
You will get many if you search on Google, you will get a whole list.
There can be regional delivery agencies as well.
So go to their website, talk to them, make a contract, share your idea with them, arrange according to your budget, if it is high or low, you will have to get them sign your registration & legal terms documents so that you don’t face any problems in future.
So friends, let’s go to our next point.
The fourth point is Bank Details. Yes! Bank Details.
Now you will wonder Bank Details? Do I have to give my Bank Details to them?
Then yes friends! It is a must to give bank details.
Why so? If you have a current account, if you have a bank account, any payment you receive will be received in your bank, okay?
See, I’d like to tell you one more thing, when you are planning WooCommerce, Shopify or your own website, entering the bank details gets a bit difficult because your bank details will be displayed on the website so there can be a conflict about that.
Let’s take an example, that you are keeping only bank details on your website.
Bank details means your business name, your account number, your IFSC code and other details, okay?
Suppose 100 people did a bank transaction altogether.
Then how will you get to know who purchased what product & from where? Right?
Bank details are required at both the places, but why do Amazon & Flipkart ask for Bank Details?
So that whenever they get the payment, it reaches you, okay?
But here, if you enter your bank details, you will have to tag the payment gateway along with the bank details.
Yes! It is already available with Amazon & Flipkart beforehand.
What is Payment Gateway?
Payment gateway is such a system through which your bank details won’t be visible by everybody, it will be saved in a server.
As in, whenever a customer pays, they will deposit the payment in your bank.
Let me give you examples such as CCAvenue, Razorpay, InstaMojo.
You must have heard the names & if you haven’t then please search about them.
They are the payment gateways, okay? Payment Gateways.
If you look carefully at this diagram, if the customer has made some payment, suppose he has purchased a product or service from you, how will they pay you?
If you have entered bank details on your website, then will you call multiple times to remind them that your bank details are available there and to pay you from there.
It is fine if you have only 10 customers. But what if there are 1000 customers?
Because I’m going to teach you how to sell effectively on E-Commerce.
Imagine you got 1000 or 10,000 customers or even 1 lakh customers, how will you manage it?
Are you getting my point?
It will be very difficult to manage.
If you are doing the process only through Bank Details on your website, you will have to attach the bank to the payment gateway.
What does Payment Gateway mean?
Gateway. Gateway means the path from which you will receive the payment in your bank.
If you look carefully, on the 1st number it is ‘Consumer placing the order’.
That means the consumer has placed the order by making the payment.
Then you will get a notification on your website that you have received a payment.
After that, comes the payment gateways such as CCAvenue, Razorpay, Instamojo, they take a little %.
Suppose there’s been a payment of Rs. 100, from that they will deduct an amount between 3 to 10 Rs depending on the %.
CCAvenue takes more cost, RazorPay takes a little less, InstaMojo also takes a little less cost.
All of these are competitors. Do check their websites out.
What happens due to these gateways?
The customer will realise that they have to pay through UPI, through some particular payment gateway or through Net Banking.
Through many different ways of payment, the number of payment modes will increase.
One person might have a Credit Card, another might have a Debit Card, then how will they enter?
How will they make a payment?
The screen you saw when you made the payment while buying on Amazon or Flipkart, that screen itself is called Payment Gateway’s front view.
Yes! Front view, where you can see that you are making the payment & you are paying to whom? To the website.
And through the website, that payment goes to the Bank.
Yes! See on the 2nd number is the Website Server.
The website server receives the money plus through payment gateway, doesn’t matter if you use Credit Card, Netbanking, UPI.
You will get it in your bank & through the bank, it will reach you.
How will we earn online?
Payment Gateway is the best way through which you can receive the payment.
Yes friends! Payment Gateway becomes very necessary when you are selling any product, okay?
Let’s move ahead to our next session.
In this session, I tried to explain to you how and what legal terminology is needed through which we can step into E-Commerce.
If you have any queries or comments, click the discussion button below the video and post there. This way, you will be able to connect to fellow learners and discuss the course. Also, Our Team will try to solve your query.
So see you right there in the next topic. Thank you very much!
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