Ecommerce Set Up

Published on May 2016 | Categories: Types, Instruction manuals | Downloads: 30 | Comments: 0 | Views: 192
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Ecommerce set up

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Say you are a stay-at-home-dad who wants to sell your own neat apparel designs online, or a
creative mom who can make some excellent handicrafts at home. Now you are interested in
setting up a storefront on the web so you can “get in on this eCommerce thing” or “make money
on the side” or “make some extra revenue when you sleep”. Here’s what you need to get going.
Steps to get going
Item Who you need to set this up? How much will it cost?
Company Incorporation
(MOA, AOA, PAN Card,
Company legal entity, Bank
Account)
CA, Accountant or Company
Secretary
Rs. 50,000 (Bangalore)
Payment Gateway (To accept
credit card, net banking or debit
card online)
EBS, CC Avenue, your bank
(Axis, HDFC, etc.)
Rs. 25,000 (initiation fee)
2 – 4% transaction fee
(negotiable)
Rs. 500 – Rs. 1500 monthly fee
(can get this waived)
eCommerce Software Shopping cart software
companies (Shopify, Big
Commerce, MartJack,
IQecommerce) + Do the catalog
setup yourself
Rs.1000 to Rs. 10,000 per
month starting
eCommerce team (Optional if
you use off-the-shelf hosted
software)
Build your own team of 2
people to custom build
eCommerce storefront
Rs. 1.5 to Rs. 2.5 Lakhs per
month
Computer, machines, servers
for developers (if you are
building a team)
Go Daddy, Big Rock, your
local PC reseller
Rs. 50,000 + Rs 10,000 per
month for hosting (basic plan)
Office Space (if you have a
team that wants to work in an
office)
Get a small, cheap shared space
instead of a big swanking office
Rs. 5000 per month
Shipping Blue Dart, Aramex or Fed Ex
(AFL)
Rs. 20,000 (setup account,
negotiable to zero) + Rs. 25 to
Rs. 45 per shipment (up to 500
grams in weight)
Initial Marketing Do it yourself (poster, flyers,
send email to friends)
Typically zero, but budget Rs.
20,000
Computer (Desktop or Laptop)
+ Internet + Phone
Assuming you don’t have one
already
Rs. 30,000 + Rs. 2000 per
month (for a good internet
connection)
Total starting costs Minimum: Rs. 1 Lakh plus Rs.
25,000 per month (using hosted
shopping cart software)

Maximum: Rs. 4-5 Lakhs plus
Rs. 2 Lakhs per month
(building a team and hosting
yourself)
Milestones
1. Get eCommerce site up to take transactions
• Get website ready (either build from scratch or use a hosted shopping cart)
• Setup payment gateway
• Setup a shipping partner
• Upload and manage initial list of products
• Setup and manage initial supplier list for products to be drop shipped (or ship from own
simple warehouse)
Team needed: Business (customer service, supply chain, operations, legal, etc) + Engineering (1-
2 folks should suffice)
2. Get to 100 transactions / day & unit profitability (Typically 9 months to 1.5 years since start)
• Optimize website for SEO, put an affiliate marketing program, pay for SEM, social
media
• Expand product list and supplier list
• Setup small warehouse (if customization is required) and manage inventory costs
Team added: Digital marketing, Procurement manager, Supply Chain and Logistics Managers
and Customer Service, Increase engineering (User experience, Scalability experts, etc.)
3. Get to 500 transactions / day & scale (Typically 2-4 years from start)
• Include brand marketing efforts including TV, print and billboard advertising
• Expand into adjacent vertical products spaces, add new suppliers
• Keep refining website to include up sell, cross sell and analytics efforts
Team added: Head of brand marketing, Category manager (Merchandise Manager) for each
category, Catalog manager (write product descriptions, take product photos, etc.)
4. Show gross profitability and scale beyond 1000 transactions
• Manage inventory and costs and ensure optimization of logistics and warehousing
• Recruit and manage team for growth
• Look for non-linear sources of traffic to the website, possibly add corporate sales
Team added: Finance & HR, Complete Marketing hires, Business Development
So after starting with a small team of do-it-all experts, you should at 1000 TX/day have about
200-300 people.

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