Previously we talked about factors to choose & decide where to sell products online – on your own website or on a commercial marketplace/platform. For your ready reference, here is the link – How to Choose Marketplace?
Now as you want to sell products online on Amazon, Flipkart, Paytm or eBay, here are easy 3 steps you can follow to quick start selling products online:
Step 1: Register your business:
Before selling products online, it is basic that you start with registration of your business for online sales. One can choose from below given types of business registrations –
- Sole proprietorship – This type of business registration is an unincorporated business that has single owner who pays individual income tax on profits earned from the business. It is also referred as a sole trader or a proprietorship. It is the easiest type of business to establish or take apart, due to a lack of government regulation.
- One-person company – The One Person Company (commonly known as OPC) is owned by a single person. This is a type of Private Limited Company that has only one shareholder as its member. Similar to Private Limited Company, OPC Registration and its operations are governed by the Indian Companies Act, 2013.
- Partnership company – A Partnership company consists of two or more individuals who combine their assets to form a business and agree to share profits and losses.
- Limited liability company – A limited liability partnership (LLP) is a separate legal entity from its partners, who are only liable for the amount of money invested along with any personal guarantees. The LLP is incorporated at Companies House.
- Private limited company – A Private Limited Company is a business entity owned by small number of shareholders or members of a company. Startups and businesses with higher growth aspiration popularly choose Private Company as suitable business structure. The business entity gets recognised as a Company through its registration under Companies Act of 2013 in India.
All business further needs tax registrations:
- TAN – TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number that is required by an individual/company/ organisation who are responsible for both deduction and collection of tax at source (TDS/TCS). The number is allotted by the Income Tax Department.
- GST – Business, whether selling products or services, need to have a unique Goods and Services Tax Identification Number, popularly known as GSTIN. Any business whose turnover exceeds Rs 40 lakh in a financial year is required to register under GST. This limit is Rs 20 lakh for service providers. For online businesses, registration under GST is mandatory.
Step 2: Register as a Seller on Marketplace:
To sell products online, next to business registration, need to register yourself as a Seller on the marketplace, before you can sell your products online. The details that are required for registration are:
- Contact details: Email address and phone number
- Business address
- Product category
- Business registration documents: As essential documents ID proof document and an address proof document is to be provided at the time of seller registration. However, other documents would change as per your business category – sole proprietor, LLP/Partnership Company or a private limited company.
- Tax registration documents: Further you need to submit your tax and bank account details. These would be –
- PAN card
- GST number
- Bank account number
- Bank account name
- Bank IFSC code
Step 3: Listing your product:
Once you have registered in the marketplace and the details provided by you have been verified, now it’s time to list your products online. This is the first interaction with your potential client which play an important role in buying decision of the buyer. It serves as the best medium of providing authentic, detailed and meaningful information about the products listed on the store along with multiple product images in high quality. This can be done in two ways:
- Listing one product at a time: This can be done manually, via the seller portal.
- Listing in bulk: Most major marketplaces allow for volume product listings. Few has in-built tools wherein spreadsheets containing all desired product information can be uploaded in one go.
Once you complete your process of registering and listing on the marketplace, you can now begin selling!
Wait for our next blog for further in depth detailing on product listing …
And If you are in hurry to launch your store. Pls contact us in person.