Electronic commerce is a business model that lets firms and individuals buy and sell things over the internet. E-commerce operates in all four of the following major market segments:
- Business to business
- Business to consumer
- Consumer to consumer
- Consumer to business
Due to pandemic,E-commerce is playing a major role in delivering the goods and services to the customers.
In the era of digitalization,any customer can book their orders through their smartphones,laptops,tablet.
E-commerce has helped businesses establish a wider market presence by providing cheaper and more efficient distribution channels for their products or services.
Why E-commerce is good for businesses?
1. Faster buying process
2. Store and product listing creation
3. Cost reduction
4. Affordable advertising and marketing
5. Flexibility for customers
6. No reach limitations
7. Product and price comparison
8. Faster response to buyer/market demands
9. Several payment modes.
Also, due to corona many retail outlets are not opening so it will be beneficial for the sellers to go online and to sell their products.
There are many advantages also:
1.No need to open any fancy outlet,it will save the fixed cost.
2.By sitting at the home,you can do the business.
3. You can also sell the products at discount because you can save the lots of cost by selling online.
4.There is also no need to sell on credit.Cash realisation is very easy and fast in case of online selling.There is no working capital blockage.
What are the compliances and the procedure to start an E-Commerce business?
As per Section 24 of CGST Act,Persons who supply goods or services or both, other than supplies specified u/s 9(5), through electronic commerce operator have to compulsorily register under CGST Act. Mandatory GST registration is required where person is selling the products online.
GST REGISTRATION is compulsory in case of e-commerce business!!
Procedure to start an e-commerce business.
Step 1: Decide on the perfect business plan and model.
Step 2: Create your own brand name.
You can create your name by incorporating the company.
You can also do the selling by making a sole proprietorship.
Or you can also form the partnership.
Documents required for COMPANY INCORPORATION and GST REGISTRATION:
1. Copy of Pan Card.
2. Copy of Adhar Card.
3. Photographs.
4. Copy of Electricity bill or Municipality receipts.
5. Passport/DL.
6. NOC/Rent agreement from the owner of the property(If the property on which business to do is Rented)
Step 3: Opening a Bank Account.
Step 4: Create your own E-com website.
Step 5: Logistics-It will play a major role in delivering the goods to the ultimate consumer.
Fast and efficient logistics system will create the positive image in the market.
Like Amazon’s one day delivery or two day delivery even same day delivery in some cities.
STARTING E-COMMERCE business is not so difficult task what you need is just a good business consultant.
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If you have any query ,you can mail me on caparakhgupta@gmail.com.
Author Bio
Good knowledgeable article. I want to know that how to fill e-commerce sales in GSTR-1? any special category in GSTR-1 ?
There is not any special category of E com sales.
You just have to shown under taxable supplies .