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  • How To Start Amazon FBA Business in 2023? | Fulfilment By Amazon

    With a market cap of over $1 trillion, Amazon ranks first among the leading large-cap e-commerce companies worldwide. It has over 2.45 billion monthly visits to its app and website combined. It dominates the US e-commerce, i.e. 49.1% of the market. In the US, customers buy roughly 7,400 products per minute from Amazon sellers. It is the largest e-commerce company in India as well, which is one of the world’s fastest-growing economies with over 1.4 billion people. Data shows over 620 million of them use the internet, and 74% of those users shop online. India has a $70 billion market segment, and Amazon is playing a big part in it.

    Between 2020 and 2022, the fulfilled-by-Amazon (FBA) model caught on, with 68% of merchants relying on Amazon’s logistics to fulfil their orders. Amazon has over 200 million paid Prime members globally and hundreds of millions worldwide active customer accounts. You can scale up your business globally on this platform. This is the best platform for customer acquisition. With FBA (Fulfillment by Amazon), sellers send their products to Amazon’s fulfilment centres, and Amazon picks, packs, ships, and provides customer service for those products.

    In other words, you must provide your products and Amazon does the heavy lifting for you against some fees. (know that Amazon FBA is not a free service, you have to pay for it. So it is safe to say that a little investment will be required on your part). There are many ways through which you can provide your products to Amazon:

    1. Private label
    2. Retail arbitrage
    3. Wholesale FBA

    We will talk about them later in this article!

    Select The Product To Sell
    Source The Product From Manufacturer
    Finalize The Product via Alternatives
    Send The Product To Amazon
    Provide Better Service Than The Competitors
    Break-down of Procedures – A Beginner’s Guide
    Is Amazon FBA profitable in 2023?

    How To Start Amazon FBA Business

    Over the years, Amazon FBA has attracted many people to its model. This way the competitors kept pouring in and competition kept levelling up each day. So it is the right time to ask questions like how to start an Amazon FBA business in 2023 to stay there for longer and to be able to call it a consistent source of income. The following is the know-how of this very question:

    Select The Product To Sell

    It is the most important step. You should pay due care in choosing the product that is going to give you returns. It is quite obvious that if there are too many people selling the same product, the profit share of each individual becomes negligible. So you need to select the product which has a decent demand and less supply.

    Websites like JungleScout help you know which product can give you maximum returns. It gives you an idea (an estimate) about the current product status in terms of demand, supply, and competition based on prior data. If you don’t want to spend your money then you can use Amazon’s Best Seller rankings (BSR) tab but you have to do your bit to make the calculated guess when you’re selecting the product.

    • Know your niche: Before selecting a product you should have an idea in which niche you want your product to fall so that it covers long-term gains and not only short-term profits.
    • Selecting correct BSR: After selecting your niche, you should select a particular BSR range according to the product selected. Please note the product doesn’t necessarily have to be from the top 3 of BSR. It just has to be sellable which means a product with comparatively less competition and high demand.
    Finding BSR Rank for a Product on Amazon
    Finding BSR Rank for a Product on Amazon
    • Narrowing down the product: You can then narrow it down from a list of products to the product that meets the basic criteria.

    Source The Product From Manufacturer

    After deciding what your product will be, you need to source the product from the manufacturer. This is not an easy process because you have to make sure the product you’re sourcing is of decent quality and reasonable price to match your cost estimates. Consider yourself a customer here and then start negotiating the price with the supplier if you do not feel that the supplier’s quoted price suits you.

    Things to note:

    • You should ask for sample products first to keep from losses.
    • Try to take everything on paper so that you have an edge if you feel the supplier has compromised with the product (in case you are sourcing the product from different countries or from a place where you cannot be physically present).

    Finalize The Product via Alternatives

    Do you remember I talked about providing the final product to amazon via three alternatives? We will now see what those alternatives mean:

    The private label: It is somewhat like collaboration. You are sourcing products from a particular brand and adding your label to it (on its packaging/product itself). And then you’re selling it under your brand. It requires your investment and is comparatively a sustainable source of business. You essentially create your listing on Amazon including pictures of the product, the title of the product etc.

    Retail arbitrage: It is buying stuff at cheaper rates from thrift stores or retail stores and then comparing the cost and profit margin of the product via amazon itself. For the same, you have to provide amazon specified barcodes on the product before sending it to Amazon. However, it is not a sustainable business model as there is no guarantee that you will find the products regularly to make the sale on Amazon.

    Dropshipping: It is a business model for people who do not have a product or money with themselves. All you do is act as a mediator between supplier and buyer by listing the supplier’s product on your account. After receiving the order (from the customer) at your listed price, you place the order with the actual supplier and ship it directly to the customer. This way dropshipping help you save yourself with a decent profit margin.

    Wholesale FBA: It is primarily sourcing the product from a wholesaler, listing it on amazon and selling it. Wholesale FBA is like day-to-day retail shops that we come across in our cities, the point of distinction is here we are doing it online.

    Send The Product To Amazon

    After deciding your way of sourcing the product and doing the needful you are now ready to send it to the Amazon warehouse and get on with the sales part. You can choose any mode of transportation according to your feasibility and time preferences.

    Provide Better Service Than The Competitors

    The real competition: In a sentence, this is the point of competition. Many sellers are selling the same product as you. What you do to stand out of the crowd so your traffic turns into sales is the most crucial part of this entire process. The question of starting Amazon FBA today arises from the many sellers that are now there on this platform. You have to know this is not a get-rich-quick recipe. It is just another business model. The only difference is Amazon is doing the heavy lifting for you. So you need to truly start by taking this as a business entity. You have to do all the work that a businessperson is supposed to do, including branding, advertising and marketing.

    Ads can do their bit but to be the best in your niche you have to provide the best service possible by including things like

    • Actively solving customer’s grievances
    • Reading consumers’ reviews to get their experiences with the product
    • Always aiming for improving the services
    • Asking for genuine customer reviews
    • Going for influencer marketing to attract traffic
    • Initially providing good discount offers

    Of course, after a point of time, Amazon will promote your products on your behalf but for that, you have to be able to come into the eyes of amazon. After all, it is a search engine doing things with algorithms!

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    Break-down of Procedures – A Beginner’s Guide

    Sell worldwide with Amazon
    Sell worldwide with Amazon

    Step 1. Visit Amazon’s official website
    Step2. Click on Sell
    Step3. Create an account
    Step4. List your product
    Step5. Ship your product to Amazon
    Step6. Grow your business

    ❖ Create an amazon seller’s account: To sell on amazon, go to the seller on the Amazon section and create your seller central account. Link your Bank Account and provide your identity, business/company details, and other information.

    Amazon Seller Account | Sign in
    Amazon Seller Account | Sign in

    ❖ List your products: There are two ways through which you can list your products on Amazon which depend on the product you’re selling.

    • Selling the already available product on Amazon: In this case, you need not list your product as such. All you need to do is select and list the product along with the number of units you want to sell.
    • Selling under your brand: When you want to be a unique seller on Amazon with your brand you will be required to list your product which mainly includes the title of the product, size of the product, its images, description of the product etc.

    ❖ Selecting the way of fulfilment: Here you have an option as to how you want to deliver the order. You have three options: FBA, Easy ship, and self-ship. Here we will see FBA. In this case, Amazon will take your products and store them. After receiving the order it will pack and deliver it to your customers.

    Some important things to note:

    • Pay due care when you pack your products, you don’t want to mess up when labelling the product with barcodes.
    • Paste the barcodes with sticking sheets instead of using cello tapes. If lost, they will be treated as unfulfilled orders in Amazon’s fulfilment centres (FC) under which you will be at a loss.
    • Carefully schedule the pick up for shipping the products to FC. Pay good care while filling in the product’s details including the number of units and its dimensions.

    You can also use the option of easy shipping. The only difference is here you have to store the products and Amazon will deliver the products to the customers.

    Amazon Fulfilment Centre
    Amazon Fulfilment Centre

    ❖ Shipping the order to AFC: Now you’re ready to ship your products to AFC. You can use Amazon transportation service (ATS), third-party service, or courier service, or you can go yourself (in case your products are small and do not require a transportation service).

    • If ATS is available in your area, you can go for this. For this, you can simply schedule the time in your seller’s account.
    • Amazon also provides third-party services which you can avail of from your account to send your products.
    • If you find your courier service better, you can go for this option too.

    Please note that if you’re using any service except ATS you will be required to make a carrier appointment request via the carrier appointment request portal.

    ❖ Expand your reach/Wait for sales: After sending your inventory to FC, your big task is done. Now you have to wait for customers to place orders. During this time, you can focus on marketing your product off-amazon. You can expand your reach by telling the uniqueness of your product through influencer marketing, Youtube marketing, digital marketing etc.

    Is Amazon FBA profitable in 2023?

    Benefits of Amazon FBA
    Benefits of Amazon FBA

    In 2022, three-quarters of sellers are in profit. The competition is indeed really high and it is increasing every day. But we have to consider the fact that FBA is a business model. And every business takes a certain period to be termed as ‘stable’. So the risk factor lives irrespective of FBA. FBA is comparatively easier as you can choose from many business models within FBA and with less investment.

    For FBA sellers, amazon provides a prime badge which is an assurance of fast delivery, and good customer experience. This option is only for FBA sellers which again gives your product a better chance to get a buy box.

    Of course, there will be times when amazon will frustrate you with its algorithms even when you have done all the bits-and-bats of gaining the buy box from buyers. Nonetheless, there is no denying that FBA has changed the game for many when people have been consistent in their work. And it can do the same for you too!

    FAQs

    What is Fulfillment by Amazon (FBA)?

    Fulfilment by Amazon, (FBA) is a service offered by Amazon. Through FBA you store your products in Amazon’s warehouse, and Amazon packs and delivers the orders to customers.

    Is Amazon FBA available in India?

    Yes. Amazon has more than 60 fulfilment centres in 15 states.

    Is Amazon FBA profitable in 2023?

    Amazon’s FBA business is quite profitable if done with consistent efforts.

    How much does FBA cost?

    The FBA cost depends upon the below factors:

    • Category of the product
    • Product Price
    • Size and weight of the order

  • A Guide on How to Maintain a Good Credit Score in India

    The definition of credit is the practice of borrowing money, either as a loan or for purchase with the promise of paying off the debt within a stipulated period of time. A credit score is defined as a statistical method to ascertain the likelihood of an individual paying back the money that is owed to them.

    A credit score is essentially used by lenders, physical or online, to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. It is used to determine who qualifies for a loan, the interest rate, and up to what credit limit. Organizations like mobile phone companies, landlords, and government departments also use the credit scores of individuals to ascertain their creditworthiness.

    Need for Credit Score
    Components of Credit Score
    Credit Scores Calculation
    How to Maintain a Good Credit Score

    Need for Credit Score

    Credit score is important to measure the risk assessment of an individual by the credit issuer. This is especially employed when an individual applies for credit like a loan, mortgage, or credit card. It allows the financial institution, which is extending the credit, to check the individual’s reliability in repaying the debt in a timely manner. A lower credit score can result in a loan rejection or even a higher interest rate compared to someone with a higher credit score. The credit score is valuable only when the data collected is over a long period of time.

    Components of Credit Score

    Components of Credit Score

    There are various factors taken into consideration when evaluating the credit scores of an individual. These factors all add up to either a high or low credit score.

    • Credit payment history of the individual (35%)
    • Current debts of the individual (30%)
    • Duration of time of credit history (15%)
    • Credit Mix (10%)
    • Frequency of applications for new credits (10%)

    Credit Scores Calculation

    Credit Information Bureau (India) Limited (CIBIL), established in August 2000, is the first credit information company in India. It is CIBIL that allows credit ratings to individuals and sends them to banks for a loan applicants, based on which a loan is either sanctioned or not sanctioned.

    It is a two-way information exchange where initially all credit information of an individual is sent to CIBIL by the banks. This information essentially pertains to the repayment of loans and credit cards. Information is then computed by CIBIL into a number range between 300 and 900. Scores lower than 600 and closer to 300 are considered low credit scores and may lead to applications for loans and credit cards being rejected. A credit score rating of higher than 600 ensures a higher possibility of getting a loan or credit card. CIBIL maintains a historical record of an individual’s payment behavior pattern which is sent to banks on request.

    This service was launched with a view to reduce bad credits as well as to instil habits leading to high credit scores and teach financial planning to individuals.

    How to Maintain a Good Credit Score?

    How to increase a credit score

    A loan or credit card application may be rejected even if all other criteria like age and monthly income are met, due to a low credit score. A credit score of 750 or above is usually considered a good credit score. There are certain steps that an individual can take to ensure that he or she maintains a good credit score.

    1. Payment on Time

    Payments that are made on time indicate a responsible and healthy attitude towards credit, which helps in maintaining a good credit score. The opposite, in fact, may reflect a negligent attitude with poor financial planning and can have a negative impact on credit scores.

    2. Apply for Only One Loan at a Time

    Every time an individual applies for a loan, the banks check the applicant’s CIBIL score that lowers for every check that is triggered. This effectively lowers the overall credit score. The more loans an individual applies for, the lower the credit score.

    3. Updated Credit Card Payments

    Credit card bills can be paid either in full every month or can be kept active by paying the minimum amount that is indicated by the bank. However, CIBIL considers the unpaid amount as overdue which indicates poor personal financial management. This reflects in the individual’s history every time a check is triggered. It is always better to pay the credit card bill in full to maintain a healthy credit score.

    4. Don’t Close Credit Cards

    Simply put, if all credit cards are closed, there is no avenue to build a credit history to lean on when a loan is required. It is ideal to maintain at least one credit card and maintain a healthy repayment history with the card to build up a good credit score.

    5. Refrain from Payment Defaults

    If there is an existing loan on any credit cards, ensure that all payments are made on time. Any misses or default gets recorded in the credit history can negatively affect the credit score and may also result in a loan being rejected.

    6. Manage Expenses within the Earnings

    When the spending exceeds the earning, it gives rise to credit which can lead to more spending and thus a collection of debt. It is wise to spend within a limit that can be supported by the earning which also adds to the overall credit score.

    7. Balance the Loan Types

    It is a healthy habit to keep a mix of loans. The idea is to balance secured and unsecured loans. If the loans are heavier on the unsecured credit side, personal loans or credit card loans, it acts as a red flag and makes lenders cautious about granting further loans.

    Conclusion

    The importance of maintaining a healthy credit score cannot be ignored. It is a gateway to getting a home loan or a personal loan as and when required. A high credit score also helps an individual in getting credit cards that is also another way to build a healthy credit history, eventually making a positive impact on the overall credit score of an individual.

    FAQs

    What is a good credit score in India?

    A credit score of 750 and above is considered a good credit score in India.

    Can I get a loan or credit card with a credit score of 500?

    A credit score of 500 is considered to be a poor score, hence it is difficult to get approval for a loan or card with this score.

    What is a CIBIL credit score?

    CIBIL score is a three-digit numeric summary of your credit history.

    What is the toughest credit score?

    850 is considered to toughest credit score to achieve.

  • Shrinkflation: Definition, Causes, and Impact on Customer Sentiment

    Shrinkflation is defined as the practice of reducing the size or quantity of a product while keeping the price of the product constant or increasing it marginally. In some cases, shrinkflation may also refer to lowering the quality of a product while the price remains the same. A phenomenon that is common in the food and beverage industry, this strategy is employed by companies to boost profit margins or, at least, maintain them when input costs are rising. British economist Pippa Malmgren has been credited for inventing this terminology in 2009.

    Understanding Shrinkflation
    Causes of Shrinkflation
    How Does Shrinkflation Impacting Customer
    Advantages and Disadvantages of Shrinkflation

    Understanding Shrinkflation

    While not illegal, it is a practice that is sneaky. It is not a fraud or a misrepresentation of products as the packaging always indicates the weight, volume, or quantity of the products in the packet. Shrinkflation is actually a hidden form of inflation.

    As companies determined that customers would turn to substitute products in the event of another price rise, they resorted to a reduction in the quantity while keeping the price consistent. This is not immediately evident to the consumers as the absolute price remains the same, but the price per unit of weight or volume has increased.

    Shrinkflation happens as manufacturers face inflation with ingredients and the supply chain. Some of the most famous companies and brands have adopted shrinkflation with their products to combat the price rise in raw materials.

    Example of Shrinkflation
    • A chocolate bar is reduced from 60 gms to 55 gms with no decrease in its price.
    • A thousand page notebook is changed to an eight hundred page book while its price remains the same.
    • The price of a cold drink bottle is unaltered while its size reduces from 800ml to 750ml.
    • A 2 kg sugar packet is reduced to 1.8 kg keeping its price constant.

    Causes of Shrinkflation

    What is shrinkflation?

    A business works on the bottom line of registering profits. Shrinkflation is a useful tool to boost or maintain profit margins without drawing attention, from the company’s perspective. There are reasons and situations when the shrinkflation practice is executed.

    – Increased Manufacturing Costs

    A product cost is the sum total of raw materials, labor, power, packing, supply chain, etc., plus a profit margin that constitutes a part of the company’s revenue. When the costs of these essentials rise, it affects the price of the final product. This subsequently weighs on profit margins. Companies have to find ways to recoup these losses. Sometimes, for companies that lack pricing power, reducing the weight, volume, or quantity of products might be the best option to maintain a healthy profit without jeopardizing sales volumes.

    – Strong Market Competition

    Companies and producers employ the shrinkflation strategy to not only maintain their profit margins but to maintain customer loyalty and attract new customers in the face of stiff market competition.

    How Does Shrinkflation Impacting Customer

    Companies can increase their product prices only so many times before consumers either cry foul or shift to alternative products. So, while the strategy of shrinkflation might be the best choice, it too has its own advantages and disadvantages in the way it impacts the customers.

    The harsh reality of shrinkflation for the customer is that they pay the same price for a lesser volume or quantity. Matt Pavich, Senior Director for Retail Innovations at Revionics – a price optimization software tool for businesses – puts it very succinctly –

    “It’s safe to say that as much as consumers don’t like inflation—they are more adverse to shrinkflation. Inflation feels transparent and consumers are used to prices fluctuating due to channel, retailer, promotions, etc. but inherently don’t like it when one package once worked for their recipe and now they need to buy two.”

    Conversely, Utpal Dholakia, professor of marketing at Rice University offers an opposing view. He argues that product weight fluctuation is a result of companies conducting market research and adjusting product lines to suit customer sentiment and maximize sales and profitability. He says that just because a product is downsizing and now linked to inflation is not an indication of brands cheating their consumers.

    Whatever the reason, shrinkflation remains a sore point for customers who are already stretched due to inflation.

    Advantages and Disadvantages of Shrinkflation

    Advantages

    • It helps the producers to cope with stiff market competition and retain their customer base.
    • Manufacturers can maintain their profit levels in the face of rising manufacturing costs.

    Disadvantages

    • It is an unfair practice that encourages duplicity and is against the general interest of the customers.
    • The practice is termed hidden inflation and can be dangerous for brands.
    • The constant application of this strategy can result in the decline of a brand.

    Conclusion

    As powerful a strategy as shrinkflation is to maintain profitability and customer loyalty, its use remains limited. It is a strategy of the last resort and using it too much can have disastrous effects on the brand and the company.

    FAQs

    How shrinkflation affects customers?

    It negatively affects consumers who are already frustrated by rising costs.

    Who invented shrinkflation?

    The British economist Pippa Malmgren invented shrinkflation in 2009.

    What are the causes of shrinkflation?

    Increased manufacturing costs and strong market competition are the two main causes of shrinkflation.

    Is shrinkflation an ethical practice?

    Shrinkflation is morally wrong because it is a form of deception.

  • 10 Skills Investors look for in an Entrepreneur | How to impress an Investor?

    The internet along with modern technology has seen a boom in the past decade. It has stimulated a lot of young people to turn into entrepreneurs by crafting their unique business ideas. The 2021 Entrepreneurial Spirit Index published by IPSOS shows 29% of Generation Z ranked as having a very high entrepreneurial spirit, compared to 36% of Millennials, 33 % of Generation X, and 25% of Baby Boomers. As of 2022, there are reportedly 582 million entrepreneurs worldwide. This growth has encouraged more people and companies to become investors.

    The business you start might have huge market potential. But, for it to reach a wider market and attain success beyond the geographical limit, it needs constant financial support. This financial aid is offered by Investors and VCs who are always choosy about their investments. Investors expect certain qualities from entrepreneurs before they decide to invest. So, what are they? What are the qualities that an investor looks for in an entrepreneur? Let’s see.

    10 Skills Investors look for in an Entrepreneur

    How to attract investors?

    10 Skills Investors look for in an Entrepreneur

    Here are some of the entrepreneurial skills to impress an investor.

    In-depth Business Knowledge

    Pitching your business plan to investors requires inside-out knowledge of your business and its market. An excellent idea portrayed with poor business knowledge can be fatal. Moreover, the confidence with which you approach the investor has a direct effect on the funding. In-depth business knowledge gives you that confidence.

    Before preparing your presentation for investors, gain clear knowledge about the scope and problems of your business and market. Construct a plan to solve those problems. You can gain that by interacting with your prospective customers and other market experts. Look for the questions, criticisms, and suggestions that the investor might toss at you. Be prepared for such things so you can provide a satisfactory response.

    Team Building Skills

    Many investors prefer to invest in businesses that have a good team. As Will Herman, a popular Angel Investor himself said, he believes in a founder who has a good team. It includes not only the co-founders but also the management team as a whole.

    Every person can’t be an expert in all aspects of the business. So experiencing yourself in what you’re good at and building a team for other aspects can gain you a positive note from investors. Even an average business idea can be executed exceptionally through a good team. If you’re desperate about getting the investor’s concern, then knock on their doors with a competitive squad.

    Precision in Fund Requirements

    Being clear about the amount required and the ways of utilizing them is a significant factor seen by Investors. Opting for an open-ended request for funds shows your lack of business awareness. Get to know the market well and be as accurate as possible in your need for funds.

    Determining the channel of fund flow is another important and challenging factor. You need to be more specific to the investors regarding what ways their money will be utilized. It could be for customer acquisition, product development, or anything. Pitch them with specific numbers to gain their interest.

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    Communication Skills

    The primary quality of a good entrepreneur is his Communication skills. The success of a business depends on the coordination between various departments, teams, and stakeholders. All these can be successfully bridged through effective communication by the entrepreneur.

    Therefore investors expect entrepreneurs to be good communicators for effectively managing the business. This will be keenly observed during your pitching. Now, what makes one a good communicator? Deep knowledge develops confidence and this, in turn, grooms you to be a good communicator.

    Passion towards Business

    Create a vision for your business and develop a sense of passion while running towards it. The more passionate you are, the more determined you’ll be towards achieving your goal. The path to success in business will be loaded with ups and downs. How you overcome it depends on how passionate you are about your vision. Investors look for such dedicated and vision-driven entrepreneurs to invest their money.

    Organizational and Leadership Skills

    The success of the business depends on the way it is organized and managed. Coordinating teams, assigning appropriate tasks, and motivating them towards the company’s goals are some of the functions that come under organizational and leadership skills. A leader inspires his employees directly. Therefore, this skill becomes essential for the success of a business. Due to its impact on their investment, investors expect this quality in you during pitching.

    Adaptability and Learning Skills

    An entrepreneur should always be open to learning and suggestions. Adapting to the constantly changing market is a crucial skill that an entrepreneur should possess. It keeps you alive in the face of a competitive market.

    Experienced investors may provide you with advice regarding the business. Even some people you meet, customers, or your failures might teach you something. You must keep yourself open to such learnings. Failing to look around and close yourself off might land you and your business in trouble.

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    Problem Solving Skills

    Every entrepreneur must possess problem-solving skills to deal with day-to-day business challenges. Problem-solving is a combination of various other skills like analytical and critical thinking. It starts from identifying a problem and may involve taking complex decisions for business growth. You can develop this skill by going through various case studies of organizations and thinking from their perspective.

    Strategic and Critical Thinking Skills

    Strategic and critical thinking becomes essential for the overall development of entrepreneurial skills. You should be able to foresee problems from various perspectives to arrive at the best solution. Critical thinking becomes essential for making strategic business decisions.

    Developing the skill of thinking strategically and critically would help you out beat your competitors and expand your market reach.

    Marketing Ability

    Communication skills will help not only to sell your ideas to investors but also your products to customers. This requires a clear understanding of customers’ needs and preferences, your competitors, market conditions, and other external factors. Investors look for your team’s ability to convince a person and make them buy your product or service.

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    Conclusion

    Investors believe more in you than your business plan or products. Their investment depends on the value of trust you offered them. Trust can be built from possessing a combination of various skills mentioned here. Gaining as many skills as possible is always an added advantage to you and your business.

    FAQs

    What are the 10 Entrepreneurial skills?

    10 important entrepreneurial skills an investor looks for in an entrepreneur are:

    • In-depth Business Knowledge
    • Team Building Skills
    • Precision in Fund Requirements
    • Communication Skills
    • Passion towards Business
    • Organizational and Leadership Skills
    • Adaptability and Learning Skills
    • Problem Solving Skills
    • Strategic and Critical Thinking Skills
    • Marketing Ability

    Who are the top angel investors in India?

    Some of the Top angel Investors in India are:

    • Rajan Anandan
    • Mohandas Pai
    • Ratan Tata
    • Anand Chandrasekaran
    • Anupam Mittal
    • Kunal Shah
    • Dheeraj Jain
    • Gokul Rajaram
    • Amit Somani
    • Vijay Shekhar Sharma

  • A Complete Guide on How to Start an eCommerce business in India

    If you are looking to start your own e-commerce business in India like Amazon or Flipkart, then this is the way to go. To start with, eCommerce is an online process of buying or selling goods and services. There is no paperwork involved in making any transaction here.

    One of the best things that most of us like about an e-commerce startup is that we can update and modify it the way we want and make it attractive and appealing to the eyes of the audience. Your customer will have access to your services 24×7 and you don’t need to come out of your door for marketing and other stuff if you are doing it at a small level.

    According to a report, in 2019, eCommerce sales accounted for 14.1% of all retail sales worldwide. However, there are some things that you need to care about in your eCommerce business plan.

    How to Start an eCommerce Business in India? (A 10-Step Business Plan)

    Starting an eCommerce website might sound challenging, but with this easy 10-step business plan, it would hardly be tough. So, let’s dive into the steps:

    Step 1: Define your business name

    Business names are always important as they give you an identity after identifying what you want to sell. A business name will be the legal identity of your business. This opens a room for marketing your product with ease. The name that you choose should be simple and unique. It is always better to research extensively before you decide upon a particular name for your business. This will let you be safe and secure, and thus, is really important for everyone who would be starting an eCommerce website.

    Step 2: Set a domain name

    Ideally, there is always diversity in business. The business name acts as the domain name. A domain name system (DNS) stipulates the website address that your business wants to keep.

    One of the important factors for an eCommerce business plan is a website. A website can be useful in developing different marketing strategies. It acts as a point of contact between you and your customers.

    A website is accessible to many people at any given time and creates a climate of trust (credibility). Churning out a website is really convenient as it tells the customers that you exist. Furthermore, the website and the domain name are some of the core steps to proceed with before one can go about launching an eCommerce business.

    Step 3: Identify the type of business and register

    People engage with businesses as sole proprietorships, partnerships, or cooperation. Each of these has an advantage and disadvantage attached to it. For example, operating as a sole proprietor always subjects you to numerous risks.

    You need to weigh before deciding upon a particular type of business that suits you. The income removal system (IRS) allows you to file the structure of your business on your own or get a different filing company to help you.

    Step 4: Employer Identification Number (EIN)

    You can not operate an e-commerce business without a bank account. To get a bank account you need for your business you need EIN. This number you are given acts as identification. You use it to file taxes for the business. It is always a requirement whether you will operate alone or employ people.

    Every country has its own policies and procedures that every citizen must adhere to. This is also one of the things you must keep as a priority while creating an eCommerce business plan. If you fail to do that, the government has the mandate to declare your business illegal, after which numerous penalties might be imposed.

    Licenses for the business and work permit should be obtained. Confirm with your state what type of taxes you are required to pay in order to operate. Also, you need to Apply for Goods and Service Tax (GST) certification and a Shops and Establishment Licence.

    Step 6: Source for vendors

    It is not possible to operate without vendors. Everyone needs to identify and keep in contact with different vendors. This way you can derive the best quality and prices for the materials you need to make your products. Conduct a thorough and serious search of the vendors to help you identify who you want to work with.

    Step 7: Early marketing

    Media platforms are paramount in e-commerce. However, it is also necessary that you have an eCommerce business plan prior to that. Alert customers that there is something good coming up so they can create interest to know. You can even decide to introduce blogging as a tool.

    Step 8: Get effective software

    E-commerce cannot work without making use of technology. Put every system in place before launching the product. Effective software is what you simply cannot compromise when it comes to building e-commerce websites in India.

    Step 9: Keep a smart inventory

    Inventory will help you track the information that you need. Ensure the warehouse (store) has enough products so that the customers don’t miss out on what they want. You may not be in a position to tell what will be needed and when but is always safe to keep a decent stock. This will help keep track of the orders you make in the future.

    Step 10: Be compliant

    Always be smart with deadlines in terms of taxes, licenses and permits needed. Always ensure you abide by the law of the land. Staying compliant is the key to starting an eCommerce store or an online business and making it successful.

    WIDGET: leadform | CAMPAIGN: undefined

    How to Build an eCommerce Startup?

    The Ecommerce industry is on the boom for the past few years, and why not? It is ultimately a sector with big opportunities and low barriers to entry. The total valuation of the e-commerce industry in India was last recorded at $46.2 million and is expected to rise to $188 billion by 2025. Such a sector that is ever so growing, certainly consists of a lot of opportunities.

    Currently, there are hundreds of e-commerce sites selling products and services and thousands are on the way. Probably you also want to have one. Well, the e-commerce industry is so dynamic now, that you need to be agile and alert. So, keep monitoring the activities, events, discussions, and changes going on in your niche.

    Now e-commerce is not about selling a product but a solution. Your potential customer must see the clear benefit of buying from you. Here are some tips to follow if you are starting up or already have an existing startup in the e-commerce domain.

    Find a niche

    If you get an idea for e-commerce, there is a fair chance that many startups are operating in that niche and many are coming up. That is why it is important to break the initial idea, segment them a little further or get a niche that is not explored yet and work on that with full focus.

    If you think you can compete against Flipkart or Snapdeal that’s not going to happen if you plan to start with the same business model.

    Take sandal. When the company launched, it was an online portal for deals and coupons. This was a very focused play. They didn’t immediately start selling physical goods. Make your unique selling proposition, find your target “janta” or customers, and sell your product to them.

    Experiment

    As you have started out, the world seems very new to you. Nobody except you can tell what works best for you. So, experiment with different Pitches, Distribution channels, and more. Do this until you find out a solid sales strategy.

    Listen to your customer

    As it is always said worship customers like gods. Always remember that if there is any service you want to provide, then that should always be a customer satisfaction service. Your behaviour towards the customer after the sale would make all the difference.

    This will help you in customer retention and thus make more sales. Once a sale is made. Talk to them, get feedback and see what changes they want. Even if it doesn’t comply with want you want just change it.

    Learn from the mistakes of competitors

    Do you have lots of competitors? Having too many competitors is not so good news for businesses but every bad thing has got something good in it. So, if you have quite some competitors already in the same space where you would be starting your own eCommerce business, you can try to analyze their website design, pricing, and marketing strategies on a regular basis to get useful insights for future action. Go through their social media profile to see what activities have helped them gain traction a lot and what has failed for them. In this way, pick up all that they have done good, and try to avoid all the mistakes that they have done.

    Use digital marketing

    74% of adults who are online, use social networking sites, and among them, it has been found that 71% of online adults use Facebook. Being a startup you don’t have much marketing budget. Here, starting with social media platforms for marketing purposes will indeed be of great help. Optimising the content and regularly sharing them on social platforms certainly is rewarding for brands and businesses. This will not only let you reach to large audience economically but also help you to get analytics to learn about the users. It is also a great way to listen to what customers are saying about your brand.

    Number of social network users in India from 2015 to 2020
    Number of social network users in India from 2015 to 2020

    Operation

    Make sure you always have enough inventory of the highest-selling product. Make sure that you keep a track of all the products that belong to the highest-selling and lowest-selling categories. Figure out what is making the highest product sell the highest and what makes the others the lowest-selling products. This will help you a great deal!

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    Choose the right web hosting  

    Looking at what similar companies are using. Add a mascot on the site that guides the users about the site and the products, is an interesting way to get the attention of customers (like Zendesk). Use only those plugins that are necessary.

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    Consumer support

    Hire trained customer care executives to resolve customer queries over calls and emails. A toll-free number and support email is crucial too. Solve the problems that the customer is facing, to ensure the efficiency of the website.

    Content marketing

    The content is important for an e-commerce website and is good for marketing the brand. Putting up a blog or posts will surely bring up more traffic than ever. Content marketing will stand as one of the primary requisites as soon as you start an eCommerce store or an eCommerce website in India.

    Social Media Marketing

    Social media is the key to climbing the ladder and getting the exposure one wants in the public eye, so creating social media accounts is the key to helping the brand reach the eyes of the world. Keep the followers updated with new products and give ways to get more followers. Meme marketing is also a great way to engage your customers (Millennials).

    Influencer’s utilization  

    The influencers are the best people in the game especially, in terms of product branding and making the future of a product. Hence, hire some influencers who are the best in the marketing game, which your brand focuses on, and pay them to put the ad on their social media. This will help increase your brand reach, thereby helping it to reach thousands and millions, who would then be able to see what your brand and its products are all about and people will pop up on the website for sure, giving you more website traffic and multiplying your revenues for sure.

    How to Compete in the eCommerce Market?

    Every day is new and brings changes in people’s needs and desires. Luckily, this is where small and upcoming startups can still win in the midst of other eCommerce giants. Here, is how to compete in the E-commerce market.

    We are aware of how Amazon and eBay have driven many small and medium companies to extinction. But the other side of the reality is also that new interventions are always abundant and there’s always a new idea, product concept, or methodology that can topple the market leaders as we know them, or at least create a comfortably sweet spot in the market for themselves-which is just where your startup needs to reach.

    If your startup is introducing a new product or service altogether, there is a very different approach you might need to take as compared to a start-up that is re-offering the existing product or service to bridge the demand-supply gap.

    Be very clear as to who you are, what your offer is, and what your target is. Make sure that your core team and your entire organization have this understanding to ensure that the combined effort of the entire workforce maximizes the results.

    It is a hopeful time to be as Amazon and the likes do cater everything to everyone. But the digital age has made it possible for everyone to co-exist as people’s tastes are ever-evolving and start-ups targeting the niche will be able to carve out their own space.

    Read on for sage advice on how you can stand out in a crowded marketplace and reap the maximum benefit of being a newcomer to the industry.

    Create Your Own Service

    Your chance to be victorious in the game is to be an innovator and make your own market rather than depending on the existing marketplace. It is a harder approach to what you are already doing but will take you miles ahead of others.

    See a Need, Fill a Need

    We have seen time and again that certain brands launch big after years of testing and planning, however, once the brand is not received well they start to fizzle out. The ones who make it successfully are often seen using the feedback from the customers and dedicating some resources to perfecting common complaints and difficulties consumers are experiencing. They don’t quit, rather, they use real-time data as the major source of what the next step is inspired.

    In fact, building on what the customer conveyed as your shortcoming can also forge a trustworthy and loyal bond with them, which is a great way to market yourself. Instead of resisting the feedback, be open to them and make your way to their hearts by listening and acting on it. Create your own trend rather than following the norm.

    Champion the Mobile App

    Make sure that your customer is having a seamless mobile experience on your app and is likely to check out under 60 seconds after preparing the cart or choosing the service without any in-built interruptions. Fast times require faster solutions! In addition, make sure your startup belongs on platforms like Snapchat and Instagram that have made the visual world fun and directly accessible.

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    User-Centric Approach

    Design Thinking promotes that design is an elementary part of any system. Design your product, service, or systems within the organization always prioritizing the user needs and user practices.

    Get inside not just the mind of the end-user, but also their daily lifestyle, their influences, their dreams and aspirations, their environment, and their culture, depending on the nature of your services.

    Customer is more likely to trust your brand if they think you thought of them specifically while making the product or service. This gives them confidence that you will understand them and will stand as a good choice for them.

    Better Incentive Programs

    Your incentives can come in the form of discounts, rebates, points earned toward a discount, points earned toward prizes, or any of many other plans. The worst-designed incentive plans have ambiguity in the stated rules.

    An incentive is likely to shape your customer’s behaviour and drive them to your desired action. These incentives are thus, really valuable for an eCommerce company, especially if you are wanting to start an online store in India. If they are rewarded for their purchase, they feel like they ‘earned’ it. Keep a close eye on what other e-commerce companies in India are offering and if you are to compete with them, you must outdo their offer every time.

    Better Customer Service

    A common Amazon trait that has made it wildly popular in the e-commerce service is how they value each customer. Similarly, if you also want to start an eCommerce business, then you must first start to value each and every customer the same. While you can’t crush e-commerce giants given that they have bigger marketing budgets and bigger control of their product lines, operations and sales, it is certainly a trait you can imbibe in your company. Each satisfied customer means five people who will hear about you from him, which is great marketing for you at no actual cost.

    Customer Data Is The Key to Ultimate Business Growth

    A former Amazon company worker stated that Amazon has the ability to track both what people are buying as well as what they search for and can’t find.

    This is a part of their success story. Companies that use customer data to better their practices are more likely to increase their sales and their gross margins than those who ignore the data.

    Even if you don’t have big budgets to acquire data like e-com giants, do make absolute use of the behavioural data you already have in their database to improve customer satisfaction and customer retention.

    How do eCommerce Sites Make Money?

    Everyone wants an extra income to meet their needs and upkeep their standard of living. Furthermore, buying and selling goods and services via the Internet is the new trend to earn money, and the websites that make them possible are none other than Ecommerce websites. The Ecommerce websites are offering a free platform for the sellers and the buyers to get in touch with each other.

    One can easily list their products on e-commerce websites and potential buyers can buy the products hassle-free sitting in any part of the world. The whole online buying and selling chain appears to be a very easy and economical process.

    Although, you must have wondered as they offer free services to sellers and buyers then how these e-commerce websites like OLX, Quikr, Craigslist, and Gumtree make money online.

    E-commerce websites, such as OLX, Quikr, and other leading sites provide an online portal to advertise your product or service offerings and find the buyer for them.

    Almost all emerging e-commerce websites offer free services to users. However, they still make high-tech TV commercials and disburse lucrative salaries to their employees. How? So, let’s get the answer by analyzing the revenue-generating strategies of a few leading e-commerce websites and comparing their revenue plan with others.

    Olx

    OLX is one of the most popular and well-structured e-commerce websites. It offers a variety of features to its users, such as sellers can directly chat with a buyer, can easily bargain, etc. eBay is one of its competitors of OLX. OLX opts for the following methods to earn money:

    Google AdSense Banner Ads

    Google offers to all bloggers and website owners a very easy platform to get advertisements on their sites. Google AdSense is a platform where you can register your website and after verification, Google will show related advertisements. Hence, OLX  effectively runs Google ads to reach its target audience. The earnings through ads depend, upon the number of clicks they get which is called CPC (cost per click model).

    OLX offers a featured listing option to the sellers. Featured links are those links that you see on the top, whereas, in a normal listing Ads are placed in OLX depending on how recently the Ad has been placed.

    Featured Ads will always appear on top of the list irrespective of any factors. Ideally all such should be mentioned as featured/sponsored/ads so that users don’t get an illusion. In a featured listing, your ad will show up at the top of the search list and your ad will be shown first to the buyers whenever they search for anything on OLX. The sponsored links appear depending on the keywords targeted by the advertisers. Being at the top of the list gives advertisers a way to get more leads.

    Quikr

    Quikr is yet another e-commerce, which is very popular in India and somehow looks and works similarly to OLX. While the featured listing is one way to make money Quikr also follows a different route here.

    They also generate revenue by generating leads for businesses. It makes a gainful amount of money for Quikr. Recently Quikr has acquired a few startups to diversify in different fields like Jobs, spas, and salons where they provide leads to these service providers.

    Craigslist

    Craigslist is also a popular rental listing website. It is mainly popular in the USA. But the company doesn’t earn as much revenue when compared to other websites. The company only makes revenue equal to its operation charges.

    It charges $10 for a rental listing in New York and $25 for a job listing to occur in any of the major U.S. cities. If in the San Francisco area, you need to pay a $75 fee for a job to be listed.

    The company is trying to consider Google AdSense and paid advertisements to generate more revenue, but it is still worried about the quality and clutter on the website due to ads, which is the main priority of the company.

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    Other eCommerce Websites

    There are other similar eCommerce websites present, like Gumtree and BookSellBuy. They also earn through a basic business model, that is, by providing premium membership Ads wherein the features depend on their own model, by featured ads and paid listings. So, almost every website uses paid ads to generate money.

    Conclusion

    Now, building an eCommerce website is the trend. It definitely takes a lot of effort and hard work, but once created and branded properly, it will surely open a whole lot of doors for growth. It is not an easy task to run an e-commerce business in India in the current age of competition. Starting an eCommerce company or an eCommerce business in India is certainly achievable if one has the focus and grit to understand the customer and the people who are in the organization.

    Use your data efficiently and always make the customers happy at the end of each transaction. Comment on your favourite e-commerce site or your story of launching your own e-commerce site in the comment down below.

    FAQs

    What are the 3 types of e-commerce?

    The three types of Ecommerce are Business-to-Business (B2B), Business-to-Consumer (B2C), and Mobile Commerce (M-Commerce).

    What is the future of e-commerce?

    The eCommerce industry was last valued at $46.2 bn in 2020 and is expected to rise to $188 billion by 2025, and would soar to become $350 billion by 2030.

    Which is the largest e-commerce company in the world?

    Amazon is the largest e-commerce company in the world.

    How much does it cost to start an e-commerce business in India?

    To start an e-commerce business in India you need approximately at least 5 – 10 lacs of investment.

    How to start an eCommerce website, store, or eCommerce business?

    Whether you want to start an eCommerce store/site or an eCommerce business, it is evident that you first need to research the industry and the market potential before starting up. Starting an eCommerce company in India would need you to:

    • Build a fast, comprehensive, and informative website
    • Create a viable business and revenue model
    • Decide a relevant domain name
    • Host the website properly
    • Market your website, its products, and services
    • Monitor the performance

    What are some of the eCommerce business ideas?

    Some of the best ideas if you want to create an eCommerce website or an eCommerce business in India would include grocery delivery, cosmetic and beauty products eCommerce business, refurbished or second-hand products business, fashion, jewellery, food tech and more.

    What are some things that you should never forget while trying to set up an eCommerce business in India?

    Setting up an eCommerce business in India is the dream of many, but only some eCommerce businesses in India actually see the light of day. Here are some of the easiest steps that you need to remember while setting up an eCommerce company in India:

    • Chalking out a workable business and revenue model
    • Branding your brand well
    • Registering the business
    • Opening a bank account and linking the business to the same
    • Creating and launching a simple but secure eCommerce website
    • Installing payment gateways
    • Monitoring and improving the logistics

  • How to do Market Research for Your Startup?

    In 2021, the global revenue of the market research industry exceeded $76.4 billion, a growth of more than twofold since 2008. The annual growth of global market research revenue is 0.3%. It is great to have an idea that expects to capture the hearts and minds of consumers everywhere. Perhaps stumbling upon a service not offered by anyone else, hopefully, a service or product that is desperately needed might be the opportunity to start a successful business.

    However, before venturing into something, determine whether there is a need in the market for the product or service. Ascertain the needs and demands of the consumer by conducting market research and finding out if your business would be successful.

    Spending on Market Research Services Worldwide as of 2020
    Spending on Market Research Services Worldwide as of 2020

    Market research, a crucial step, is neglected by many business owners in product development. The sole reason to do so is to avoid any negative feedback regarding their business idea. Other entrepreneurs skip this process because they foresee it to be too expensive and time-consuming. However, you shouldn’t skip market research as it is an integral part of starting a business. To make it easier for all the entrepreneurs out there, here is a list of processes for doing market research.

    Market Research Methods
    Secondary Research
    4 Questions to Ask For
    How to Compare Data Collected?
    How to Spend Your Money on Market Research?

    Market Research Methods

    In Primary research, we gather information directly from the source i.e. the potential customers. Secondary research is the gathering of statistics regarding things related to the business or reports, studies and other data from organizations such as government agencies, trade associations and the local chamber of commerce.

    Secondary Research

    The vast majority of research that is conducted is secondary research and the best way to look for that would be the following.

    • A local library or the Internet
    • Reference libraries at public disposal or university libraries
    • Industry trade Associations
    • New magazines and newsletters
    • Government Guidance
    • Maps
    • Community Organizations

    Apart from this, an in-depth understanding is required of what’s essential to any business plan along with appropriate points for the venture to ensure the success of the startup.

    Market research aims to understand the reasons how and why consumers will buy a given product. It studies such things as consumer behaviour and consumer’s decision-making process, including how cultural, societal and personal factors influence that behaviour while buying a product.

    4 Questions to Ask For

    Questions to Ask For While Conducting Market Research
    Questions to Ask For While Conducting Market Research

    The basic questions we would try to answer while conducting market research are:

    1. Who are the customers of the business?
    2. What do they generally prefer?
    3. Why do they prefer a certain product instead of the new product or services being offered?
    4. What will make them consider the product being offered?

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    How to Compare Data Collected?

    Try to search for the closest match to the business for comparative analysis and consider these points:

    1. Companies of relative size and budget
    2. Companies serving the same geographic area as the proposed startup, which could be global if it’s a web-based business
    3. Compare with the companies with a similar ownership structure. If your business has two partners, look for businesses run and managed by a couple of partners rather than an advisory board.
    4. Companies which are relatively new and have started functioning recently because long-standing businesses are successful because of their 25-year business history and reputation.

    How to Spend Your Money on Market Research?

    Follow these steps to know how to spend your money on market research wisely:

    1. Determine what is required in the target market before starting up. The more focused the research, the more valuable it will be for the business.
    2. Prioritize the results carefully and closely for accurate data. It is obvious, you can’t research everything, so concentrate on the information that will give the best or quickest outcome for the business or startup.
    3. Review less-expensive research alternatives to save money. Small Business Development Centers and the Small Business Administration can help develop customer surveys in a better way. The trade association will have good secondary research and try to be creative as well as innovative.
    4. Estimate the cost of performing the research yourself to ensure accuracy and prevent overspending. Keep in mind that, while using the internet, spending a lot of money would not be necessary. Don’t pay for what you don’t need at all in the business.

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    Conclusion

    You need to consider your target audience and figure out your marketing platforms. Also, you should be aware of the latest trends and updates in your industry. Keeping these points in mind will ensure thorough market research for starting a successful business. Share this post with your friends and drop comments.

    FAQs

    How to Do Market Research for a Startup?

    1. Look at the Entire Industry and Potential Market.
    2. Analyze the Market Audience.
    3. Gain Insight into Top Companies’ Product and Digital Marketing Strategies and Tactics.

    What are the market research tools for startups?

    Tools of market research:

    • Semrush
    • ContentMine
    • KNIME Analytics Platform
    • Pickfu
    • Survata
    • Facebook Audience Insights

    What are the steps to do market research?

    The 5-Step Marketing Research Process:

    1. Define the Problem or Opportunity
    2. Develop Your Marketing Research Plan
    3. Collect Relevant Data and Information
    4. Analyze Data and Report Findings
    5. Put Your Research into Action

  • How is AI Transforming HR for Companies?

    Human resources are no less than a building block for organizations. A robust HR team can take companies and organizations to the next level; at the same time, a weak one can spoil established companies. It is vital to nurture and improve the human resources department. After all, this service line recruits the workforce. Stats show the AI market is expanding at a CAGR of 38.1% between 2022 to 2030. AI is claimed to be a top priority in their business plans by 83% of companies.

    Artificial intelligence is transforming HR by making it more efficient and unbiased. Contrary to what many people assume, AI has the power to enhance the concept of human contact in HR.

    Human resources deal with people and their attitudes. From planning to implementation, several processes come under the HR department. Making new policies, ensuring onboarding standards meet the standards, and whatnot— the HR service line also looks into labour relations, performance management, and job design. The HR team assists in achieving the mission and vision of an organization. The use of AI in HR will not only increase the efficiency of the company but also give employees more alignment with its objectives.

    Impacts on Jobs Due to AI in 2022 Worldwide
    Impacts on Jobs Due to AI in 2022 Worldwide

    As of 2022, the global AI market is valued at over $136 billion. Over the next 8 years, it is expected to increase by over 13 times. AI has and will have a heavy impact on job opportunities. It is estimated 2.3 million jobs will be created, while 1.8 million jobs will be eliminated by AI worldwide in 2022.

    What is Artificial Intelligence?
    How is AI Influencing Human Resources?
    Companies using AI for HR Management

    What is Artificial Intelligence?

    AI refers to Artificial Intelligence, a tech which enables computers to think and acts like a human. Organizations are using AI to improve productivity. AI takes decisions based on the input provided. It uses a certain kind of algorithm. With work-from-home culture now mainstream and organizations becoming people-sensitive, the need for AI is escalating.

    Most of the activities executed by HR are now being managed by AI. It empowers human resources to enhance contacts. According to a survey, 60% of organizations are using AI for talent management.

    Key Benefits of Artificial Intelligence
    Key Benefits of Artificial Intelligence

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    How is AI Influencing Human Resources?

    Uses of AI to Assist Workers in Their Organization as of 2020
    Uses of AI to Assist Workers in Their Organization as of 2020

    Artificial Intelligence in Daily Tasks

    AI can take over several tasks that the human resources department deals with on a day-to-day basis. It can give responses to prospective and current employees. It can also help with questions related to policies and procedures. And this is just the tip of the iceberg when it comes to AI’s capabilities. It can also free up time for HR professionals to focus on other work.

    Handling forms of different kinds, simplifying training sessions, and AI systems can execute various other tasks.

    For organisations, choosing the right talent is a crucial task since employees are the cornerstone to success. When it comes to skills, companies generally have some set of standards. AI can help the HR department to filter resumes as per the desired skill set. AI systems can screen resumes according to the data they are trained on. The department will then have to spend lesser time on the selection process.

    Providing Training

    AI can help new employees by providing efficient training. A conversational chatbot can be used for this purpose. Employees facing any difficulty can send messages to the chatbot. The latter will reply based on the way it’s programmed. Moreover, the chatbot shall give employees the flexibility to complete external and internal training according to their convenience. At times, employees don’t know whom to contact for queries. An AI-powered helpdesk can facilitate the situation.

    AI in decision Making

    Artificial Intelligence can help employees to understand their moods better. Due to workload, employees aren’t able to give their best at times. AI can be trained to provide personality and behaviour insights. Individuals can then use this system to facilitate decision-making.

    Employee Retention

    AI can help the HR team to analyze the reasons behind layoffs and retain more employees. Believe it or not, AI-based systems can help manage the workforce, and that too a satisfied one.

    AI can detect and analyze employees who are disengaged or unproductive. It can provide insights as to where the company is lacking, or why its people are discontent.

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    Appraisals

    Appraisals keep the workforce motivated. And the process should not be partial or biased. AI has a role to play here as well. It can ensure employees get the results in tandem with their performance. Giving appraisals or bonuses to the suitable candidate can boost productivity immensely. Moreover, appraisals require neutral thinking, something which AI is capable of.

    Companies using AI for HR Management

    Companies such as Google, Amazon, IBM, Unilever, L’Oréal, IKEA, Adecco, Hays, Deloitte, Vodafone, PwC, Oracle, TCS, Accenture, and Tech Mahindra have adopted AI for HR Management.

    Some AI platforms/tools for HR selection and recruiting are HireVue, Mya Systems, HiredScore, Wade & Wendy, AllyO, Textio, Turing, Toptal, Manatal, Skillate, TurboHire, Talenture, Fetcher, SeekOut, Zoho Recruit, Paradox, Humanly, Findem, hireEZ, AmazingHiring, Loxo, Eightfold.ai , Textio, myInterview, and Arya, Pymetrics.

    AI cuts time spent on CV verification, and other recruitment processes. The best eligible candidates are filtered out. Unilever, L’Oréal, and IKEA are the B2C using AI to transform their Candidate Sourcing Strategies.

    Company Name AI Hiring Assistant/solution Purpose
    IKEA Robot Vera Conduct interviews and send out
    customized follow-emails
    Unilever HireVue Assessments Hire the best and most diverse graduates
    among potential candidates
    L’Oréal Mya Filter out the best candidates among the
    received job applications

    AI adoption in HR is increasing. Here is a list of a few companies revolutionizing recruiting process using AI.

    AI platform/solution used Companies using the platform
    HireVue 700+ companies, including Unilever, Vodafone, PwC, and Oracle
    Mya Systems L’Oréal, Adecco, Hays, Deloitte, and more
    HiredScore Trusted by 40% of the Fortune 100: Intel, Dell, Domino,
    Johnson & Johnson, and more
    Wade & Wendy E-Trade, Randstad, Comcast, and more
    hireEZ Deloitte, VISA, Amtec, Wayfair, CommonSpirit, and more
    AllyO Walmart, Hilton, AT&T, FedEx, Arbys, and more

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    Conclusion

    The impact of AI on HR Management is now extending to use cases and problems hitherto unexplored. It is providing helping hands to people in their work. Health, finance, banking, computing, marketing, and management. Artificial Intelligence is penetrating every imaginable industry. With unbiased results and the ability to be improved further, AI is here to stay.

    FAQs

    How will artificial intelligence affect human resources?

    AI provides HR departments with an opportunity to improve the candidate and employee experience by automating repetitive, low-value tasks and freeing up time to focus on the more strategic, creative work that HR teams need and want to get done.

    What is artificial intelligence in human resources?

    At a high level, AI is a technology that allows computers to learn from and make or recommend actions based on previously collected data. In terms of human resources management, artificial intelligence can be applied in many different ways to streamline processes and improve efficiency.

    What is human resource transformation?

    Human resource transformation is the process of fundamentally rethinking and rechartering the HR function/department in the organization. If HR professionals do that, they become the “go-to” people to help operating managers address “people problems” they face in getting the organization’s work done.

    Can technology replace human resources?

    No, technology is not stealing human resources jobs; instead, it’s helping small businesses work more efficiently. Although apps and software eliminate some tasks, they typically aren’t enough to replace a person in the workplace.

    What are some benefits of AI?

    • 24×7 Availability
    • Saves time
    • Saves money
    • Reduces Human Errors
    • Removes human bias
    • Daily Applications

  • Evolution of Indian Banking System: A Comprehensive Study

    Archaeological evidence from the era of 2000 BCE shows the beginning of the banking system with the first prototype that engaged in giving grain loans to farmers and traders. It also proves that money-lending was also an activity carried out in India and China as well. The historical roots of modern banking can be traced to medieval and renaissance Italy.

    Function of Banks
    A Short History
    The Impact of Nationalization
    Liberalization – 1991 Till Date
    Evolution of the Banking Model – A comparison
    The Risks Attached
    What Does The Future Hold

    Function of Banks

    “Banking is defined as the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to conduct economic activities such as making a profit or simply covering operating expenses.”

    The primary role of a bank is to take in money, called deposits, pool them, and lend them to those who need funds. In essence, banks are intermediaries between depositors and borrowers.

    A Short History

    At the time, India won independence, and the major banks of the country were privately run. This created a potential problem as people from rural areas were dependent on money lenders for financial assistance.

    With an aim to resolve this issue, the government decided to nationalize these banks. Between 1969 and 1991, twenty banks, whose national deposits were more than Rs. 50 crores, were nationalized. The banks that were nationalized include the Bank of Baroda, Bank of India, Central Bank of India, Punjab National Bank, Oriental Bank of Commerce, UCO Bank, Union Bank of India, and many others. Also, the State Bank of India was formed in 1955.

    The Impact of Nationalization

    There were many other reasons and considerations behind the government’s decision to nationalize banks.

    • It led to an increase in funds and helped raise the economy of the country.
    • It increased the efficiency of the banks.
    • It helped boost the rural and agricultural sectors of the country.
    • It helped boost employment.
    • The profit of the banks was used by the government for the betterment of the citizens.
    • Competition decreased leading to increased efficiency.

    Liberalization – 1991 Till Date

    This was one of the biggest developments in the Banking sector. RBI gave licenses to 10 private sector banks to establish themselves in the country. These include ICICI Bank, HDFC Bank, Axis Bank, and IDBI Bank.

    This introduced a new era of the Banking model. As technology advanced so did the banking model evolve.

    Evolution of the Banking Model – A comparison

    Indian Banking Growth

    Until the 1990s, the banking sector in India had adopted the traditional means of banking and maintaining records manually. However, with the financial reforms since 1993, the Indian banking sector had to accept computerization in order to cope with the increasing overload and incompatibility of the manual system to sustain further growth.

    In 1993, the employees’ association of the Indian banks (IBA) contracted an agreement with the bank manager about the introduction of computerized applications in banks. This agreement was the major breakthrough in the introduction of computerized applications and the development of communication networks in banks.

    Once the technology was introduced into the banking sector, it saw unprecedented growth and advancement. Traditional means of banking were rapidly replaced by e-banking options –

    ATMs (Automated Teller Machines)

    Automated Teller Machines (ATMs) or 24-hour Tellers are electronic terminals that allow banking activities almost anytime. To withdraw cash, make deposits, or transfer funds between accounts, an ATM card / Debit card is utilized. It offers a host of functions –

    • Cash Withdrawals
    • Balance inquiry
    • Mini Statements for accounts
    • Cheque or Cash Deposit facility
    • Funds Transfer
    • Payments

    Telephone Banking

    Telephone banking is a service provided by a bank or a financial institution, enabling customers to perform various financial transactions without the need to visit a bank branch or ATM. These transactions do not involve cash or financial instruments such as cheques. Banks have upgraded their phone banking services enabling customers to avail of a whole host of services with the help of a Voice Response System (VRS)

    • Check account balance and statement information.
    • Transfer funds between accounts.
    • Payment of bills like utility, credit cards, mobile, etc.
    • Request cheque book or account statements.
    • Demand Draft request.

    Mobile Banking

    Mobile Banking refers to the provision and availability of banking and financial services with the help of mobile telecommunication devices. Mobile banking facility is offered by most major banks in India. This has made banking transactions easy and hassle-free. Customers can use mobile banking to view their account balance, make instant fund transfers and pay bills, etc. There are various types of mobile banking services i.e., SMS, USSD, and mobile apps. Some of the banks have incorporated services like loan approval and linking of insurance policy in their mobile banking apps.

    • Access to Account Information.
    • e-statement of account.
    • Loan statements.
    • Card statements.
    • Third-Party Money Transfers.
    • Payments via NEFT/IMPS/RETG/UPI/MMID.
    • Investments in various financial tools.
    • Opening fixed deposit/recurring deposits.
    • Portfolio management services.

    Online Banking

    Also known as Internet banking or web banking allows a user to conduct financial transactions via the Internet. It offers customers almost every service traditionally available through a local branch including deposits, transfers, and online bill payments. The most prominent advantages of online banking are:

    • 24/7 access and account service.
    • Speed and efficiency.
    • Online bill payments.
    • Cost-effective for banks.

    Other services

    The nature of banking services has evolved in the last 5 decades. Banks have also expanded their services to include various other peripheral services apart from traditional banking services.

    – Investment Options:

    Banks offer their own investment plans with a SIP option or one-time investment options which are, typically, stock market-related options.

    – Insurance Options:

    Banks have added a whole host of insurance options that they offer. Some options they offer are car insurance, house insurance, travel insurance, unit-linked life insurance policies, etc.

    The Risks Attached

    With advancements also come risks. The digitization of banks carries the same risks associated with the online internet world. There are security threats, privacy invasions, virus attacks, phishing scams, technological issues, money laundering risks, and many others.

    Of course, there are actions that can be taken by both the customer and the bank itself to minimize the threats but they can never be completely eliminated. Banks, in particular, must adopt a robust security plan and keep it upgraded at all times to protect the confidentiality of data.

    What Does The Future Hold

    The mobile and the wireless market has been one of the fastest-growing markets in the world.  The arrival of technology and the escalating use of mobile and smartphone devices have given the banking industry a new platform.  Connecting a customer anytime and anywhere to their money and needs is a must-have service that has become an unstoppable necessity. This worldwide communication is leading a new generation of solid banking relationships.

    At the pace at which technology is evolving, there is no way to know how the banking system will further evolve. The only certainty is that it will become more accessible and friendlier. It will grow to encompass other options and services for the benefit of its customers.

    FAQs

    What are the recent changes in the banking system?

    A recent change in the banking sector is the emergence of e-banking, which is crucial in offering better services to clients.

    What is the difference between traditional and modern banking?

    Traditional banking requires you to go to a physical bank branch in order to access your account. However modern banking, allows you to conduct transactions from anywhere with an internet connection.

    What was the aim behind the nationalization of banks?

    The aim was to encourage businesses in order to serve better the needs of the country’s economy.

    Which was the first nationalized bank?

    The first bank in India to be nationalized was the Reserve Bank of India.

  • Ecommerce- Business Models, Delivery Frameworks and Websites

    The e-commerce market in India is expected to reach $350 billion by 2030.

    On the other hand, mobile e-commerce sales are projected to exceed $710 billion in 2025.

    Due to the pandemic, a lot more people have started buying products online.

    All these stats show us that if you want your product to reach more hands you need to build your own online store.

    Nowadays, it’s very easy to create your website using tools like Shopify, Wix, or WooCommerce.

    Although to have a successful business you need to select the correct business model and delivery framework.

    You also need to select the right website that matches your business requirements.

    All these things can seem quite confusing.

    Don’t worry!

    In this article, I will explain to you all the popular and most used business models, delivery frameworks, and e-commerce websites with their pros and cons.

    I will also give examples so you can understand each concept easily.

    Without further ado, let’s get started.

    What Is an Ecommerce Business Model?
    Business to Consumer (B2C)
    Business to Business (B2B)
    Consumer to Business (C2B)
    Consumer to Consumer (C2C)
    Business to Government (B2G)
    Business to Business to Consumer (B2B2C)
    How to Choose Your Business Model?
    Delivery Frameworks for Your E-commerce Business
    Types of E-commerce Websites
    How to Choose the Best E-commerce Website?

    What Is an Ecommerce Business Model?

    Types of Ecommerce Business Model
    Types of Ecommerce Business Model

    An e-commerce business model refers to a company’s core strategy on how it will sell its products and services to the customers.

    The business model explains these 5 things:

    • What kind of products and services will you sell?
    • Who is your target audience?
    • How will you position your product and your business in the market?
    • What will be the anticipated expenses?
    • How will the business make a profit?

    Majorly, there are 6 types of business models.

    Each of these business models has its own benefits and challenges.

    Now, it is not necessary to operate on only one business model.

    You can simultaneously integrate several of them into your business.

    Business to Consumer (B2C)

    Walmart- An Example of a B2C Ecommerce Business
    Walmart- An Example of a B2C Ecommerce Business

    There are high chances that your product idea falls into this business model.

    This is the most used and successful business model.

    Business to Consumer is a process where you sell your products and services directly to your customers, with no middle person involved in it.

    Since you are directly dealing with your customers the decision-making process is much shorter compared to other business models.

    Buying products from an online store, eating in a restaurant, and getting a haircut are all common examples of B2C.

    In this model, you own an online store where customers can browse and order products from your website or mobile app.

    Once customers make the payment online you send them the products to their provided address.

    Now, it’s not necessary that you only have to operate online.

    You can use a hybrid approach where you sell the products both through an online and offline store.

    To provide a better buying experience to your customers you can even use the omnichannel e-commerce strategy here.

    For example, you can allow your customers to order products online and pick them up in an offline store.

    Customers can also return or exchange products they bought online at your offline stores.

    To increase your customer reach and sales you use online advertising, social media marketing, and email marketing.

    Business to Business (B2B)

    Mallory- An Example of a B2B Ecommerce Business Model
    Mallory- An Example of a B2B Ecommerce Business Model

    In the B2B model businesses focus on selling products to other companies.

    Most B2B transactions happen in the supply chain where one company may need raw materials from another company in order to manufacture finished goods.

    A transaction between a wholesaler and a retailer can be termed a B2B transaction.

    Manufacturing car parts and semiconductors are also some popular examples of B2B.

    Even though consumers are not the key people who participate in these transactions they are a critical component of why the B2B companies work.

    Some companies use both the B2C and B2B business model. They may have two different products for consumers and businesses.

    The whole B2B model revolves around networking and retaining existing customers.

    You need to contact the employees or founders of other companies and convince them to use your product.

    Finding businesses that need your help is a very big challenge here.

    Usually, the order sizes are very big and repeat orders are very common.

    For the B2B model to work, you need to have a strong internet presence like having a powerful and intuitive website.

    Consumer to Business (C2B)

    Shutterstock- An Example of a C2B Ecommerce Business Model
    Shutterstock- An Example of a C2B Ecommerce Business Model

    In the C2B business model, consumers sell products or services directly to the companies.

    Freelancers and affiliate marketers operate on the C2B business model.

    Freelancers can list their skills on a website like Upwork and mention what tasks they can accomplish, how much time they will take to do a task and what price they will charge.

    Businesses can look for skilled service providers for their tasks on Upwork. They can pay these freelancers for a specific task and get their work done within a few days.

    This is how the C2B business model works!

    Another example of C2B can be a gamer who shares an affiliate link to a gaming console on his  YouTube channel.

    Consumers get the freedom to set their own prices and businesses get the opportunity to work with people with different backgrounds and expertise.

    Consumer to Consumer (C2C)

    Etsy- An Example of C2C Business Model
    Etsy- An Example of C2C Business Model

    The rise of the internet and e-commerce gave birth to the C2C business model.

    In this model, consumers sell products directly to other consumers using third-party websites like eBay, Etsy, Alibaba, and many more.

    These websites make money by charging transaction or listing fees.

    The e-commerce marketplaces like the ones mentioned above allow small-scale business owners to sell their products without the hefty upfront cost of setting up an online store.

    If you decide to make a website that uses the C2C model you need to take care of quality control, payment handling, delivery, and resolve all the issues between the two parties.

    You also need to make sure that both the buyer and seller don’t get cheated and get a good product and a fair price.

    You also require advanced technology.

    Many other companies have tried to use this business model but failed terribly due to an unstable business strategy.

    We are not saying that you shouldn’t use this model.

    But, if you want to operate on a C2C model you need to have a smart business strategy that satisfies your customers and generates profit for you.

    Business to Government (B2G)

    Senseware- An Example of a B2G Ecommerce Business Model
    Senseware- An Example of a B2G Ecommerce Business Model

    In the B2G model businesses sell their products or services to federal, state, or local government agencies.

    An ammunition manufacturer building guns and missiles for the government is an example of a B2B model.

    Let’s understand how this model works.

    First, the government will submit a proposal (RFP) according to its project requirements and timeline

    As an e-commerce business, you need to bid on these projects.

    Since you are working with the government you need to deal with bureaucracies and the pace of the project is usually slow.

    As you might have guessed, government agencies don’t use e-commerce sites to place orders.

    Although a local government agency can go to an e-commerce site to place an order for a part required to complete a particular project.

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    Business to Business to Consumer (B2B2C)

    Instacart- An Example of B2B2C Ecommerce Business Model
    Instacart- An Example of B2B2C Ecommerce Business Model

    When one company sells its products and services to the end users in partnership with another company it is known as the B2B2C business model.

    It is a combination of B2C and B2B.

    In this model, three parties are involved: the primary brand (who is making the products), the middleman, and the customer.

    The customers are aware that they are buying products from the primary brand.

    For example, a financing company may partner with an electronics store where they will allow customers to buy products in EMIs.

    Here, the customers know that they are getting money from another company.

    This business model is mainly used to acquire new customers.

    How to Choose Your Business Model?

    Things to Keep in Mind While Choosing a Business Model
    Things to Keep in Mind While Choosing a Business Model

    Consider the following factors while selecting a business model.

    Understand Your Customer Needs and Buying Patterns

    When you are selecting the business model for your company you need to prioritize your customer’s needs over anything else.

    Instead of choosing a business model which makes selling products easier, use a model that makes sense for the customers buying your products.

    Find answers to these questions:

    • What kind of problem your product is trying to solve?
    • Are your customers willing to spend money to solve the problem?
    • What return on investment do your customers get by using your product?
    • What are the demographics of your customers? Divide them on the basis of age, gender, religion,  interests, and income.
    • How often do your customers purchase products?
    • How much average money do your customers spend?
    • Do your customers make high-end purchases or buy the same product again and again?
    • Are they making payments using EMI or paying the full amount using a debit/credit card?

    You should also focus on customer relationships. Find the answer to this question as well:

    • How can you acquire or retain customers?

    If you find answers to all these questions you would be able to make a customer avatar for your product.

    Analyze The Market

    Understand how many competitors are there in your niche and how much profit they are generating.

    Analyze their pricing strategies. You don’t want to charge too high or low.

    Find out how many potential customers are there in the market.

    Find the USP of all your competitors.

    Figure out what kind of business model they are using and if their customers are happy buying the product from them.

    Find your competitor’s strengths and weaknesses.

    Conduct a survey and understand what the customers like and don’t like about your competitors.

    To incentivize people to fill out the survey you can give them free vouchers for popular e-commerce sites like Flipkart or Amazon.

    You can even read product reviews of your competitors and find out what is lacking in their products and business model.

    Consider Your Value Proposition

    What is the one thing that makes you stand out in the market?

    What is the one thing that makes your product special?

    If your product doesn’t have a USP your business would be crushed by your competitors.

    Answer this question and you will find your USP: How will your product solve the customer’s problem?

    Find out your value proposition and build a business model around it.

    Calculate the Operating Cost

    Let’s say your operating cost is very high and you cannot charge a high price to your customers because you know that they won’t pay a premium price.

    In this scenario, you can immediately change your business model or find out cost-effective ways to manufacture products.

    Finding out your costs and profit margin early on will help you save money in the future.

    Consider the Scalability

    In the future, if your business model cannot help you to increase your sales and revenue then you shouldn’t use such a business model.

    If you don’t consider the scalability factor your business would stop growing after a certain point in time.

    You Can Play With Your Business Model

    This is bold advice and this may not apply to every business.

    I am not saying you should constantly change your business model.

    Instead, if you feel that you may want to test out two different business models or integrate them together you can definitely do that.

    You can try two different business models on a small set of audiences or on two different locations and analyze which one is working the best.

    Give attention to your first few customers. Ask them for reviews and then decide which business model to use.

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    Delivery Frameworks for Your E-commerce Business

    After selecting your business model you need to determine which delivery model you would use.

    The following are the top 5 delivery frameworks that you can integrate into your business.

    Dropshipping

    Dropshipping Model
    Dropshipping Model

    There are high chances that you might have heard about drop shipping in some ad or YouTube video.

    This is because dropshipping has become the favorite delivery model for a lot of entrepreneurs.

    In dropshipping you directly buy products from the suppliers and manufacturers who then ship the products directly to your customers.

    Let’s say you decide to sell men’s wallets.

    You find a supplier who sells you quality wallets for Rs 500 including the shipping costs.

    You list all those wallets on your online store for Rs 900 with free shipping.

    When someone places an order in your store you then place the order with the supplier at their wholesale price.

    The supplier ships the product directly to your customers.

    Here, you make a profit of Rs 400.

    You are not dealing with the warehousing of the products nor do you have to focus on packaging and shipping and tracking the inventory.

    You are only focusing on marketing and positioning the products.

    Now, you may ask why don’t the customers directly buy from the supplier.

    Good question!

    Manufacturers and suppliers typically sell in bulk and they will mostly sell to businesses and not give wholesale prices to regular customers.

    Another reason is that people buy products because of marketing, brand value, and customer service.

    Since manufacturers don’t focus on the above things people would prefer buying from a drop shipper.

    Pros of Dropshipping

    • Since you are not focusing on warehousing, packaging, and shipping there is a very low capital required.
    • You can sell and test a wide range of products.
    • You can set up your business anywhere with an internet connection.

    Cons of Dropshipping

    • Since you are not paying for warehousing and inventory the profit margins are very less.
    • You have zero control over the supply chain.
    • If the customers receive damaged or lower quality products your business reputation will get damaged.
    • Since a very low capital is required there is fierce competition.
    • You will not build a brand because you are selling products of other companies. In the end, the product that they will purchase will have the logo of the other company.
    • There is very limited customization.

    Subscription Service

    In the subscription-based model, you regularly deliver products to your customers and get timely payments from them.

    It was traditionally used to deliver newspapers and magazines.

    But, now it is used in every other industry.

    Instead of using it as a standalone delivery model, I will recommend you to integrate it with other delivery models.

    There are 3 most common types of subscription services:

    Replenishment subscription service

    Here, you are selling essential consumable products like shaving cream and body moisturizer.

    Curation subscription service

    In this model, you are selling a collection of products based on individual customer needs and wants.

    Examples of this can be sending beauty products or dresses based on your customer preferences.

    Access subscription service

    Customers buy memberships in this model.

    Generally, businesses give hefty discounts on their memberships to get more people on board.

    Selling organic healthy snacks is an example of this model.

    Pros of Subscription Service

    • Customers repeatedly buy products that generate consistent income for you.
    • You can easily forecast how many sales and revenue you will generate.
    • Planning the inventory becomes easy.
    • You can build strong relationships with your customers.

    Cons of Subscription Service

    • For many people signing up for a subscription is a huge commitment and that is why selling subscriptions is sometimes very hard.
    • You need to constantly innovate and provide quality products to your customers regularly. Even a small mistake can lead to the cancellation of the contract.

    Wholesaling

    In wholesaling, you sell products in bulk to other businesses or retailers at discounted prices.

    It is mostly used in the B2B space but it can also be integrated with the B2C model.

    Pros of Wholesaling

    • You don’t have to spend your time and money on marketing and advertising your products.
    • You get a fixed profit margin.

    Cons of Wholesaling

    • You need a lot of capital.
    • You are responsible for warehousing, managing inventory and products, shipping, and tracking customer orders.

    Private Labeling

    In private labeling, you hire a third-party manufacturer to create your products.

    The product idea is yours but, the making is done by someone else.

    Once the products are made you can either tell the manufacturer to ship the products directly to the customer’s house or get the products in your warehouse and manage the supply chain yourself.

    Selling cosmetics or personal care products like shampoo is a good example of private labeling.

    Pros of Private Labeling

    • You can create your brand without having to invest in factories and inventory.
    • You don’t have to spend a lot of time and time on product development and can focus on marketing, branding, and customer service.
    • It is a great way to test your products in the market.

    Cons of Private Labeling

    • You are entirely dependent on the manufacturer. So, if there is any kind of delay or if the third party creates a low-quality product you have to carry the losses.
    • Most of the privately labeled manufacturers have the minimum order requirement. This means that you need to purchase more than you need.

    White Labeling

    In white labeling, you are buying products from a third-party manufacturer and selling them under your own brand name and logo.

    So, when customers buy the products they think that it has been manufactured by you.

    Pros of White Labeling

    • Since you are not developing the product from scratch the initial investment cost is low.
    • White labeling allows you to jump on an ongoing trend.

    Cons of White Labeling

    • Most of the white-labeled products are generic and there is a high chance that other businesses are also selling them. This means there is huge competition.
    • Since you are not manufacturing the product yourself you have zero control over the quality of the products.

    Types of E-commerce Websites

    To have a successful e-commerce business you need to select the right website that suits your requirements.

    After all, people would be buying products directly from your website and that’s why it is crucial to select the right one.

    Here, are the top 3 e-commerce websites that you can use.

    Single Brand Websites

    An example of a single brand website. The website innocentdrinks.at sells the health and beverage products of the one brand only named innocent.
    An example of a single brand website. The website innocentdrinks.at sells the health and beverage products of the one brand only named innocent.

    If only one seller or business is selling their branded products on an online store it is known as a vendor-specific or a single-brand website.

    Creating an online store using Shopify or WooCommerce is an example of such a website.

    When you create a single-brand website you have complete control over the pricing of the products.

    Marketplaces

    Amazon.com- an Example of the Marketplace Website Type.

    Marketplaces can be divided into 2 categories: One marketplace operates on the B2C model while the second one uses the C2C model.

    The marketplace that operates on a B2C model has numerous sellers selling different types of products on a single website.

    The owner of the website is a completely different person.

    Hosting, maintenance, and backend development of the website are handled completely by the owner.

    Whenever a seller sells a product via the website the site owner gets a small percentage of the revenue.

    Flipkart and Amazon are great examples of retail websites.

    In contrast to the single brand website, you have little control over the website and have to strictly follow the rules and regulations of the website.

    If you break any of the policies you wouldn’t be allowed to sell on the site.

    Since you are competing with dozens of sellers it would be difficult to rank for a particular product keyword.

    If you are new to the e-commerce business you can start with the retail website since you don’t have to build the store from scratch.

    You can also use it to test the demand for the product or operate both on a single-brand website and a retail website to get a wider reach.

    The marketplace that operates on the C2C model allows consumers to sell their products to other users.

    An example of this can be OLX or eBay.

    Here, everyone can instantly make an account and start selling their products immediately.

    How to Choose the Best E-commerce Website?

    A single-brand website gives you more control over how your website feels and how your products are displayed in the store.

    It is a great way to start your business since you can experiment a lot and build a brand.

    Shopify and WooCommerce have made making an e-commerce store very easy. Choose a theme, add your products and you are good to go.

    Marketplaces give you a wider reach and you don’t need to worry about hosting and maintenance of the site.

    Even if you start your journey with a marketplace your aim should be to transfer your business to the single brand website.

    I would highly recommend you use both the single brand website and marketplaces to grow your business.

    The above graph shows the most popular eCommerce platforms used for eCommerce websites in percentages from source fisrtsiteguide.com
    The above graph shows the most popular eCommerce platforms used for eCommerce websites in percentages from source fisrtsiteguide.com

    Conclusion

    When you are choosing your business model, delivery framework, and website it is very important to think from the point of view of your customers.

    In the end, they are the ones who will buy your products.

    Look at your competitors and understand what is working and not working for them.

    At the same time don’t forget to experiment.

    Whichever business model you will choose you will face difficulties at the start.

    So, don’t lose hope and keep working hard.

    FAQs

    How many types of e-commerce business models are there?

    There are 6 types of e-commerce business models:

    • Business to Business (B2B)
    • Business to Consumer (B2C)
    • Consumer to Business (C2B)
    • Consumer to Consumer (C2C)
    • Business to Business to Consumer (B2B2C )
    • Business to Government (B2G)

    What are e-commerce frameworks?

    E-commerce framework refers to the type of software or application used to build the e-commerce store.

    How many layers are there in the e-commerce framework?

    The eCommerce framework has a three-tier framework. Their structure consists of a client-side system, a service system, and a backend system.

    What is the 5 C model of E-commerce?

    The 5 C’s of the eCommerce model are “company”, “Collaborator”, “customers”, “competitors” and “context”.

  • A Complete Guide on How to Use the Social Media Platforms for Affiliate Marketing?

    Affiliate marketing has always been an excellent way to monetize online traffic and earn a decent commission. Only the way people conduct affiliate marketing kept changing. If you have searched for ways to make passive income online, you must have come across affiliate marketing as a common suggestion.

    It is a performance-based marketing tactic wherein affiliate marketers are given a commission(s) for every successful sale they make. The sale can be conducted through any medium, i.e., email marketing, ads, blogging, social media, etc.

    Of all the mediums, social media opened massive avenues for affiliate marketing enthusiasts to begin their journey. Since social media platforms are free to join and easy to use, more people can try their hands at affiliate marketing. But is selling through social media channels this easy? Well, not really. You cannot expect to publish an affiliate link and expect people to buy from it.

    You will have to create a social media plan, get the necessary tools, and be consistent with your effort to see any results. If you’re starting, you can follow some tried-and-tested methods discussed in this article. When executed correctly and consistently, the results can be impressive.

    What Is Affiliate Marketing & Who Is It For?
    7 Ways to Use Social Media to Generate Affiliate Sales
    Social Media Has Opened Floodgates of Opportunities for Affiliate Marketers

    What Is Affiliate Marketing & Who Is It For?

    Affiliate marketing can be best defined as a Cost-Per-Action (CPA) affiliate model wherein affiliates (content creators) are given a commission for every successful sale by brands. Whether you’re an online content creator or a brand offering products/services, affiliate marketing creates a win-win situation for both.

    As per the data shared by similarweb.com, affiliate marketing generates approximately 5% to 25% of the total online sales for some of the world’s biggest brands, so you know how powerful it is. You can earn a hefty commission(s) as a creator by successfully selling a brand’s products to your dedicated audience. On the other hand, brands can generate more sales by simply paying a percentage of sales to the approved affiliates.

    So whether you’re looking forward to earning some extra passive income as a creator or want someone skilled to sell your products as a brand, affiliate marketing is the way in the future.

    7 Ways to Use Social Media to Generate Affiliate Sales

    The best part about affiliate marketing is that it can be done via any medium. Earlier, affiliates relied heavily on blogs and email marketing to promote affiliate products. But the advent of social media offered a newer and better avenue to attract and build a target audience.

    As per Similarweb.com, 67% of affiliate marketers use social media as a tool to connect with their customers
    As per Similarweb.com, 67% of affiliate marketers use social media as a tool to connect with their customers

    If you combine the total number of social media users on platforms like Facebook, Twitter, Instagram, etc., the figure surpasses an astounding 4.5 billion mark as per the data shared by wearesocial.com. With so many people online, you cannot risk not leveraging social media platforms to your advantage. If you’re an affiliate marketer trying to get sales from social media platforms, the following tried-and-tested methods can help you get visible results.

    Leverage Niche-Specific Groups

    An Example- Yoga specific Facebook Group
    An Example- Yoga specific Facebook Group

    Social media platforms like Facebook have countless groups created around particular interests. So if you’re promoting affiliate products in the yoga niche, look for groups built around yoga, health, wellness, and similar topics.

    Joining such groups will give you instant access to people who would be interested in buying the products you’re promoting. If you’re in for a long-term game, ensure you don’t spam niche-specific groups.

    It will only increase your likelihood of getting banned from the group. Instead, focus on delivering value to the people inside the group, and making sales will become much easier. You can check the next point to learn how to sell in social media groups without spamming and getting banned.

    Emerge as the Community’s Influencer

    An Example- Leah is a digital content creator as well as an affiliate marketer of beauty and health products
    An Example- Leah is a digital content creator as well as an affiliate marketer of beauty and health products

    When it comes to online communities, you can either create one from scratch or join an existing community. The former option would easily require a lot of time, so you might consider joining an already well-established online community. Once you get approved in such communities, your focus should be on providing value around the topics related to your affiliate products.

    Direct publishing of affiliate links will mostly lead you to a permanent ban from the group, so you should focus on establishing yourself as a trusted influencer. You can achieve this feat by consistently sharing helpful posts, assisting people through comments, etc.

    Once people know you, start incorporating affiliate products in your posts and describe how they helped you. The more problems you solve for your target audience, the more sales you’ll make.

    Be Consistent with the Delivery of Attention-Grabbing Content

    It can be an extension of the previous point as both will touch lines with sharing highly relevant and helpful content. Whether you’ve decided to join niche-specific communities on Facebook or have planned to build an audience on your personal Twitter or Instagram profile, one thing will remain unchanged, i.e., the need to share helpful and attention-grabbing content.

    A golden rule of affiliate marketing is one should never try to force sales. The affiliate should focus on solving the problems using an affiliate product, and sales will follow. You can do this by being consistent and creating niche-relevant content that is engaging, crisp, and attention-grabbing.

    You can get better results if you can incorporate storytelling in your content pieces. Those starting can follow established affiliate marketers and replicate their content format. It can be altered as you advance.

    Make Your Content More Visual & Engaging

    An Example- The website bestrookbox.com is an amazon affiliate site with many engaging visuals
    An Example- The website bestrookbox.com is an amazon affiliate site with many engaging visuals

    Good-quality images always catch people’s attention. Affiliate marketers who incorporate high-definition images in their content always receive better conversions.

    You can include pictures of the product you’re promoting or add any other image related to the topic you’re talking about. Relevant images paired with attention-grabbing content always give the best results, so try it out.

    If you’re a beginner and don’t know how to integrate images with ad copies or other text content, follow some Amazon or eBay affiliate marketers to study and understand how they do it. You can begin by replicating their process, but it should be customized as you advance.

    Create Short URLs for Affiliate Products

    Affiliate marketers should always use link-shortening services to make their work easier. Original links to affiliate offers are long and may look like spam to most. Always post shortened URLs online if you don’t want the URL structure and length to hinder your affiliate sales.

    Whether you use Facebook, LinkedIn, Instagram, Twitter, or any other social platform, attach links with your content that look short, neat, and professional. Bitly, Rebrandly, TinyURL, and Shor.io are some link-shortening services you can consider.

    Promote Quality Offers

    If you’re serious about earning from affiliate marketing, you should focus on finding and promoting offers or products that are highly relevant to your target audience. Selling junk products can get you sales in the short run, but it won’t be sustainable.

    To become a good affiliate marketer, you should always search for quality affiliate offers that can sell like hotcakes on social media. You should never accept any random affiliate offer coming your way as a beginner, as it can affect your long-term goals.

    Use Social Media Tools

    Affiliate marketing can be arduous if you don’t have the right tools for the trade. For example, you may fail to come up with interesting content ideas for your social media profiles if you don’t have access to tools like Buzzsumo.

    BuzzSumo Website
    BuzzSumo Website

    Capturing emails of people interested in your promoted offers can be challenging if you don’t have a good email capturer like OptinMonster. The market offers different tools to solve your affiliate market problems. This method can help you improve affiliate sales indirectly.

    You just need to identify what you need and invest in those tools. For starters, you may consider getting click funnels or Unbounce landing page builders to hosting your offers. A chatbot like Mobilemonkey to actively engage with the audience and generate leads, bitly to shorten affiliate links, and email marketing software like convertkit to build your email list and promote your offers.

    Social media provides ample opportunities for affiliate marketers to build a loyal audience and earn from it. But only a few manage to leverage it correctly. Whether you’ve just started your affiliate journey or are finding it challenging to make affiliate sales, following the methods discussed above will bring noticeable results.

    Social Media Has Opened Floodgates of Opportunities for Affiliate Marketers

    Promoting and selling products to a target audience online is not as simple as it seems. You will have to put in consistent efforts, give time, and invest in the right resources to start making serious income from affiliate marketing.

    However, if you have little investment but can dedicate time to shaping your career as an affiliate marketer, social media platforms can help you greatly. These social media platforms have billions of people, so finding the right audience for your affiliate programs is no longer a challenge.

    The above graph shows the daily active user count of multiple social media platforms as per the data showed by Google
    The above graph shows the daily active user count of multiple social media platforms as per the data showed by Google

    But how you will attract your target audience, initiate a conversation, and make sales is what matters the most. There can be endless ways to use social media to your advantage, but you will have to start with a few proven methods.

    To help make your journey easier, we’ve covered some practical and timeless ways to help you get started. Follow all the techniques for at least a few months to know what works best for you. With time, you will gain clarity, and you can also start experimenting with newer ways to close sales on social media.

    24 Best Tips for Social Media Marketing
    Social Media Platforms has now become top platform for marketing. These Tips for Social Media Marketing will help you ace social media marketing.
    StartupTalkyTanusha Verma

    Conclusion

    Social media is not restricted to one use, instead, it has many potential ways to help in different tasks like lead generation, affiliate marketing, etc. Use social media for affiliate marketing, there are multiple ways one can prefer to take help form.

    A complete guide on how to use social media platforms for affiliate marketing is given above with the addition of tool names where required. The guide also contains few examples of the methods and some basic tips over them.

    FAQs

    Which social media platform is best for affiliate marketing?

    The universal social media platform that is almost used by everyone is Facebook. Hence, Facebook is considered the best option to choose for affiliate marketing.

    Does Instagram allow affiliate marketing?

    Yes, Instagram does allow affiliate marketing for the users with the only condition of being compatible with their terms and conditions.

    What should a beginner do in affiliate marketing?

    Being a beginner in the field of affiliate marketing one needs to start by considering the platform for the affiliate marketing followed by selecting a particular niche you might be interested in. The next step involves searching for better affiliate marketing options in your niche that you can, later on, add with quality content on your selected platforms.

    One can promote their affiliate link on social media platforms in multiple ways. Some of them are selecting the most popular social media platform in order to join the niche-related community, taking help from social media influencers or becoming one by self, keeping up with the available resources and quality-based offers, etc.