In today’s era, starting your own online business may not seem like a big thing to do for starters but when you start to dig deeper, you get to realize more about the challenges that come with it rather than the profits that you may or may not make in the future. If you are someone who has got no clue about how an online business platform works, Amazon might be a good place for you to begin with. Compared to other online business platforms, Amazon has got fewer requirements for its registration, making it easier for any user to open an Amazon Seller Account and start their business within the period of 2-3 days.
For those with their own registered company, all they need is PAN, TIN, and GSTIN to register themselves as Amazon Seller. In case you don’t have a company but you still want to keep your products for online sellers, this can be made possible if only you happen to be doing business on exempt, local and handmade goods. If your goods fall under such category, then you can easily register yourself on Amazon as a seller just by submitting your PAN and GSTIN. All this has been made possible because of Amazon Standard Identification Number (ASIN) which is provided for such goods for their identification purpose by the Amazon.
The next great reason why you should go to Amazon is that of its fast and reliable response that it provides for both its customers and sellers. Amazon has got the separate department of service associates created for dealing with its customers as well as sellers. Due to their effective methods, it becomes easier for them to provide their sellers as well as customers with excellent services. Even if you are a beginner, the seller service associates of Amazon will guide you from listing of your products until the time when you have completely established yourself as an Amazon Seller.
Once your product gets online, it becomes your duty to ship the items ordered by your customers on time. For this problem of yours, Amazon has got a simple solution to it. There are two ways a seller can ship the ordered items to its customers. By using the Easy Shipping services that Amazon provides to its sellers for delivering of ordered goods to its customers, you don’t have to worry about the risk regarding your product’s safety. More than that, your product gets delivered on time. Another way to do so is by making use of other private courier services which will be at your own risk.
For those who are facing storage problems with their goods and who are neither good at packaging nor shipping of their products on time, this is what you can do. There exists something called Fulfillment By Amazon (FBA).It’s a kind of warehouse service that Amazon provides to its sellers in different states of India where they store your goods for a minimal fee depending upon if your product size is bulk, medium or small. By making the use of such service, as a seller, you don’t have to worry about on-time delivery of goods ordered by your customers since Amazon takes the full responsibility of storage, packaging, shipping and delivering of your product for your customers.
Now, let’s find out about the challenges that an Amazon Seller has to face for trying to sell his goods on an Amazon platform. Due to all the high and overrated fees such as Referral Fees, Fixed Closing Fees, Shipping Fees and all the hidden charges that Amazon applies to its sellers including GST, a seller is forced to keep high prices for all the products that are online compared to the market price which is very low. For example, if the market price for a soap is RS.30, when you try to sell the same thing on an online platform, the price of that thing goes from RS.30 to RS.80.Now, why would a customer pay extra RS.50 for something that you can easily get in the market for RS.30?
Even the customers of India are so smart then you can ever imagine. Amazon’s 15 Days Return/Exchange Policy has opened a huge gate for all the customers around the world to take the full advantage of sellers who have got no clue about why their online business is going on a complete loss. In India, there are customers who literally place an order for a product online keeping in mind that they are going to return it back exactly on the 14th day. See. How smart people can be. Don’t worry. They are not going to remove the tags from their new apparels that they have ordered online as removing the tag will cause them to keep the product with them only. So instead of removing the tag, they will hide it inside their pockets. Till 14th day, they will just go where they have to go to by wearing the same dress that they have ordered online such as in their friend’s wedding, parties, pubs and many places that you can’t possibly imagine about. So in this case, the problem is not related to Amazon but the customers and they’re over smart.
Due to such act of customers, the sellers of Amazon are facing loss in their online business as Amazon deducts both shipping and returning charges of the product from the seller’s account. So instead of making the profit, the seller goes on a loss. It’s good that Amazon has kept 15 days return/exchange policy thinking about its customer’s needs and satisfaction but such policy should not be applicable for every product that is available online in Amazon’s platform. The statement that I am trying to make is why Amazon has kept its return policy even for a product that costs less than IRS.200? What will the seller benefit if a customer returns that same product to the seller before 15th Day? Such kind of policy should be applicable only for products having high sale prices. This policy should not be applicable to the products which range below IRS.1000 and less. For example, a seller who is selling a Silk Saree worth IRS.5000 will be able to afford the loss of IRS.500.But for a seller selling a Kurti of IRS.500, even a loss of IRS.50 is crucial as he can’t afford such losses.
I am not saying all customers are same. There are some sellers on Amazon as well who would send stones to their customers instead of an iPhone so I probably don’t have the right to judge anyone or anybody. In this world of business, every wrong becomes right at the end as it all comes down to profit that you have made at the end of your day. I hope this article of mine will be helpful to support you in starting your own online business one way or the other.