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shine mangalore (advocate)     30 November 2011

Business online

Sir/Madam,

My client wants to start a business online by selling some home made products. Can he start his own website? whether it is free or paid one? What are the applicable taxes or how taxes are collected?what are the rules or laws he has to comply with?whether TDS is applicable? PLease let me know the answer at the earliest.

Thanks in advance.



Learning

 7 Replies

ABHIJEET PARIKH (Bcom LLB MBA)     30 November 2011

hi 

In case of home made productsand selling it online ur client will be exposed sales tax , transportation charges in order to deliver the same to customer 

a website shud have credit card payment facility and it shud strongly encrupted that online mechanism will be costly

apart from that ur client will also remain expose to VAT, Exise duty etc

what kind of concern ur client trying to establish the above things mentioned are broad outlines

Regards

Abhijeet

1 Like

shine mangalore (advocate)     30 November 2011

Hi

Thank you Abhijeet.

He is selling herbal products   like soap, herbal intakes etc. Should he have trade mark for the same?

Please guide........

ABHIJEET PARIKH (Bcom LLB MBA)     30 November 2011

If he is selling herbal product then he shud get approval of Indian Ayurvedic Council ie some regulator approval to sell herbal product it is important especially if he is mfg the herbal product 

Even if he is buying herbal raw material from outside and selling it under his different brand such an approval is required 

He can go for trademark registration to maintain its brand name 

If he is exporting to USA the US FDA approval will be required 

Regards

Abhijeet

1 Like

Rajesh Hazra (Mediator and Legal Counsel )     01 December 2011

Rightly advised by Advocate Abhijit.  you also need to register your marks with the local Trademark Registry.

Regards

1 Like

Manish Singh (Advocate)     07 December 2011

Dear Shine

In order to be eligible to sell or enagged in trading of herbal products, you are required to obtain a license under The rugs and Cosmetics Act, 1940 from Central Drugs Standard Control Organisation. 

You do not need any approval from the Ayurvedic Board.

You can trade online after having compliaces with tax statutes and other guidelines as applicable. 

 

shraddha Shukla (Practicing Company secretary " Corporate Law Consultant")     07 December 2011

  1. Building a website
  2. Creating content for your website that will draw people
  3. Getting traffic to your website
  4. Using e-mail to keep your existing customers
  5. Earning money from your online business

For the purposes of this introduction, I'll be focusing on the last -- earning money from your online business -- and letting you know how I can help you there.

First, let me tell you what I do. I provide information about Internet marketing in the form of articles, annotated links to key articles, newsletters, books, and seminars. Here's how the site is organized:

 

  1. Web Marketing Today Free Edition is our e-mail newsletter published to 95,000+ confirmed opt-in subscribers , which is designed, over time, to help you learn your way around Internet marketing. Each week I bring you a short article or two. Within a month or two you'll be getting your bearings. Why don't you subscribe right now and browse the recent articles? You can also search my articles for keywords using the search form at the top left of every page in the site.
  2. Web Marketing Today Premium Edition gives you get a ton of key e-books in Internet marketing that are worth several hundred dollars. It's a tremendous deal for only $49.95 annually, but since you're just getting started, look at the free stuff first.
  3. Books. I've written more than a dozen books on all facets of Internet marketing. John Wiley and Son published my Planning Your Internet Marketing Strategy -- a good place to start. I've also written self-published books on shopping carts, e-mail marketing, landing pages, promoting a local business, and starting an e-business on a shoestring. You'll find lots of wisdom collected in these books. You can download most as e-books or order print copies.
  4. Annotated Links called the Web Marketing Info Center, are comprised of more than 21,000 articles and resources about Internet marketing. Every month my team and I scour the Internet for new articles and resources on 105 topics. The database of annotated links includes the author, title, publication, date, URL, and a brief synopsis of what the article is about, saving you huge swatches of research time. Every month we add about 150-200 links and periodically purge the bad links. About half of these are free to all. But the topics about selling online are reserved for my paid subscribers. (I have to make a living, you understand.) You can search the annotated links database using the search form at the top left of every page in the site.
  5. Dr. Ralph F. WilsonAbout Dr. Wilson. I'm a pretty known entity online, having been a pioneer in the field of Internet marketing since beginning Web Marketing Today in 1995. Tens of thousands of successful online businesses have gotten their start from articles, e-books, and information on my site. If you need more, you can find online a brief bio, press mentions, and various awards.

Now, on to e-commerce. You've come to the richest site on e-commerce anywhere on the Internet.

But before we examine what's here, let me remind you that unless you do the research, build a site, create content, develop traffic, and build customer loyalty, you're not ready for e-commerce. It's simple: You've got to build the traffic before you begin to earn!

Let's take a look at the tasks of E-Commerce:

  • Selecting a Shopping Cart
  • Getting a Merchant Account and Payment Gateway
  • Finding Products to Sell
  • Setting Up Landing Pages
  • Increasing Your Conversion Rate

10 Steps to E-Business on a Shoestring One brief book I wrote that covers a lot of this ground is 10 Steps to E-Business on a Shoestring, which explains how to sell online with a very low start-up cost.

Selecting a Shopping Cart

If you're just selling a few products, you can probably get started with PayPal's shopping cart. It's pretty simple, but free and quite accessible.

If you're selling a few downloadable products, take a good look at 1ShoppingCart. It bundles together a shopping cart, digital download system, affiliate program, ad tracking, and autoresponder into a single package.

The Shopping Cart ReportBeyond that I've found more than 225 different shopping cart programs. Some are quite simple. Others are quite sophisticated and contain special features such as true order management, catalog building features, wish lists, gift registries, and real-time UPS shipping calculations based on weight, ZIP, and type of shipping selected. I sincerely recommend that you purchase The Shopping Cart Report, which goes into great detail about shopping cart features, summarizes the features and pricing for 225 carts, and contains detailed information on more than 50 vendors. There's nothing like it available anywhere else!

Incidentally, if you become a paid subscriber to Web Marketing Today Premium, you will receive a complimentary copy of The Shopping Cart Report and a number of other key e-books on e-commerce. If you're a subscriber and looking for a special feature, you can search my Shopping Cart Software Database of 225 carts by keyword. You'll find more information on shopping carts in the Online Store Software section of the Web Marketing Info Center.

Make sure you select your shopping cart first. Then go on to select a merchant account and payment gateway compatible with your cart.

Getting a Merchant Account and Payment Gateway

A merchant credit card account, of course, allows you to take credit cards online. You can use PayPal for this, but if you do more than $1,500 per month in online sales revenue, I recommend that you get your own merchant credit card account. See my PayPal Buyers Survey for more details on what merchants gain from PayPal as a payment option.

In addition to a merchant account you'll need a payment gateway -- a system that will transmit credit card information securely the credit card processor and back with your authorization. The best way to get a payment gateway is bundled with a merchant account -- you'll get a discounted rate for the payment gateway. If you use PayPal, a Yahoo! Merchant Solutions store, and some other hosted systems, the payment gateway is already supplied -- you won't need another one.

There are lots of vendors for merchant credit card accounts -- a few shysters and many legitimate businesses. One I trust is Practice Pay Solutions, if you can't find one you like.

For more information, take a look at the Transactions section of Web Marketing Today. Also see the following sections of the Web Marketing Info Center (for paid subscribers to WMT Premium):

Finding Products to Sell

Finding the right products and services to sell should follow careful research. There are several tools (on other sites) that can help you do this.

  • Site Build It! from Ken Evoy developed the first tool of this kind. It is just one of about a dozen tools available on Site Build It! to help you research, build a site, optimize it for search, purchase keywords, and sell online. Highly recommended!
  • The Market Research Wizard from WorldWide Brands. It includes a component to search eBay listings and bids.
  • Product Idea Evaluator from Activo Software.

Many people online sell products by drop-ship -- that is, you fax the order to the distributor or manufacturer who ships directly to your customer and then bills you for about 30% under the retail price. If you want to do this I strongly recommend WorldWide Brands' Drop Ship Source Directory, which is kept up-to-date constantly.

For further information see recent articles in the E-Commerce section of Web Marketing Today. If you're trying to sell in particular industries, you'll find thousands of specific examples, analyses, and case studies in the Industry Case Studies section of the Web Marketing Info Center (left side near the top) for the following sectors: apparel, auction case studies, auto industry, B2B, beauty products, books sales, computer hardware and software sales, consumer goods, e-book publishing and sales, financial services, furniture, gift stores, groceries, health products, malls, music, non-profits, office and business supplies, photographs and art sales, subscripttion publications, real estate, specialty/health foods, sporting goods, toys and children, and travel. Other sections that relate to product sales include:

Setting Up Landing Pages

How to Develop a Landing Page that Closes the Sale If you sell online, you'll probably be using Pay Per Click (PPC) ads with appropriate keywords from Google and Overture to get people to your site. This can be quite effective, but you absolutely must develop landing pages designed to get the visitor to actually buy the product. For this purpose, I wrote How to Develop a Landing Page that Closes the Sale, which explains step-by-step how to do this. Without landing pages for your ad click-throughs you'll have a low conversion rate -- the percentage of click-throughs who actually make a purchase.

Increasing Your Conversion Rate

Boosting that conversion rate is vital to success. Once you've got the traffic and the landing pages, you'll want to continue to raise your conversion rate. You might begin with 0.5% to 1%, but with careful attention and testing, you may be able to raise this to 2%, 5%, 10%, and perhaps higher. Brand name online stores do this.

I give a lot of attention to online sales on my site. You'll find recent articles in the Conversion section of Web Marketing Today. In the Web Marketing Info Center, you'll find lots of details, reports, studies, and suggestions in the following sections. Note: Most of these require a paid subscripttion to Web Marketing Today Premium to see all the information.

Okay, that gives you a pretty good idea of how to get the most out of the e-commerce end of my website. I haven't mentioned all the search engine optimization and site promotion information, but you'll find that, too. Enjoy! I wish you God's blessing as you develop a successful online business.

Rahul (Manager)     10 June 2012

Doing an online business can be good provided you are able to target the right clients. There are diferent means on marketing in different places on the internet.

There is Google, FB, Twitter, etc.

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To market online, get the right internet marketing company in mumbai

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