e-commerce platforms Archives

E-Commerce vs Reselling vs Wholesale – Which One is Right for You?

In today’s digital age, starting your own business has never been easier. Whether you’re a student, a homemaker, or someone looking to leave the 9 5 hustle, you’ve probably heard terms like e-commerce, reselling, and wholesale. But what do they actually mean? And which one is best for you? Let’s break it all down so you can choose the path that suits your goals, resources, and lifestyle.

E-COMMERCE

E-commerce is the practice of selling products online, either through your own website or platforms like Amazon, Flipkart, or Shopsy. You can sell your own products or source them from suppliers. It has many advantages like having full control over branding and customer experience, enjoying high profit margins with right marketing and the power to build a long term loyal customer base.

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In e-commerce you have the opportunity to automate business operations. Requiring upfront investments, involving customer service, returns and logistics and learning digital marketing tools and strategies are some of the cons of e-commerce. It is best for entrepreneurs with a vision for brand building, persons who can spend money, time and efforts and people looking for long term business growth.

RESELLING

Reselling means selling products manufactured or stocked by someone else, usually via platforms like Meesho, Shop101, or GlowRoad. You don’t hold stock or worry about packaging and delivery, these are handled by the app. In reselling, one doesn’t need to invest money on inventory. It is easy to start with just a smartphone. It is perfect for part time with zero risk if done properly.

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In this business, one needs to understand that there is a very low profit margin per product, one doesn’t have control over shipping and quality and it is hard to build a personal brand and loyal customer base. It is best suited for students, homemakers, or beginners. It is a good stepping stone for anyone looking for side hustle without investments and people who want to test the waters before going big.

WHOLESALE

Wholesale means buying products in bulk directly from manufacturers and selling them in bulk to retailers, shopkeepers, or other resellers. It’s a business-to-business (B2B) model that requires capital, space, and contacts. Here, high volume sales mean bigger profit per transaction. One involved in this business doesn’t need to deal with individual customers. This is great for repeat bulk orders if you offer quality.

This requires a lot of investments, has the risk of unsold stock if demand drops, needs proper storage, delivery logistics and connections in the market to find buyers. This is best for traders, distributors, or those with experience in supply chain. People who already have warehouse space and capital get the advantage and people interested in B2B business rather than retail should go for it.

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CONCLUSION

In the world of online business, there are many paths to success but choosing the right one depends on your resources, skills, and vision. If you’re just starting out and want a risk-free entry, reselling is a great way to learn and earn.

If you’re ready to invest time, money, and energy into building a brand of your own, e-commerce offers long-term potential. And if you already have market connections and capital, wholesale can bring you big profits through bulk trading.

If you’re also struggling with low sales in your business, this article can be extremely helpful for you. Moreover, if you’re facing any kind of challenge in your business and are looking for expert guidance, click on the link to the Leadership Funnel Program and get in touch with us now.

The Central Government Proposes Stricter E-commerce Norms To Tackle Unfair Trade Practices!

Love flash sales on e-commerce platforms? Well, it will soon be history! The Central Government has decided to revise the Consumer Protection (E-commerce) Rules, 2020 in the country to prevent unfair trade practices in e-commerce.

The revised e-commerce regulation will come into effect from July 23, 2021, according to which no e-commerce platform will be allowed to display any promotion of misleading advertisements, whether in the course of business on its platform or otherwise.

The Government has taken this step after receiving several complaints from aggrieved consumers, traders, and associations against unfair trade practices and widespread cheating being observed in the e-commerce ecosystem.

The Ministry of Consumer Affairs, Food & Public Distribution stated that the frequent occurrence of such unfortunate incidents has affected the consumer and business sentiment in the market. It has caused immense distress and anguish to many people. It was observed that there was an evident lack of regulatory oversight in e-commerce which required some urgent action.

The fast-growing e-commerce platforms have also brought the unfair trade practices of the market in which the various e-commerce entities are engaged under the radar. These platforms manipulate the search results to promote certain products, sellers, preferential treatment to some sellers, indirectly operating the sellers on their platform, selling goods that are close to expiration, influencing the free choice of consumers, etc.

Though conventional flash sales by third-party sellers are not banned on the platform, certain e-commerce entities are encouraging limited consumer choice by indulging in “back to back” or “flash” sales.

To prevent the exploitation of consumers, protect their interests, and encourage free and fair competition in the market, the Central Government is proposing a revised Consumer Protection (E-commerce) Rules, 2020 with certain amendments.

Many e-commerce platforms like Amazon, Flipkart, and Myntra among others will have to appoint a Chief Compliance Officer, a Resident Grievance Officer, and a nodal contact person in India.

CAIT Secretary General Praveen Khandelwal termed the new draft as a “guiding stone to purify e-commerce landscape of the country which has been greatly vitiated by various e-commerce global companies to the extent that not only the domestic trade has been damaged but even the consumers are also feeling the heat of their unethical business practices”.

The proposed amendments aim to bring transparency in the e-commerce platforms and further strengthen the regulatory regime to curb the prevalent unfair trade practices.