The closure of offline retail stores during the coronavirus-induced lockdown in India meant only one winner: e-commerce.
Even though retail market shrinks due to impact of COVID-19 pandemic, Indian ecommerce industry to grow 25 percent in 2020-21. And during the coronavirus crisis, which has sparked many industries, India’s fashion industry continues to grow.
Now seems to be the right time for the budding entrepreneurs of India to consider starting an online fashion business and exploiting this opportunity.
Following the asset-light retail model of do-it-yourself (DIY) and dropshipping, one can potentially start a fashion ecommerce business with as little as Rs 10,000. One can also opt for an inventory-based model with an initial investment of above Rs 1 lakh.
Here’s how the Dropshipping model works:
Dropshipping is a form of retail where one can accept online orders on behalf of a product manufacturer and transfer order and shipment details to the manufacturer and/or logistics partners.
In this ecommerce model, one does not keep fashion items in stock, and therefore, you do not need to spend on buying wearables or renting a warehouse to store them.
Basic Steps
- Firstly, the entrepreneur has to open a current account with the bank of his/her choice. It doesn’t cost anything.
- Then, the online fashion business has to be incorporated and obtain a GST certificate. This can be done by the entrepreneur himself.
- A trademark can also be obtained for Rs 4,500 for a sole proprietorship ecommerce business.