Dear Sellers , Hope you all are well and safe , please be careful in this tough time . I am Tapas behera , E-Commerce Financial analyst & Consultant , would like to present some vital information about business condition of E-Commerce Sector in this Covid time.
We all know it’s a very bad phase for not only our country India but also for whole World , it’s a very bad condition for Life ,Job, business. around 70 lakhs people lost their job , where one analysis told maximum people’s bank account have Zero Savings now , Maximum company closed , We are little lucky as engaged with E-Commerce business, as same business is running due to non contact delivery /E-Business and some of coming under essential goods/services . I am discussing here some Major points which can help you for Your business Growth if you are a managing partner , it can help an employee as well as an E-Commerce consultant . Everyone engaged with E-Commerce .
Point 1# Why E-Commerce business is running where other business is closed
State Government of Various states allowing to open E-Commerce company and Delivery as it’s non contact and can reach to your door, it’s Delivering Essential and non essential goods , Central government has not been issued any guidelines (Except normal safety majors ) for Same in this year , state Govt. issues guidelines and all E-Commerce staff need to obey same covid guide lines. Govt Observed it’s important for People as they need the goods both Essential and nonessential as local market /Shopping mall etc are closed and movement to take same is difficult in this time and risk of infection , as a running business Company can balance in financially and operationally , financial rotation can happen and staff can pay on time with Job secure , Govt. can receive the tax so it’s might help to Government . We know it’s very less tax comparative of Large Scale business of offline but in this time same tax revenue can help govt. too.
Point 2# What should be action plan of an E-Commerce business in this Covid time
Company Management team should obey all the guidelines issues by local government and should train their staff for same ,should focus more on employee health , both Mentally and Physically , focus more on work from home , only operation and production team need to come office as it’s operational activities , try to avoid unnecessary expenses . Need e big plan for stock in hand but should not over stock , last year end of lockdown give an experience of a high sales , so we think this year also same will be repeated again , Company should ready with all action plan to achieve the same sales , company should add if Category addition require .
Point 3# Why Maximum E-Commerce business could not balance the profitability for a long period of time
In E-Commerce business , it’s matter your direct and indirect expenses , i mean you should clear about your commission , logistics and all portal Expenses , suppose you are selling a product of Rs 1000 under Flipkart Portal where Commission 15% , Logistics Forward 45-55-75 for Zonal , Local and national respectively , 2% pg fee or rs 20 which ever is higher , fixed fee 20 rs other transaction fee rs 20 , so company will get rs 715 if product sold to National and if return then Reverse Logistics will be charged as per mou , so it’s basic calculation should add with costing sheet , also return should tally with physical received pcs , Payment should reconcile timely else Online portal will not entertain , so all loss should avoid then a company can succeed .
Company management should analyze above points and keep in mind to run a successful business , we are at MS Finance and Analysis Services , providing services of Payment Reconciliation for E-Commerce , Return operational management and Safe-t claim management , Cost to Profit business analysis , chanel analysis , Risk management etc around 200 companies across all over India , feel free to contact us , we will happy to hear from you .
Finance Analyst (E-commerce)
mail : email@example.com
Web : http://www.msfinance.in/