Online Business and It's Swot Analysis

Published: 2021-09-04 18:15:15
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Category: Retailing, Computer Science

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Introduction
Online Business alludes to leading business exchanges over the Internet, which incorporates trade of data of significant worth as items what’s more, benefits and additionally installments, utilizing web-based technologies. The nature of online business is changing quickly with the appearance of Facebook, Twitter, YouTube, Blogs and numerous more long range informal communication destinations. Along these lines, building up an online nearness for business is progressively simple and ease. This class presents members with vital worldwide online business patterns and the means important to set up a successful online business.
To start an online business of commoditized products, there are series of steps and procedures to follow to make a good strategic plan for the business.REQUIREMENTS
To start an online business of commoditized products, we need to follow the following legal requirements:

Register business with the government
Apply for business license to operate
Register for the Employment Insurance Special Benefits for Self-Employed People.
Business insurance
Business permit
Federal business license
Sales and use tax Permit
Business Account
Income Tax permits
State business license
Register for GST
Vat registration (only in Asian countries)
Tan Registration (only in Asian countries)

Other Requirements to start a business:
Capital: The initial amount needed to start an online business will be 50,000 dollars which also covers all the taxes and registration of the business. We will start our initial business from India because we are much aware of Indian market from the past years and then gradually expand my online business to other countries.
Web technology: The use of web services will cost us around 6000 dollars a year which includes all the basic services offered by the web such as CSS, hypertext language and communication.
Online payment Gateway: We will use this service to make it easier for the customers to pay by credit or debit card or even by netbanking.We will also offer cash on delivery services to the loyal customers who have purchased previously with our online store.
Buy a Domain: The domain will cost us 180 dollars a year.
Hire a website developer and designer to develop and design the business website: After having a domain name, we will hire a website developer and designer. The cost of website development and design will be 10000 dollars.
Testing and Launch: Before we will make the products visible on online store to the customers, we will test the website and payment getaway so that customers will not have any problem in accessing the website and making transactions.Sometimes, there is problem regarding website crashing and so, we will test the website manually and then after a thorough analysis we will launch it.
Marketing: We will post an ad of our website online two months before the launch of the website. Also we will give our advertisement in the newspaper, television and social media platforms. The total cost of marketing will be 8000 dollars.
Sign contract with shipment dealers: After the development and design of website we will sign contract with the local shipment dealers who will deliver the products at lower prices. Then we connect their phones to the online website shipments links, so that when anyone place a order they get the notifications about where to deliver the products. The delivery charges will depend on the location of the package to be delivered and will be cheaper than the market delivery prices.
Promotions and offers: We will distribute the coupons online during the week of launch and promote our website by providing the customers free delivery during the launch time. Even the customers who will sign up their first delivery will be free. This will cost us around 10000 dollars.
Sign Contract with Distributors of the products: We will sign contract with all local distributors of the products who will provide us good quality products at lower prices. We will post the pictures of their products at our website along with the updation in the prices which they are providing us to gain much profit. Their phones and tabs will be linked with the website and when someone places a order they will get notification on phone or tablet and product will be picked up by the nearest shipment dealer. All the information regarding the product will be provided in the website that is given to us by the distributor and also the warranty on the product.
Employees recruitment: We are a group of four people who will implement this plan. As one of my friends is software engineer and other has knowledge of Microsoft word and me and my other friend have knowledge of sales, blogging .So, we need to hire an accountant and marketing manager and five people who will listen to the queries of the customers and provide them best solution. With the expansion of our business, we will recruit more people by that time.
Business Logo: Our business logo will cost us around 800 dollars and we will update our business logo after every 4 years.
E-commerce software’s: The reason for ecommerce software is to put all that we have to run our store in one place. While the platform itself doesn’t satisfy each assignment, integrations with driving suppliers make it conceivable to consistently maintain a business without jockeying between various administrations. Bookkeeping software, ERP, 3PL, web-based social networking. For example, Facebook, Twitter, Pinterest and considerably more can be connected to ecommerce software so information sharing isn’t manual. E-commerce business software comes in two types, with numerous assortments of each:

On-Premise: Installed and oversaw on hand by designers who encourage manual updates, settle issues and do general investigating. Traditionally, dealers ran with on-premise solutions because of the expanded adaptability from facilitated solutions.
SaaS: Software as a Service solutions are considerably more uninvolved from a specialized angle. The only improvement prerequisites are for additional outline and custom highlights all updates, patches, and recently discharged highlights are done consequently or with one-tick integrations. Facilitated web based business programming has developed to the point where the customization and adaptability, already restrictive to on-premise, is strong, making it more than adequate for most online retailers. Internet business stores utilizing SaaS programming can be propelled in 1/3 of the time and at a much lower cost than on-premise solutions.
Funding source: We need total of 50000 dollars and we already saved 30000 dollars and rest me and friends will save it in 8 months and if we need more money we will take business loan from the bank.

SCOPE
This project of online business is not just buying and selling products online. It additionally incorporates the whole online procedure of creating, showcasing, offering, conveying, overhauling and paying for items and administrations. Our project encompasses the following services:

Electronic Data Interchange(EDI) on the internet
Customer management system/Social media system
Point of Sales
Desktop integration system
Registration/Sign in
E-business buyers platform
Job Management
Online catalogue system
Payment gateways
Search system

PURPOSE
The main reason behind the starting of the online business is to provide the customers with:

Best Customer service with greater flexibility
Cost savings
Quick delivery of products
Greater Professionalism
Less usage of paper
24/7 access to the online shopping

Having an online business will help us to manage our business from anywhere in the world. Even Customers may also favor to go to your internet site to discover about your products and services, rather than meeting you in individual.
SWOT ANALYSIS
With the help of swot analysis, we will able to develop a good strategic plan and various techniques that will help our business to grow and develop. A SWOT evaluation may be extremely valuable in shaping our enterprise approach because it gives us a hazard to see things from a brand new angle.Follwing is the swot analysis of our business:
Strengths

24 hrs access to our online shopping website
Global business from around the world
Products are delivered to the customers directly from the distributors at lower price than the market price.
Various delivery options
Best customer service
Fast and accurate deliveries
Good quality products
Advertising at low prices
Interac E- transfer system for payment
Unrestricted services
Customer information protection system

Weaknesses

No direct interaction of buyer and seller
Customers mainly prefer to shop by going personally to the market.
Sometimes the cost of the transportation is more than the cost of the product.
No. of customers who purchase from online are very less due to their previous bad experiences from other online stores.
Security issues such as hacking of website
Sometimes website crashes due to increase in users who are accessing the website at the same time.
Increase in prices of the products
Increase in the prices of shipping

Opportunities

Number of internet users is increasing at a higher rate.
Business will provide job opportunities to the people.
Global exposure
Strong business to business networking
Industry growth

Threats

Competition with other big online stores such as Amazon and eBay.
Future innovation could have bad impact on online businesses.
Customers loose their trust with online shopping because of their bad experiences with other online stores.
Fraud activities
Employees mistakes

PROBLEMS IN EXISTING ONLINE BUSINESS SYSTEM
Quality issues: Sometimes distributors deliver low quality products to the customers and customers get disappointed and lose trust with the online store. But in our online store we will make sure to provide good quality products to the consumers.
Delivery Problems: Customers often get angry due to the late arrival of package but in our system we will make sure to deliver it on time without any delay. Also when returning the products they will have no hustle fusel.
Customer service: While having the general queries, they often get bad services from the customer representative and they gradually loose interest in the store. So, we will hire only those employees who will have background in customer service for more than three years and even record their calls to check their behavior towards customers.
Digital payment failures: As the current online stores are running from the past 6 years, they use older methods of payment transactions which sometimes decline the transaction and make it frustrating for the consumer. But we will be using latest software’s and interac E- transfer system, so that they can pay in seconds without any delay.
Additional charges: Customers didn’t like the idea of getting charged twice. As the customers select the product and during the checkout they see an additional charge in the form of shipping which make them unhappy. So, we will make sure to provide them with only one price including taxes.
Unclear return and guarantee policies: Almost every online store didn’t have a clear return policy and as a result customer looses his faith in the company. But we will make a clear and understandable return policy for the customers.
Lack of security: Online shopping sites get hacked by the hackers very often due to lack of good security software’s and take all the information of the consumers including their personal information and financial information .We will use integrated and security software’s to protect our website from unauthorized access.
CHARACTERISTICS OF PROPOSED SYSTEM

Variety of payment getaways
Login gateway for clients, merchants and staff.
Feedback System
Online vouchers
Payment Confirmation via mail or Sms on mobile phone.
Security software’s such as Ax crypt, Eset and Comodo will be used.
Credit card storage options
Online support and phone support
Online ticketing system for complaints.
Advanced tracking system
Various deals on products

Conclusion
E-business has become an important part of everyday life in the realm of business. Less expenses at the beginning and the fast development of the usage of the Internet and also the development of online shopping, encourages more and more companies to go online. Nowadays each and every modern organization has a web site and it is considered nearly as a necessity. The likelihood of worldwide reach through the World Wide Web is entrancing along with the way that all companies online are accessible everywhere throughout the world. It is additionally interesting to see as the shopping behavior of consumers is transferring more online every day. The services and that companies provide through the Internet are easily accessed without leaving home, influencing the shopping to experience as convenient as could be expected under the circumstances.
The main reason behind making our project of online business is to make profits and provide the customers with good quality products at low prices than the market with fast delivery options of the online products and expanding our business to almost all over Asia and North america.We also focus on providing the customers with the best customer service experience along with the lot of great during the launch of the website. Once they start purchasing the products and experiencing a good quality of products, they gain full trust on our company and become our potential customers.

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