The Internet was primarily used to communicate, entertain, educate and research.Presently, internet has developed its presence as a business-intensive entity. Non perishable, information- intensive products such as computers, fashion accessories, tablets, books, travel, consumer electronics – are the most popular online products at currently. Content rich sites, subscription-based sites to advertiser-supported sites focusing on a wide range of topics, have been sprouting all over the Internet. The one thing to think about when choosing a product to sell is to make sure it’s something you have interest in, and there is indeed a profitable market for it.
When trying to source products to sell online, it’s often best to not look at the best selling items online. The best selling items are normally dominated by the big retailers. It’s always best to search for a vocation you like or have knowledge in. Often these vocations are great for selling but not profitable enough for the big players.
1) Computer Software and Hardware
The Computer sector has been one of the most lucrative businesses in the e-commerce sector. It has been of the pioneer businesses which led to the birth of e-commerce. Computer parts include memory chips, hard disks, flash cards, external storage devices, monitors, cables, input devices and various accessories. The online computer industry is very competitive, with small players and established big names going after huge worldwide demand. You can sell computer parts from a physical store, an e-commerce store or an auction site. Parts resellers, small computer manufacturers and owners looking for quick upgrades are some of your potential customers. Starting any small business requires a business plan and adequate financing.
2) Books
Authors have come a long way in the past few years. We understand that we have to be marketers as well as writers. We know that the best book marketing involves two-way communication with readers and not just sales pitches. Some of us even enjoy it.
But while blogs and social media have made those conversations easier to have, selling books through Amazon and other online retailers prevents us from connecting with readers at the critical moment of sale. Amazon knows more about who buys our books than we do, by design.
We get sales figures, but we don’t know anything about who bought our books. And the more we know about where our books are being sold and to whom, the better all our marketing can be.
The solution is to sell books directly from author websites—and I don’t mean linking to your book listing on Amazon. Through direct sales, we learn where our readers are geographically, what brought them to the site, and most importantly their email addresses.
E-books captured 11% of all book spending last year, up from 7% in 2011, Kulo reported, while e-books accounted for 22% of units in 2012, up from 14% the prior year. In 2010, e-books accounted for only 2% of spending. Despite the gains made by digital, paperback remained the most popular format last year, accounting for 43% of spending, down one percentage point from 2011, while hardcovers represented 37% of dollar sales, down from 39%.
The growth in the e-book format last year was one of the factors that increased e-commerce’s lead as the largest channel for book sales. Online retailers, led by Amazon, accounted for 44% of sales in 2012, up from 39% in 2011. The gains made by online retailers came at the expense of bookstore chains, whose market share fell to 19%, from 26% in 2011. As consumers buy more e-books they also tend to buy more print books from the same outlet—a trend that has cemented Amazon’s position as the country’s largest booksellers, Kulo said. According to the Bowker data, Amazon captured 31% of dollars spent on all books last year, up from 26% in 2011. Despite the chains’ loss of market share, they were the only other channel besides online retailers to have a slice of the book market that was bigger than 10%. Together, chains and online retailers accounted for 63% of spending in the year, up from 56% in 2009. Independent bookstores had a 6% share of spending in the year, the same as in 2011.
3) Apparel
The online fashion retailing industry is proliferating at an exorbitant rate. Numerous firms have cropped up in the recent years to make their claims in one of the most successful businesses. This competition has also resulted in small and big ventures innovating to try and stay ahead of a fierce pack.
The segment is also attracting huge investors. According to a paper published by Technopak, a consultancy firm, titled ‘Apparel E-tailing in India’, the $130-million apparel “e-retail” in the country has attracted investments worth $70 million, or 40% of the total funding Indian online retailers got in the past two years.
If you’re an entrepreneur interested in the segment, it means the scope for starting a venture selling fashion and apparel brands online is pretty high.
Selling is increasingly about service. The average Indian consumer who shops online chooses to because of “increasing time-poverty, changing lifestyle, convenience and flexibility of shopping.
4) Consumer Electronics
The country is catching up on online buying, reveals a recent report on online trends released by Google with many e-commerce companies mushrooming. Formerly, most online trade was limited to the purchase of all kinds of travel tickets and small electronic products such as pen drives, but now it is becoming widespread. According to the Google report, maximum online buying is still of consumer durableswhich account for 34 per cent of the online market. Rajan Anandan, Vice President and Managing Director of Google India says this is because people is non-metro cities are also becoming fashion and brand conscious. Online sites are helping them overcome the geographic divide. With smartphones in numerous hands, this is only going to rise. At present 30 per cent of online shopping queries are being generated from mobile phones.
In the past two years the e-commerce industry has seen about $700 million of investment, making it an investor hotdog. However, the problems continue. India will need many more online sites, and the quality of service also needs to improve. A recently conducted online study also said that people engage in online buying because it is effortless, takes away the need to travel for purchases and the product is home delivered. But to become multi-billion dollar companies online retailers will have to ensure timely delivery and great product quality, together with a hassle-free facility for returning products if the consumer is not satisfied.
According to Confederation of Indian Industry (CII), the Indian colour cosmetics and skin care markets have been increasing for the last two years and have recorded a growth rate of 20 percent in 2010.
5) Video DvD’s
The DVD market in India is witnessing major change. The prices of both hardware and software has become highly competitive and a host of online rental players have emerged. But what impact will low prices have on the rental business and what pricing strategies are home video firms employing? This story offers a look at the current situation of the home video market in the country.Nowadays, six cities including Bangalore, Delhi, Mumbai, Chennai, Hyderabad, Kolkata account for 70 per cent of the DVD player penetration in the market.
According to Federation of Indian Chambers of Commerce and Industry (Ficci ), a PWC report states that there is a huge upspring in plasma TVs and home theatre surround sound systems, which has boosted the demand for home video products like DVDs and VCDs.
Reasons for splurge in the Online DVD market
• Internet accesibility in India is growing not only in the urban areas but also in B and C grade cities which has made possible the entry of this market in rural and small areas. The number of individuals who accessed the internet has increased marginally from 10.8 million to 17.0 million in 2013.
• Local rental stores provided the customers with only limited editions of popular bollywood flicks, nothing besides that.
• Cheap content and poor quality makes it hard for the consumer to get good quality DVDs at rental stores.
• The organised movie rental business has checked the rampant problems of pirated versions.
6) Health & Beauty
This is a nice niche because there is a lot of ways you can go with it. Organic supplements, vitamins, diet books, diet recipes, health equipment, sports equipment. Online personal care industry in India is witnessing robust growth amid economic slowdown. The health and beauty sector in Indian market for high-end products and services is estimated at over eight billion dollars and is currently growing at an annual rate of about 20 per cent and is likely to cross $14 billion during the course of next three years on the back of rising per-capita income and evolving consumer trends. The Online retailers have helped the personal care industry to boom at 13 percent per annum and valued at USD 5.7 billion; its wellness service market was assessed at USD 2.9 billion in 2010 according to Gyan Research and Analytics.
The Cosmetics industry has indeed got a huge push through the online platform as consumers have got the extra benefit of hassle free shopping and browsing through a wider variety of choices. But the most important criteria seems to be that the beauty products are offered at reasonable prices and being delivered at doorsteps.
7) Music
Anchoring with fans is imperative in today’s music industry. It’s the fetter that can give them a reason to buy and support your music. Utilizing social media and having a strong online presence makes connecting with fans much more achievable. The internet is known for the convenience and comfort it brings to our fingertips. Online music dispensation has been around for some time and has grown over the past 5 years. Digital consumption, distribution and availability of the catalogue in the digital space are only a logical progression and evolution of the Indian music market.
According to a FICCI-KPMG Indian Media and Entertainment Industry report 2012, the Indian music industry achieved a 19 % year-on-year decline in sales of physical music which was compensated by a significant jump of 24 % year-on-year in digital music consumed last year. Physical sales of music continue to droop with digital music consumption on a steady growth. This phenomenon was more pronounced in the urban centers where mobile and Internet penetration is higher; however regional markets were less affected.
Online streaming of music has also been facilitated by record labels such as Saregama, Flyte and Hungama and in future more labels would join the streaming business. This clearly shows that record labels appreciate the fact that their largest target audience is now online and they are looking at it as a major revenue channel.
8) Toys/Video Games
India online games market, valued at INR ~ million in FY’2013, has grown immensely from INR ~ million in FY’2008. The market has received great impetus in the past few years, owing to the growing penetration of internet and broadband in various parts of the country. Rise in the usage of social networking for games has proven to be a boon for Indian video gaming population, thus driving the online games market considerably since FY’2008.
The market for video games in India has been changing at a rapid rate. Technological advancements and gaming diffusion across ages as well as competitive pressures have been significantly changing the market. Revenues from the video game industry in India are expected to expand to INR 15million.
9) Jewellery
Jewellery is an evergreen commodity which always pleases the eyeballs with the dazzling looks and prodigious designs. It is something which has been applauded in investment purpose or for some special occasions in the traditional as well as the modern outlook. E-retailing is one of emerging ways to sell expensive nakshatras as well as pocket-friendly jewellery. Today the e-retail business has emerged as one of the top market leader in e-commerce. Various types of jewellery have been brought in the limelight through these portals and hence they have become a major source of market share chunk in the e-commerce industry.
A decade back, the thought of getting jewellery via online e-portals was completely inconceivable, however, with the emerging enterprising idea of the novice e-commerce companies has changed the views of millions of people. Today, jewellery is sold by numerous e-retail sites with attractive pricings, varying seasonal offers and at mouth-watering discounts too.
Skyrocketing gold prices, worsening law order situation has hit the gold Jewellery business really hard. The precious metal experienced a huge fall in price until last month but it has started to rise once again.The demand for imitation jewellery has gushed by over 85 per cent in the last one year on account of sharp rise in gold and silver prices, a study by industry body Assocham has said. The imitation jewellery market, which is about Rs 8,000 crore in India presently, is expected to touch Rs 15,000 crore by 2015 owing to growing demand and popularity, Assocham said in the study. And here it comes in handy for the e-retailers to sell their items at huge marked up prices to make huge profit and also not burn a hole in the pockets of the consumers.
10) Food & Beverages
The online food industry is slowly making headway in India. As the market is a bit complex here, major national brands are in the process of making their presence felt in Kochi.
The number of online ordering of food in the city has risen from five about three years ago to around 100 per day now. Working professionals and people who worked overseas are the major customers of these outlets.
Yummybay, an online food ordering website started in 2010 in Kochi, expects to increase the number in the future. Eyeing the business opportunity, India’s largest online food portals justeat.in and foodpanda.in are all set to open shop in the city this year.Various firms reiterate the fact that the most preferred meal ordered online is dinner. “We have a small presence in Kochi, Kozhikode and Thiruvananthapuram cities in Kerala. The company has been able to generate good business for our partner restaurants like Pizza Corner and US Pizza which is very encouraging. We want to expand our reach in these cities with more partner restaurants,” said Sandipan Mitra, director (Sales and Marketing), justeat.in.
The online food market has a huge potential in India as the internet population is 20 crore. Metro cities contribute 65 per cent of the total traffic in the online food segment.