5 factors to consider If you want to start selling products online
1. Online sales have high price competition.
Since the products in each category are often similar and similar, it is easy to compare prices. While offering unique products can be more difficult than on E-marketplace This is because buyers tend to only search for well-known brands. Or want a cheap product that meets the general needs of the home
Setting prices and participating in promotions such as free shipping or cashback is very important. This may reflect the need for online stores to have lower product costs to maintain margins.
2. Review scores are handicap.
Selling online is different from selling in a physical store. Because most online sellers are not known to buyers. This gives the seller confidence from the original that having a storefront may show the credibility of the business. And having direct interaction with the seller reinforces your confidence in purchasing the product. Instead, it reflects the
seller’s credibility through buyer review scores and sales. Communicating with buyers both before and after the sale will help online sellers have a good review score.
3. Seller fees can leave a small margin.
Selling items online through e-commerce platforms are subject to fees that sellers must pay to the platform when selling, including platform fees, payment fees, and promotional fees such as free shipping (Promotion participation). )
which, if combined, is currently about 10-12% of the product price (Figure 30) or may be higher. depending on product type Therefore, online sellers should expect marginal margins more than those levels. In order for online sales to remain profitable in the end
4. Backyard management is important.
When selling online with low profit margins Success therefore depends on selling a large enough amount (Scale) in the initial stage. Existing retailers may use in-store space to store merchandise and have their own staff pick and deliver orders
and management is starting to have limitations The use of a comprehensive parcel service center, or Fulfillment Center, may be an option for more efficient warehouse and shipping management. and may help save backyard costs in the long run
5. Keep evidence of expenses for tax payment benefits.
Online sales are subject to income tax, just like normal trading. By filing tax forms 2 times for the first half and the whole year with not much sales in the initial phase. Able to deduct up to 60% of total sales revenue. or may be deducted according to actual expenses which requires evidence to show to the authorities and if the income exceeds
1 million baht per year, may choose to pay at the rate of 0.5% of the income from online sales