Mahavir run a trading business which uses technology to sell various products all over the world. I had an interesting hour-long discussion with him regarding various online selling items and trading business.
The toughest failure in the business was when I developed an application for import but could not develop as planned due to some coordination points and safety measures. Recovering from this failure was the top challenge I faced during that time. Because usually, when business is of small capital and recovering back takes time. I mean, I tried to sort it out but what I had expected didn’t happen. Technically things didn’t go the way we think. There should be more clarity with all that you do. If you think for doing something it is X cost, but when you implement the project it may become 2X more than the expected which we may never thought off.
The learning which I gained in my tough time was you should have a good team, having a team is very important. Delegating and having a proper correlation with the supply is essential.
Digital business is growing because it has a wide range of people whom we can target rather than the offline shops. So, if you want to reach a place, or if your product wants to reach a customer, traditional ways will be challenging and limited in scope in this digital era where everyone is moving towards digital world. It’s also easier to manage when it comes to online selling and purchasing.
The online digital medium gives me direction from where I could reach to customers, create a base of consumers compared to traditional business. And due to no geographical boundaries, I could tap more market compared to the traditional / offline trading business. So basically, let’s say if I have to compare traditional business, our business can grow 10 times in the next three years if we move digitally. if we talk about the physical shop, we limit our self to geographical boundaries. When we come to internet, we are free from a lot of things and expands horizons.
What are the digital methods you have implemented? which helped you to scale up your business to this stage? Anything digital that you could have done? Apart from selling online which is on Amazon. We created our own website and also, we have tried with google keywords. And we used those keywords to market our products. Anything related to stock management and supply management? Any digital or tech that you could have used in?
Yes, We have our complete stock management handled through software which gives the details of stock. And from the API enabled software are there, which helps to scale further and make the work simpler compared to the complexity if we have to manage everything manually.
We use an Inventory management system, which syncs all the stock information to all the front engines, via which we sell. The Major marketplaces where we sell our products are Amazon, Flipkart, Paytm, Snapdeal, and Amazon USA A piece of Advice by Mahaveer, e-commerce is a very challenging market & It’s full of excitement. But it is just that to have your unit economic calculations very well. And start with small with having good basic business understanding, compared to starting big. Things will fall in place if your numbers are calculated well. Because at the end of the day it’s trading business but done in a modern way using technology, where everything can be tracked.
In 2017, our company was top 10 health and personal care seller in Gujarat, and we were the first one to start selling with the Amazon USA from Gujarat. Apart from that, a very good strong base of adult diaper market We are having a strong e-commerce business team as well as venturing into other business which is technology-enabled. So According to me, if retail has enabled by technology and giving shape to the e-commerce industry there are a lot of other industries which need the technological plugin to have better performance and better, you know, there are more ways of excelling of the industry through technology. And the goal for my e-commerce business has 100 crore business by 2025.
In e-commerce – unit economics is the key to e-commerce. So anyone doing or getting influenced by any learning of e-commerce the core stands in the unit economics of this business. Unit economics means the profitability of each after sales. Yes so the way they structure it, the way they look at the cost and the sales parameter. Everything from advertisement cost, your operating cost, compared to the revenue from it.
Never sell for a Loss. If you know the game of business, you can run it, and grow. But the business ethical fundamentals will be the same. So focusing on the fundamentals, and you will win the game of Business