The e-commerce market is booming all around the world and new online startups are coming up daily with different kinds of products and brands. Starting an online business of construction materials can be a good idea especially due to the need for construction materials for infrastructure projects in developing countries as well as developed countries.
Construction and renovation of buildings are going on all throughout the year and there is a never a scarcity of demand for construction materials like cement, sand, stones, paint etc. Here are some steps to start a construction Material business online easily.
All you have to do is follow a step by step process in starting the business and ensure its smooth functioning. The first step is to do research, you must find out where can you buy the construction materials at a wholesale rate, developing relationships with a wide variety of distributors will give you the opportunity to buy them at a cheap rate and in bulk. This will enable you to sell your products to the customers at a marked-up price.
You can also manufacture some of the products and sell them if it reduces your business costs but that can be a bit risky because the consumers find the established brands more trustworthy and are unwilling to rely on the quality of the new arrivals in the market. Another important part of the research is to know about the kind of competition existing in the market. In order to differentiate your products from the rest of the market, it becomes imperative to gain knowledge about your contenders and the brands they are selling and which of them are popular.
You should apply a customer’s perspective while researching about the market and make note of the things that attracts you as a customer. You should also take a look at the stores that are under-performing as this will keep you informed about the mistakes that lead to losses in your business. This research will help you in starting the business successfully.
Identifying the Products and Target Groups
The second step is to decide which construction materials you want to sell. Stocking products according to your target or focus groups increase the likelihood of maximum sales. You can sell both raw materials as well as finished products. Raw construction materials are cement, steel, bricks and the finished products for building purposes are doors, paints, plumbing, electrical.
Materials for kitchen and bathroom like chimneys, water purifiers, and sanitary ware can also be supplied by your online store. Your target groups must include the contractors who have a lot of building projects in their hand. Nowadays flats and other living spaces are built in every nuke and corner of all countries and you should target the builders who are renowned in your locality to receive orders in bulk.
You can also receive orders for government projects in cities as well as villages. You should offer them materials at lower prices through discounts and your website should keep the customers informed about the fluctuations in prices of the raw materials that will help them to assess the market in near future and go for speculation. Orders from builders can be worth of crores and you should work hard to make your products appealing to them and the customer service must be efficient.
Developing a Business Model
If you are a newcomer in the market, you will want to find a shopping cart that gives you plenty of room to work with limited technical expertise. Developing a business model constitutes the next step- the operational, financial plans of your business and the timeline.
You should not launch all the products at the same time and include a trial period in the timeline, once you are confident that your products will be able to survive and compete in the market then you keep on adding to them. You can take expert advice before launching to have an idea about the nature of the business and the market.
You should offer discounted prices to customers to attract them. There should be a clear-cut business plan whether to offer daily deals, weekly specials or quarterly clearance sales but plans can vary according to the exigencies of time. You can attract the attention of more customers to your online store if the business is advertised and promoted in social media platforms.
An experienced web designer should be hired to design the website to exact specifications. The website design should be nice and attractive. The product details should be mentioned clearly along with the company’s belief, vision etc. In addition to that, your site must also have a shopping cart with 128-bit security encryption, customers should feel secure in making online payments on the website.
The website must be appealing with product images and the website should be promoted in a way that it reaches out maximum to those people that are in more need of your products or comes under your target groups and the customer service should be exceptional.
Feedback should also be taken from customers through online rating and there should be a section in the website that caters to the grievances of the customers relating to services, payments etc.
Budgeting and Accounting
You need to fix a budget before starting. Accounting the business will help you to remain updated about the profits earned and the losses incurred and also the financial performance of your store. Faulty and unwise investments can be curtailed if you are aware of the reasons for which you suffered losses and the avenues of generating more revenue. You can take loans from the bank to set up your business.
Hence to conclude one can say that selling construction materials online is a good startup idea because in many countries the retail market for construction materials is scattered and it takes a lot of time for contractors and builders to buy quality raw material as well as finished products. Many people who are building or renovating their houses do not want to rely on the materials supplied by the contractors and tend to buy the products themselves, your online store can provide them with a choice.
The construction materials market is also unorganized and unregulated, your store can exploit these opportunities and offer standard prices for the materials. When it comes to building purposes the products you sell must be of excellent quality otherwise there are many instances where due to the evil profit motives of suppliers buildings and flyovers have collapsed and led to the death of many.
You should be well acquainted with the legal requirements in your business and get all the permits and licenses before you start your business and keep your business insured.
Real Estate ahs very big share in GDP of every country. There is huge potentiality in this Construction and Construction Material business. Here is the infographic which gives you more idea on different Innovative Construction Material. Read More