Why Virtual Office is a Boon for E-Commerce Sellers?
This article is for all those who are planning to start their Online E-Commerce business and all those who are already running an E-Commerce business but wasting a lot of money by not claiming input tax credit which, if they had, could have saved that money.
While setting up an online e-commerce business, there are so many things to keep in mind in order to establish your business and make a presence on the online platforms. On the one hand, you need to work on the management and marketing of your products, and on the other, you need to set up an office space which you can use as your office address and you can get GST Registration and open a bank account.
Seems pretty simple, but that is not it. In order to sell your products on online platforms like Amazon, Flipkart, Snapdeal, eBay, Shop Clues, etc. you need to get GST registration in all the states in which you are going to deal your products.
Let’s take Amazon (since amazon is the biggest e-commerce platform) for an example, If you wish to register on Amazon’s FBA (Fulfilment by Amazon) program and store your products on Amazon’s warehouses, you need to get GST registration done in all those states in which you want to store your products.
Now it seems difficult. Either, you can take office space in all those states to get the GST Registration or you have to arrange warehouses on your own to store your products and not register yourself in Amazon’s FBA program. Either way, you have to spend a lot of money. When you take office space in any location, it will cost you huge expenses which include monthly rentals, electricity expenses, maintenance expenses, and you need employees also which means an extra expense of their salaries. All of these things at the time when you are trying to set up your e-commerce business.
But with the help of Virtual Office, you can surely save a lot of money which you were going to spend on all of those expenses. In this article, we will be understanding the benefits of Virtual Office and how it can prove as a boon for E-Commerce sellers.
What is Virtual Office?
Virtual Office is a modern-day office setup. It is not your physical office space yet you can get access to all the benefits of physical office space. You can choose any prime location which suits your business and you can use this location as your official address and for communication purposes as well. You can use this address for getting all kinds of statutory registration that are necessary for setting up your business.
If you’re already running a business and you have your own office setup but your work can be done remotely and you also want to cut down your expenses, opting for a virtual office can be the best choice you can ever make. You can shift your registration to the virtual office location and start using that location as your official address. It will cut down your expenses and also fulfill all your purposes of a traditional office setup.
Features of Virtual Office
- Commercial Office Address on a prime location which you can use for getting ROC Registration, LLP Registration, GST Registration, Import Export Registration, Shot Establishment Registration, and other government registrations or licenses.
- Mailing Address / Communication Purpose. This means you can use the virtual office address on your letterheads, business cards, websites, and all other communication channels. Your virtual office provider will also receive all your letters, couriers, parcels, etc. on your behalf and inform you in real-time.
- Professional Receptionist. A professional receptionist will always be there in your virtual office to greet all those people who visit to meet you. It may be your clients, your business partners, your suppliers, etc. It always leaves a good impact on other’s minds when someone is always there and greeting them in the right manner.
- Dedicated Telephone Line. Yes, you heard it right. You can have a dedicated telephone line through which all the calls can be directed to you. You just have to ask your virtual office provider to provide you this service. Some virtual office provider charges some extra bucks for this and some provide this service in their package only.
- Access to Meeting Rooms. Yes, you can use the meeting rooms also when you opt for a virtual office. Whenever you need the meeting room or you have any meetings, just ask your virtual office provider to book your slot, and it's done. Your virtual office provider may ask you to pay for those meeting hours and sometimes you get certain hours of free access also. Anyhow it is something you can pay for.
- Company’s Signage or Name Board. You can put your company’s signage outside the premises of your virtual office. Usually, it gets done by your virtual office provider but sometimes they may ask you to arrange the signage, and then they will put it outside the premises. It builds your authenticity and helps you in getting all those registrations done smoothly.
How Virtual Office can boost your Online E-Commerce Business?
We understand that the work of e-commerce sellers can be done remotely. They don’t need a traditional office setup to get their work done. They just need the warehouses to stock their products. But, as we mentioned earlier, they need to get GST Registration in various states for which they need an office. Now, it doesn’t make any sense to take an office just to get GST Registration or open a bank account, right?
But, if they chose to have a virtual office at the right location, they can still get all the benefits of traditional office space and that too at a very low cost. A virtual office not only fulfills all the purposes of an e-commerce seller but also boosts their online business.
Many people don’t know about the concept of virtual offices in India. It’s still a new and growing concept for the Indian market. But it can surely boost the growth of your business and especially for e-commerce sellers, it is not less than a boon. By choosing the virtual office in right place, e-commerce sellers can get various benefits. They can simply avoid having a traditional office space and focus on the management and marketing of their products.
Benefits of Virtual Office for E-Commerce Sellers
Reduces Cost and Expenses
Virtual Office can reduce the cost and other expenses to an extreme level. You don’t have to take a physical office, pay monthly rents, maintenance expenses, electricity expenses, internet expenses, and other overhead expenses. You can simply choose a virtual office and you only have to pay a few thousand bucks and all your purposes will be solved. Let’s understand this with an example.
Suppose, you want to start your business in a prime location, say Connaught Place. We all know that Connaught Place is a very premium location and everybody wants to set up their business in such a location. But we also know that Connaught Place is very expensive. Let’s compare the cost of setting up physical office space and taking a virtual office in Connaught Place:
As we have seen, with Virtual Office, you can reduce your cost to an extreme level and save all those money that you can use to invest in your business and ultimately grow. And you will also get all the benefits of physical office space. Isn’t it amazing?
GST Registration in the Multiple States
If you want to deal with your products in multiple states, you don’t need to have a physical office space for getting GST Registration. You can simply take Virtual Offices in all those states and apply for GST Registration. This way, you can save a lot of money and you don’t even have to go to those states for this. All the work can be done online. Suppose you need a virtual office in Mumbai and Bangalore. You can simply search online for options and whichever option suits you and your business best, you can go for that. Then you can appoint a CA and he/she will get your work done. It’s that simple.
Few things that you should keep in mind while searching for options are location, charges of virtual office (since there is a lot of competition and after doing some research, you can surely get the best prices), facilities offered by the virtual office provider, images of the office space, terms of renewal (usually at the time of renewal, there is an escalation of 5% of 10% but after some negotiation, your virtual office provider can waive off this escalation amount).
With a virtual office, it becomes much easier to get GST Registration in multiple locations and most of these virtual office providers are Coworking Spaces which means you can rely on them.
Virtual Office can surely boost your growth. Your Office setup and GST Registration have been taken care of when you opt for the virtual office. You don’t have to worry about those things. And you have saved a lot of money which you were going to spend in setting up your office and then getting GST Registration. Now you can completely focus on the management and distribution of your products. You can focus on the queries of your customers. You can focus on the guidelines and other requirements of those e-commerce platforms. And when you are not distracted with other things and completely focused and dedicated towards your product and delivering value to your customer, none can stop you to grow at a good pace.
Usually, many businessmen keep struggling with so many unproductive things that they don’t get enough time to give to their product or create value to their product. This is the reason why not many businessmen grow and reach success. It’s not like taking a virtual office will lead you to great heights but yes it can surely help you grow since many of those distractions have already been taken care of.
Helps in Expansion
Everybody wants to expand their business especially when it is growing at a good pace. Virtual Office makes it much easier for e-commerce sellers to grow their business and also helps them in expanding it. By taking virtual offices in multiple states, reduces many complexities and makes it a bit easier to expand their business and start selling products in those locations and that too by spending just a few thousand bucks for each location. Anyone can afford to spend a few thousand bucks if they see the opportunity to expand their business and make their presence in multiple locations.
It will ultimately build the credibility and authenticity of your products. Whether you are running an online e-commerce business or any other business, you should definitely look into the opportunities and possibilities of expansion by using a virtual office.
Other benefits of prime locations
You can start your business with any of those prime locations and also you can shift your already running business to those locations and start using them as your official business address. We all know that these prime locations are very expensive and it is very difficult to start your business with such locations. But with a virtual office, it becomes easier. You don’t have to take the whole office on your own, you don’t have to pay huge monthly rents or other office expenses. You just have to pay a fraction of the cost and start using the address as your official business address and for your registration purposes as well.
As these prime locations are very expensive and difficult to start your business with, they also come with many advantages. Having your office set up in such prime locations can boost your growth. When you use such an address for your communication purpose, it builds your reputation. Meeting your business partners in such prime locations will increase your credibility. Meeting your clients in such locations will increase your authenticity and reputation amongst them.
Many of the big businesses and MNCs are already running their businesses in prime locations. Starting your business with such locations will surely help you in building a great network and ultimately helps your business.
Hope all the above points make it clear why a virtual office is not less than a boon for E-Commerce Sellers. Doesn’t matter whether you are running an e-commerce business or any other business, you should definitely look into the possibilities of how virtual office can benefit your business and reduce your overall cost. Here, at FlexiSpaces, we have plenty of options for Virtual Offices in all the major cities of India. We have listed few options here, you can check them out or you can reach us at firstname.lastname@example.org or +919899990277 for any kind of Virtual Office queries.