How to start T-shirt business in India
Updated: Feb 28
This article aims to educate individuals interested in starting an online t-shirt business by providing straight forward and detailed information. The content focuses on simplicity and clarity. It covers all the necessary details for starting such T-Shirt business in India.
The Good:
Passion, patience, and perseverance are all essential for achieving success as a t-shirt entrepreneur. The t-shirt market is expected to experience rapid growth in the upcoming years. The most efficient way to make significant progress in the fashion industry and compete with established brands is through online channels. Being successful online depends on effective advertising and offering the right products, as targeting specific segments accurately can lead to substantial success.
Tshirt-market-data
Is tshirts business really profitable:
Many social media influencers on platforms like Instagram and YouTube claim to offer guidance on starting a t-shirt business, but they often fail to address the challenges, the process, or the realities of running such a venture. Establishing a t-shirt business requires significant time, effort, and resources. Only after the business and turnover are established can profitability be achieved. When conducting an online t-shirt business, many mistakenly equate turnover with business success. However, turnover does not equate to profit. Instead of fixating on turnover, it is crucial to focus on the bottom line. For instance, selling goods worth 5 lakh per month may result in a 5% to 10% net margin, which amounts to Rs 25,000 to Rs 50,000 after accounting for all overhead and operating costs. Ultimately, the level of profit is determined by effort, experience, and luck and may result in either a net profit of at least 5% or a loss.
Starting a business involves the process of creating a website, mockup, and advertising, but the key to success lies in running the business profitably. Despite the claims of "get-rich-quick" schemes, starting a t-shirt business is a long-term endeavor. Many online t-shirt businesses continue to struggle and fail to generate profits. The truth is that running a profitable online t-shirt business requires perseverance. While it's true that t-shirt businesses can thrive in the marketplace, success hinges on factors such as strong inventory and effective advertising. Anyone can start a t-shirt business, but achieving profitability is what truly matters.
The Reality:
Running an online store in a highly competitive market can be challenging. It's not the hiring, manufacturing, drop shipping, or real estate that will require a significant investment, but rather the marketing costs. It's important to understand that without online marketing, generating sales will be difficult as customers won't simply come to your website.
When targeting the market, Limited Collections will not be sustainable as a tshirt brand. This conclusion is drawn from an in-depth analysis of data from over 100 brands, tracking their lifespan and business outcomes. Advertising is the key to attracting customers, and every marketing expenditure should generate value in terms of sales. Therefore, it is more advantageous to have a broader range of products to maximize the return on ad spending. A smaller inventory or fewer product variations will not benefit your business when relying on advertising. It is important to avoid idealizing the strategies used in Western countries, as India's market demands a unique approach for a tshirt startup. Prior market research is essential before entering the market.
Take a Note,
Customers purchase what appeals to them, not necessarily what you're passionate about or what you want to sell.
Rather than fixating on your product, focus on creating a product that resonates with customers and sells effectively. Generating revenue and turning a profit are crucial right from the start, as they enable you to establish and grow your brand.
Market Research Hack:
Go to any online store (Shopify or Woocommerce)-> Go to the collection page of any brand -> Sort by best selling -> Absorb for 90 – 180 days daily -> You can rip out almost every tomdick’s best-selling product & what is running in the market in any online store then hunt the product mercilessly and double down & tear them apart. Commercially winning first matters the most than innovation.
In larger Picture, Every dam brand has only few best selling products which makes their bread and butter. Ripping and hunting those top selling products will reduce your risk considerbly. Rest of the products even with big filthy showoff bigotry brands are slow moving or deadstocks to project their collections size which they will be selling for lot of months or years together.
The collection page means the category in the website says ( In menswear – shirts, t-shirts are categories).
Also note, In labour intensive Workforce nation like India, Commercially, Sustainable products or sustainbility are a big fat fricking joke. Viability of scaling a business multi crore with sustainable products in India is like catching fire on your own tail and running behind it in the same place mindlessly.
Have this ruthless mantra in my mind “Dam Consumer doesnt care about what you think. Dam Consumer will buy only what “it” wants”
Winning the apparel game directly is “Understanding to avoid the dead sizes & keeping the hot selling sizes at stock before the need generates”.
Many brands squeal & scream with their bottomline over time with dead stocks. When you observe that there is a size under performing, Remove them. you dont have to be that market pleaser. You are here to make yourself sustainable not the dam market.
Either sell only the high-demand low competition essentials or Do the branding right.Tshirt is a low demand and high competiton essentials. So, You average branding efforts will make your business dunk in 6 months.
Proper high value branding, knowing what the dam consumer needs, understanding the game of dead stocks & having best sellers at stock will help you breakeven as a business at some point or you will remain as just another want-re-preneur.
So much negativity right!. Hell yeah. Market awaits you then.
Let’s cool off a little now😜
How to start tshirt business: Tools & Hacks.
1. Required documents for GST registration
2. Streamlined registration process for startups
3. Website, tools, and technologies for your business
4. Protecting intellectual property and trademark for your startup
5. Online marketplaces to sell your branded T-shirts
6. Understanding the importance of volumetric weight vs parcel weight
7. Gaining knowledge about t-shirt design, quality, and printing methods
8. Analyzing investments and costs for your T-shirt business
9. GST billing for your state and other states, input tax credit with IGST, CGST, and SGST
10. Downloadable invoice formats for free
11. Strategies for effectively managing cash on delivery orders without revenue loss
12. Effective methods to establish your brand and internet marketing tips
What is the process for registering for GST?
Registering for GST is essential, especially if you want to benefit from input tax credit. This is particularly important for startups, as they often prioritize frugality and cost-effectiveness. By registering for GST, you can save money where it matters and spend wisely.
For example, if you manufacture t-shirts with a manufacturer in New Delhi, your billing will include a 5% GST. Let's say the value of the goods you manufacture is 3 Lakhs INR. In this case, you would pay 15,000 rs as GST. However, you can claim this amount as a refund when you sell the t-shirts to your customers.
Registering GST, you can confirm better liability for your business and restructure your financial procedures.
What is Class 3 Digital Signature?:
Class 3 Digital Signature is a USB pen drive device that contains your identity information. It allows you to digitally sign, authenticate, or approve documents. It is important to subscribe to Class 3 digital signature, especially for GST returns and other government processes. You can obtain it from the following website: https://www.emudhradigital.com/allproducts.php. To ensure compliance, consult with your Chartered Accountant and register yourself under GST for legal online t-shirt selling. The registration cost will vary from Rs 2500 to Rs 20000, depending on the type of registration (Proprietorship, Partnership, One Person Company, or Pvt Ltd) and the auditor involved.
What are the Documents Required for GST Registration:
- PAN Card of the Business or Applicant
- Directors' or Partners' or Proprietor's Identity and Address Proof
- Business Registration Document
- Address Proof for the Place of Business
- Bank Account Proof
- Class-3 Digital Signature.
Performing a basic registration process requires a certain level of understanding and attention to detail. It is crucial to approach business operations with a mindset that combines frugality, thriftiness, and intelligence. However, it is important to strike a balance, as excessive cost-cutting and a failure to make future-proof investments can have disastrous consequences for your business.
Why is it advisable to start with proprietor registration?
It is recommended to prioritize investing your money solely in your product and marketing during the initial stages. Government registration, on the other hand, can be modified or replaced whenever necessary, similar to your wardrobe. However, your product and marketing are essential components, comparable to your blood and skin.
1. Both your company and personal income tax returns need to be filed separately.
2. There is a significant amount of pre-registration and post-registration documentation and filing required, such as DIN, MOU, AOA, AGM, and YOY performance statements with the Registrar of Companies (ROC).
3. The expenses involved in maintaining all of this and completing the necessary formalities with the Ministry of Corporate Affairs (MCA) can be quite substantial.
For every startup that lacks a substantial amount of funding from venture capitalists, even the purchase of a single 1₹ pencil is considered a cost, and every penny holds significance.
However, with a proprietorship registration, the process becomes much simpler.
Only one IT return needs to be filed, and there is no requirement for a separate PAN card. Essentially, minimal documentation is needed, apart from GST and IT returns. Unless you plan on pursuing equities or seeking seed funding and Esops, opting for proprietor registration is a wise decision.
Having a PRIVATE LIMITED or LLP tag does not guarantee business success. It is ultimately your exceptional service, products, and marketing strategies that determine the success of your business. If you are starting small, it is advisable to go for a regular proprietor registration. You can always upgrade to the more expensive Pvt Ltd registration later on.
As your turnover and margin increase, so does your bargaining power with banks and investors. Therefore, it is important to be frugal and avoid unnecessary expenses. Adopt a hustler mentality and choose the option that best suits your needs.
WEBSITE, TOOLS & TECHNOLOGIES:
Prior to initiating any registration process, it is crucial to carefully select your "BRAND NAME". Your brand name serves as your unique identity, so it is advisable to choose a name that is easily pronounceable. It is essential to promptly check the availability of the corresponding website domain name. Additionally, it is important to conduct a thorough search on the IPR website to ensure there are no conflicts with existing brands. This initial step of establishing control over your chosen name should be treated with utmost seriousness, as it can prevent unnecessary legal disputes in the future.
It is possible for your domain name and company name to be different.?
Yes, it can. The registration of a domain name is separate from the legal registration or the official name of your business. You have the flexibility to use different names for your domain and legal entity. However, it is important to note that your business transactions and GST filings must be conducted under the legal name of your business, rather than the brand domain name. To illustrate this, let's consider an example. The website http://pixodek.in represents the online presence of my business, while GST filings are done under the legal name Olison Enterprises, which is the official face of the business.
What are the Intellectual Property Rights for your startup and trademark?
This is a crucial consideration for both online and offline businesses.
If you want to check trademarks for your brand, there is a way to protect its unique identity to some extent.
You can do this by checking with the Ministry of Commerce & Industry of India, as they have various classes for different products. To check, simply
click on the provided link: https://ipindiaonline.gov.in/tmrpublicsearch/frmmain.aspx.
Once on the website,
enter the name of your brand in the Wordmark Column and mention Class 25 in the class column. Then, proceed with the search. If there is a conflict, it means you need to change your brand name.
When searching for a brand name, start from the word that represents your idea. For example, if your aspiring brand name idea is "cooltees," search from the word "COOL" in the words column to find even the closest conflicts. It is crucial to ensure that the chosen name is unique. Please note that obtaining a trademark for your brand name will cost you between Rs 6500 and Rs 8000.
What are the steps to create a website for my t-shirt business?
You don't need to be a technical expert, but rather a savvy business person.
When it comes to generating traffic for businesses without apps, our observations from working with various brands have shown that running ads is an effective marketing method
Approximately 96% of traffic to online stores comes from mobile phones.
All warm, cold, re-targets or repeat audiences put to count with data. Data measured via google analytics & webmaster collectively along with KPI’s in the ad platforms.
This data is measured through Google Analytics and webmaster tools, along with key performance indicators (KPIs) in the advertising platforms. Therefore, it is crucial for direct-to-consumer (D2C) businesses to have a mobile-responsive and well-optimized website in order to reduce bounce rates, improve click-through rates (CTR), and increase conversions.
Should I use WooCommerce for my e-commerce store? Why?:
WooCommerce is a part of WordPress and can help you build your e-commerce store with a one-time investment. The approximate cost of creating a WooCommerce store ranges from 20,000 to 100,000 rupees. Additionally, product uploads and website maintenance do not require excessive effort. However, it is important to consider factors such as bandwidth, execution time, and memory size. It is recommended to utilize content delivery networks (CDNs) to pull both static and dynamic files whenever possible. Regular updates are necessary to enhance security and protect your WooCommerce store. Utilizing security-enhancing plugins and keeping PHP updated are also crucial. However, it is worth noting that WooCommerce may not be the best option in 2023/2024, as it lacks proper apps to support day-to-day processes and efficiently check analytics. In this case, it would be wise to consider migrating to Shopify, which excels in all aspects of running a hassle-free online store.
Shopify is a logical choice in 2024 due to its user-friendly nature.
It is comparable to a cakewalk, as it can be easily built without any technical or coding knowledge, or with minimal coding knowledge. The cost of creating an excellent Shopify e-commerce store is estimated to be between 150 to 300 USD.
Additionally, the annual subscription cost, including required apps, would be around 300 to 500 USD.
Despite the higher collective cost, you gain access to a wide range of apps that can simplify your work. Shopify ensures hassle-free maintenance of your e-commerce store, as its backend is completely controlled by the platform, guaranteeing utmost security. Moreover, it offers apps to handle billing, RTO management, product exchanges, and more. If you prefer Shopify, I will also provide guidance on how to build it smartly. Simply visit themeforest, purchase a theme, and easily install it with the help of simple guidance from YouTube. You don't need to rely on a tech company for these tasks. Overall, Shopify offers a variety of plug and play options, with free themes available and good themes starting from Rs 3000.
Apps to use in shopify:
Shipping Aggregators:
What are the other design tools I need to refer to?
1. CANVA
2. ADOBE SPARK
3. EASIL
4. PICMONKEY
there are lot of tools to design templates.
Add Payment Gateway (Applicable only for your own website):
Investment and Cost Analysis for Your T-Shirt Business
Please be aware that the following information is a complete simulation and the product cost may vary depending on market conditions.
For bulk orders of good quality graphic round neck T-shirts, the cost is Rs 160 + 5% GST, totaling Rs 168. It is important to note that the tax paid to the manufacturer will be refunded to you as "Refer - Input Tax Credit" when you make a sale and file GST.
Once you have uploaded the products to the marketplace and set the price, you need to consider the commission charged by the marketplace. Assuming a commission rate of 20%, the commission to be paid would be Rs 99.8.
In addition to the commission, there will be a closing fee or marketplace fee of Rs 10. Furthermore, there will be a courier charge of Rs 45 (which may be lower for regional or intra-state deliveries).
Commission and charges may vary from one marketplace to another.Note: Now, GST Tax might vary the taxes you pay
Now, If you are selling in marketplaces:
Selling Price | 499 |
Commission 20% to marketplace | 99.8 |
Service Tax On Commission | 17.964 |
Market Place Fee | 10 |
Service Tax closing Fee | 1.8 |
Courier Charge | 45 |
Product Cost | 168 |
Total sales tax to be paid after source tax cut | 16.95 |
Total Cost | 359.514 |
Total Profit Per Tshirt | 139.486 |
Tax already Paid on the product at source | 8 |
Tax to be paid on the selling price | 24.95 |
MARKET-PLACE LINKS:
Below mentioned are direct access to a few worthy T-shirt marketplaces to mention.
MANAGE MULTIPLE MARKET PLACE:
Managing Multiple Market Place with below software as a service products.
Non-Refundable Charges:
Marketplaces necessitate a significant commission ranging from 15 to 20% in order to maintain their operations. They levy fees and service taxes on the selling price of your product, which cannot be reversed. Even if the customer decides to cancel or return the product, these charges will not be reimbursed to you.
Substantial Reshipping Costs:
Imagine a situation where your product is returned or exchanged. In such instances, you will bear triple the shipping expenses to deliver the same product once again, leading to a reduction in your profit margin.
Let us discuss investments and establishing your own online brand.
Start an e-commerce store and discover a plethora of new opportunities in the digital realm.
Ambition is a potent tool in the business world, and it is perfectly acceptable to possess it in this magnificent realm of commerce, where you can envision the future before your competitors do. Do not let fear consume you, for even giants like Google have surpassed their rivals, such as Yahoo. Have faith in your abilities and believe in yourself.
The motivation to establish an online T-shirt brand stemmed from the recent valuations of successful T-shirt startups and the remarkable funding taking place in the realm of apparel and lifestyle brands. However, not all startups reach the point of attracting investors to join them on their journey. Bootstrapping is a commendable approach that can yield fruitful results in the long term. In the online space, each player has their own niche and opportunity to thrive.
Launching a wider range:
Launching a wider range of categories is crucial for the success of online stores, especially for startup brands that I have collaborated with. Acquiring customers without running advertisements is an arduous task in the realm of online retail. However, when we do invest in advertising, it becomes imperative to maximize its effectiveness. For instance, let's consider the scenario where you are selling printed t-shirts and running ads for them on your store. When a visitor arrives through the ad, it is always more advantageous to seize the opportunity and promote additional products through cross-selling or upselling, without increasing the ad expenditure. Unfortunately, many t-shirt startup brands overlook this strategy and instead squander their resources on excessive advertising.
Conquer the market and dominate the industry with an innovative inventory model.
The majority of the market is fixated on printed t-shirts, leaving a vast untapped potential in exploring new fabric compositions and constructions for startup brands.
To ensure optimal pricing, the Inventory Model suggests setting the selling price at three times the cost price. This strategy allows for a balanced approach to pricing and profitability.
Effective allocation of finances is crucial for scaling an apparel business. Once you have identified your best-selling products, it is essential to keep them in stock until their popularity wanes. While maintaining inventory may seem daunting, it is imperative to prioritize inventory management for products that sell well.
For those unfamiliar with investment basics, there are two primary options: equity and debt.
Equity involves diluting your shares and raising funds from angels, seeds, incubators, and venture capitalists. However, this path often leads to increased investor control over day-to-day activities and pressure to secure additional funding, potentially leading to financial bubbles unless the business is highly profitable.
On the other hand, debt entails entering into a loan agreement where repayment is required after a specified number of years. While this option grants less control to investors, it carries a higher risk of repayment.
These are just the fundamentals of fundraising, and there is much more to discover if you decide to pursue funding for your venture.
Invest! Invest! Invest! in a professional photographer for your products.
Investing in a professional photographer for your product's studio like Pixodek your product photoshoot can have a remarkable impact.
Click on banner to reach Pixodek website
Consider this:
think like Lays! Without captivating and high-quality images, would anyone, including yourself, even bother to take a look at a product? To maximize your chances of making that extra sale, it is crucial to invest in and upload high-quality images that showcase all the intricate details of your t-shirts.
Remember, images that highlight even the smallest details tend to sell better.
TRENDING STYLE IN THE MARKET:
1. UNISEX – ROUND NECK PLAIN TEE
2. UNISEX – FULL SLEEVE PLAIN TEE
3. UNISEX – OVERSIZED TEE
4. WOMEN’S – CROP TOP
5. WOMEN’S – FULL DRESS
6. WOMEN’S – SCOOP NECK
7. UNISEX – POLO
8. UNISEX – SWEATSHIRT
9. UNISEX – HOODIES
10. BOTTOM CURVE TEE
11. TANKTOP & GYMWEAR
12. CUT & SEW
13. UNISEX V NECK
14. UNISEX HENLEY
15. UNISEX RAGLAN
16. TIE & DYE, ACID WASH, OIL WASH & CPD.
17. STAIN REPELLENT TEE, MINERAL WASH.
TRENDING FABRIC COMPOSITION
1. 100% COMBED COTTON
2. 100% PIMA COTTON
3. 80% COTTON & 20% POLYESTER
4. 65% COTTON & 35% POLYESTER
5. 52% COTTON & 48% POLYESTER
6. 100% POLYESTER
7. 100% MICROMODAL /MODAL
8. 100% TENCEL
9. BAMBOO COTTON
10. ORGANIC COTTON
11. REGENERATED COTTON
12. RECYCLED POLYESTER
13. RAYON / VISCOSE
It is crucial to have knowledge about t-shirts, encompassing their quality and diverse printing methods.
Prior to delving into the details about the types and quality of t-shirts, it is imperative to dispel a common misconception.
“It is important to note that the thickness of a t-shirt does not necessarily equate to its quality. Similarly, a lower thickness does not imply a lower quality.”
Fundamentals By T-shirts Quality:
To ensure the quality and desirability of your T-shirts or any knitted merchandise, it is crucial to address the following issues:
1. Shrinkage: Take measures to prevent T-shirts from shrinking after wash, as it can negatively impact their aesthetics and fit.
2. Fastness Issue: Ensure that the color of the fabric remains intact even after multiple washes, avoiding any color loss.
3. Cracks in Prints: Pay attention to the durability of the prints on the T-shirts, ensuring they do not crack or deteriorate with wear and stretch.
4. Neps in the T-shirts: Minimize the occurrence of lint or spun fibers coming out of the T-shirts after repeated washes, as it can affect their appearance and quality.
5. Measurement: Give utmost importance to accurate measurements, as this category is highly sensitive. Precise sizing will enhance the overall fit and comfort of the T-shirts, satisfying customer expectations.
By addressing these issues, you can enhance the overall quality of your products, making them more appealing to customers and increasing their chances of selling successfully.
Here are two valuable resources for obtaining mockups and templates for your T-shirts:
1. InscribeMag: This website offers a collection of free T-shirt mockups in PSD format. You can visit their page at https://inscribemag.com/free-t-shirt-mockups-psd/.
2. GraphicBurger: Another excellent source for mock-ups, GraphicBurger provides a variety of free T-shirt mockups. You can explore their collection at https://graphicburger.com/mock-ups/ These links serve as a gold mine for beginners, offering high-quality mockups and templates to enhance your T-shirt designs.
The remaining options for mockup creators that require payment are listed below.
https://placeit.net/ Additionally, you can discover more designs and designers.
Fiverr.com – A platform for freelancers where you can hire someone to complete your project for approximately $5 or around Rs 350 per design.
99designs.com – This website offers the services of professional designers who can create high-quality designs for you.
https://graphicriver.net/ – Here, you can purchase stylish designs for your t-shirts.
https://www.behance.net – Explore the work of some of the world's most creative individuals who produce unique and innovative designs.
Envato Elements "The most exciting way to discover effortless artworks": You can also purchase templates, different font types, and various art files such as Photoshop, AI, and other formats. These designs can be customized to meet your specific requirements and design preferences.
For more information, please visit https://elements.envato.com/
Screen Printing:
Screen printing is the most popular method of t-shirt printing worldwide, accounting for approximately 90-95% of all prints. This technique is ideal for simple text or uncomplicated designs, allowing for the production of a large number of prints.
Advantages:
1. Budget-friendly printing & Cost-effective
2. Screen printing dyes are very durable
3. Less time for printing required than the DTG
Disadvantages:
1. Setting up time is higher to make screens
2. Not suitable for color having more than 8 colors in printing
Overall, screen printing offers a cost-effective and durable solution for t-shirt printing, particularly for simple designs or text.
Direct to Film (DTF) Digital Printing:
DTF printing is currently the optimal choice. DTF Printing involves directly printing your design onto a film and subsequently transferring it onto a T-shirt composed of cotton, polyester, or their blends, irrespective of the color, as it can effectively utilize white ink. In essence, it resembles a sticker that you print and apply heat to press it onto the t-shirt. Unlike DTG, DTF printing performs excellently with all types of garments and does not possess any limitations. If you aim to attain the same level of quality as screen printing, opt for DTF Printing.
Advantages:
1. Multicolor or gradient printing
2. Durable Printing than DTG
3. No pre-treament like DTG
4. No white ink issue like DTG
5. Decent print quality
Disadvantages:
1. 3X costlier than screen printing.
2. Printing location is limited & less flexible than screen printing.
Direct to Garment (DTG) Digital Printing:
DTG printing may appear to be a convenient choice, but the quality of the prints often falls short when compared to screen printing. The cost associated with DTG printing is significantly higher considering the print quality it delivers. Moreover, when DTG printing is done with fewer passes, the prints tend to become messy after a few washes.
In order to attain a comparable quality to screen printing, DTG printing is at least five times more expensive. However, it is logical to assume that the end consumer will still pay the same price. Therefore, DTG printing is not advisable for large orders or bulk printing requirements.
Advantages:
1. Multicolor or gradient printing.
Disadvantages:
1. 5X costlier than screen printing.
2. Print quality can never be compared to screen printing.
3. Printing location is limited & less flexible than screen printing.
Sublimation Printing:
Sublimation printing is highly effective on fabrics made of 100% Polyester and to some extent on polyester-rich cotton fabric. Since it involves a heated paper press technique, it is not possible to print white color, such as white text on dark fabric. Sublimation printing is commonly used for corporate event t-shirts and Marathon T-shirts.
Advantages:
1. Cost-effective printing tech.
2. Can print great on Polyester & partially on polyester-rich cotton tees.
Disadvantages:
1. You can’t print white color on dark garments.
HEAT TRANSFER (a) VINYL Printing:
Heat transfer is effective on all types of fabrics, just like sublimation printing. You can use paper-to-fabric transfer vinyl to cut out your desired design and then transfer it onto t-shirts.
Advantages:
1. Cost-effective printing tech.
2. can be printed any fabric type.
Disadvantages:
1. Result varies depending the stickers used.
2. Quality can never match the screen printing printed tees.
Understanding the concept of volumetric weight is crucial when it comes to courier services.
Learn about the volumetric weight when initiating a t-shirt business in India.
Many ambitious beginners misplace items in this location. It is foolish to pay an unnecessary additional fee for the delivery service. The precision of dimensions plays a vital role when working with shipping partners.
Understand the reason behind this.
Let's assume that you have prepared your brand for shipment. You have created an appealing cardboard box of good quality without verifying its measurements, only considering the total weight. This leads to a situation where you needlessly spend your profits by paying extra for the courier partner. When using shipping rate calculators, you will only find the total weight, not the volumetric weight. However, the volumetric weight holds significance.
Please pay close attention to the following information:
The formula for calculating volumetric weight is as follows
Suppose you ship a product from Dilwalo ki Delhi to Bengaluru. You have a t-shirt and box put together weighing .450g.Let’s assume the charges for the courier is Rs 55 for .500 grams
But the box dimensions are 25CM LENGTH X 25CM WIDTH X 5CM HEIGHT.
Volumetric weight = (L in CM X W in CM X H in CM)/5000
Volumetric weight for my box = (25CM X 25CM X 5CM)/5000 = 0.625g
Now it clearly seems that the parcel total weight is .450g but volumetric weight is .625gCourier partners will take whichever is higher. Accordingly, charges will be levied.
Now you are shelling out ₹110 in place of ₹55. This is because the courier partner will charge a price for 1 kg as the volumetric weight is .625g
Ensure that when designing your corrugated box, you take into consideration the volumetric weight. Both the weight of your parcel and the volumetric weight must be below .500g in order for the courier charge of .500g slab to be applicable.
For shipping a single t-shirt, this calculation may be the most optimal. However, feel free to experiment with different numbers and choose what suits your needs. It is important to have a discussion with the account manager or aggregator to obtain the necessary details for calculating the volumetric weight.
Approach this information with caution when it comes to Ads:
When you are establishing your brand, advertisements are the only way to go. Facebook Ads have their pros and cons.
Based on my experience of spending on Ads, they can bring in traction and customers. However, once you stop running the ads, your sales figures will plummet. It is crucial to be prepared for this and spend your budget wisely. Take the time to learn about various aspects of FB Ads such as Campaigns, Ads, Ad sets, carousels, Ad-copy, Target segment, target group, affinity score, Competitor Research, CPA, CPC, ROAS, and more. Analyzing the Return on Ad Spend (ROAS) with Cash on Delivery (COD) is essential to determine if your ads have generated quality leads. Measuring Key Performance Indicators (KPIs) and Return on Investment (ROI) is crucial for every marketing campaign, even if it is optimized. Make sure to validate the ROAS data. Keep in mind that different niches yield different results, so act sensibly. Targeting the right age group and area is vital for optimizing your ad campaign. If you require assistance with these matters, I highly recommend DigitalDC Facebook Ads Agency in Bangalore, a performance marketing agency specializing in Facebook ads.
Oh dear! COD - Cash On Delivery:
In our country, the Cash on Delivery (COD) method is beneficial for e-commerce giants due to their established validation Standard Operating Procedures (SOPs) that determine whether to offer COD to a specific customer or decline it. Additionally, having their own logistics arm helps to minimize chaos.
However, in India, there are some customers who abruptly change their minds without considering the consequences of their previous actions. This leads to the need for allocating manpower solely for the purpose of calling and following up with these customers who place a COD order but either avoid answering calls or disappear altogether.
While COD may seem like an appealing option for businesses with significant profit margins, it is definitely not suitable for a t-shirt startup that operates on an inventory or drop-shipping model.
It is more advantageous and prudent to establish and cultivate a dedicated group of supporters who can rely on and choose prepaid payment. Logically, prepaid orders are delivered more quickly than cash on delivery (COD) orders. Interestingly, not many people discuss the challenges associated with COD.
There are a few thoughtless COD customers who fail to realize that startups put great effort into ensuring the quality of their products and offering consumers a great value. RTO, which stands for "Return to Origin," occurs when the courier partner is unable to deliver a shipment to the customer for any reason.
In such cases, the parcel is marked as RTO and returned to the pickup warehouse, which is the origin. Dealing with RTO can be quite burdensome, as you can lose approximately Rs 150 per shipment in COD-RTO charges. The number of RTO cases in COD orders is significantly higher compared to prepaid orders.
Reasons behind the difficulties with COD?
Please exercise caution when offering Cash on Delivery (COD) as there may be potential drawbacks.
SEE THE COST INVOLVED ON COD ORDER IF MARKED RTO.
Please note that we have implemented a verification Standard Operating Procedure (SOP) for COD orders. We conduct two rounds of verification before shipping a COD order. The first verification is done through an Interactive Voice Response System (IVRS), and the second verification involves a real person calling to confirm the order.
Given the legal framework surrounding startups, many may face difficulties when dealing with RTOs that occur without any valid reason, and it may be challenging to address this issue assertively.
While I cannot guarantee that this approach is foolproof, it has helped us to some extent in reducing RTOs for COD orders on our own retail channel and the startup brands we collaborate with.
Please consider the following guidelines to measure COD orders in a simplified manner:
1. We have implemented an efficient IVRS system and follow-up calls as a mandatory practice.
2. We utilize Gmaps to verify the accuracy of addresses or any related information, which helps us make informed decisions regarding order approval.
3. Placing a COD order now requires mandatory OTP verification for added security.
4. Unless we determine that it is logistically feasible, we prioritize or cancel COD orders from rural or remote areas. In such cases, we ensure that manual calls and WhatsApp order verification are conducted if the aforementioned checkpoints are unsatisfactory.
Finally, we process COD orders based on the aforementioned criteria, resulting in a return-to-origin (RTO) rate of less than 10%.
To further mitigate RTO issues, you can explore tools like Know from https://logisy.tech/product/.
POLICY ON RETURNS AND REFUNDS FOR PREPAID ORDERS:
Ensure a high level of customer satisfaction by prioritizing their payment protection.
In the service industry, it is truly admirable to handle customer concerns with utmost courtesy and satisfaction. Building a successful business relies on this approach rather than relying solely on extensive marketing efforts.
Mandatory provision of doorstep return pickup service.
The refund policy should be designed to alleviate any customer anxiety.
Customers should be offered refunds through their original mode of payment.
What are the strategies for conducting online marketing for t-shirts?
1. For B2C companies, it is essential to have a presence on Instagram and Facebook.
2. Giveaways on social media have a magical effect in attracting attention and engagement.
3. Engaging with social influencers can greatly benefit your brand.
4. Utilizing user-generated content and asking influential individuals to write about your brand and products can enhance your brand image.
5. Incorporating YouTube marketing can add an extra wow factor to your B2C business, reaching a wide range of audiences.
6. Requesting testimonials from satisfied customers can help build trust and generate positive word-of-mouth.
7. PR agencies continue to be effective in gaining traffic and promoting your brand, even in the future.
8. It is important to set a spending budget and promote your business through targeted advertisements, rather than spending excessively.
9. Pinterest is a valuable platform for generating traffic and linking to your brand globally. Familiarize yourself with the "Pinterest Lens" feature.
10. Writing blogs that are concise and clear, rather than overly wordy, can effectively communicate with consumers. Take inspiration from Steve Jobs' use of simple English.
11. Make sure to prominently display your company's name, address, and phone number, as this can greatly impact conversions. (NAP Factor)
12. Invest time in learning about advertising, promotions, and branding strategies.
13. Visual content is crucial in appealing to consumers' emotions. Consider strategies such as "Buy 2 Get 1 Free" or "Up to 50% Off" to entice spendthrifts.
14. Prioritize customer retention by implementing loyalty programs and offering personalized coupons to target specific customers.
15. Utilize platforms such as WhatsApp Marketing, Facebook Ads, and Google Ads to effectively reach and engage with your target audience.
How should I tax my t-shirts in GST?
Before knowing about how to tax for the t-shirts.
HSN CODE FOR TSHIRTS: 6109
Do not trust the misconception that a turnover of less than 40 lakhs exempts you from GST. By not registering for GST, you are missing out on the opportunity to claim Input Tax Credit and potentially losing money unnecessarily.
Ensure that you subscribe to GST and diligently file your returns on a monthly basis.Registering your firm under GST is highly recommended as it will have a direct influence on your ability to negotiate with banks when seeking loans.
ITC – INPUT TAX CREDIT
Tax paid by you to the manufacturer will be rebated while you file the purchase bill in GST
There are two slabs.
Slab 1: Garments sold less than Rs 999 Garment will incur 5% GST
Slab 2: Garments sold more than Rs 1000 and higher will attract 12% GST
How should I tax my customers?
Let’s say. As tshirts manufacturers in Surat.
If I sell t-shirts to buyers “Inside Gujarat“, I will have to use CGST 2.5% and SGST 2.5% and pay a total of 5% GST.
Let’s say I sell t-shirts to buyers “Outside Gujarat.
let’s say I manufacture custom tees to ship it to Mumbai or Delhi or Bangalore. I will have to use only IGST 5%.
All the above changes to be done on the invoice.
If you selling tshirts within your respective state, then CGST & SGST.If you are selling tshirts outside your respective state, Then you got to use IGST.