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Virtual Office vs VPOB: What Is Better for Ecommerce

Introduction

As an ecommerce seller, you may already know how important customer satisfaction is in the ecommerce world. One of the crucial factors is faster product delivery. Every customer who orders your product online expects it to be delivered as soon as possible. Ecommerce operators like Amazon, Flipkart, Meesho, and others boost the visibility of products that can be delivered quickly. However, to achieve faster delivery, your products need to be strategically located closer to the customer. For example, if you receive more orders from Haryana state, your products should be stored at Haryana fulfillment centers to facilitate faster delivery for Haryana orders. However, you cannot access the Haryana fulfillment centers unless you have a GST registration for Haryana and add Haryana fulfillment centers as additional places of business in your GST. Similarly, if your customer base is in Maharashtra, you need to be GST registered in Maharashtra to access Maharashtra fulfillment centers.

One of the requirements for getting GST registration in any state is having a business address. It is not feasible for sellers to purchase physical space in every state where they want to get GST registered. It can be costly, and not every seller can afford it. This is where renting a space becomes a viable option for sellers. By renting a space, sellers can have a business address for GST registration in any desired location without incurring significant costs.

When sellers consider renting a space, they often come across two popular options: virtual office and virtual place of business (VPOB). These terms are sometimes used interchangeably, leading to confusion. In this blog, we will explore the differences between virtual offices and VPOBs and determine which option is better suited for ecommerce.

What is virtual office?

A virtual office is a service that provides a business address and other documents, such as electricity bills, utility bills, etc., which are required for GST registration.

What is VPOB?

Virtual Place of Business (VPOB) or Virtual Principal Place of Business (VPPOB) is a service that provides a business address in the required state and also helps you with GST registration and approval, additional place of business, a dedicated desk, a business representative, and other complementary services like call answering and document mailing.

Key differences:

Address Only vs Complete Solution

A virtual office only provides a business address, while VPOB provides a complete solution for ecommerce sellers which help them not only with GST registration but also Additional Place of Business and compliance management.

Documents Only vs Full Compliance

A virtual office offers utility bills etc for GST registration, but VPOB handles all compliance formalities like obtaining GSTN.

Self-managed vs Managed Service

With a virtual office, the seller manages GST processes themselves. VPOB provides an end-to-end managed service for compliance.

Utility Address vs Business Presence

A virtual office address is just for registry, but VPOB enables sellers to establish a virtual commercial presence.

GST Registration Only vs Additional Benefits

VPOB facilitates GST registration and also provides access to Amazon/Flipkart warehouses as additional places of business.

DIY Compliance vs Expert Guidance

A virtual office requires self-learning of processes, VPOB offers handholding by GST/ecommerce experts.

Cost Effective vs Returns on Investment

The virtual office option is often a costly solution, whereas VPOB is a cheaper solution with added benefits.

Which is better for Ecommerce?

Here are the key reasons why VPOB is better for ecommerce sellers compared to a regular virtual office:

Compliance Support

VPOB service providers manage all compliance formalities like GST registration, renewals etc. This saves seller time and resources.

Access to Fulfilment Centers

VPOB provides sellers access to Amazon/Flipkart warehouses as additional places of business. This allows storage and quick delivery of inventory locally.

Enable for Seller Faster

The VPOB offers a complete solution that ecommerce sellers need, enabling them to sell from GST registration to accessing a warehouse.

Time Saving

The VPOB offers you a one-stop solution; you don't need to go anywhere for anything. Unlike the virtual office, which only provides a business address and other documentation facilitating GST registration, with a VPOB, you don't have to handle additional places of business on your own, which can be time-consuming.

Cost saving

The VPOB option is cheaper compared to a virtual office. You can get VPOB services from TheGSTco for Karnataka state for as low as 7000 rupees, which is not possible with a virtual office option.

Expert guidance

With the VPOB service, you receive guidance from ecommerce experts who understand what it takes to enable your selling and maintain your compliance. In case you encounter a problem, you can obtain an immediate solution.

 

Which is the best VPOB option in the market?

Now that you know that the VPOB option is better than the virtual office, as explained above, the question arises: which service provider should you choose? There are many service providers that offer VPOB services, each with their own pros and cons. However, TheGSTco stands out among the many market players. Here's how:

Affordable Rates

As we know, the VPOB option is more affordable than a virtual office. However, there are many VPOB service providers that offer the same service at different prices. Each provider has their own set of policies that determine the pricing. At TheGSTco, our focus is to provide value for money. Our mission is to reach every ecommerce seller in India and offer them the most affordable VPOB service to help them grow in the ecommerce world.

Zero GST Cancellation Rate

While there are hundreds of people offering this service, many fail to obtain GST for sellers. Applying for GST requires proper understanding, and this is where our experience becomes important. With our seven years of experience in GST and ecommerce, we ensure that you don't face any GST cancellation issues. We are confident in our expert team, and therefore, we provide a 100% GST approval guarantee.

100% Refund Option

We believe that nothing is perfect, including our own service. While we make sure to guarantee GST approval for you, there may be instances where we miss the mark and fail. That is why we offer a 100% refund for the amount you paid for our service, providing additional security and peace of mind.

Faster Execution

Although our solution is affordable for most ecommerce sellers, we do not compromise on the quality of our service for the sake of profit. We have hundreds of experienced and expert individuals in our team who ensure that your service is not delayed.

Conclusion

In conclusion, the choice between a virtual office and a Virtual Place of Business (VPOB) can significantly impact an ecommerce seller's operations and compliance management. While a virtual office provides a business address and essential documents required for GST registration, a VPOB offers a comprehensive solution that includes GST registration assistance, additional places of business, compliance management, access to fulfillment centers, and expert guidance from ecommerce professionals. The VPOB option emerges as the superior choice for ecommerce sellers due to its cost-effectiveness, time-saving benefits, compliance support, and access to fulfillment centers.

When considering VPOB service providers, TheGSTco stands out as a reliable and affordable option for ecommerce sellers in India. With a focus on providing value for money, a 100% GST approval guarantee, a 100% refund option, and a commitment to efficient execution, TheGSTco ensures that ecommerce sellers can seamlessly navigate the complexities of GST registration and compliance management while accessing the necessary resources to grow their businesses efficiently and effectively.

Ultimately, the VPOB option, particularly when supported by a trusted service provider like TheGSTco, offers ecommerce sellers a competitive edge in the marketplace, enabling them to focus on their core business activities while leaving the complexities of compliance and warehouse access to experienced professionals.

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