Incense sticks, popularly known as Agarbatti, are incorporated into the Indian tradition. Whether there is a small aarti at your home or a big havan in a temple, you can find Agarbatti everywhere!! Those small sticks burn completely into ashes to give out an aroma that fills the entire room and gives pleasure. It shows how humans act in society, sacrificing and giving others happiness. Moreover, burning incense sticks is one of the sixteen steps of worship.

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All this means that Agarbatti is a significant part of Hindu tradition and has huge market demand. This means, if you know the process of manufacturing Agarbatti, you can sell them and earn a good amount. While the manufacturing process is almost the same for everyone, the selling channel could be different.

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You might choose to sell Agarbatti on Amazon or also come up with your own website through platforms, such as the Fynd platform. You will learn more about the manufacturing and both selling channels in the article. But before that, it is vital for you to understand the Agarbatti market. The next section deals with it. 

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Understanding Agarbatti Market

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According to a report by IMARC Group, the Indian incense stick (including Agarbatti and dhoop) market will grow at a compound annual growth rate of 9.1% between 2024-2027. The purpose of Agarbatti and Dhoop is almost the same, but they differ in their ingredients. 

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Agarbatti includes a powdered mixture of fragrance oil,  wood sawdust, and water layered on a thin bamboo stick. On the other hand, dhoop includes a mixture of herbs, aromatic products, ghee, and extracts of Commiphora wightii trees. You can find Dhoop Batti in the form of thick sticks or cone-shaped products. 

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The major driving force of the market includes:

• Rising demand for environmental and health-friendly aromatic products, such as incense sticks for spiritual, religious, therapeutic, and meditation purposes. 

• Presence of temples in almost every corner of the country that requires incense sticks for day-to-day worship.

• Use of incense sticks in big religious rituals and events that occur in houses and lakhs of temples present across India. 

• The production of new, innovative, and creative fragrances, such as green apple, lemongrass, cinnamon, and strawberry also contribute to the market growth.

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Other than these major market drivers, the easy availability of raw materials, low operational cost, and the ability of incense sticks to produce minimum smoke are other factors that significantly boost the market. With a never-ending demand, the Agarbatti market is heavily packed.

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The key competitors include Hari Darshan Sevashram Private Limited, B. V. Aswathiah & Bros, N. Ranga Rao & Sons Private Limited, Hem Corporation Private Limited, Mysore Deep Perfumery House (MDPH), Shree Kalpana Perfumery Works Private Limited, Moksh Agarbatti Company & Patanjali Ayurved Limited, etc.

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Before starting your Agarbatti business, make sure you read and analyse each of your competitors carefully. Another thing to note is that these are the big labels selling incense sticks. Your competitor is also the local Agarbatti seller in your area and other parts of the country. Now you have a basic understanding of the Agarbatti market. Now you might begin working on your business plan. The next section will help you in the process. 

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Agarbatti Business Plan

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From machines to licences to loans, this section will give you an overall view of everything required to open an Agarbatti business. A thing to note is this section will help you in the manufacturing set-up for the Agarbatti business. You will learn to sell Agarbatti on Amazon through subsequent paragraphs. 

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Here Are Step By Step Requirements Or Business Plans For Agarbatti Business.

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1. Raw Materials

Before beginning a business, you need to know whether you have enough raw materials for it or not. Here are the raw materials required for the Agarbatti business.

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Bamboo Sticks
You will need thin Bamboo sticks with a length of approximately 8” to 12” ( inches). You can either purchase bamboo sticks of appropriate length and thickness directly or 

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2. Packing Materials

While the packing material for almost every product is almost the same, Agarbatti packing requires a comparatively different material to prevent the aroma of incense sticks to leak. 

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3. Colour Powder

To make your Agarbattis attractive, you can use a wide variety of powder colours, such as Jikit powder, Crude paper, Charcoal powder, Nargis powder, sticky powder or gum powder, sandalwood oil, sawdust, and perfumes. 

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4. Fragrance (Optional)

Many Agarbatti manufacturers add additional fragrance to their Agarbatti. This is a completely different manufacturing step that is optional. If you want to sell in the local market, you can also add a fragrance of your choice to your Agarbatti. 

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However, it is better to do a market survey and check which fragrance your target consumers love the most. Then you can purchase that fragrance and add it to your Agarbatti. So, these were the raw material requirements to manufacture Agarbatti. 

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5. Area Required to Begin an Agarbatti Business

Since you want to sell Agarbatti online, you do not have to worry about the selling space. However, manufacturing space is still your concern. Fortunately, Agarbatti manufacturing does not require much area. Also, the space required widely depends on the machines you want to install. 

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Agarbatti manufacturing does not demand any specific location so you can begin it at your home or any other location of your comfort. The only thing you should think about is the location is well-connected with means of transportation. Also, make sure that you can get all the raw materials nearby only. 

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6. Machines Required for Agarbatti Manufacturing

Purchasing and installing machines is one of the most significant parts of the Agarbatti-making business. There are infinite machines available in the market. However, you need to carefully and wisely pick the machines that suit your requirements and budget.

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Here Are Some Of The Agarbatti Manufacturing Machines That You Might Use.

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1. Manual Agarbatti Manufacturing Machine

You need to operate these machines manually. They come in double and single pedal types. You can purchase whichever you want according to your convenience. A significant benefit of this machine is you can save on electricity charges.

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Being a manual set-up, these machines have no electricity requirements. However, this also means that mass production is quite difficult and tiring. So, if you just want to give Agarbatti business a try, you might purchase this machine. 

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2. Automatic Agarbatti Making Machines

If you plan on mass production and selling of Agarbattis, you should opt for automatic machines. These machines offer a full range of the latest and advanced technologies. They have the capacity to produce almost 160-200 sticks in a minute.

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You can find these automatic Agarbatti-making machines in different sizes, shapes, patterns, and designs. You can also manufacture attractive square-shaped Agarbattis with it. However, they will cost you comparatively more than manual machines. 

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You will also require a 24-hour electricity connection to run the manufacturing process smoothly. So, choose this machine only when you have adequate space and capital. 

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3. Automatic Agarbatti Manufacturing Machine with High-speed

Just like the previous one, this is also an automatic Agarbatti-making machine. However, as the name suggests, it produces Agarbattis with comparatively high speed. You can produce almost 300 to 450 sticks in a minute. 

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Other than this, you also have an option to customize the length of the Agarbattis. You can manufacture Agarbattis between the length of 8 to 12 inches with this Agarbatti. So, once the demand for your Agarbattis takes up, you can purchase this machine. 

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4. Dryer Machine

For areas with humid weather, Agarbattis might get destroyed because of the moisture in the air. In such a situation, a dryer machine becomes compulsory to keep the Agarbattis dry. Also, if your area witnesses heavy rainfall, these machines come in handy. 

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5. Power Mixture Machine

You need a mixture of dry and wet materials to stick it on the sticks and make Agarbattis. While the raw materials can be mixed with hands, it results in inconsistency. Thus to ensure consistency, a power mixture machine is significant.

It blends the dry and wet components in a perfect ratio to produce the Agarbatti mixture. You can customize the capacity of this machine according to your requirements. On average, this machine can produce 10 to 20 kg of mixture a minute.

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6. Licence Required for Agarbatti Business

If you plan to sell online, you do not need many licences. However, manufacturing businesses do require some permits and licences. Here is a list of all the required licenses.

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7. Registration of Company

The first step involves registering your company. You can either register your business as a proprietorship, or company, or get the ROC register of your company. This way you can come up with the name and logo of your company too.

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8. GST Registration

Whether you want to manufacture and sell or only sell Agarbattis, you will need GST registration. It has become compulsory for every business. After GST registration, you will receive a GST number. You have to use that number to sell your services or goods.

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9. EPF Registration

Most probably you will not need this initially. However, if you want to expand your business and hire employees, you might need this registration. This is significant for those businesses that have more than 20 employees in their manufacturing unit. 

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10. ESI Registration

Employee State insurance is significant if you have more than 10 employees in your business.

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11. Trade Licence

For every business, a trade licence is important. You can also take a trade licence easily from a local authority.

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12. Pollution Certificate

An invigilator from the State Pollution Control Board will visit your manufacturing unit to inspect it. After their approval, you will give a pollution certificate. In the past years, this certificate has become significantly essential. You can only begin manufacturing after receiving this certificate.

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13. Factory Licence

If your business becomes successful and begins demanding heavy production, you have to set up a factory. For that, you need a factory licence and NOC. So these were the licence requirements for your Agarbatti business. Now you have a good idea of Agarbatti's manufacturing business plan, it is time to understand the selling process. 

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How To Sell Agarbatti Online

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Whether you want to sell Agarbatti on Amazon or on your own site, these are the steps that you have to follow for selling products online. 

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Market Research

While the article has already mentioned a lot of information on the Agarbatti market, there are some things that you will know through your own market research. You need to organize full-fledged research to understand the types, fragrance, quality, prices, and size of Agarbatti that is popular in your market or among your target audience. These variables will decide your business size.

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Here are some fascinating facts about the Agarbatti market that you should know.

• Globally, India is among the top Agarbatti manufacturing countries.

• India’s Agarbatti has good demand in foreign markets. Countries, such as Nigeria, UAE, the US, Egypt, the UK, and Latin America import incense sticks. So, your business might reach there.

• The incense market is an umbrella term that includes many products, such as dhoop sticks, dhoop cones, incense sticks, and perfumed dhoop.

• The contribution of South Indian territory, West India, North India, and East India in the demand for incense sticks is around 35%, 30%, 18%, and 25% respectively.

• With quality market research, you will be able to plan your business successfully. 

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Prepare the Business Plan

You already have a brief of Agarbatti business plan, now you need to come up with your own business plan. Decide the raw materials required, machines required, the installation process, location for manufacturing, etc. 

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Keep in mind that the objective of a business plan is to inform investors of the strategy through which you want to penetrate the market. Even if you are not planning to take help from an investor, a business plan will give you a roadmap to working. 

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Here are a few significant activities of a business plan.

• Calculate the space requirements and your unit cost.

• Calculate your machinery requirements.

• Determine the investment in labour wages, raw material, bills, utility, etc.

Besides these, your business plan should also include your expected profit.

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Decide Your Agarbatti Making Process

There are many Agarbatti compositions that you can produce. You need to decide which one you would choose. Typically, the composition looks like this.

• Charcoal: 20%

• White chips: 40%

• Essential oils and other ingredients: 20%

• Gigatu: 20%

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After that, you might need to train workers to produce Agarbatti. Here are the steps for Agarbatti manufacturing.

• Blend all the wet and dry ingredients in adequate proportion. Then choose a fragrance type.

• Use a little water with the blended mixture to produce a paste texture that is sticky. 

• Then use a manual or automatic machine to roll this paste on the incense sticks. 

• The last step includes dipping the sticks in your required fragrance solution, packing them in moisture-proof paper and then in rectangle-shaped cardboard covering.  

With these simple steps, you can manufacture thousands of Agarbattis. 

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Decide a Selling Channel

Once your product is ready, you need to sell them. You have various selling options. You can open a store on Amazon, a shop in your local area, or your own website. Not only that, but you might also produce in bulk and approach the retail market for sale. Likewise, you will learn more about the two most popular selling channels, your own website and Amazon, in subsequent sections.

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Plan Your Marketing Strategies

Your marketing strategy will depend on your selling channel. If you choose online platforms, you have to work on digital marketing more. If you decide on a retail channel, you have to work on mouth-to-mouth, posters, etc. 

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Now, the main step is to decide the selling channel and marketing strategy. The subsequent section will discuss two main selling channels, which are Amazon and your own website. 

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How To Sell Agarbatti On Amazon

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From big brands to local artisans, everyone can sell their products through Amazon. The steps include

1. Visit the official site or click on this link to start the registration process. 

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2. You have the option to either link your account with a phone number or email address. In case, you already have a customer account linked with a phone number, prefer email and password to sign in. 

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3. If not, click on ‘Create a new account on Amazon.in’

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4. Then fill in the required details, such as the official company name (make sure your GST registration is with the name same).

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5. Then you will get an OTP on your mobile number. Enter that OTP.

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6. Fill in the required details, such as your business address, product, and store name.

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7. Enter details related to tax, that is GST and Pan card number.

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8. Go to your dashboard and click on the ‘Products to sell’ option. Then select start listing.

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9. To search for a product on the already available catalogue of Amazon.in, you have to enter your product barcode number or name.

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10. In case you cannot find your product in the already available Amazon catalogue, select the option ‘ I am adding a new product not sold on Amazon. This will create a new listing. 

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11. Enter all the required details, such as MRP, product price, condition, product quality, and shipping options. 

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12. Click on ‘save and finish’. This will add that product to your inventory.

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13. Again check your selling dashboard and fill in any missing details. Then click on the option to upload a digital signature and upload it.

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14. Once everything is done, click ‘Launch your Business’ and begin selling on Amazon

This way you can easily become an Amazon seller. 

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Cost To Sell Agarbatti On Amazon

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While the registration process is free, selling on Amazon is not free. It will cost you the following amounts.

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These were some basic fees charged by Amazon. Since you have three options for shipping your products (FBA, Self Ship, and Easy Ship), the fee for each is different. Look at the subsequent section carefully to understand the fulfilment fee structure. 

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This table will help you to decide which option would suit your budget. If you want to learn more about fulfilment by Amazon, click on this link. To learn more about Easy Ship, click on this link. You can also calculate the selling fee for your product on Amazon. In through a free calculator offered by Amazon. 

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To use this calculator, fill in all the necessary details and also your preferred mode of shipping. Now, you are an Amazon seller but is it enough to just list Agarbatti on Amazon and wait for consumers to buy it? Absolutely not! You have to market your product too. Check the following section to know some marketing strategies for Amazon.

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Marketing Tips For Amazon

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Just like any other product, there is high competition in the incense stick market of Amazon. There are several brands selling Agarbatti on the platform. So how will a customer discover your brand? Why would it purchase Agarbatti from your Amazon store? 

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This is where marketing helps you. However, marketing on Amazon is not simple. It requires internal and external promotion. To sell more, your listing should be visible to the customer. 

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Here are some external and internal marketing tips for Amazon.

External Marketing

In simple terms, external promotion means using various channels, outside Amazon, to promote your product and drive traffic. It gives you an opportunity to attract those buyers who are currently not using Amazon to purchase Agarbatti. Here are a few options to externally promote your Amazon listing.

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Social Media Platforms

You might offer your incense sticks to an influencer and ask them to promote it on their page. You might also start your own page on a preferred social media site and let people know about your product. 

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Search Engine Optimization

Your target audience searches for your products using certain keywords. Decode those keywords and include them in your product details to make it rank high on various search engines. 

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Backlinks

This is something that many people are unaware of. To ensure that your buyers reach your product, try to get it back linked with as many sites as possible. You can depend on blog posts and link your product there. External promotion will help you stand out and increase your sales. 

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Internal Promotion

Imagine you are an Agarbatti consumer and search on Amazon for Agarbatti. Will you only find one store? Of course not, you will find many sellers selling the same Agarbatti type as you. This means you have to fight inside Amazon also. You have to come up with ways to make your product listing visible across the marketplace. Here are some of those ways.

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Optimize Your Listing

Nothing works better than optimizing your listing. Buyers who are searching on Amazon for Agarbatti or outside it could reach your listings if you sufficiently use keywords and optimize it.

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Moreover, keywords help Amazon and other search engines to determine that your listing should rank higher because it is relevant. Here are some ways to identify relevant keywords for your buyers.

• Google Keyword Planner: This tool helps you to know the monthly search volume of a particular keyword on Google. Since, your Amazon list might also rank on Google (the top search engine), this tool can be extremely useful for you.

• Scope: Scope is extremely useful for Amazon, as it serves especially Amazon sellers. It helps you to keep a track of a particular keyword, its ranking position, monthly volume, estimated sales, and many other things.

Once you get a list of your keywords, use them in your listing as much as possible. However, make sure you do not overuse them in unnecessary places. Try to keep keywords in your product description and title. 

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Go for Sponsored Product Ads

Even if you are using SEO efficiently, your product might fail to get top positions. This is because the algorithm of Amazon also considers other factors while ranking the products. Some of those factors include price, selling history, and others.

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This means SEO is not the only factor you have to focus on. It is quite difficult to work on all the factors and make your products visible in the top positions. The easier way is to take sponsored product ads facility.

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Amazon offers its sellers top positions in search results in return for some amount. The best part about this marketing facility is that you only need to pay Amazon when a buyer clicks on your advertisement. Sponsored product ads are almost a guaranteed sales marketing facility.

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Other than these, some other marketing ways with Amazon include influencer marketing, social media, strong performance, good product rating, etc. You can use all these techniques to multiply your sale on Amazon. 

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Is Agarbatti Business Profitable?

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Agarbatti is a product that has demand throughout the year. Undoubtedly, its demand increases during peak seasons, such as religious events, marriages, festivals, etc. There is always demand. While you cannot calculate the accurate cost of beginning a business until you begin it, you can get an estimated amount. Here is a table that will help you with it. 

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Besides these, there are some miscellaneous costs, such as electricity, licence, transportation, etc. A significant factor to note is if you make the product only with your hands without using any machine, you can start an Agarbatti business at only Rs. 15,000. 

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With Agarbatti business, you can easily manage to have around 10% profit. So, if you have a sale of 40 lakh a year, you can earn almost 4 lakhs, that is 35,000 a month. With Amazon, you can increase your customer base and increase your profit. 

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But is selling on Amazon helpful for you? At first, selling on Amazon looks like the best thing for your business. But think again! The subsequent section will help you look above the hype over Amazon. 

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Is Selling Agarbatti On Amazon A Good Idea?

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The answer to this question is very controversial. Everyone is well aware of the benefits a big company could offer you. When you register your product with Amazon, you already get access to millions of consumers. This means your work becomes limited to only attracting them to your store.

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While this looks like an easy task, it is not. On Amazon, consumers directly compare you with other products that are also on Amazon. Thus, it becomes quite difficult to sell your products. 

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Moreover, if someone visits a house that has a particular fragrance of Agarbatti (purchased from your store on Amazon) and asks the owner where you purchased these incense sticks from, most probably the owner will say from Amazon. Even after a potential consumer liked your product, you might not get a sale. 

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This is one of the significant disadvantages of Amazon. To avoid this, you can begin your own website. With advanced technologies, it has become extremely easy to come up with a site. There are some Amazon platforms, such as the Fynd platform, that help to set up your site with minimum effort.

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Through your website, you can sell your Agarbatti with your own brand name. You will also have various creative freedom and databases which you can use to attract consumers. 

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Conclusion

If you want to sell Agarbatti on Amazon, you have to face tough competition. The sad part is even after that there is a very low possibility that your brand will earn recognition. On the other hand, if you build your own website using platforms, such as the Fynd platform, you have to make similar efforts but at least will earn brand awareness.

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Also, once your brand becomes popular, you can easily increase your sales. So, the choice is yours. You have to decide the selling channel that suits your budget and other requirements.