How to Start an Ecommerce Business in India (2026)
To start an ecommerce business in India: register the business and get GSTIN, open a current account, choose a platform, set up a payment gateway and shipping aggregator, then launch with a small catalogue. Expect ₹60,000–₹2,00,000 and four to eight weeks to launch properly.
The compliance side of Indian ecommerce is more straightforward than it looks, and the operational side is harder than most first-time sellers expect. This is the order that avoids getting stuck — particularly around GST, which blocks payment gateway onboarding.
The steps
- 1
Register the business and get a GSTIN
A sole proprietorship with a current account is enough to start legally. GST registration is mandatory for interstate sales regardless of turnover, which in practice means every online seller needs it. Start this first — payment gateways will ask for GSTIN and it gates everything downstream.
- 2
Open a current account
Payment gateways settle into a current account in the business name, not a savings account. Banks will want registration proof, PAN and address documents. Allow one to two weeks; this frequently takes longer than people plan for.
- 3
Choose your platform
Shopify for most sellers who want it to just work, WooCommerce if you have technical help and want no platform fee, or an India-first platform like Dukaan for a very small catalogue. Decide before you invest in photography, since platform choice affects image requirements.
- 4
Set up payments and shipping
Razorpay or Cashfree for payments at roughly 2% plus GST, and Shiprocket or a comparable aggregator for shipping. Both need documentation and a live site with visible pricing, terms, refund and privacy policies — incomplete policy pages are the most common cause of rejection.
- 5
Get product photography and copy right
This is the largest line item most first-time sellers underestimate — ₹300–₹2,500 per SKU depending on styling. It is also the highest-leverage spend in ecommerce, because it is what actually sells the product. Do fewer products properly rather than many badly.
- 6
Set up GST-compliant invoicing
Shopify's native invoices do not meet Indian requirements. You need an app or plugin handling HSN codes and state-wise CGST/SGST/IGST splits. Set this up before the first order, not after — retrofitting invoice compliance is unpleasant.
- 7
Launch small and learn
Launch with a focused catalogue rather than everything you plan to sell. Your first hundred orders will teach you more about packaging, RTO, customer questions and pricing than any amount of planning. Expand once the operation works.
Common mistakes
Cash on delivery is a large share of Indian orders outside metros and carries 15–30% return-to-origin. Model that into pricing before launch, not after the first month's losses.
Start with your best 20–50 products. Broad catalogues split attention, complicate photography budgets and slow everything down without increasing early sales.
Terms, refund, privacy and shipping policies are required for payment gateway approval and build customer trust. They take an afternoon and block onboarding if missing.
Budget ₹300–₹2,500 per SKU. Poor product images are the most common reason otherwise good Indian stores fail to convert traffic.
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Frequently asked questions
Do I need a private limited company to sell online in India?
No. A sole proprietorship with a current account and GST registration is sufficient to sell legally. Incorporate as a private limited company when you are raising investment or need limited liability — not as a prerequisite to starting.
Is GST registration mandatory for online selling?
Effectively yes. GST registration is required for interstate supply regardless of turnover, and online selling is almost always interstate. Marketplaces and payment gateways will also ask for GSTIN during onboarding, so it is a practical prerequisite as well as a legal one.
How much does it cost to start an online store in India?
₹60,000–₹2,00,000 to launch properly: platform setup ₹40,000–₹1,50,000, photography ₹15,000–₹1,00,000 depending on catalogue, registration and compliance ₹5,000–₹20,000. Marketing is a separate and usually larger ongoing budget.
Should I sell on my own store or on marketplaces?
Both, usually. Marketplaces bring demand you cannot generate early on; your own store gives you margin, customer data and brand control. Most successful Indian D2C brands start on marketplaces for volume and build their own channel in parallel.