how to Start Ecommerce Business in India.

Last updated on October 24th, 2023 at 03:22 am

Bill Gates once said, “If your business is not on the Internet, your business will stop working.”

The next wave of change for the Indian economy is ushering in the e-commerce industry and if you are thinking of making your way into the world of infinite profits. The time has come to start your own e-commerce business in India.

how to Start Ecommerce Business in India.

Amazon, Flipkart, Snapdeal showed us that e-commerce is indeed the future. The only way they got to be as big as they realized and experimented with the potential of the e-commerce market.

Flipkart co-founders said: “We weren’t thinking in numbers then, but we knew something bigger could be done from e-commerce.”

I’m not sure yet? Let’s take a look at the numbers to make a strong case.

According to the Economic Survey 2017-2018, the e-commerce market in India was estimated at $ 33 billion between 2016 and 2017, a total growth rate of 19.1 percent!

Additionally, the 2018 Nasscom Strategic Review estimated the e-commerce market at $ 33 billion in 2017-2018 and claimed to have reached $ 38.5 billion. A commendable growth rate of around 17 percent in fiscal 2018- 2019 Indicates.

These numbers should encourage you to start your ecommerce business in India. Keep it and who knows. Maybe you can build ‘Alibaba’ below.

Everyone put their money on the table and we got $ 60,000 to start Alibaba. I wanted to create a global company, so I chose a global name, “he said.

So are you ready? There is a step-by-step guide on how to Start Ecommerce Business in India.

Step 1: how to Start Ecommerce Business in India.

First of all, you need to think carefully about narrowing down the right e-commerce business plan and e-commerce business model.

As Tobias states: “E-commerce is not an industry; e-commerce is a strategy.

how to Start Ecommerce Business in India.

There are two types of business models that you can choose from. You can go for a single-vendor or multi-vendor ecommerce store.

To do this, you can choose a single product line or have multiple product lines depending on the budget that you have set for your e-commerce business.

Single seller market

The advantage of opting for such an e-commerce business model is that it consists of only two entities: a single vendor who sells their product to multiple customers. For this, not only is it easier to track transactions between two entities, administrative costs are lower when you only have to pay one vendor, and you also have more control over available inventory.

Multi-vendor market

This type of model tells many sellers to sell their products to multiple customers, the sellers must be registered on their site.

The advantages of following such an e-commerce business model is that it gives you security in terms of making a sale.

For example. If one of your suppliers is not available to sell your products for some reason, then you have to turn to others. This not only helps you cope with fluctuations in demand, but also helps prevent disruptions in the supply process.

It is important to note here that, in addition, you can choose to sell a unique product yourself. Either through your own online business or a similar platform, or to let other vendors sell their products in your store.

In the first position, you can earn a higher margin. In the second, you will earn a commission, each time one of the suppliers registered with your brand makes a successful sale.

Step 2: Brand your business

Once you decide which business model you want to pursue to build. Your ecommerce business and narrow down the product or product.

you want to sell as well as the target audience you want to sell. The next step is to come up with the right name for your brand.

Now, you might be thinking, “What’s in a name?”

Do you have a date? Opportunity? Is it you? “Blind” The date has caused your name to be googled. Are you going to a job interview? The same thing happens. ”

Your brand must be:

  • Short and easy to remember
  • Reflective of your brand
  • Unique and usually has no other meaning in any other language.
  • Besides this, you should also provide a final look for your company logo.

Once you’ve decided on a name for your brand and logo, the next step is to build your business. In India, there are generally four types of companies:

  • Unique property (no liability limit)
  • Sole proprietorship
  • Limited liability company (LLP)
  • limited liability company

The type of product you want to build definitely depends on whether you want to run the business independently or attract more partners.

This is important because if you have opted for a corporate or partnership-based structure. You are expected to file a tax return and have a tax identification number.

Online businesses in this model require an Employer Identification Number (EIN) to open a business bank account. So business taxes can be posted in the next financial year. EIN is a unique number that identifies your business.

However, if you have opted for the sole proprietorship model, you do not need a tax identification number. Instead, you can use your assigned social security number.

Step 3: Register your business online

Now comes one of the most important parts of starting your own e-commerce business in India: registering and completing all the legal formalities for the same.

registered your business
  • Apply for the Director Identification Number (DIN), which can be downloaded from the official website of the Ministry of Corporate Affairs using the DIN application (form DIN3). You can also order DIN online just by attaching and uploading the required documents.
  • Make sure you have your Permanent Account Number (PAN) and Digital Signature Certificate.
  • Once you receive the DIN, you can request it from the Registrar of Companies (ROC) to verify the availability of the chosen name for your company. This can also be done by checking it on the official website of the Ministry of Corporate Affairs.
  • After receiving the name confirmation, you can include the proposed company within six months. You also have the option of renewing the company name for a fixed fee.
  • Integration of the payment gateway: and request the certification of the tax on essential goods and services (GST), licenses of stores and establishments in cases of commercial tax (PT).
  • Apply to open a provident fund (PF) with the respective provident fund organization; Register with the State Employee Insurance Corporation for employee health insurance and finally apply for the company incorporation certification, where your company will be officially registered under the Companies Act 2013.

Step 4: Opening a bank account

Once your company is officially registered under the Law, you must open a bank account for it. The account can be opened with any bank, but must be opened with the official name of the company.

If you have chosen the ownership model for your online business, then you need to obtain a GST registration, which will then allow you to open a bank account in the name of your online business.

In this case, once your bank account is ready, you can list the products you will sell on your e-commerce website, to receive and then operate the payment gateway.

Step 5: Make your ecommerce website

When setting up your website, you can choose a pre-built platform or build it from scratch. Both have different advantages, although creating a website from scratch is usually the most preferred option.

How to make a website

Using Predesigned Platforms

The advantage of using predesigned platforms like WordPress and Wix is ​​that they give you ready-made templates, the kind of online business you want to run.

For example, if your online business is all about fashion, the template will be colorful, with a suitable placement for many visual content, including a page to place orders for shipping.

You don’t have to waste time and resources to build this website from scratch, instead you can play around with a ready-to-use template you have in mind to make it more suitable for design and add to all the information.

Creating a website from scratch:

However, a custom platform option is often guaranteed as you can visualize and design your entire website, exactly the way you envisioned it in your mind.

WooCommerce, Magento, Shopify, Zepo, and KartRocket are some of the preferred options for those who want to Start Ecommerce Business in India.

Now, you need to keep in mind that this is your website that visually represents your entire brand, at the forefront of your entire online business. Therefore, no detail is too small, from the color to the fonts and images, everything that your brand should tell a small part of the story.

Step 6: Payment gateways

You need to set up payment gateways for your online business to be profitable as you will be able to process credit cards, debit cards, internet banking, and cash card transactions through the e-commerce website.

ecommerce payment gateway

To obtain a payment gateway for your e-commerce business, you must submit the following documents:

  • Bank account in the name of the company.
  • Company bread card
  • Certificate of incorporation
  • Memorandum of association
  • Statutes
  • Proof of identity
  • Verification of address
  • | Website use contact
  • Website privacy policy

Once you have submitted all these documents, you will be provided with a payment gateway for your online business, through which you can enable your online payments.

Some of the popular payment gateways are PayPal, PayU, and RazorPay.


This is all about how to Start an Ecommerce Business in India. and I think starting an online eCommerce business in India is not a big deal.

But you need to remember these strategies whenever you start your e-commerce business. if you want training in digital marketing then our Digital Marketing Expert course is just made for you.

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