How to setup an eCommerce Store in India?

I have divided this mini-guide (sounds better than just an article) into many small sub-topics.

  • Platform and Payment Gateways
  • Shipping Logistics
  • Legal and Taxation

Setting Up Store

I am not going to focus on ‘why do you need an online store’ part. If you have already made up your mind and wanted to dive into the ecommerce boom, congrats and let’s move forward. Why have you made that decision, it’s totally up to you and I’m pretty cool about it.

You’ve two options when it comes to selling online:

  1. Sell on Marketplaces like Snapdeal, Amazon, ShopClues, Flipkart, PayTM (and other big names in this field)
  2. Build your own store

Marketplace vs You Own Store

Each has its pros and cons. Marketplaces have more money, better infrastructure and more customers. They invest heavily in marketing, infrastructure and take care of support and other important stuff. So, you can just upload your products there and wait for them to promote your products.

However your own store helps to build a brand. You are not lost in the marketplaces with other merchants. You also have better control on inventory, marketing and end-user experience. Marketplace might be a cheap option at start but their fee might be a problem in long run.

How about a hybrid approach? Introducing ‘Multi-channel Retailing’- Build your own store and get more customers and orders via those marketplace. We will be focusing on multi-channel retailing in a bit.

Ecommerce Platforms or Softwares

You have decided to build your own store and want to choose the best platform out there. One thing to understand – None of them is the perfect and each one has its of limitation and advantages.

My two favourites are Shopify and WooCommerce. Other popular alternatives are Zepo, KartRocket and Magento.

One thing to remember here- I am focusing on platforms for small business or one man operation.  If you are big enough, I would recommend building something from scratch.

Shopify brief review

Type- Hosted

Payment Gateways- PayU, PayUMoney, AirPay, CitrusPayments


Shopify comes at the top of my list of recommendation to a new store owner. Why? Because it’s the simplest platform out there with excellent customization. Period. I love this platform and will try not to be a big fan.

Shopify is DIY (Do It Yourself) hosted platform with affordable pricing (Plans start from just $29/month). You don’t have to think about designing, development, hosting or anything. Just choose one of the theme, upload products add payment gateway and you have your operation.

You don’t have to be a programmer or even hire a programmer to build your store. Its knowledge base is extensive and support guys are awesome and help you at every point.

Recently they added support for multi-channel selling. You can now sell directly on your Facebook Page, A different web site, Facebook Messenger, Pinterest and Twitter using Shopify.

Its App and theme Marketplace (Which is lacked helps you to add new feature or use a new design for free or added cost.

Scaling is easy. You don’t have to worry about switching boats when you get large, just opt for higher plan and you’re done.

M-Commerce or Mobile Commerce is very important and Shopify got you covered out there. All of Shopify themes are responsive and it’s checkout is optimized well for mobile devices.

It’s being used by more than 150,000 stores and the list is getting bigger every day. Just look at this chart from BuiltWith about new stores using Shopify.

Shopify Growth


  1. Easier to start
  2. Minimum Setup cost
  3. Affordable
  4. Awesome Support
  5. Owner friendly (Better UI than competitors and easier to adapt)
  6. Feature Packed
  7. Extensible with App Marketplace
  8. Scalable
  9. Mobile friendly
  10. Excellent support
  11. Good ecosystem


Shopify used to have a single payment gateway support before but that’s not the case anymore. Also it’s not as much as Customizable as WooCommerce.

Shopify Resources

  1. Shopify Trial 14 days
  2. Shopify Stores in India

WooCommerce brief review

Type- Self-hosted

Payment Gateways- PayU and CCAvenue


You have probably heard of WordPress and ease of use for publishing. WooCommerce is just a WordPress plugin which adds the Ecommerce part.

It was developed by WooThemes and recently got acquired by Automattic, the company behind WordPress. WooCommerce became very popular since its inception due to WordPress ecosystem and open source nature.

WooCommerce Growth

WooCommerce is self-hosted platform. So, you have to host it at your own server/hosting account and manage it yourself. That has its own set of pros and cons.

The positive things about WooCommerce and other self-hosted platform are they offer more control over your own site, it’s bit cheaper than hosted platform and offers more customization using unlimited plugins for almost anything. That’s the power of WordPress.

The negative of self-hosting is that it makes the setup and management bit harder for newbies. You have to understand and bother with frequent updates, plugins and performance optimization which is already taken care in platforms like Shopify.

However WooCommerce is very simple to use after the initial setup. It

WooCommerce and Shopify comparison come close when you compare the features. If you don’t mind a hosted platform, Go for Shopify or else choose WooCommerce.


  1. Cheaper than Hosted Platforms
  2. Unlimited customizability
  3. WordPress ecosystem
  4. Simple to use
  5. Scalable
  6. Mobile friendly with responsive themes


WooCommerce has higher setup costs, requires maintenance and paying for many plugins might be annoying.

Hosting/Server for WooCommerce

My favourite is  SiteGround.

SiteGround is a good choice if you need excellent 24*7 support, Fast server and easy user interface at affordable price (starts from $4/month).

StudioPress offers Hosting plus good looking themes in one package.

WooCommerce Resources

  1. WooCommerce Plugin
  2.  SiteGround
  3. WooCommerce Themes Free and Paid

KartRocket and Zepo

They are new Indian player and trying to be the Shopify of India. Honestly, they still need to evolve more to bridge the gap between their Canadian counterpart (Shopify).

One can think about using them because of their tight integration (Special pricing for the merchants) with Payment Gateways and Logistics and Indian Support.

I have heard good things about Zepo team. No direct experience with KartRocket but recent investments in the company gives good hope. I’ll write about KartRocket is depth when I have reviewed it.


Magento is the big brother. It is the most popular ecommerce platform. However it is not suitable for a single man operation and bulky for small stores. Setup cost is much higher than any other platform listed here.

Shipping and Order Fulfilment 

You will need a courier service to deliver your products to the customers.     Boom in Ecommerce has also helped the Shipping and Logistics business and there are many new players (Delhivery, Ecom Express, GoJavas etc) in this field now.

No clear winner here. I am just going to list the popular ones and contact their local representative and get the best deal.

  1. Bluedart
  2. Fedex
  3. DTDC
  4. Aramex
  5. Delhivery
  6. Ecomexpress
  7. GoJavas
  8. FirstFlight
  9. UPS

You also might want to offer the Shipment tracking to your customers. These are some Shipment tracker and Logistic solutions to help you out.

  1. Aftership
  2. ShipRocket
  3. Mypacco

Multi-channel Retailing

I mentioned about the Multi-channel retailing at the start. It might be a good way to generate more revenue and customers using those big players.

How do you do it?

You can upload your products to the marketplaces directly and manually manage inventory at your store backend. However the task is daunting and therefore we have integration to automate this.

Two of the popular names here are BrownTape and Unicommerce. No Direct experience again (Meh! So much for being an ecommerce consultant) but choose the one which integrates with your store software.

Legals and Taxation

It’s not required to set up a company to do ecommerce. You can be registered as a sole proprietor and that should be enough. However some payment gateways asks for Business ownership documentation, so it’s better to just register an LLP. I have been a partner in LLP and it’s very easy to setup.

You can also consult your Lawyer friend or a CA for more detail.

You can get details about taxation here and here.

Did I miss anything? Do you have something to add? What would you want me to write about next? Use the comment box below.

I finally updated this post. You won’t believe how hard it was for a compulsive procrastinator :). Please let me know if you have any suggestion or want to add anything as comment.

81 thoughts on “How to setup an eCommerce Store in India?

  1. Thank you Dear you have come like a great inspiration to me, i myself is planning to start my online store in india, as a long term venture.
    Hopefully would need your guidance more and for good.
    God Bless

    1. Hi Satya, I am looking to sale our setup ecommerce portal due funding limitation. Our portal is totally setup and running if you are still looking to start e-commerce portal than I suggest you to buy running portal instead of creating new portal. For more information you can contact us at

      1. Rupesh, visited your site, I would like to know more details about setting up ecommerce site. Please contact me in I have a blog running and I have an idea to venture in online business with ecommerce website.

  2. this post is really wonderful and suitable for me.. am a online seller in ebay india .. recently i started my own online store selling through ebay your inputs in this post will lot helpful for me.. looking for good gateway payment in india for small online business.. thanks for sharing ankit

    1. I too have used Vakil Search… Great service.
      Ankit, the way you have structured this blog post is amazing! It really will be helpful for first time entrepreneurs looking at taking their businesses online!

  3. Thanks for the mention Ankit.

    You don’t need to regret about not having direct experience 🙂

    We have made it Free. Now sellers can use it for free forever to process unlimited no of orders.

  4. Excellent blog. Precisely what i was looking for. Great job.

    My question is : Would shopify also do SEO for me ? Or would i have to spend extra for SEO.

    1. Hello Jaideep,
      Thanks for kind words. Yes, you will have to do the SEO yourself but you can find some extensions to take care of this easily.

  5. Dear Ankit,

    Its really very good information.thank you for that.But can you please tell me that how much capital one require to start this.waiting for your reply.

    thank you

  6. Best post so far, on how to start an Online Business, the only one to talk about Logistics. Many thanks. Chandra Bhan Prasad

  7. Could also explain the process for an ecommerce website which also requires the app service. Steps required therein and what all laws are to be taken care of.
    Appreciate your help!

  8. Thanks Ankit, short crisp, simple, to the point and neat..enjoyed reading the content.
    If you can also write about the service providers and vendor management for the start ups.

  9. Hi ankit can you please create a post on all the things that are needed to create an online store. from cms to plugins, legal work to startup cost. will love to read it

  10. i dont know how to sell the products that i dont own .. pl speify ther business and investment required.

  11. Hi ankit say i wanna set up my website using woo-commerce with payu india payment gateway so do i have to pay for the extension (79$ or something) or just buy the merchant account at payu download the plugin thats it !!

  12. I have read your article recently. I must see its very much inspiring i’m planning to start online store. I have few questions in my mind.

    1. How good is to start online store?
    2. What is the maximam expense to start?
    3. I have read recently that ” to start online store is not good idea”

    Alfanzo Desai

  13. Hello Ankit, beautiful article.
    What do you recommend is a good website aesthetic wise,
    the squarspace templates are so beautiful but doesn’t support e-commerce in India. I was thinking of choosing between shopify and woo-commerce. Thank you.

  14. Thank you for this post, Ankit. This site has taken my fears away in starting my own online store. Expect more and more posts like this from you. Thank you.

  15. Hi Ankit, request you to please add Primaseller to the companies providing multi-channel retailing Softwares. We are the only software that also integrates with physical stores for the seller along with online channels.


  17. Hello Ankit,
    How simply you have presented what any new e commerce business start up would need . Thank you . vinod.

  18. Nice detailed post. Adding to this : Woocommerce is good for light web store, other are good for middle and magento is good for the bigger stores.

  19. Sir I want to start online selling as a side work with my studies as I am doing graduation  .
    At the present time I did not have any shop or products to sell and currently not doing anything.I thing as to become online  retailer as   think to buying products from a local wholesalers and then selling it online …but the problem is that online marketplace like amazon Flipkart demands CST TIN TAN etc thing ..which I don’t know how to obtain .and what cost ,money fee will be required in this ..please tell me the procedure .

  20. Hi Ankit,

    Thank you for sharing such an informative and awesome article.

    I was looking these information and luckily I found your blog and this wonderful article (sorry a mini Guide :))
    I am going to setup an eCommerce store on my blog and this article has helped me a lot.
    Thanks again for sharing such a valuable information. keep up the good work

    Vikash Sharma

  21. Great blog. Quite interesting facts i have came to know. Really helpful for small business man. I am already selling on Flipkart, Snapdeal, amazon, paytm and shopclue But marketing fees is very much higher on the online market places( 15% to 39%) along with other collection and logistics charges. Thanks.

  22. A great article for start up entrepreneurs, I appreciate and admire your efforts and man hours you put in it.
    I have one question for which I couldn’t find any satisfactory answers:
    Does these E-commerce Platforms and Multi Channel Retailing sites provide a mobile app too.

  23. Hi Ankit,
    This is a relatively old article, but is very helpful.

    Its 2016, where the PM has changed a lot for startups with his new start-ups program & also the mudra loan & all for small businesses.

    Your post is very helpful & looking at the other posts on the left-hand side, your site seems to be pretty interesting.


  24. i want to create e commerce website. can u tell me how many people require to operate my ecommerce site? how i can contact them? and what will be there salary?

  25. It is more interesting to see load of online shopping platform increasing day by day. For startup they can’t get better challenge from now on, good news for startup is user now active to compare price rather than tucking on a single platform which allow other to magnet them. I will love to see how they come from now on.

  26. Hi Ankit,
    Thank you for sharing such an in-depth guide with us. You have explained everything in detail. I am planning to use shopify as an eCommerce store for my website.
    Thanks again for this guide.

  27. Whether for the products selected by me online through your registered suppliers :-
    (1) Will be displayed online by whom at my online shop.
    (2) Will I have to pay in advance for the products cost and Qty. selected or I have to pay the wholesale supplier upon sale of the Products.
    (3) Can I display my products on or snapdeal india.
    (4) If your shipping company will supply goods to the address of the Customers, where will be the location of goods selected by me.
    (5)Your charges fixed and upon selling of the products etc.
    (6) Whether, you will be remitting price of the product sold by me to the wholesale supplier and me simultaneously, after deducting your charges, if any.
    (7) Mode of payment may please be intimated.

  28. Hi Ankit,

    Wonderful Guide for starter.

    I have one Query.

    I am an Individual , i am planning for E-Commerce Website, what kind of Company we need to select

    Private Limited Company or
    Limited Liability Partnership or
    One Person Company or
    Partnership Firm or
    Sole Proprietorship

    1. Hello Kaleel, You can choose to start with any Business Entities. I would prefer LLP for its simplicity.

  29. Hey thanks for the insight on the ecommerce and marketplace startup and I have a small questions ,how does ecommerce marketplace startup handles the package from their supplier?Does the startup provides package materials to supplier or supplier has to pack in their own package.

  30. Hai Ankit, thank you for sharing valuable information s. I have one question? If i plan to set up one dropshipping business associating with shopify platform, and targeting US customers and supplier from China, what kind of registration i need to set up payment gateway with paypal with indian address. And also what kind of bank account they need? Is it mandatory merchant account or simply my SB personal account is enough ?

  31. Hi ankit…
    It’s very helpfull..
    Is Shopify allow to sell on amazon,snapdeal,flipkart.
    Is shopify do promotion for our brand..?

  32. Dear Ankith

    Great job to put all things on one place.
    Was looking around for the info to set up online store
    Could you pl brief up the cost involved for each.

    thanks for the info.

  33. Hi sir, I have an Idea to start up online store in my local area. Its like commercial products and here there i am inventing no store or stock in my hand. Its indirect C2B through my online port.Here I want to build my own Brand store like amazone or alibaba. I know that the huge capital investment.but before I am starting this Bss. may I know the cost how much coming for starting a new store and set up cost.

    And if have any about app cost Let meknow that too.

    Thank you.

  34. Hi Ankit…..thank you for sharing your true experience& knowledge with us.

    Please guide me that is it mandate to get a company registered, can’t it be done without it?

  35. Hello Ankit,
    Thank you for all the information. By the way i m planning to start a new eCommerce store. Its going to be a small store operated by only two people. Please help me whether i should use the courier through shopify or should i contact the courier company directly? Also i am having a hard time choosing between Zepo and Shopify.
    Please HELP.
    Zingthan Raikhan

  36. Dear Ankit Sir, thank you for sharing valuable information,my query is how the transaction with vendor(ie third party) and client will effect. i mean difference of MRP ie is shown on our portal and cost setteled with vender.

  37. Hello Ankit Sir I am Sanjeev a 16 Year Old kid and a Entrepreneur, Hacker,YouTuber, Blogger,affifliate Marketer . So Basically I wanted to Startup As I Belong From a Lower Middle Class Family and living in a Costly city like bangalore for my Education is quite Complicated So I taught Of an Ecommerce Site …ummm I am little Bit Confused What would you Like To suggest me ? By the Way Thanks For this post this gave me lot of inspiration Thanks Ankit Sir love you

  38. Hi Ankit
    I just have one question since i am operating from India and i am selling in USA . So is thir any government rules and regulations which i need to follow and need to register my self in any government body..

  39. I want to start an online store. Is it necessary to register an LLP. Where can i get information about setting an LLP and the cost for it. What if i live in a rented house?

    Need help. Please guide.

  40. Hi Ankit,
    Thanks for the post, I am planning to open Shopify store in US, Could you please let me know Do I need to fulfill any legal requirements for the same like taxation, registered business owner?

  41. It’s great and in-depth post, Ankit.
    Thanks for mentioning about our product (ShipRocket) in your list. We have been taking some great steps to make our user’s experience amazing. Just adding to the details, we recently launched our app specifically for Shopify store owners in India, and happy to share that it’s getting a great response from the community.

  42. This is superb information available in a crisp form..well done Ankit,it’s a great help guide for the beginners.

  43. Hi Ankit,
    Great post! It is imperative for independent consultants to keep doing a great job in order to continue the explosive growth of e-commerce in India. We are really proud of you!

    As a side note, Browntape offers risk-free trials to each customer. We have 90%+ retention rates, so we are pretty good 🙂


  44. Hey Ankit,
    I’m thinking of setting up an ecommerce store related with sales in the US. Does this mean that every time I make a sale. payment will be made to me in India in US$ and then converted to Rs.? Won’t that mean I have a heavy price to pay? What about when I’m starting up and need to pay Shopify in U.S $, how can I do that? Good article, filled with very pertinent information. Thanks!

  45. Hi Ankit,
    I want to start my own e-commerce business. Which is better way to go about it marketplace or own e-store. I have heard that charges at marketplace are very heavy and there are very less chance for making profits, owing to their buyer friendly policies. How much this is true?
    How is the Amazon FBA Programme for starting with?

  46. Hi Ankit,
    Thanks for this wonderful blog, I am thinking of setting up online store, it will be a small capital business with only one person as running this online store. Could you please tell me more anything new changes or other things we need to look for with this new GST coming in picture.
    Also what is SEO and how to do it. What is the importance of SEO ??

  47. Ankit, your article is a great step-by-step guide on how to start a business in India. I think it’s a real treasure for those who want to set up their own eCommerce store.
    Personally, I know European entrepreneur, who came to India to set up his e-commerce store. This is an unforgettable story about a man with 13 years of work experience in eCommerce, who built a #1 marketplace for buying and selling car parts:

  48. Hi Ankit,

    Thanks for these info. It is helpful. I need some more advice for my biz plan. If you know it is similar to site , my products are in similar line but with regards to Interior products. Need to contact you for some advice. How do i personally get in touch with you.

  49. Interesting and well-summarised post Ankit.
    However, the taxation links go to the old system of VAT and Sales tax – might want to update the same to GST 🙂

  50. Hi Ankit,
    I am interested in listing at Amazon India using the dropshipping platform. Beside the GST registration requirement, is trade license required?? and how do I register as a sole proprietorship?

  51. Hi Ankit. Great post regarding eCommerce store.

    I have some questions. Can you tell me that,

    1. How much Shopify charges for payment gateway?
    2. Do I need to register a company for my E-commerce store?

    Thanks for giving me your valuable time…

  52. Hi Ankit
    I am furniture manufacturer. Can I find a online erp to manage simple manufacturing and ecommerce as well..

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