start an ecommerce business

Start an Ecommerce Business in India: 12 Powerful Steps to Success

Published on July 3, 2025
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12 Min read time
start an ecommerce business

Quick Summary

  • Identify your target audience, analyze competitors, and understand customer needs to align your business strategy effectively.
  • Create a comprehensive plan covering goals, marketing strategies, financial projections, and operational details.
  • Set up your online store with platforms like Shopify or WooCommerce, design an intuitive website, and integrate payment methods like credit cards and PayPal.

Table of Contents

India’s e-commerce industry is booming like never before! As of 2025, the market is expected to surpass $175 billion, driven by faster internet, rising smartphone users, and the surge in digital payments. Whether it’s shopping, education, or services, everything is shifting online, opening massive opportunities for aspiring entrepreneurs.

E-commerce, which involves buying and selling goods or services online, has become a top choice for businesses in India. If you’re planning to launch your own online store or platform, now is the perfect time to get started. This updated 2025 guide will walk you through how to start an eCommerce business in India, step-by-step, plus answer all your most asked questions.

What is an eCommerce business?

An e commerce business is a company that buys and sells goods or services over the internet. It operates through online platforms instead of physical stores, allowing customers to shop from anywhere. Payments are made digitally, making transactions fast and convenient. eCommerce businesses can range from small startups to global marketplaces.

Why Start an eCommerce Business?

E-commerce is one of India’s most dynamic and rapidly growing industries. In 2020, the market size was valued at $64 billion, and it is projected to exceed $200 billion by 2027-28, according to the India Brand Equity Foundation. This surge is largely driven by the growing preference for online shopping, particularly after the pandemic.

As the e-commerce landscape continues to evolve, driven by technological advancements and changing consumer behaviors, aspiring entrepreneurs have a unique opportunity to tap into this dynamic market. This guide outlines 12 powerful steps to successfully start and grow an e-commerce business in India. Below are some key reasons why launching an eCommerce business can be a great opportunity.

1. Make sales and purchases on your terms

When a person is running a brick-and-mortar store, location is one of the essential things to consider. But to start an eCommerce business, there are no such constraints; through approaching the right digital marketing strategy, one can expand their business across the globe.

2. Affordable

Running a traditional store costs more than an eCommerce store in terms of inventory, design, etc. To start an eCommerce business, one does not require much investment. However, it is not free. It requires buying a domain name and designing a website, but accomplishing all these tasks requires the bare minimum.

3. Get access to a vast customer base

Running an e commerce business makes entrepreneurs enjoy an enormous customer base. There are so many social media platforms available where one can promote their website on various channels like mobile apps, marketplaces like eBay and Amazon, or on social media channels like Instagram and Facebook.

4. Offer Convenience

E-commerce platforms offer convenience to both buyers and sellers. One can start an eCommerce business from the comfort of the home. It is operational 24×7. So, one enjoys considerable sales in the eCommerce business compared to traditional stores that are operational for a maximum of 10-12 hours.

5. Personalized customer service

A survey conducted by Epsilon reveals that 80% of customers prefer those who offer them personalized shopping experiences through loyalty programs, promotional offers, customized recommendations, and communications.

6. eCommerce makes a business go global

Traditional stores are confined to specific locations, but launching an eCommerce business expands your reach. You can offer products and services to a global audience, breaking linguistic and geographical barriers. It’s the best way to take your business worldwide!

12 Steps to Start an eCommerce Business in India

Before beginning with the steps, here are some important aspects to keep in mind to start an eCommerce business:

  • Pricing and product quality
  • Customer engagement
  • Data security
  • Promoting business through pop-up ads and sites
  • Timely delivery of a product

There are many benefits associated with running an eCommerce business. The eCommerce reach is wider, and listing products is quite simple. To sell products online, two choices are open to each person; one involves listing products on marketplaces, and another involves building a personal eCommerce store. After carefully thinking about these aspects, follow the steps below to start an eCommerce business.

Step 1: Determine Niche and Products

When learning how to start an ecommerce business in India, choosing the right product for the company is the most important thing. When one is selecting a product, keep these factors in mind:

  • Is the selected product in demand?
  • Is it seasonal or remains all-time in demand?
  • Research about the competitors

Apart from the products, it would help to focus on a niche in an eCommerce business. It is a category under which a product falls, as it plays a crucial role in defining a target audience.

Step 2: Conduct Market Research

To start an eCommerce business in India, begin by researching different business models, top competitors, and trending products. It helps in making a well-thought-out business plan. One should explore finding gaps in the market in which one can work and make their e-commerce brand unique. While doing research, factors that need to be taken care of include:

  • Market size
  • Market Trends
  • Assets
  • Gaps in Financing
  • Market Size

Step 3: Create a Business Plan

Creating a wise e-commerce business plan is the next step to starting an e-commerce business. Once a business model has been chosen, the next step involves building the business. Choose a unique name brand and finalize a brand logo. It is essential to be aware of the legal and financial consequences of the business entity one is selecting.

The most common business entity forms are limited liability partnership, private limited company, sole proprietorship, and single-person company. Different aspects need to be covered when creating a business plan, such as choosing a payment method, drafting customer service policies, devising a social media strategy, etc. All of them are listed as follows:

Step 4: Choose Payment Methods

To run a successful eCommerce business, one must select payment methods. One needs to develop a fully functioning online store. Payment methods come in various sizes and shapes. Always choose a payment.

To run a successful eCommerce business, one must select payment methods. One needs to develop a fully functioning online store. Payment methods come in various sizes and shapes. Always choose a payment method that fits well with the company’s essence. Some of the most popular eCommerce payment procedures are:

  • Credit card/ Debit card- Card payments are one of the most common payment modes available nationally and internationally. It works as a global payment solution on an eCommerce platform. Credit card and debit card payments are considered convenient and safe options. The customer must enter the card number, expiration date, and CVV. Any customer who does online shopping and prefers to do that on a budget always chooses debit cards.
  • E-Wallet- Another popular payment mode that gives a new shopping experience. E-Wallets are gaining popularity at a breakneck rate. Every eCommerce platform has an option to set an e-wallet option. This e-wallet is usually connected to a bank account. This entire payment process is fast and instant. It is also known as an instant digital payment process.
  • Bank Transfer- One of the all-time standard bank transfer processes. It is also known as a fallback payment mechanism. In some eCommerce stores, you also find this option. One of the safest modes of making payments.
  • Cash on delivery- If one is starting any eCommerce business in India, it is a must to add this option. Initially, when you start a business, the customer hardly goes with the prepaid order options. So this option minimizes the chances of abandoned cart recovery.

Step 5: Draft a Solid Social Media Strategy

One must have a strong online media presence to start an e-commerce business. Draft a solid social media strategy and choose platforms wisely.

  • SEO Strategy- It is also known as Search Engine Optimization. The more optimized your eCommerce site, the better it will rank on Google. One of the effective digital marketing strategies to boost traffic and sales on eCommerce platforms. One should know keywords to increase their eCommerce platform.
  • Social Media– When planning to start an eCommerce business in India, building a brand’s online presence is a must. Nowadays, we live in a digital era, where anyone buying anything is checking Google reviews or product reviews. One can also opt for good influencer marketing strategies to promote your products and services. One can start with publishing links and posting content about products or services that attract their target audiences.
  • Promotions- It is also one of the effective digital marketing strategies to follow when starting an eCommerce business in India. It is a significant way of promoting every start-up. One can offer them discounts on their first purchases so that customers flock to the newly established eCommerce store.
  • Advertisements- Paid advertisements nowadays are very expensive, to widen the reach of a newly established eCommerce store, and sustain high conversion rates. Pay-per-click advertisements are one of the most paid advertising strategies, enabling one to pay each time one clicks on a link. If there is the right integration of the user interface and conversion process, it will get positive results quickly.

Step 6: Customer Service

Being an eCommerce company, the logistics organization one chooses should have effective communication channels. Must ensure they are promptly responding to phone calls.

Step 7: Sourcing Products

Choosing the right logistics partner is essential to start an eCommerce business in India.

An online business works well on the timely delivery of products and services. Selecting the right logistics partner is a must for enjoying consistent and efficient tracking of goods and services. The brand image is dependent mainly on the logistics provider. Factors to consider while choosing the right logistics partner.

Another important thing to consider when selecting a logistics partner is pricing. Always select what fits your budget and deliver products to customers to ensure client loyalty. Choosing the correct supplier for specific products is another critical task when starting an eCommerce business.

Step 8: Freight Management

  • Always choose a logistics company that specializes in freight management. A logistics company that adapts well to the changing needs of the eCommerce industry. Ensure that the company you select can handle 3PLs efficiently and quickly.
  • Technology- Choose a company that makes use of cutting-edge technology for product delivery. Offer always groundbreaking and personalized solutions.
  • Scalability- The ideal logistics partner increases the reach of a company. Can manage solutions and services efficiently.
  • Costing- Another essential factor to consider while choosing a logistics partner is cost. Always choose what fits your budget and deliver products to the customer, ensuring customer loyalty.

Whenever one decides to start an eCommerce business in India, the most challenging is naming a store and creating a logo representing that name. One needs to choose a name and logo that catches the eye of the target audience.

There are a couple of platforms that can help one establish their brand. Another vital part is choosing the right eCommerce platform to establish one’s business. The eCommerce platform market is enormous. There are many options available; choosing the one that fits well with one’s nature of business is key. Some of the most popular eCommerce platforms are:

  • Shopify
  • Shopify plus
  • BigCommerce
  • Magento
  • WooCommerce
  • Invent Suit
  • Yo! Kart
  • Wix

Step 10: Create an eCommerce Website

The next step is to create a working website that customers can access. The key is to offer a user-friendly experience with great service. When one plans to start an eCommerce business, getting in touch with various development companies to build the website is the next important step. While choosing one, keep in mind all these factors:

  • Persona: business goals
  • Selected technology partner’s expertise
  • The developing partner is equipped with an experienced and skilled team
  • Scaling ability
  • Brand growth
  • Work process
  • Reliability

Try to add mascots on the sites that guide users and make their shopping seamless. It is only possible when one chooses a simple and user-friendly interface.

Step 11: Customizing an eCommerce Platform

There are various procedures, technologies, and ways of building an eCommerce platform. One is required to understand the requirements and scalability of the business. But before making an eCommerce platform, it is a must to evaluate one’s needs in terms of:

  • Domain name
  • Hosting Provider
  • Designing of eCommerce store
  • Obtaining SSLC certificate
  • Payment gateways
  • Choosing your logistics partner
  • Shipping

Step 12: Prepare for the Launch

The final step to start an eCommerce business involves taking charge of a couple of essential things, but not thought about enough during the initial stages.

Must have a separate business account

When one is planning to start an eCommerce business in India, it is a must to do GST registrations. It is mandatory to have a GST number for all eCommerce businesses regardless of the sales turnover.

Doing tax registrations

If one. is planning to start an eCommerce business, make sure to have a separate business account for a smooth business operation. Never mix a personal account with a business account. Here are some of the legal formalities for operating an eCommerce business in India:

  • Mention the DIN number of the company’s director; one can download the same from the Corporate Affairs Websites or by filling out the DIN application form.
  • Ascertain that you own your permanent account number and digital signature certificate.
  • Once you download the DIN, get in touch with the Registrar of Companies to inquire about the availability of the company name; it should not be the copyright of any other company.
  • Post that, apply for a GST certificate

Also, read: How to Sell Products Online and Start an Online Store?

A License is required for Ecommerce Business in India

To start an e-commerce business in India, several licenses and registrations may be required depending on your business model, products, and scale. Here’s a simplified breakdown:

1. Business Registration

  • Sole Proprietorship / Partnership / LLP / Private Limited Company
    Register your business under the appropriate structure. A Private Limited Company or LLP is preferred for scalability and credibility.

2. GST Registration

  • Mandatory if your turnover exceeds ₹40 lakhs (₹20 lakhs for some states), or if you sell online via platforms like Amazon, Flipkart, etc., regardless of turnover.

3. PAN & TAN

  • PAN for your business entity and TAN (Tax Dedication and Collection Account Number) if you need to deduct TDS.

4. Bank Account

  • Open a current account in your business name.

5. Import Export Code (IEC) – If selling internationally

  • Required for cross-border trade (import/export).

6. Trademark Registration – Optional but recommended

  • Protects your brand name and logo from being copied.

7. Shop and Establishment License – Depending on state rules

  • Required in many states for operating a commercial business.

8. Legal Agreements

  • Terms & Conditions, Privacy Policy, and Return/Refund Policy are required on your website for compliance and trust.

9. FSSAI License – Only if selling food products

Top 5 Smart Strategies to Run Your Online Business

Running a successful online business in 2025 requires more than just a great product. To stay ahead in a competitive digital world, you need the right strategies. Here are the top 5 smart strategies to grow and manage your online business effectively:

1. Leverage Automation Tools for Efficiency

Automating routine tasks can save time and boost productivity. Use tools like Shopify Flow, Mailchimp, and Hootsuite to handle order processing, email campaigns, and social media posts. Automation helps reduce human error and ensures smoother operations.


2. Optimize for SEO and Invest in Content Marketing

High-quality, keyword-rich content improves your Google rankings. Focus on blog posts, product descriptions, and landing pages that solve user problems. Combine this with on-page SEO, meta tags, and fast-loading pages to attract organic traffic.


3. Deliver an Exceptional Customer Experience

Your customers are your biggest asset. Provide 24/7 support, easy returns, fast shipping, and mobile-friendly experiences. Use tools like LiveChat, Zendesk, and personalized email campaigns to enhance engagement and trust.


4. Use Data Analytics to Drive Smart Decisions

Track and analyze customer behavior using tools like Google Analytics, Hotjar, or Facebook Pixel. Understand what’s working and make data-driven changes to your marketing, pricing, and inventory strategies.


5. Diversify Your Marketing Channels

Don’t rely on one platform. Use a mix of email marketing, social media, influencer marketing, and paid ads on Google or Facebook. This broad approach protects your brand and increases customer reach.

Conclusion- Start an eCommerce Business now!

With the increasing transfer towards online shopping, launching your own e-commerce business is a fantastic way to tap into this growing market. From choosing the right niche and creating a user-friendly website to leveraging digital marketing strategies, each step plays a crucial role in building a successful online store. By offering quality products, providing excellent customer service, and maintaining a strong online presence, you can establish a thriving business and achieve long-term success.
Starting an eCommerce business allows you to reach a global audience, work on your terms, and turn your industrial dreams into reality. With the right planning and execution, you can create a platform that not only generates consistent income but also offers flexibility and freedom.

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Frequently Asked Questions

Is it hard to start an eCommerce business?

Ans. Starting an eCommerce business is not very tough because platforms like Shopify enable different brands to go online quickly. However, running a successful eCommerce business requires consistency, hard work, and continuous market research to keep updating your products and services.

What are the 3 types of e-commerce?

Ans. The three types of eCommerce include:
1. Business-to-Business: Business-to-business, or b2b, is the procedure of selling online from one business to another. It’s like setting up a wholesale business.
2. Business-to-Consumer: Nowadays, a lot of e-commerce is b2c, as it has become easier for businesses to target specific customers online. Businesses can display their products/services online, and customers can easily order them using their smartphones.
3. Consumer-to-Consumer: Sometimes customers buy many products, don’t know what to do with them, and don’t find the time to return them to the retailer. Websites like eBay allow the customer to upload images of the products and sell them online to other customers interested in the same product.

How can I create my own e-commerce?

Ans. A business plan is a must if you plan to start an eCommerce business in India. Your mission and vision get clearer with a business plan. Establishing a business plan includes deciding what products to offer, selecting a supplier, choosing a logistics partner, deciding on a social media strategy, drafting customer service policies, etc. Warehousing, product storage, the nature of your eCommerce business, and sourcing are some other significant components of building an eCommerce store.

Is it worth getting into eCommerce?

Ans. The E-commerce sector is one of the most significant sectors in India. The market size of e-commerce was $64 billion (approximately ₹5.3 lakh crore) initially in 2020, but is expected to cross $200 billion (approximately ₹16.6 lakh crore) by 2027-28, as shared by India Brand Equity Foundation. Hence, it is worth getting into eCommerce, but before you begin, consider what products you want to sell or services you want to offer, and conduct thorough market research.

Is e-commerce still profitable in 2025?

Ans. E-commerce is one of the most important industries that will usher in the next phase of the Indian economy. According to recent United Nations Conference on Trade and Development estimates, the global e-commerce sector would grow from $2.86 trillion (approximately ₹237.4 lakh crore) to $27 trillion (₹2,241 lakh crore) by 2027. All thanks to increased internet usage and smartphone popularity. Running an eCommerce business can be a wonderful source of revenue because it is one of the booming industries.

How to start an ecommerce business on Amazon?

Ans. To start an e-commerce business on Amazon India, register on sellercentral.amazon.in with your GST, PAN, and bank details. List your products, choose a fulfillment method (like FBA or Easy Ship), and start selling to customers across India.

How to start e commerce business without money?

Ans. To start an e-commerce business without money, consider dropshipping or affiliate marketing, where you don’t need to hold inventory. You can create a free website using platforms like Shopify or WordPress and promote products through social media and digital marketing.

How much money do I need to start an eCommerce business?

Ans. You will need an inventory of products. Again, the costs here will vary from product to product. To start out, a minimum budget of INR 20,000 is recommended. Keeping all the varying costs in mind, an estimated amount of about INR 85,000 – INR 1 lakh is needed to start your own e-commerce business in India.

How much does it cost to start an eCommerce store?

Ans. Small businesses can start for under $1,000 with just a domain, website development, and basic marketing. Online stores typically range from $2,000 to $10,000+, depending on inventory, eCommerce platform setup, and marketing and advertising costs.

How do I start an e-commerce business?

Ans. To start an e-commerce business, begin by identifying a niche, researching your market, and creating a business plan. Secure your product sourcing, choose a platform (like Shopify or Amazon), and design your online store. Finally, implement a marketing strategy to attract customers and launch your business. 

Authored by, Amay Mathur | Senior Editor

Amay Mathur is a business news reporter at Chegg.com. He previously worked for PCMag, Business Insider, The Messenger, and ZDNET as a reporter and copyeditor. His areas of coverage encompass tech, business, strategy, finance, and even space. He is a Columbia University graduate.

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