ecommerce business in india

Ultimate Guide To Start eCommerce Business in India-2022

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Having an eCommerce business in India is a big task that requires your complete attention to many things. These factors can affect how your company looks online and on digital platforms and how well it performs and how long it lasts.

Although starting an eCommerce business is a difficult task that requires time and effort, you may build a successful e-commerce business in India that provides value to the customer and creates revenue and profits if you read the following eCommerce business strategy and eCommerce business ideas.

Watch how to start an eCommerce business in Hindi on our YouTube channel


What is an eCommerce business?


What is an eCommerce business?

Electronic commerce, or eCommerce, is the transfer of products and services through the internet. In the last year, 2.14 billion people were expected to buy products and services online.

According to Bill Gates

“If your business is not on the internet, your business will be out of business.”

People buy and sell products in retail in various ways, including through eCommerce. Some companies sell products online, but for the most part, eCommerce is only one part of a broader strategy that includes locations and other income sources.

In either case, the eCommerce business in India allows startups, small enterprises, and large corporations to sell their products on a global scale and reach customers.

The e-commerce business in India is driving the Indian economy’s next wave of development. By 2024, the eCommerce business in India is expected to be worth US$ 111 billion, and by 2026, it will be worth US$ 200 billion. So if you have been thinking of stepping into the world of eCommerce and its infinite profit, then it’s the right time to create an online store in India now.


Amazon, Flipkart, and Snapdeal have all shown that eCommerce for business is the way of the future. And the only way they became so large was because they recognized and experimented with the huge potential of eCommerce in business markets.

Starting an eCommerce business in India may make various sense depending on your goals. eCommerce startups in India and all over the world, after all, provide greater flexibility, affordability, and potential for many entrepreneurs because they do not require a local location.

So, how do you get started with an online business? This guide about eCommerce business ideas is here to assist you.

We’ll walk you through how to establish an eCommerce business in India in seven easy steps, so you’ll have all the information you need to get your online store up and running in no time.

How To Start eCommerce Business In India: Step By Step Guide To Create An Online Store


Step 1: Set The Perfect  Plan and Model For eCommerce Business In India


“eCommerce is not an industry; eCommerce is a tactic.” – Tobias Lutke.

The first step of setting up an eCommerce business is to consider carefully which eCommerce business plan and eCommerce business model will work best for you.

You can choose between two types of company models. In the beginning, you can choose between a single vendor eCommerce business and a multi-vendor eCommerce store.

Depending on the budget you’ve allocated to create an online store for your eCommerce business, you might choose to have a single product line or multiple product lines.

  • Single-vendor marketplace

The benefit of choosing these types of eCommerce startups in the India model is that it only includes two parties: a single vendor selling to many clients. Therefore, not only is it easier to keep track of transactions between the two companies, but administrative costs are cheaper when you only have to pay one supplier, and you have better control over the inventory you have on hand.

  • Multi-vendor marketplace

This model requires several vendors to sell their items to multiple customers, and each vendor must be registered on your site.

Note: You can sell a unique product yourself – either through your own online business or a similar platform – or let other sellers sell their products on your site. You could make a lot of money in the first situation. However, in the second, you will be paid a commission each time one of your brand’s registered sellers fulfills a successful sale.

If you want to start an eCommerce business in India with low investment, follow our expert guidance. Here are the top eCommerce business ideas that will help you create an online store without any high investment.


Step 2: Brand Your eCommerce Business in India


“Innovation will come from an explosion of machine-learning startups. Data is often in good shape for top-tier industry leaders, but it’s not all held in the same place.” -Tink Taylor.

The following eCommerce business ideas are to come up with the perfect name for your company after you’ve decided on which business model you want to use to build your eCommerce business in India and have narrowed down which product or products you want to sell, as well as the target population you want to sell to.

The name of your eCommerce business in India should be:

  • short and simple to remember,
  • Reflective of your company’s image.

Along with this, you should create a finalized logo design for your eCommerce startups in India. After you’ve decided on a brand name and a logo, the next step is to notify your company.

Once you have decided on a name for your brand and its logo, the next step is informing your company.  Generally, there are four types of companies:

  1. Sole proprietorship (no limitation of liability)
  2. One-person company
  3. Limited liability partnership (LLP)
  4. Private limited company

Whether you want to run the e-commerce business in India independently or bring in extra partners will identify the type of structure you choose. It’s essential because if you’ve chosen a company or partnership firm, you’ll be required to file tax returns and obtain a tax ID number.

eCommerce business in India requires an Employer Identification Number (EIN) to open a business bank account and file taxes in the next fiscal year. Your EIN is a one-of-a-kind number that identifies your company.

If you choose the single proprietorship model, you will not need a tax ID number. Instead, you can use your assigned Social Security number.

Step 3: Register Your Ecommerce Business In India


“The sooner we drop the ‘e’ out of ‘e-commerce’ and just call it commerce, the better.” – Bob Willett

business registration

One of the essential parts of eCommerce startups in India is the registration and completion of all legal processes. Below are some eCommerce business ideas to register and create an online store.

  1. Apply for a Director’s Identification Number (DIN), which can be downloaded from the official Ministry of Corporate Affairs website via the DIN application (DIN 3 form). You can also apply for a DIN online by submitting the required documents and uploading them.
  2. Get your Permanent Account Number (PAN) and your Digital Signature Certificate.
  3. Once you’ve received your DIN, you can contact the Registrar of Companies (ROC) to see if the name you’ve chosen for your business is available. It’s also possible to look for it on the Ministry of Corporate Affairs’ official website.
  4. Within six months of getting confirmation of the proposed company’s name, you can register it. You can also pay a charge to get the company’s name updated.
  5. Apply for GST certification, a Shops and Establishment Licence (required for Payment Gateway Integration), and a Professional Tax License (PT).
  6. Apply to the respective Provident Fund Organization to open a Provident Fund (PF); register with the Employees’ State Insurance Corporation for employee medical insurance; and finally, apply for the Certification of Company’s Incorporation, where your company will be officially registered under the Company’s Act, 2013.

Follow these eCommerce business ideas to find profitable and low competition products to sell on eCommerce in 2022.


Step 4: Opening a Bank Account For eCommerce Startups In India


“You can’t wait for customers to come to you. You have to figure out where they are, go there and drag them back to your store.” -Paul Graham.

Suppose you’ve decided to operate your online business as a sole proprietorship; you’ll need to apply for GST registration in this case, which will allow you to open a bank account in your online/eCommerce business’s name. After you’ve established your bank account to create an online/eCommerce store, you may start selling items on your eCommerce website to get and manage a payment gateway.

Step 5: To Create an Online Store Build Your eCommerce Website


By 2022, brick-and-mortar retail spaces will be little more than showrooms. – Eddie Machaalani and Mitchell Harper

online shopping


When building your eCommerce website, you can use a pre-built platform or create your own from scratch. Both have different advantages. However, most people choose to build a website from the ground up.

➔     Using a pre-built platform:

Choosing a readymade platform like WordPress or Wix provides readymade templates customised to the type of online business you want to run.
For those trying to increase websites for their eCommerce business in India, WooCommerce, Magento, Shopify, Zepo, and KartRocket are some of the most popular options to create an online store.


➔     Building a website from scratch:

If you want to create an online store, you will have room for better features and build your entire website precisely as you’d imagined it in your mind.

Now you must remember that your website visually represents your entire brand – it is the spearhead of your entire online business. Therefore, no detail is too tiny – from color to font to photos, everything should communicate a small part of your brand’s story.

To that end, there are a few eCommerce business ideas to think about before building the official website of your company:

  1. First, you must determine if you want to host it yourself or pay a professional to manage and supervise it daily.
  2. You must ensure that many posts are uploaded and shared on your website every day, whether they are details about the services your eCommerce shop offers or basic photographs of your products.

Step 6: Payment Gateways For e-commerce Business In India


Customer service shouldn’t just be a department, it should be the entire company” – Tony Hsieh, CEO of Zappos

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Online Sales Ecommerce E-commerce Selling Online

You must set up payment channels for your internet business to be profitable. Credit cards, debit cards, net banking, and cash card transactions will all be processed through the eCommerce website.

To be granted a payment gateway for your eCommerce startups in India, you must submit the following documentation:

  • Bank account in the name of the business
  • PAN card of the business
  • Certificate of Incorporation
  • Memorandum of Association
  • Articles of Association
  • Identity proof
  • Address proof
  • Terms of use
  • Website privacy policy

After you’ve submitted all of these documents, you’ll be provided with a payment gateway for your online business, which you may use to make money online. PayPal, PayU, and RazorPay are some of the most common payment gateways.

Step 7: Logistics To Create an Online Store


Making a profitable e-commerce store is hard work. I love the fact that Shopify clients help each other in our forums. I love that everyone feels like we are in this together and that we all will succeed together.

Scott Lake, Co-founder of Shopify


To run a successful eCommerce business in India, you must complete this stage. For example, shipping an order to a client or moving products to a merchant are both examples of logistics.

This process also keeps track of the shipped products in transit until they are delivered to engage with customers. For that purpose, logistics management includes locating and identifying distribution companies with which to partner. However, the majority of eCommerce business owners prefer to outsource their logistics to a third-party transportation and storage company.

Here are the steps of the logistics process further:

  • When a customer completes an order on your website, inventory software will send you an email message (which most eCommerce businesses use). You must deliver the product once the notification has been confirmed.
  • You can partner with a supply and distribution company so that the third party is automatically notified when a consumer makes a purchase. Then, they can deliver the package quickly. It is the more organized method, but it is usually used when your eCommerce business grows to a point where you have the resources to partner with a distribution company in the first place.
  • Suppose your company is smaller and you are running your website from home or a different location and keep inventory there, you must package the item and send it directly to the buyer. It will save you the added cost of hiring a third party to manage your delivery.

It’s time to give a new shape to your small business. Get in touch with our expert to create an online store and grow it quickly. Our business setup assistance services help you to manage your business from scratch. Fill in this contact form or call us on +91 9211066888 to take the conversation further ASAP!

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Step 8: eCommerce Business Ideas To Attract Customers


“You can’t just open a website and expect people to flood in. If you want to succeed, you have to create traffic.”

– Joel Anderson.

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Below are the e-commerce marketing strategy and eCommerce business ideas to boost your e-commerce business growth.

1. SEO Marketing:

The search engine optimization (SEO) marketing strategy is the way of the world right now, and it will continue to be so in the future.

Getting the attention of potential online clients is essential to your eCommerce business’s success. It is where SEO techniques come into play. SEO helps in getting your business on the map of search engines. You need to be on their radar because 44% of online customers start their search with a search engine.

2. Choose the right keywords

According to statistics, around 700,000 Google searches are performed every minute. Therefore, you’ll need to create a focused keyword list to ensure that you rank in these searches.

3. Advertisements For eCommerce Businesses in India

Advertisements are a trending way to make your eCommerce business ideas successful and catch a customer’s attention. You can pay a set amount of money to promote your advertisement on users’ daily feeds by using the ‘paid ad’ option on sites like Facebook and Instagram. Then, after they click on the ad and are directed to your website, it is your job to convert these users into potential buyers.

4. Promotions- eCommerce Business Ideas

When a cookie is placed on the computers of visitors who have visited your site once but left without purchasing anything, this is known as retargeting. Your ad will be displayed to these online visitors once the cookie is placed and they visit another website that shows adverts from the retargeting network. Although this is a costly option, it generally produces positive results.

Wondering why eCommerce businesses fail? Watch this video to know more-



Starting an eCommerce business is a difficult task, and the goal of this post is to guide you with the eCommerce business ideas in India to consider. Sooner or later, a big part of the retail business will move to eCommerce, so it’s best to get started today and fulfill the future demand.

1. How and what are the 3 types of e-commerce?

Ans. There are mainly three types of e-commerce: business-to-business (B2B) (websites such as Shopify), business-to-consumer (B2C) (websites such as Amazon), and consumer-to-consumer (C2C) (websites such as eBay).

2. What is the difference between e-commerce and e-business?

Ans. The main difference between E-Commerce and e-commerce is that eCommerce refers to performing online commercial activities, and transactions over the internet. Whereas, E-Business refers to performing all types of business activities through the internet.

3. What is C2B in e-commerce with an example?

Ans. C2B (Customer to business) models are often used to drive business to a company’s e-commerce platforms. Some examples of C2B marketing include reverse auctioning, affiliate marketing, and on-commission advertisement space.

4. Is E-commerce a profitable business?

Ans. Yes, If you strategize right and know what the market wants, eCommerce can be profitable otherwise eCommerce industry is competitive. It also depends on the type of products you sell and what business model you’re running on.

5. What are the two main types of e-commerce?

Ans. B2B and B2C are the 2 main types of eCommerce.

Vaibhav Sharma

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