How to start an e-commerce business in India


How to start an e-commerce business in India? It’s not that easy a task to undergo, you need to go through strong decisions. So if you are interested in starting a new e-commerce business in India, then we are here to show you the right path to start. Carry on with reading this article.

Ecommerce is basically a business model based on the internet. Companies and other manufacturers can buy and sell products through the internet.

Ecommerce operates basically on four market giants, such as computers, tablets, smartphones, and other smart devices.

But the tremendous Covid-19 pandemic situation has led everything to be online. And that affects the shopping and online transactions in all subjects like books, garments, foods and beverages, flight tickets booking, train tickets booking, hotels booking and many more. 

Even stocks, financial services like trading, exporting, and importing have also been affected by this situation. So basically everything can be purchased through an e-commerce service.

That’s the reason e-commerce is now a very important business to start with and gain a huge profit margin.

Ecommerce handles some market segments which will include business-to-business, business-to-consumer, consumer-to-consumer, and consumer-to-business. Ecommerce is a part of the electronic business that is e-business which involves a wholesome online process.

Amazon, Flipkart, Myntra, Nykaa, Snapdeal, eBay, and all the other online market giants have shown us that e-commerce is the future of the Indian market. As per the economic survey in India e-commerce is growing with a growth rate of nearly 19%.

All the well-known businessmen have acknowledged that a business without internet-based facilities will be out of business soon. This e-commerce business is going to change the Indian business industry as well as the Indian economy.

If you are venturing your foot into this huge business world, then this article is just for your detailed knowledge. This is the time you can start your e-commerce business in India.

But for this, you have to follow a few steps.

Steps to be Followed to get into the e-Commerce Business in India

Here is the guide which will lead you to the proper knowledge on how to start an e-commerce business in India.

Step 1: Make a decision on the Business Plan and Model

Firstly, you need to know about the e-commerce business and think of a long-term business plan. Ecommerce is not an instant process. This is a long-term process that will help you to grow at a slow rate. But that will lead you to a huge profit in the future.

Choose from the two different types of business models- a single vendor or a multi-vendor e-commerce store. You can choose between these models as per the budget you have set for this business.

  • There is one advantage to a single vendor marketplace- It involves only two entities. Only one seller will buy and sell the products. You can have more hands-on your business. Also, you may have to pay less because there is only one single vendor.
  • A multi-vendor marketplace has some other advantages- When it comes to making a sale, this process has security. Suppose one of your vendors is unavailable, you can check with other vendors to make the sales of their products. You can have constant sales of your business in this marketplace.

You can decide on your single product from multiple stores. Also, you can allow others to sell on your online store. If you opt for a single vendor marketplace, then you will get a high margin profit.

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In the latter case, i.e. in a multi-vendor marketplace, you can only get a commission whenever a registered seller will make a sale on his e-commerce site.

Take decision on the perfect business plan and model

Step 2: Branding of your Brand

If you have decided on the business plan you want to adopt to sell your products, and have decided on the products that you want to sell, it’s time to think of an eye-catching brand name.

Thinking what will be in just a name? Right? Ok, let us tell you something personal branding is a legal step to creating your business patent. You can also get a trademark registration to stop the duplication of your brand name. 

You have to keep in mind something when you are keeping a perfect brand name:

  • Easy to remember the short name
  • Should be reflective of your business
  • Should be unique

You also have to design a dedicated logo for your brand. If you have decided on the brand name and logo design, then it’s time to create your own Company.

You have to choose between four kinds of companies that are popular, such as:

  • Limited liability partnership (LLP)
  • Sole proprietorship (no limitation of liability)
  • Private limited company
  • One-person company

Also Read: List of Textile Business Ideas In India

You have to choose between these because there will be differences in every type of business based on tax ID relaxation.

Branding your brand

Step 3: Get Registered in your e-Commerce Business

Now you have to go through a crucial part of your economical business.

  • You have to apply for a Director’s Identification Number (DIN). From the Ministry of Corporate Affairs official website, you can apply online for this Director’s Identification Number (DIN). You just have to attach supporting documents there.
  • Be very sure that you hold a Digital Signature Certificate and Permanent Account Number (PAN).
  • When you are done with your Director’s Identification Number, you have to apply to the Registrar of Companies (ROC). This way you can choose whether the name of your brand is available or not. 
  • If your name is unique, then soon you can incorporate your e-commerce business. 
  • You need to apply for the Goods and Service Tax (GST) certification, Professional Tax (PT) and Shops, and Establishment Licence.
  • Also, open your own provident fund. Get registered for medical insurance of the employees with the Employees’ State Insurance Corporation. 
  • Finally, to have your company officially registered under the Company’s Act 2013, you have to register with the Certification of Company’s Incorporation.

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Step 4: Open a Bank Account

So finally your business and brand are registered. Now you have to open an account in the bank. You can create your bank account at any bank across India, but make sure that the account is in the official brand name.

Step 5: Building your Own e-Commerce Business Website

Now you have to create your own business website. You must have a website through which consumers can check the product details. You can either make a website of your own from scratch or make use of a pre-built platform. Though creating a new website is the most trusted one, you can choose any one of them.

If you choose a pre-built option, like WordPress, Wix, and many more, you can avail yourself of a few pre-built templates which you can use in making your website. You can edit the template as per your choice and requirements. 

If you are a pro person, then you can design your own website from scratch. You can choose from Zepo, WooCommerce, Shopify, Magento, KartRocket, and many more.

Also Read: Top 25 Best and Small Food Business Ideas In India

Remember that the front page of the website can be a head-turner to your business. Your e-commerce business website will represent your business fully. So you need to create in such a way that the customers will be attracted to your products.

  • You can go for a professional person who can host and run your e-commerce business site. If you want a professional that you would hire, then he or she will look over the website whatever is going on there, and report it to you.
  • If you think that you can host your website on your own, then you can easily handle your website.
designing your e commerce website

Step 6: Payment Gateways

When you are all set with your business aspects, now you need to create a payment gateway to have the business transactions online.

When you need to get granted your payment gateway, you must submit some documents as mentioned below:

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

When all these documents are submitted, you’ll get your payment gateway. This will give you access to your online transactions for the deals.

Step 7: Logistics

Logistics is basically the shipping process of your products to the customers or transporting to the merchant an inventory. There will be minute details of the tracking system of the product’s location. Until the product reaches its delivery destination, logistics will track the route. 

Logistics involves the locating of distribution of companies. You can hand over these logistics to a third-party agency also. Logistics assist in responding to all queries by customers and help in the prevention of products going missing

Step 8: Attracting your Customers to your Website

Just creating a website and dreaming of a flood of people on your website- is the right thing for the e-commerce businessman.  If you really want to be a successful entrepreneur, you need to generate traffic through your website.

Here are some of a few factors that can help you to create traffic to your website:

  • SEO marketing is now a very popular keyword. SEO refers to search engine optimization marketing. SEO marketing is going to change the whole world of the e-commerce business.
  • Get attention of your potential customers is not an easy thing. And SEO can help you in this place. SEO can raise the search percentage of your products in the online market.
  • You can check that nearly one lakh searches per minute are done by people. If you really want to show yourself in searches after which you need to go with a proper keyword that will hold the strength of your products.
  • You can use 20-40 words long keywords for your products. Google Keyword Planner, Keyword Dominator, Google Auto, SEMrush Suggest, and can be your partner in this matter.
  • You can put advertisements in online and offline media so that customers can have a look at your products. You can put paid advertisements on social media sites like Facebook, Twitter, Instagram, YouTube, and many more.
  • If interested, people will click on the ad, they will be led directly to the website. Now you need to convert those interested people into potential customers. That’s the advantage of advertising.

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There are also some other ways to grab the attention of potential customers towards your products. So just try to cope with the changing nature of the e-commerce business. And you will be a successful one in the near future.

Also Read: How to Start an Import and Export Business in India

Frequently Asked Questions (FAQs)

How can I get an e-Commerce License in India?

You have to apply to the authorized company to get the Licenses and Registration to start your own e-commerce business.

How do I Start an e-Commerce Business?

Start an e-Commerce Business using this process-

– Decide your perfect business plan and model suitable for your business
– Branding your brand
– Register your e-commerce business
– Opening a bank account
– Build your e-commerce website
– Payment gateways
– Logistics
– Advertisement
– Promotion

What are the 3 Types of e-Commerce?

Business-to-Business (websites such as Shopify)
Business-to-Consumer (websites such as Amazon)
Consumer-to-Consumer (websites such as eBay)

What is the Advantage of e-Commerce?

– Low costs
– The flexibility and speed
– The high levels of data.

What is the Difference Between e-Commerce and e-Business?

Ecommerce is basically an online commercial activity and transactions over the internet. In e-commerce, the transaction is limited.

E-business is performing all types of business activities through the internet. E-business consists of limitless transactions.


I believe that there will always be hurdles in the way of your business. But what you need to do is constantly adopt the hurdles and convert them into your strength. 

You have to arrange a foolproof business plan, own business vision, future goal, plan of development in the business website, and many more.

So don’t waste your time anymore and jump into the highest growing business industry in India.

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About the author

Ashutosh Bhatt

Ashutosh joined Lio as the marketing manager and has played a significant role in our growth. A traveler at heart, you might just catch him on a flight to any exotic countries around the world when he isn't busy ranking websites.

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By Ashutosh Bhatt