To start an online store in India, you need five things: a product people want, the basic business and tax registrations, an ecommerce platform with your own branded store, a way to accept UPI and card payments, and a shipping setup that reaches every pincode. You can have all five in place in about 30 days, and you do not need to write a single line of code.
This guide walks through each step in the order you should do it, with the Indian specifics that generic "start an online business" articles skip: GST, Razorpay and UPI, cash on delivery, return-to-origin losses and selling across tier 2 and tier 3 towns. It also shows where a platform like ShopMate fits in, so you can decide what to build yourself and what to hand off.
Quick answer: Pick a product and a customer, complete your PAN, bank account and (if applicable) GST and Udyam registrations, choose an ecommerce platform that gives you your own domain, set up Razorpay for UPI, cards and net banking, connect shipping partners that cover all pincodes, add 20 to 30 well-photographed products, test a full order, and launch. Budget 3 to 5 weeks.
Step 1: Decide what you sell and who buys it
Most stores that struggle did not fail at technology. They failed at the very first question: who is this for, and why would they buy from you instead of a marketplace? Start narrow. A store that sells "handloom cotton kurtas for working women, sizes S to 4XL" is easier to market than a store that sells "fashion".
Before you spend money, answer these in writing:
- Who is the customer? Age, city tier, how they pay (UPI, card or cash on delivery), and where they already shop.
- What is the product margin? After product cost, packaging, shipping, payment charges, platform fees, returns and marketing, you should still keep a healthy profit. Many Indian sellers forget to include return-to-origin (RTO) shipping in this sum.
- Can you source consistently? A product you can make or buy reliably in small batches beats a "trending" product you cannot restock.
- What makes you different? Quality, price, design, speed, a story or a niche. If the answer is "nothing", pick another product.
If you already sell on Instagram or WhatsApp, you have done part of this work. Your repeat buyers and their questions tell you what to stock. Our guide on Instagram selling vs an online store explains when it is time to move to your own store.
Step 2: Sort out your registrations and tax basics
You can start building a store before every registration is complete, but you should not take real orders without the basics in place. Rules change, so confirm the current position with a chartered accountant. As a starting map:
| Item | What it is | When you need it |
|---|---|---|
| PAN | Permanent Account Number of you or your business | Always. Needed for the bank account, payment gateway and tax filing |
| Business bank account | Current or savings account in your name or your firm's name | Always. Payment settlements land here |
| GST registration | Goods and Services Tax number (GSTIN) | When your turnover crosses the threshold for your state and category, or if you sell through marketplaces that require it. Many sellers register early so they can issue proper tax invoices |
| Udyam registration | Free government registration for micro, small and medium enterprises | Optional but useful for loans and some schemes |
| Shop and establishment licence | State-level registration for a business premises | Depends on your state and whether you operate from a premises |
| FSSAI licence | Food safety licence | Required if you sell packaged or prepared food |
| Trademark | Protects your brand name and logo | Recommended once the brand starts to gain traction |
A few notes on the table. The Central Board of Indirect Taxes and Customs (CBIC) has set the aggregate turnover threshold for exemption from GST registration at ₹40 lakh for suppliers of goods and ₹20 lakh for suppliers of services, with lower limits in some special category states (CBIC, GST: An Update). Thresholds can be revised, so always confirm the current figure on the official GST portal. Udyam registration is free: the official Udyam portal states that no fee is payable to anyone. If you sell food, an FSSAI licence is a legal requirement before you start, including when you sell through your own website; see the FSSAI licensing FAQs for the category that applies to you.
GST deserves special attention because it shapes how you price and invoice. Every order needs a correct tax invoice, with the right split between CGST and SGST for sales within your state and IGST for sales to other states. Getting this wrong by hand, order after order, is one of the most common reasons small sellers lose hours every month. We cover the details in our complete GST invoice guide for online stores.
Step 3: Choose where you will sell
You have three realistic options in India, and many successful brands use more than one. The mistake is treating a marketplace or a social media page as your whole business.
| Channel | Strength | Weakness |
|---|---|---|
| Marketplaces (Amazon, Flipkart, Meesho) | Ready traffic and trust | High commissions, price wars, you do not own the customer or their data |
| Instagram and WhatsApp | Free reach, personal selling, quick to start | Manual orders, payment chasing, no inventory control, limited catalogue |
| Your own online store | Your brand, your customer data, repeat buyers, full control of pricing and offers | You must drive your own traffic |
For a brand that wants to last, your own store should be the centre, with Instagram and marketplaces feeding customers toward it. Customers who buy on your store give you their email and phone number, which you can use for repeat sales without paying a marketplace again. We compare these channels in more depth in how to grow a D2C brand in India.
Step 4: Pick an ecommerce platform
This is the decision with the biggest long-term effect, because moving platforms later means re-uploading products, redirecting URLs and risking search rankings. There are three ways to build a store in India:
- Custom development. Maximum flexibility, but expensive to build and maintain, and you handle security, payments, hosting and updates yourself.
- Self-hosted open source (such as WooCommerce). Cheaper to start, but you manage hosting, plugins, backups and compatibility. Costs creep up as you add plugins for GST, shipping and payments.
- Ecommerce SaaS. You pay a fee, and the platform runs the store for you. This is the fastest route for most small and mid-sized Indian sellers.
Whichever route you choose, check the following before you commit:
- Do you get your own domain and a fully branded storefront, not a shared marketplace URL?
- Is Razorpay or another Indian payment gateway supported natively, with UPI, cards, net banking, EMI and wallets?
- Are GST-compliant invoices generated automatically on every order?
- Does it connect to Indian courier partners and cover all pincodes, including cash on delivery?
- Does it work for a physical shop too, with inventory synced between online and offline sales?
- How is it priced? Monthly plans, commission or a mix, and what is not included?
- Is support available when you actually need it, including evenings and weekends?
ShopMate was built around exactly these requirements. Every merchant gets an isolated, branded storefront and admin panel on their own domain, Razorpay payments, 40+ shipping partners covering all India pincodes, an offline POS and an analytics dashboard, all in one plan. Pricing is a flat 5% commission plus 18% GST on every order, with no setup fee and no yearly maintenance charge, so you only pay when you sell. You can see the full breakdown on the pricing page, and our comparison of the best ecommerce platforms in India shows how different models stack up.
Step 5: Build a catalogue that actually sells
Your first version does not need 500 products. Twenty to thirty well-presented products are enough to launch and to learn what sells. Focus on quality over quantity.
Product photography
Use natural light and a plain background, and shoot at least four angles plus one detail shot and one scale shot. For clothing, add a model photo or a size chart. Customers who cannot touch the product rely entirely on your images, and weak photos are a leading cause of abandoned carts.
Product titles and descriptions
Write titles the way your customer searches, for example "Women's Cotton Block Print Kurta, Blue, Size M". Descriptions should cover material, dimensions, care instructions, what is in the box and the return policy. Write them yourself rather than copying supplier text, because duplicate descriptions rarely rank well in Google.
Variants, stock and pricing
Set up size, colour and other variants as proper variants of one product rather than separate listings. Keep accurate stock counts from day one, and decide whether your prices include GST. Indian customers expect to see one final price at checkout, so display prices clearly and avoid surprises at the last step.
Categories and navigation
Group products into five to eight clear categories. A shopper should reach any product in three clicks or fewer, on a phone. Most Indian shoppers browse on their phones, so test every page on a small screen before launch.
Step 6: Set up payments for the Indian customer
India is a UPI-first market, and checkout friction costs you real sales. UPI is operated by the National Payments Corporation of India (NPCI) and, according to Wikipedia's UPI entry, processed about 20 billion transactions worth ₹25 trillion in August 2025 alone. A complete setup should support:
- UPI (Google Pay, PhonePe, Paytm and others), which is the most common way to pay for small and mid-sized orders.
- Debit and credit cards, with the secure authentication flows customers expect.
- Net banking for customers who prefer their bank's own page.
- EMI and wallets for higher-value products.
- Cash on delivery (COD), which many first-time online buyers in smaller towns still prefer.
Razorpay is a popular gateway among Indian online stores and covers all the methods above. To activate it you typically need your PAN, bank account details, business proof and a working website; the exact documents depend on your business type, as listed in Razorpay's document checklist. With ShopMate, the Razorpay integration is built in, settlements go directly to your own Razorpay account, and our team helps with the setup during onboarding. Our step-by-step guide to setting up Razorpay for your online store covers the documents and the go-live checklist.
A word on COD: it increases conversions but also increases fake orders and returns. Many sellers limit COD to certain pincodes or order values and nudge customers toward prepaid payment with a small discount. We discuss this in COD shipping in India.
Step 7: Plan shipping and returns before launch
Shipping is where many new Indian stores lose money. Plan it before your first order, not after.
- Coverage. Make sure you can deliver to all serviceable pincodes, and show customers a pincode check on the product page so they know before they pay.
- Courier choice. Different couriers perform differently by region and weight. A platform that connects you to many shipping partners lets you compare rates and pick the best option per order.
- Packaging. Use sturdy, correctly sized packaging. Damaged parcels create refunds and bad reviews.
- Weights and dimensions. Enter these accurately. Couriers charge by the higher of actual and volumetric weight, and wrong data leads to surprise charges.
- Returns policy. State it clearly. Decide who pays for return shipping, the return window, and which products cannot be returned.
ShopMate connects you to 40+ shipping partners covering all India pincodes. From your admin panel you can compare rates, generate labels in one click, track shipments, manage returns and reverse pickups, and check pincode serviceability. Our team helps you onboard with the shipping partners, and shipping settlements are managed through your own shipping account dashboard. For a deeper look, read about the best shipping partners for ecommerce in India.
Step 8: Handle GST, invoices and records properly
Every order should generate a GST-compliant invoice automatically, with your GSTIN, the customer's details, HSN codes where applicable, the taxable value and the correct tax split. Doing this manually in a spreadsheet works for the first ten orders and then becomes a source of errors and late-night work.
Look for a platform that shows GST clearly at checkout, creates invoices on every order, and lets you export reports for your accountant at month end. Good records also help you answer the questions that matter: which products make money, which channels are profitable, and how much stock you actually have.
Step 9: If you also have a physical shop, connect it from day one
Many Indian sellers run a shop, a stall or a wholesale counter alongside their online store. If online and offline inventory are tracked in separate places, you will eventually sell the same last piece twice. That means a cancelled order and an unhappy customer.
ShopMate's POS module lets you bill walk-in customers, scan barcodes, accept cash, UPI and card payments, print receipts and GST invoices, and manage staff roles. Stock updates flow between your shop and your online store automatically. The analytics dashboard compares online and offline sales in one place. Read more in our guide to retail POS and ecommerce integration.
Step 10: Your 30-day launch plan
Here is a realistic timeline for a first-time seller. Adjust it to your product and your paperwork.
| Days | Focus | What to finish |
|---|---|---|
| 1 to 5 | Plan | Customer, product range, pricing, brand name, logo, supplier confirmation |
| 6 to 12 | Paperwork | PAN, bank account, GST and other registrations, domain name |
| 10 to 15 | Platform | Choose your platform, book a demo, sign up, connect your domain |
| 12 to 20 | Catalogue | Photograph and upload 20 to 30 products, variants, categories, policies |
| 18 to 24 | Payments and shipping | Razorpay activation, courier onboarding, pincode checks, COD rules |
| 24 to 27 | Test | Place real test orders: UPI, card, COD, a return, a refund. Check the invoice, the emails and the mobile layout |
| 28 to 30 | Launch | Announce to your followers and contacts, set up a launch offer or coupon, watch every order closely |
With ShopMate, the process is shorter because we handle much of the technical setup. After your 7-day free trial and a demo call, we send a digital agreement. Once it is signed, it takes 5 to 7 business days to set up your store, custom domain, email service, payment gateway and shipping, and our team guides you through adding your products. If you would like to see how it works, you can book a free demo.
What does it cost to start an online store in India?
Costs vary widely by category, but the main budget lines are the same for everyone:
- Inventory. Usually the largest cost. Start with a small first batch.
- Platform fees. Monthly subscription, commission, or both. Check what is and is not included, including payment gateway charges, which are separate from any platform fee.
- Domain. A domain is inexpensive. ShopMate provides a custom domain for up to ₹1,000, subject to availability, and renewal after the first year is your responsibility.
- Photography and branding. Can be done with a smartphone to begin with.
- Packaging. Boxes, mailers, tape, inserts.
- Shipping. Charged per order, which is why accurate weights matter.
- Marketing. Start small and track what works.
The pricing model matters more than it first appears. A flat monthly plan costs the same whether you sell ten orders or ten thousand, while a commission model scales with sales and costs nothing in a slow month. ShopMate charges a flat 5% commission plus 18% GST on every order, with no setup fee or yearly maintenance charge. We explain how to compare the two in commission vs monthly plan: which costs less?.
Common mistakes new sellers make
- Launching with too many products. Start with a focused range and expand based on sales data.
- Ignoring mobile. Most of your visitors will be on phones. Test everything on a mid-range Android device.
- Not testing the order flow. Place real test orders for every payment method before you announce the store.
- Hiding shipping costs. Surprise charges at checkout are a top reason for abandoned carts.
- Offering COD everywhere without controls. Restrict it by pincode or order value if returns are high.
- Skipping GST invoicing. It is much harder to fix later than to set up properly now.
- Relying on a single traffic source. Build an email and WhatsApp list from the very first order.
- Treating launch as the finish line. The first 90 days are for learning what customers want.
How to get your first customers
A new store has no traffic, so plan how the first hundred visitors will arrive. The most reliable early sources are your existing network, your Instagram and WhatsApp audience, and local communities in your niche. Offer a launch coupon, ask early buyers for photo reviews, and use flash sales to create urgency. ShopMate includes coupon codes, flash sales, customer accounts and wishlists, so you can run these offers without extra tools. After a few weeks, use the analytics dashboard to see your top-selling products and categories, and put your marketing money behind what already works. When you are ready to scale, our guides on D2C ecommerce tips and selling across all India cover the next stage.
Frequently asked questions
How much money do I need to start an online store in India?
It depends mostly on inventory. Your platform, domain and payment setup can be modest, especially with a commission-based platform that has no setup fee. Start with a small first batch of products, keep a buffer for shipping and returns, and add budget for marketing only after the order flow works.
Do I need GST registration to sell online in India?
It depends on your turnover, what you sell, your state and whether you sell through marketplaces, which often require GST registration. Many sellers register early so they can issue proper tax invoices. Confirm the current rules with a chartered accountant before you take your first order.
Can I start an online store without any technical knowledge?
Yes. With an ecommerce SaaS platform you do not write code or manage servers. You add products, set prices and connect payments and shipping from an admin panel. ShopMate's team also helps with domain, payment gateway and shipping setup during onboarding.
Which payment methods should my Indian store accept?
At a minimum, UPI, debit and credit cards and net banking. Add EMI and wallets for higher-priced items, and consider cash on delivery for smaller towns. A Razorpay integration covers all the prepaid options in one checkout.
How long does it take to launch an online store in India?
If your products and paperwork are ready, a store can go live within one to two weeks. A realistic plan for a first-time seller is about 30 days. With ShopMate, setup of your store, domain, email, payment gateway and shipping takes 5 to 7 business days after the agreement is signed.
Is it better to sell on a marketplace or my own online store?
Marketplaces give you ready traffic but take high commissions and keep the customer relationship. Your own store gives you control over your brand, pricing and customer data. Most lasting brands use marketplaces to find customers and their own store to keep them.
Sources and further reading
Statutory and regulatory figures in this guide come from the official sources below. Sources were last checked on 3 October 2026.
- Central Board of Indirect Taxes and Customs, GST: An Update, for registration threshold limits.
- Goods and Services Tax Network, official GST portal, for registration and current notifications.
- Ministry of Micro, Small and Medium Enterprises, Udyam Registration portal.
- Food Safety and Standards Authority of India, FoSCoS licensing and registration FAQs.
- National Payments Corporation of India, NPCI, and Wikipedia, Unified Payments Interface, for UPI background and transaction volumes.
- Wikipedia, Goods and Services Tax (India), for background on how GST works.
- Razorpay, Documents required for a payment gateway in India.
- ShopMate, pricing and about pages, for ShopMate plan, pricing and feature details.
Disclaimer: This article is for general information only and is not legal, tax or financial advice. Tax rules, thresholds and licence requirements change, and your situation may differ. Consult a qualified chartered accountant or legal professional before making decisions.
Ready to start your online store?
Starting an online store in India is no longer a technical project. It is a business project, and the technology can be handled for you. ShopMate gives you a branded online store, Razorpay payments, 40+ shipping partners, an offline POS and analytics in a single plan, with a flat 5% commission plus 18% GST and no setup fee. Book a free demo to see it working for your category, read the pricing details, or learn more about ShopMate.