A Detailed Guide on How to Start an E-commerce business in India

A Detailed Guide on How to Start an E-commerce business in India

E-commerce is an online mechanism for purchasing or offering services. No paperwork is necessary to complete any transaction here.

The ability to update and adjust an e-commerce business as we see fit to make it visually appealing and appealing to the audience is one of the most pleasing aspects of it for the majority of us. If you are operating on a small scale, your customers will have access to your services around-the-clock, and you won’t need to leave your office for marketing or other tasks.

Research claims that 14.1% of all retail sales globally in 2019 were made through e-commerce.


How to Start an Ecommerce Business in India?

Although creating an e-commerce website may seem complicated, it wouldn’t be difficult if you followed this simple 10-step business plan. So let’s get started with the steps:

Step 1: Define your business name

Business names are crucial since they provide you with a personality once you’ve decided what you want to market. Your company’s legal identity will be determined by its business name. This makes it easier for you to sell your product. Your name should be simple and distinctive. It is always preferable to conduct an in-depth study before settling on a certain name for your company. It will make you feel safe and secure, making it crucial for anyone beginning an e-commerce business.

Step 2: Set a domain name

The domain name is the company’s name; it specifies your company’s preferred website address.

A website is one of the key parts of an eCommerce company plan. The creation of many marketing tactics can benefit from the use of websites. It is a hub of communication for you and your customers.

Many people can access a website at once, fostering a culture of trust. Producing a website is practical because it lets your customers know you exist. Obtaining a domain name and a website are two key procedures before starting an e-commerce firm.

Step 3: Identify the type of business and register

People engage in business relationships as sole proprietors, partners, or collaborators. There are benefits and drawbacks to each of these. Like being a lone entrepreneur always entails many dangers.

Before choosing a particular firm that suits you, you must analyze your options. The income removal system (IRS) allows you to file your company’s organizational chart on your own or with the assistance of a different filing firm.

Step 4: Employer Identification Number (EIN)

An online store cannot be run without a bank account. You need an EIN to open a bank account for your business. You will be issued an identity number. You utilize it to file business taxes. Whether you work alone or with others, it is always necessary.

Step 5: Obtain legal documents

Every nation has rules and regulations that all citizens must follow. It would help to prioritize this aspect while writing an eCommerce business strategy. If you don’t, the government is required to declare your company illegal, at which point many fines may be applied.

It is necessary to obtain a work permit and business license. Find out from your state whatever taxes you must pay to operate. Additionally, you must submit applications for Shops and Establishment Licence and Goods and Service Tax (GST) certification.

Step 6: Source for vendors

Without vendors, business operations are impossible. Everyone must recognize several merchants and maintain communication with them. By doing this, you may find the materials you need at the best costs and of the highest quality. To help you decide which providers you wish to collaborate with, conduct a rigorous and in-depth search of the available options.

Step 7: Early marketing

Media platforms are crucial to online shopping. Before that, you must have a business plan for your online store. Let customers know when something exciting is about to happen so they will be curious. Even adding blogging as a tool is an option.

Step 8: Get effective software

E-commerce cannot function without utilizing technology. Install all systems before releasing the product. When creating e-commerce websites in India, you cannot skimp on effective software.

Step 9: Keep a smart inventory

You can keep track of the data you require using inventory. Ensure adequate things are in the warehouse (store) so the customers won’t go without. It may not be possible to predict what will be required and when, but keeping a sufficient supply on hand is always a good idea. This will make it easier for you to remember the future orders you place.

Step 10: Be compliant

Always exercise caution when it comes to required deadlines for taxes, licenses, and permits. Make sure you always follow the law of the land. Maintaining compliance is the secret to starting a successful online business or eCommerce store.


How to Build an eCommerce Startup?

The e-commerce sector has been seeing growth over the past few years. Ultimately, it is a sector with major prospects and low entry hurdles. The value of India’s entire e-commerce market, which was last estimated at $46.2 million, is projected to increase to $188 billion by 2025. In a field that is constantly expanding, there are undoubtedly many opportunities.

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Hundreds of e-commerce sites offer goods and services, and thousands more will soon follow. Most likely, you want one as well. The e-commerce sector is so active that you must be quick on your feet and vigilant. Keep an eye on the developments in your speciality regarding activities, events, conversations, and changes.

E-commerce now focuses more on selling a solution than a product. A clear benefit of purchasing from you must be evident to your target customer. Here are some pointers to remember if you’re beginning an e-commerce business or already have one.

  • Find a niche

If you have a concept for an online store, there is a good likelihood that many companies already exist in that market, and many more will soon. Because of this, breaking down the original concept is crucial, further segmenting the market or finding an untapped niche to work on.

If you want to launch with the same business model as Flipkart or Snapdeal, you will not be able to compete with them. When the business first started, it was an online bargain and discount portal. This play was highly deliberate. They didn’t begin hawking tangible items right away. Create your unique selling proposition, identify your customer, and pitch your goods to them.

  • Experiment

The world appears extremely new to you as you first enter it. What works best for you can only be determined by you. Try out various pitches, distribution methods, and other things. Repeat this until you identify a reliable sales plan.

  • Listen to your customer

Worship your consumers like gods, as the saying goes. Always remember that if there is a service you wish to offer, it should always be a service focused on customer happiness. After the sale, how you treat the customer will make all the difference.

You’ll retain more customers as a result and increase sales when a sale is completed. Discuss your ideas with them, and then find out what improvements they favour. Change it even if it doesn’t match your preferences.

  • Learn from the mistakes of competitors

Do you face a lot of rivals? It’s not good for businesses to have too many competitors, yet everything terrible has a positive side. Therefore, if there are already several competitors in the market where you plan to launch your own e-commerce business, you can consider regularly evaluating their pricing, marketing, and website design techniques to gain valuable information for the future.

Look through their social media profile to determine what endeavours have greatly aided their success and what endeavours have fallen flat for them. Pick up on all of their positive accomplishments while attempting to avoid their faults.

  • Use digital marketing

Social networking sites are used by 74 per cent of online adult users, and among them, Facebook is used by 71 per cent of these users. Being a startup, your marketing budget is limited. In this case, starting with social media platforms for marketing objectives will be quite beneficial. Brands and companies can benefit from optimizing the content and frequently posting it on social media. This will not only allow you to reach a wide audience affordably, but it will help you to obtain analytics to understand your audience. Additionally, it is a fantastic method to hear what customers say about your company.

  • Operation

Make sure you always have enough of the item that sells the best on hand. Be careful to note all the items that fall into the best- and worst-selling categories. Find out what makes the best-selling product sell the most and what makes the other products sell the least. You will benefit greatly from this.

  • Choose the right web hosting

Analyzing the tactics used by similar businesses. Including a website mascot that educates visitors about the website and the items is an exciting strategy to grab customers’ attention (like Zendesk). Utilize only the necessary plugins.

  • Consumer support

Hire knowledgeable customer service representatives to respond to calls and emails from customers. It’s critical to have a toll-free number and support email. To ensure the effectiveness of the website, resolve the issues that the customer is having.

  • Content marketing

An e-commerce web site’s content is crucial and beneficial for brand promotion. Posting a blog or other content online will indubitably increase traffic. When you open an online store or website in India, content marketing will be one of the essential requirements.

  • Social Media Marketing

To achieve the desired level of visibility on social media and in the public eye, as well as for the company to be noticed by a large audience, it is imperative to create social media accounts. Inform your audience about new items, and provide tips on how to get more followers. Meme marketing is a fantastic method for keeping your audience interested.

  • Use of influencers

The influencers are the best players in the game, particularly regarding product branding and determining a product’s destiny. Employ some of the finest influencers in the marketing industry, which is what your brand specializes in, and pay them to post the advertisement on their social media. This will broaden the audience for your brand, enabling it to be seen by thousands and millions of people. As a result, more and more people will be drawn to your website, increasing your traffic and revenue by a factor of two or more.

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How to Compete in the E-commerce Market?

People’s demands and desires fluctuate since each day is brand-new. Fortunately, this area is where new and tiny companies can still succeed against established e-commerce behemoths. How to compete in the e-commerce sector is shown here.

We know how much Amazon and eBay have harmed small and medium-sized businesses.  The reality is that there are continually new interventions and new ideas, product concepts, or processes that can potentially overthrow the market leaders as we know them or at the very least carve out a cosy corner in the market precisely where your business needs to be.

As opposed to a startup that is re-offering the old product or service to close the demand-supply gap, if your business is delivering a new product or service entirely, you may need to take a quite different strategy.

Be very specific about who you are, what you have to offer, and who your target audience is. To ensure that the collective effort of the entire workforce enhances the results, ensure that your core team and the whole company realize this.

Being alive now is a cause for optimism because companies like Amazon cater to all needs. However, because tastes are constantly changing and startups that target a particular niche will be able to carve out their own area, the internet era has made it possible for everyone to coexist.

Continue reading for wise counsel on how to stand out in a crowded market and benefit the most from being a newcomer to the business.

  • Create Your Own Service

Being an innovator and creating your own market rather than relying on the already-existing market will increase your chances of winning the game. Although it is more complex than what you currently do, it will put you well ahead of others.

Take MeUndies, for example. It is the only underwear brand that employs micro-modal fibres and provides monthly memberships to send fresh pairs of underwear right to your door. Catch? Its unusual patterns and vibrant colours sweep the Internet for only 16 dollars a pair.

It suddenly becomes more than just underpants at no additional cost. Some of the most well-known companies are still on people’s minds, and with the proper support, you may transform the concept into a lucrative business.

  • See a Need, Fill a Need

After years of preparation and testing, some brands aggressively breakthrough, but if the brand is not well received, they start to disappear.

Successful people regularly consider consumer feedback and work hard to solve common customer problems. They persist, and real-time data largely influence their next move.

Addressing the customer’s perception of your flaw might help you establish a trustworthy and enduring relationship with them, which is a terrific method to promote yourself. Instead of fighting the criticism, be open to it and use it to your advantage by listening to it and acting upon it. Instead of copying the usual, start your own trend.

  • Champion the Mobile App

Make sure your consumer has a smooth mobile experience on your app and is likely to complete their purchase in under 60 seconds after adding items to their cart or selecting a service without experiencing any built-in disruptions. Faster solutions are needed for fast times! Additionally, ensure your firm has a place on social media sites like Instagram and Snapchat, which have made the visual world enjoyable and easily accessible.

  • User-Centric Approach

According to design thinking, design is a fundamental component of every system. Design your system, service, or product with the organization’s users’ demands and behaviours always in mind.

Depending on the nature of your services, get inside the end user’s head and their daily routine, influences, dreams, aspirations, environment, and culture.

If a customer feels that you had their needs in mind when creating the product or service, they are more inclined to trust your brand. This provides them with faith that you will respect them and be a good option for them.

  • Better Incentive Programs

You have various options for your incentives, including rebates, discounts, points toward discounts, prizes, and many others. The stated rules of the incentive plans with the worst design are unclear.

Your customers’ behaviour will probably be shaped by an incentive, leading them to take the desired action. Thus, these incentives are quite beneficial for an e-commerce business, mainly if you intend to launch an online store in India. They feel like they “won” something if they receive a reward for their purchase. Keep a close eye on what other Indian e-commerce companies provide; if you want to compete with them, you must continually offer something better.

  • Better Customer Service

How Amazon values each customer is one of the many characteristics that has helped it become so well-known in the e-commerce industry. Similarly, if you wish to launch an online store, you must first start to regard every customer equally. Since they have greater marketing resources and control over their product lines, operations, and sales, e-commerce giants are impossible to overtake. Still, it is unquestionably a quality you can instil in your business. Five others will hear about you from each happy customer, which is fantastic free advertising for you.

  • Customer Data Is The Key to Ultimate Business Growth

An ex-employee of Amazon said that the firm could track both consumer purchases and unsuccessful searches.

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Their success story includes this. Sales and gross margins are more likely to increase for businesses that use customer data to improve procedures than for those that don’t.

Make the absolute most of the behavioural data one already has in their database to increase customer happiness and customer retention, even if you don’t have the large funds that e-commerce giants do to collect data.


How do E-commerce Sites Make Money?

Everyone seeks an additional source of income to support their necessities and maintain their standard of living. Furthermore, using the Internet to buy and sell things and services is the newest way to make money, and Ecommerce websites are the ones that make this feasible. The e-commerce websites provide a free communication channel for buyers and sellers to connect.

Products can be listed on e-commerce websites, where customers can quickly purchase them while sitting anywhere in the world. The entire internet purchasing and selling process seem to be a pretty simple and affordable one.

However, you must wonder how e-commerce websites like OLX, Quikr, Craigslist, and Gumtree make money online as they provide free services to vendors and customers.

E-commerce portals like OLX, Quikr, and other popular websites let you advertise your offerings of goods and services and track down customers.

Nearly all of the new e-commerce platforms provide users with free services. However, they continue to produce cutting-edge TV advertising and pay their staff exorbitant incomes. How? So let’s examine the money-generating tactics of a few top e-commerce companies and contrast their revenue strategy with others to find the answer.



One of the well-known and organized e-commerce platforms is OLX. It provides a wide range of capabilities to its customers, including the ability for vendors to barter and communicate directly with buyers. One of OLX’s competitors is eBay. OLX uses the following strategies to make money:

  • Google AdSense Banner Ads

Google provides all website owners and bloggers with a very user-friendly platform to add adverts to their websites. You can register your website on the Google AdSense program, and following verification, Google will display relevant advertising. As a result, OLX uses Google AdWords to target its audience successfully. The number of clicks they receive, called CPC, determines how much money they may make from their adverts (cost per click model).

  • Featured Listing

The vendors have the option of featured listings on OLX. In contrast to standard listings, where ads are placed according to how recently they were posted, featured links are the links that are displayed at the top of the page.

No matter what, featured ads will always be at the top of the list. These should ideally be identified as sponsored, featured, or advertisements to avoid giving users a false impression. If you have a featured listing, your ad will be displayed first when buyers search for anything on OLX and appear at the top of the search results list. Sponsored links will show depending on the keywords that the advertisers have chosen as targets. A technique for advertisers to get more leads is to be at the top of the list.



Another well-liked e-commerce site in India is called Quikr, which functions and looks somewhat like OLX. While the featured listing is one method of earning money, Quikr takes a different path in this instance.

By producing leads for businesses, they also make money. Quikr receives a profitable sum of money from it. To expand into new industries, such as jobs, spas, and salons, Quikr recently purchased a few startups. Quikr then gives these service providers leads.



Another well-known website for rental listings is Craigslist. It is primarily well-liked in the USA. But in contrast to other websites, the business doesn’t make as much money. Only enough money is made by the business to cover operating expenses.

Rent listings in New York cost $10, while job listings in any of the major American cities cost $25. For a job to be advertised in the San Francisco area, you must pay a $75 charge.

Although the business is attempting to take Google AdSense and other forms of paid advertising into account to increase revenue, its top concern remains the website’s quality and ad-related clutter.

Other E-commerce Websites

There are comparable online stores, like Gumtree and BookSellBuy. They make money using a simple business strategy: offering premium membership Ads with features dependent on their own model, featured ads, and paid listings. So, almost every website uses paid ads to generate money.



Now, building an eCommerce website is the trend. It requires much work and effort, but if developed and correctly branded, it will offer many expansion opportunities. In the current competitive environment, running an e-commerce firm in India is not an easy undertaking. Starting an eCommerce business or company in India is feasible if one has the concentration and tenacity to understand the client and the employees.

Utilize your data effectively and ensure that your customers are satisfied after every transaction.

edited and proofread by nikita sharma

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