how to start e commerce india

How to Start an E-commerce Business in India

The online market in India is booming. It has been predicted that by 2034 India is going to be the second largest e-commerce economy in the world. With the increase in Government Schemes supporting start-ups such as Performance & Credit Rating Scheme and Foreign Direct Investments in India, setting up an e-commerce business has become considerably easier.

But before you get all riled up and quit your job to become the next Jeff Bezos, here are some things you should know about starting an E-commerce Business in India

1. Ways to Set up an E-commerce Businesses

There are various things to consider while setting up an E-commerce business. To transform your business idea into a viable option you will have to multitask, strategize and consider various factors such as the type of business model, which type of website you will have and whether you will have your own website or sell on an already existing one.

There are basically four types of business models.

  1.   Business to Business (B2B): This model involves a transaction between two businesses, such as wholesaler to retailer, manufacturer to wholesaler etcetera. This type of business model requires a lot of planning and a strong business client relationship.
  2.   Business to Consumer (B2C): This the most common business model where the transaction is between the business and customers. A good marketing strategy is a key to success in this model.
  3.   Consumer to Consumer (C2C): The consumers trade amongst themselves in this model. A perfect example of such a model would be OLX and eBay.
  4.   Consumer to Business (C2B): Here, the customer makes products and business aids in selling those products. For example, bloggers, music etcetera posted online by different websites.

After deciding on the type of business model, one should decide on whether to open their own website or to sell on already established websites such as Amazon, Flipkart and so on. Both of them have their own pros and cons.

If you are looking for a wider market and ready to use back-end support, then utilizing an already existing website is a good option. However, if you wish to establish your own brand name and have full control over your business, then designing your own website would be the best option for you.

    2. E-Commerce Business Ideas in India

Listed below are some ideas are proven to work and generate high profits:

  1. Online Groceries Store:

There are a few online groceries stores that are doing quite well in the Indian market. All you need to do is build a website, contact your suppliers and list the products on the website that are available with them. Another thing you can do is to opt for drop shipping method where the suppliers directly supply the products to the customers who placed the order.

  1. Online Learning Platforms.

Another great business idea that is flourishing in India is learning platforms. In India the competition in the education field is enormous and that adds to an advantage for these platforms. There are already many such Platforms, but the demand is still quite high, especially for certain specific courses such as IAS.

  1. Niche Fashion

These products will always have demand regardless of how the market is doing. Here you sell specific or specialized fashion products to suit the needs of a specific set of people. High-quality products with greater description are the two basic needs of this type of website. A very good example of such a website would be The Postbox.

  1. Electronic Gadgets

This is another niche business model. Various electronic gadgets such as hoverboards, Smartwatches etcetera, have gained popularity, yet only a few websites are providing quality products. This is a great opportunity to jump into this business and provide high-end products and accessories to gadget enthusiasts.

    3. Legal Formalities for Starting an E-commerce Business

The legal formalities required for starting an e-commerce business vary with the type of business model. For example, an online platform dealing with medical drugs requires more strict laws to be complied with. Here are some basic legal formats that an online business with transactional revenue has to comply with.

          A. Company or LLP Registration.

The first and foremost requirement would be to register your Private Company or Limited Liability Partnership (LLP). To register an LLP first apply for the Director Identification Number (DIN) of all your partners. After this file for the Limited Liability Partnership-Reserve Unique Name which shall be processed by the Central Registration Centre under Non-STP. Then file the Form for incorporation of Limited Liability Partnership with the Registrar who has jurisdiction over the state in which the registered office of the LLP is situated.

In case you are incorporating a Private company, then first you’ll have to obtain name approval from the Ministry of Corporate Affairs. Then if the approval is given, obtain digital signatures of the directors of the company and submit the incorporation application in the SPICe form with the Ministry of Corporate Affairs. Within 1-2 business days, a private limited company incorporation certificate along with PAN and TAN is provided by the MCA.

        B. Get Your Domain Name Registered

Choose a unique domain name and get it registered as a trademark to protect it under Intellectual Property Laws.

       C. Get a Privacy Policy for Your E-commerce Website

It is an important requirement, both a legal and a business one, in starting an e-commerce business to protect the client’s information.

      D. Get the Terms and Conditions Policy of Website

These conditions restrict the liability of the website and are required to be personalized according to the type of activities business deals with.

      E. Get the Vendor’s Agreement 

It is required by the business to define the relationship between the vendors and the company. It lays out the retailer’s rights and duties and right of the company in case of default.

     F. Choose a Payment Gateway

It is important to choose a secure payment gateway like PayPal, Paytm and so on, before you launch the website.

    4. Prefer the Best E-commerce Website Development Companies in India

Your website is the face of your business, it determines how successful your business is going to be. Therefore, investing in it is a long term benefit. Getting professional help is the best possible option since it will ensure high-quality work with long term cost effectiveness. These E-commerce development companies in India make sure that your upcoming website receives support at every stage of its development.

They also guide you through your business management as they help you establish a significant business presence in the digital world. This aids your business in some very remarkable ways as your business is able to get the recognition it needs to expand. Since the online competition has increased manifold, it is also important to make sure that your website has a unique user interface which is different and yet at the same time catchy and attractive.

Security of the website is another significant aspect that needs to be considered while developing a website. Experienced companies who are best in the business make sure that the website they create for your business is as secure as it is user-friendly.

With these points in mind, go ahead and build the business of your dreams!

Author Bio: 

Tony John, a very prominent blogger, trainer and digital marketing professional have been engaged with the webmaster world since 1998,  the same year Google was incorporated.  He is a familiar name in the blogosphere as one of the most successful bloggers from India and webmaster of popular web portals like,, and a few others that get million page views per month. Also, he is the founder of one of the most reputed digital agencies in India called SpiderWorks Technologies