How to Start eCommerce Business in India [Beginners Guide]

How to Start eCommerce Business in India [Beginners Guide]

Hey There! Wondering How to Start eCommerce Business in India?

Well, I’ll bet that you are going to have all the information you need to start your eCommerce Business in India after reading this blog until the end!

E-Commerce business is still in its initial stage in India and if you jump into it now, you might not have to face a lot of competition.

But still there are competitions, so you must have some Unique Selling Points in order to be successful in this industry.

There are a lot of things you need to know before you jump into this eCommerce industry, else you will have to face a huge loss!

And don’t worry, I’m going to tell you everything you need to know in order to start your online eCommerce business in India.

So, without wasting any more time! Let’s jump into this blog 🙂

Types of eCommerce Businesses

Types of eCommerce Businesses | How to Start eCommerce Business in India [Beginners Guide]

The first thing you will need to know before you jump into this industry is that there are two most popular ways by which you could start your online eCommerce business in India.

The first one is much easier than the second one but also have some demerits, so let me tell you both the ways first!

  1. eCommerce Business on an established marketplace
  2. eCommerce Business with your own setup

Now, it’s obvious that if you start a business on established eCommerce Marketplace like Amazon and Flipkart, it will be much easier for you to get sales and have a smooth workflow!

Most of us even don’t know that we can actually sell on Amazon and Flipkart like giants!

If you already knew about it, Congratulations! 🎉🥳 You are already a step ahead 🙂

But in case you don’t know about it, don’t worry I’m going to talk about that in this blog!

Now, there are tons of advantages to starting your eCommerce business on established eCommerce giants, but why?

Well, here are some advantages of starting your eCommerce business in an established marketplace :

  • You don’t have to worry about Website & App
  • You can start your business in minimal investment (Less than 10k)
  • You have a large number of Customer Base
  • You don’t have to worry about Shipping Solutions
  • Chances of Success is relatively higher
  • You can start selling on marketplace sites from today!

But, that’s not fair if I only talk about the advantages!

So, here are some drawbacks of starting your eCommerce Business on an established marketplace :

  • You don’t have the full freedom and have to do things in the way they want.
  • Have to pay some percentage of commission on the products you sell
  • Have to obey the policies of the marketplace

But, when we talk about the second way which is starting an eCommerce business on your own then it will not be going to easier.

Starting an eCommerce business with your own setup has numerous drawbacks, but if your business becomes successful then it’s the best business which you could start!

Now, what are those drawback I’m talking about?

Well, here are some drawbacks of starting an eCommerce business with your own setup :

  • You’ll need to invest a large capital
  • You need to create your own online selling platform (Website or App)
  • You have to create and design your own packaging materials
  • You have to opt for a good shipping solution.
  • You have to create your own customer support.
  • You’ll need to register your company.

But wait, there are also some advantages of starting an eCommerce business with your own setup. Have a look :

  • You and your company will be going to have all the freedom.
  • You can create your own policies and make changes to the rules and regulations.

Now, you know the two different ways by which you can start your eCommerce business in India but now.

But, the main question is how can you actually start an eCommerce business in India.

Well, let’s talk about it!

How to Start eCommerce Business in India [on an established marketplace]

How to Start eCommerce Business in India [on an established marketplace]

Step 1: Decide what to Sell

Now, in order to start your eCommerce business in India on any eCommerce marketplace websites, the first thing you have to do is to decide what you want to sell online!

It’s very important that you have a clear mindset and don’t be confused once you start your business.

You should choose a good niche/category in which you want to sell.

Do some research before you decide on which niche you want to jump!

Step 2: Find Product Sources

Once you decide your niche, the second thing you will need to do is to figure out that from where you are going to source products. It might be your Local Wholesale market or you can import products from China.

Step 3: Register for GST Registration

Now, the next thing you will need to do is to take GST Registration.

Yes, GST Registration is required when willing to start your eCommerce business in India.

If you have any confusion about it, feel free to ask, but just for a simple clarification, why you need GST for starting an eCommerce Business in India?

Well, in the Good and Services Act., it’s clearly mentioned that if your business will be involved in any interstate transactions, you will need to take the GST Registration.

And, it’s obvious that we are going to make interstate transactions in an online eCommerce business.

But, here’s a catch! If you are going to start an eCommerce business which is going to deal in a specific state, you don’t need to take GST Registration until your reach Rs. 40 lakh turnover.

You might not know that you can actually do your GST registration for free yourself!

Yes, you can do the GST Registration for free yourself from the official GST Website. You will just need to fill out some forms and upload some documents, and you can easily get your GST Registration Online.

Also, once you are done with your GST Registration, you must have to download your GST Registration Certificate.

Step 4: Create Seller Accounts

Now, once you obtain your GST Registration, the next thing you have to do is to create your accounts on big eCommerce marketplace websites like Amazon and Flipkart.

The best part about it is that you don’t have to pay anything in order to register your business on Amazon Seller or Flipkart Seller.

Now, if you don’t know how to register yourself on Amazon as a seller, then don’t worry!

Here’s a complete Step-by-Step guide for you to register your business on Amazon India.

[Step 1] – Go to Amazon Seller Registration Page.

[Step 2] – Fill your Details and then click on Create Account button.

Note that if you already have an account on Amazon with your number (even for buying purpose), you can’t able to create a new account Amazon account. You have to log in to your account and then register for a seller account!

Once you log in, a new page will open where you have to click the “Register” button.

[Step 3] – Once you login/signup, a new page will open as shown in the above image where you have to fill the name of your company, or if you are a proprietor, then you have to fill your name as per your PAN Card.

Then click on “Continue”

How to Start eCommerce Business in India [Beginners Guide]

[Step 4] – Now, once you are done with your previous step, on the next page, you will have to enter the name of your store which will be going to show publically.

Your store name should be unique and must be available. You can check your name availability on the same page next to your store name.

[Step 5] – Once you’re done with your Store Name, the next thing you will have to do is to select a category your business is going to sell in.

Well, selecting a category here doesn’t mean that you can’t able to sell in other categories later. We can change or add new categories later in which we can sell.

And, after selecting your Category, you have to select/add your Address. This is your business address as per your GST Registration.

[Step 6] – Click on Continue once you are done with both your Address, Category and Store Name.

Note: You can change this information later from your Amazon Seller Account Settings.

How to create your seller account on Amazon (3)

[Step 7] – Now, once you click on the continue button, you have to select your shipping option. If you have Amazon Easy Ship Service available, it’s great. That means, everything related to shipping and return is going to be handled by Amazon and will charge for the same.

But, in case you are not getting the Amazon Easy Ship Service option, you have to do Self Ship your orders.

Well, for self shipments, I would like to recommend you to join ShipRocket. I’ve been using their services from the last few years, and have not complaints regarding their service.

Once you are done with this, you now have to click on the “Next” button!

How to create your seller account on Amazon (4)

[Step 8] – Now, in this step, you have to fill your TAX Details like GSTIN and PAN Number.

In case you don’t have your details with you right now, you can check on the “I will update later” option and continue.

But, you have to fill your GST & TAX details later, or you can’t be able to sell.

How to Start eCommerce Business in India [Beginners Guide]

[Step 9] – Now, this page is the page where you have to select all the categories in which you want to sell.

Well, still you can select the categories you want to sell it later. So, don’t worry about that!

Now, once done with categories, tick the right option about “Where do you get products from?” and then select your “Annual Turnover” and “How many products do you sell?”

Once, you are done with all this, click on Next!

[Step 10] – Now, your account is almost created, but not live yet!

You have to now wait for 90 minutes and your account is new and you can’t make new listings before 90 minutes.

After 90 minutes, the next thing you have to do is to log back into your account and click on “Start Listing” as shown in the above image.

Step 5: List your Products

Now, once you register yourself as a seller on Amazon India, then the next step is to list your products on Amazon.

If your catalog is big, you can also get listing services from Amazon, but you will have to pay for it! The average cost of listing services on Amazon is around Rs. 10/- per product and as low as Rs.1 per product.

If you want to take the cataloging services, you can find Cataloging under Services on your Amazon Seller Central.

Now, if you want to become a successful online eCommerce marketplace seller, you must have to create your listing fabulously.

Your product listings should have great images as images of the product plays a very important role in getting customer attention.

Now, once you’ve done your listing on Amazon or on any other marketplace, the next thing you have to do is to have patience. You will not be going to get overnight success in this business.

Even my first order came after 5 days of waiting when I start my eCommerce business on Amazon.

Also, this process will apply on almost each and every eCommerce marketplace sites as all have almost similar registration and listing process.

There are also a few things you must know when you just started your eCommerce business on Amazon or on any other marketplace sites.

  • Don’t cancel your orders – If you cancel your orders, Amazon you might suspend your account or you will not be going to get orders soon.
  • Ship Fast – If you ship your orders as soon as possible (within 24hrs), Amazon thinks that your business is genuine and make your listings appear on the first page and the chances of getting buy box are also high.
  • Don’t do Click baits – Amazon Click baits mean that you show something diffirent in images and description, but the actual product is different. This will cause a high return rate and your amazon account health will get affected. Also, when your account health got effected, you might get suspended by Amazon and you will no longer able to sell on Amazon.

So, that’s all about How you can start your eCommerce business in India on Marketplace Sites. Hope you now know how to start eCommerce Business in India on Amazon or any other marketplace websites.

Now, it’s time to talk about How to Start eCommerce Business in India with our own setup!

How to Start eCommerce Business in India [With Our Own Setup]

How to Start eCommerce Business in India [Beginners Guide]

Now, this is one of the most complicated businesses which you can start in India and also needs a large capital.

That’s why most of the people do not recommend this, but why?

Well, the main and the most simple reason for that is we just can’t survive if we compete with big eCommerce giants like Amazon and Flipkart or even Snapdeal.

But why we can’t compete with them? Well, they have a complete team who is 24×7 to make their website or business more trustworthy and gain customer attention.

You might not know that Amazon is spending more than Rs.8,000 to get a new customer, now can you spend that much and that’s actually nothing!

There are a lot of complications in starting a completely new eCommerce business.

Also, have you ever searched for a thing to buy on Google? If so, you must have seen that for almost every product, Amazon and Flipkart webpages are ranking on top.

Now, that’s also a reason why you shouldn’t start your own eCommerce business/marketplace.

But, if you have a super unique idea and have confidence that your business will become successful, and ready to invest a big capital, then let me tell you how to start eCommerce business in India on your own.

Step 1: Get a Unique Business Idea

Now, the very first thing you will need to have in order to start your new eCommerce business in India is a great and unique business idea.

Your new eCommerce business can only become successful if you have a great business idea and if it can solve a solution of consumers, then that’s great!

Step 2: Research and Development

Now, once you found a great business idea for your new eCommerce business, the next thing you will going to do is Research and Development.

It’s also a very important part when we are starting a completely new venture, and you just can’t skip it. But, why you need to do research and development?

Well, you just can’t make and sell what you want! You must know what people like to buy and what can is your product helpful and value for money.

Step 3: Make a Business Plan

After doing Research and Development, you will have to make a Business Plan for your business.

Now, a business plan is consists of almost each and everything you want to do in your business.

Your business plan must have a complete plan for at least three years and also a business plan should consist of how much money you are willing to invest and how much profit can you make from it.

Also, if you are going to take funding, it’s your Business Plan you are going to present!

Step 4: Do Financial Planings

Financial Planning for a business is one of the most crucial parts of starting a business and you have to carefully plan everything.

There are financial planners who can do that for you and charge you some money.

A Financial Plan consists of all the financial details which going to be involved in starting and running your business.

Step 4: Company Registration

Once you are done with planning, you will need to register your company.

Now, there are different types of company in India, but you have to decide which is the best fit for you.

Most of the companies are formed as a Private Limited., so if you want to form a Private Limited Company, you can do your registration by consulting a CA or you can do it yourself from IndiaFilings.com

Also, as we are talking about How to start eCommerce business in India, you might also need Import & Export Code in order to import products from out of India and Export Products from India to other countries.

Step 5: Plan Execution

This is the most crucial part of starting a company, and most of the business got failed only because of bad execution even if they have a great idea.

So, it’s very important that you carefully and strategically execute your business else you might have to face huge loss or your business even got shut down very soon.

Step 5: Marketing

Now, once you have successfully started your business, the next thing you have to do is to market your business aggressively.

As I talked earlier that we can’t compete with other eCommerce giants organically, but we can try our luck through paid advertisements like Facebook, Google, and Instagram Ads, and we can also do Influencer Marketing, or we can do video platforms like YouTube to market our products and brands.

Done 🥳 Congratulations, you have now known almost everything about How to start eCommerce business in India!

Everything is hard until you do not give it a try and everything is easy if you really want to do it.

So, try it! You might get fail but you will learn a lot of new things and you can then start again with more knowledge and experience.

Hope you know now everything about How to start eCommerce business in India with both the ways 🙂

In case, you have any questions or suggestions, feel free to comment it down below.

ThankYou

Hey There! I'm Anujeet Shivam - founder of Startup Sutra. I'm also a Business, and Finance Blogger. I love to write and share good knowledgable information with everyone. Thank You :-)

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