How to Start an eCommerce Company in India

How Start eCommerce Business India

The e-commerce business is witnessing a widespread growth in India which is backed by Internet penetration and booming smartphone market. The affordably priced internet connections are working as a boon for e-commerce industry, thus inspiring even small retailers to start selling their products online.

But, thinking of starting an online business and starting your online venture are two different things. Here we have tried to explain how one can start an e-commerce venture.

Starting An eCommerce Business in India

As we all know, the business connected over the internet is referred as e-commerce, and in recent times, e-commerce on the mobile phones is flourishing manifolds. Currently, there are two modes of starting an online venture, they are:

  • Proprietary e-commerce website
  • Joining an e-commerce marketplace


Proprietary e-commerce website

Starting a proprietary e-commerce venture is a rather difficult option to choose as it requires website development, payment gateway integration, online marketing set-up and more. However, having a proprietary e-commerce venture is a long-term business and needs a lot of investment in terms of both time and money if you want to turn it into a successful business in the long run.

Joining an established marketplace

Being a part of an established e-commerce marketplace is a comparatively easy way to start selling your products online. To become a part of an online e-commerce marketplace all you need to have is a bank account and a Tax registration number so that you can apply easily. The established e-commerce marketplace will take care of everything, i.e. website design, website development, technology, marketing, payment gateway, etc. thus reducing the workload for new sellers. Also, a seller can join multiple e-commerce marketplaces to mark their presence online, thus making it easier for them to start their online venture.

No matter which model you chose to start selling online, below are the mandatory registration steps that every new seller should follow:

Company Registration

Before you get started you must get your company or LLP registered so that you can get the bank account opened in the company name and obtaining Tax registration documents easily. All marketplaces allow enrolling of proprietorship and partnership firms to sell on their platform, but there will be no limited liability protection provided to litigation. Thus, it is best to start with an LLP or a company.

Tax Registration

Registration with GST and other tax norms is a necessity to begin selling online, no matter whether you are starting your proprietary website or selling in a marketplace. Tax registration is must in India to start selling online, you can obtain more information about tax registration norms online.

Bank Account

Once you successfully incorporate your company or an LLP, the next step would be to apply for a company name bank account. If you are opening a proprietorship firm then you must have tax certificate in the name of the business to open a bank account.

Payment Gateway

For a proprietary e-commerce website, having a payment gateway is mandatory to process customer payments through credit card, debit card, internet banking, etc. for digital payments. One payment gateway is capable of accepting digital payments in any form. With digital payment gateway, once the customer makes the payment online it automatically gets transferred to the seller bank account in a day or two.

If planning to sell through the marketplace, then you do not have to buy a separate payment gateway. The payment will get accepted through the marketplace gateway only, and the money will be transferred to the seller’s bank account.

In addition to these basic steps, one must ensure to meet all the legalities of the business before starting an online venture. You must furnish your business policies, contact info, and disclaimers to ensure transparency in the business.

Praveen Sharma

Writing for someone to read, reading what someone has written. Connect with me over Twitter.