Ecommerce businesses transact items, services, and money through the Internet, ranging in size and variety from retail behemoths such as Amazon to small-scale creative platforms such as Etsy. But, the question is How to set up an Ecommerce Business?

The Indian ecommerce industry is approaching the next phase of rapid development.

If you’ve been fantasizing about entering the world of boundless profit through Ecommerce, the time is ticking for you.

Here’s a step-by-step guide to launching a successful ecommerce business in India.

Steps to Set up an Ecommerce Business

Step 1: Develop an Appropriate Business Plan

When you have a concept for a new Ecommerce business, the first step is to conduct the necessary research to bring it to life and determine its viability.

You would like to look at various venues, food options, and subjects in the e-commerce sector that you are interested in. just like you would when beginning a restaurant, and make some decisions about your specific business.

For example, you should carefully consider what your Ecommerce business will provide.

Are you intending to sell products or services?

Is it a physical or digital product?

Where will the supplies come from?

You’ll also be considering the type of business you want to employ in this regard – will you provide single things, bundles, subscriptions, or something else?

There are two types of company models to choose from.

There is the option of a single seller or a multi-seller e-commerce store.

Single vendor marketplace – The advantage of this business model is that it only incorporates two companies. It sells its goods to other consumers. As a result, tracing a transaction between the two companies is not just simpler. Operating costs are reduced when only one supplier is payable, and inventory is more effectively controlled.

Multi-vendor marketplace – In this model, numerous sellers sell their items to different customers, with each vendor registering with your platform. You may either sell your unique product through your own online business or allow other merchants to sell their things through your shop.

Step 2 – Register your Company

Once you’ve decided on the business strategy, you will use it to set up an Ecommerce Business.

As well as the products you’ll offer and the target demographic you’ll sell to, the next step is to come up with a name for your brand.

You should also produce a finalized logo design for your company.

Next, decide on your company’s legal structure.

The legal and financial implications of the business entity structure you select for your e-commerce venture are critical.

In most circumstances, you will establish a sole proprietorship, a single-person corporation, a limited liability partnership (LLP), or a private limited company registration online.

Each of these organisational types has advantages and disadvantages.

So you should get legal counsel from an attorney or another legal professional to determine which is the best fit for your company.

Legal requirements for running an Ecommerce business in India:

Request the Director’s DIN number, which is available for download on the official Ministry of Corporate Affairs websites or through the DIN application (DIN 3 form).

Ascertain that you own your PAN and Digital Signature Certificate.

After obtaining the DIN, you should ask the Registrar of Companies (ROC) about the availability of the company name you’ve chosen.

Apply for GST qualification, a Shops and Establishment Licence (necessary for Payment Gateway Integration), and a Professional Tax Licence (PT).

Step 3 – Create your Website

Your ecommerce website, like a real shopfront, will be the face of your company.

It will be the first thing your customers see and use to find and purchase your goods or services.

In this regard, one of the most important aspects of your ecommerce business will be the creation of your website.

Your ecommerce platform, whether all-in-one software like Shopify or an open-source platform like Magento, will serve as the foundation for building and expanding your online business.

Most ecommerce platforms allow you to customize your template, add your domain (or purchase one), manage inventory, receive and ship orders, accept payments, and do other things.

Even though there are hundreds of these platforms available, you may prefer to begin your ecommerce business with one of the following standard options:


Perhaps the most well-known and popular e-commerce software, Shopify, offers an all-in-one, user-friendly solution with a variety of add-ons. Shopify subscriptions are available in four different options, with Shopify Lite starting at $9 per month (which does not include a complete online store).


You may use WooCommerce to develop and manage your online store if you already have a WordPress account. In the area of e-commerce, this piece of software is completely free to use, download, and provides all e-commerce functions. WooCommerce is designed specifically for business owners that know how to code.


Finally, if you want complete control over every part of your online store, the open-source version of Magento may be the way to go. With this e-commerce platform, you can control every feature and customise your site, but you’ll need technical skills (or pay for it) to do so. While this platform is not perfect for newbies to e-commerce, if you have the technological know-how or the funds to employ a developer, it is a viable option. Magento has the most functionality of any open-source solution on the market, and it’s completely free to use.

How to set up an E commerce Business An Epic Guide

Step 4 – Select Methods of Payment

When you build up your fully functional online business, you must ensure that your consumers can make online purchases.

Payment options come in many forms and sizes, and they vary from firm to organisation.

You must decide which payment option will best suit the essence of your business while also appealing to your clients.

It is a critical stage in reaching profitability and success. However, you must have company registration online done before hand. So, that it will not mess up with your accounts.

Here are various payment alternatives to set up an Ecommerce Business:

Credit Card/Debit Card

Card payments are one of the most widely used and accepted payment options in India and around the world. Merchants can access an international market by accepting card payments as a global payment solution.


One of the newest trends, e-wallets provide a completely new buying experience. E-wallets are rapidly growing in popularity. Signing up for E-Wallets is possible for both retailers and customers. After creating an e-wallet account and linking it to their bank account, they can withdraw or deposit funds.

Bank Transfer

Though less prevalent nowadays, a bank transfer is still an acceptable payment method for online purchases. It is regarded as a backup payment technique if all other choices fail. Furthermore, some online retailers prefer to accept payments by bank transfer.

Cash Payment

Let’s face it, cash is still king in India. It takes the shape of the cash-on-delivery option for ecommerce. Cash is frequently utilised for physical products and cash-on-delivery sales. It does pose several hazards, including robbery and the absence of a promise of a real transaction during distribution.

Step 5 – Locate a Logistics Partner

Choosing the appropriate logistics partner is crucial to set up an Ecommerce Business. Because it allows you to track the goods being shipped at every stage efficiently and consistently.

It will help you avoid things from going missing and respond to consumer inquiries about the intended delivery more effectively.

Given the number of options, here are some things to think about when choosing your next logistics partner:

Freight Management

Choose a logistics firm that specializes in freight management. As a result, they can quickly adjust to your changing needs. When you require expedited delivery or a huge item, you must guarantee that the 3PL can manage it properly and without taking up too much of your time.


Look for a logistics company that uses cutting-edge technology to improve service levels. You’re looking for a company that can offer you personalized and innovative solutions.


The ideal logistics partner can expand alongside your business. You want to engage with a 3PL that can collaborate with you in the long run so that as your company grows, it can supply services and solutions to efficiently manage a large load.


When selecting a partner, the cost of outsourcing your logistical requirements should not be the major factor. While you want to receive the greatest value possible, you also want your things to arrive on time and in good shape to maintain client loyalty. These three items should be well worth the money you pay.

Customer Service

When working with a shipping company, effective communication is essential. You will undoubtedly need to locate another logistics provider if they do not answer immediately to your phone calls or emails and are unable to deliver solutions and services that satisfy your expectations.

Step 6 – Promote your Ecommerce Company

To establish a consumer base and an online presence, you must properly market your e-commerce business.

Customer engagement is not always straightforward. The average cart abandonment rate is 69.2%.

Patience and a variety of marketing approaches are required to meet your audience and increase revenue.

SEO plan – SEO is crucial for all websites, not only e-commerce sites. The more optimised your site, the better your chances of ranking well, which leads to higher visitors and sales.

Social Media – Because the possibilities are limitless, social networking platforms are a key aspect in developing your internet profile.

Promotions to Attract Customers – Promotions have traditionally been an important part of selling any new firm. Before the Internet was overrun with Ecommerce pages, new businesses relied on opening deals or other sorts of advertising to attract customers.

Paid advertising – It is more expensive, but it may be incredibly effective, especially for young ecommerce stores. Paid ads will produce fantastic results if you can maintain a high conversion rate.

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