Almost every shop owner we meet has thought about selling online. Usually it starts after a customer from another city asks, "Do you deliver?" Or a competitor starts getting orders on Instagram. Or a son or daughter comes back from college and says, "Papa, we should be on Amazon."
They are right that the opportunity is real. Indians now buy everything online, from sarees and spices to spare parts and stationery, and smaller towns are buying more each year. But e-commerce is not just "putting products on a website". It is a different way of running a business, with its own costs, paperwork and daily work.
This guide walks through the decisions in the order you will face them. It is written for existing businesses (shops, manufacturers, wholesalers, home brands) that want to start selling online without wasting a year and a lakh of rupees learning the hard way.
Step 1: Decide what you will sell online, and to whom
Not everything you sell in the shop belongs online. Start with products that:
- travel well (do not break, melt or spoil easily)
- have a decent margin after shipping, packaging, payment fees and returns
- are hard to find locally in smaller towns, or are cheaper or better from you
- can be shown well in photos and video
Twenty well-chosen products with good photos will sell more than 500 products uploaded in a hurry. You can always add more later.
Also be clear about the customer. Are you selling to families across India, to retailers who reorder every month, or to people within 20 km who want home delivery? Each one needs a different setup.
Step 2: Marketplace, your own website, or both
This is the biggest early decision.
Selling on marketplaces (Amazon, Flipkart, Meesho and others)
Good for: getting orders quickly, because customers are already there.
The catch: you pay commissions and fees on every order, you compete on price with hundreds of sellers, the platform owns the customer relationship, and the rules can change. Returns can be high in some categories.
Your own website (Shopify, WooCommerce or a custom build)
Good for: higher margins, owning your customer list, building a real brand, and selling things marketplaces do not handle well, such as custom orders, bulk orders or local delivery.
The catch: nobody visits a new website by itself. You have to bring every visitor through social media, Google, WhatsApp, ads and word of mouth.
Social and WhatsApp selling
Many small businesses start here, with a catalogue on WhatsApp Business and orders through Instagram messages. It costs almost nothing and works well for repeat local customers. It gets messy once orders grow, because tracking payments, addresses and stock in chats is hard. Our WhatsApp Business guide covers the setup.
Our usual advice: start with what you can manage. Many businesses do well running a simple website for their loyal and repeat customers while testing one marketplace for reach. If you already have a store on WooCommerce and it is struggling, our WooCommerce to Shopify migration guide might help.
Step 3: Get the paperwork in order
Talk to your CA before you start, because the rules depend on what you sell, how much and where. In general:
- GST. Marketplaces ask for a GSTIN to list as a seller, with only limited relief for very small sellers who sell within their own state. If you sell goods to customers in other states, GST registration is generally needed from your first inter-state sale, whatever your turnover. If you only sell within your own state through your own website, the normal turnover thresholds apply.
- A current bank account in the business name, for payment gateway and marketplace settlements.
- Category licences. Food products need FSSAI registration. Some categories, such as cosmetics, medicines and electronics, have their own requirements.
- Website policies. India's consumer protection rules for e-commerce expect clear seller details, prices, return and refund policies and a way to raise complaints. Put a proper privacy policy, terms, shipping policy and refund policy on your site, and make sure you actually follow them.
Step 4: Build the store
If you go with your own website, the main choices are:
- Shopify: quick to launch, reliable, lots of apps, monthly subscription. Good for most product businesses.
- WooCommerce on WordPress: flexible and cheaper to start, but needs regular updates and security care. A neglected WordPress store is a common target for hackers; see what to do if your WordPress site is hacked.
- A custom build: only worth it if you have unusual needs, such as complex B2B pricing or integration with your own billing software.
Whatever the platform, the basics of a store that sells are the same:
- fast loading on a cheap Android phone and mobile data
- clear product photos from several angles, plus a short video where possible
- honest descriptions with size, material, weight and what is in the box
- prices including GST, with shipping costs shown before checkout
- UPI, cards, net banking and, if you offer it, cash on delivery
- a WhatsApp button for questions
- reviews from real customers
For a realistic idea of budgets, read how much a website costs in India.
Step 5: Payments and cash on delivery
You will need a payment gateway such as Razorpay, Cashfree or PayU to accept UPI and cards on your website. They charge a small percentage on each transaction, so check their current rates and settlement times before choosing.
Cash on delivery is still popular, especially outside big cities, but it brings risk. Some customers refuse the parcel at the door, and you pay shipping both ways. Many sellers reduce this by confirming COD orders on WhatsApp before shipping, offering a small discount for prepaid orders, or limiting COD to certain pin codes or order values.
Step 6: Shipping, packaging and returns
Shipping aggregators such as Shiprocket, along with courier companies like Delhivery, let small sellers ship across India without signing separate contracts with each courier. Compare rates by weight and zone, because shipping is often the biggest cost after the product itself.
Packaging matters more than people expect. Products that arrive broken become refunds and one-star reviews. Use proper boxes and padding, and seal everything well. A simple printed thank-you card with your Instagram handle and a discount code for the next order costs very little and brings people back.
Decide your return policy before launch, write it clearly, and stick to it.
Step 7: Bring customers to the store
This is where most new online stores struggle. Launching the website is maybe 30% of the work. The rest is getting the right people to visit, again and again.
- Your existing customers first. Tell everyone who already buys from you: in the shop, on your bills, on WhatsApp, on your visiting cards.
- Instagram and Facebook. Product reels, unboxing videos, customer photos and behind-the-scenes content sell far better than plain product photos. See how reels help businesses grow.
- Google. Product and category pages with proper titles and descriptions can rank for searches over time. Your Google Business Profile can also link to your store.
- Festivals and seasons. Most categories have clear peaks. Plan offers well in advance; our festival marketing calendar helps.
- Ads, once the basics work. Start small, test one product and one offer, and measure cost per order, not just clicks.
Step 8: Track a few numbers every week
You do not need complicated dashboards. Watch these:
- visitors, orders and conversion rate
- average order value
- cost per order from ads
- COD refusal rate and return rate
- repeat customers
If one of these goes in the wrong direction, you will know where to look.
Common mistakes to avoid
- Uploading hundreds of products with poor photos instead of a few with great ones.
- Pricing without counting shipping, payment fees, packaging and returns.
- Launching the website and waiting for orders, with no marketing plan.
- Ignoring customer messages for hours. Online buyers expect quick replies.
- Letting the store's domain, hosting or payment account be in someone else's name.
Where ArcBig fits
We build online stores on Shopify and WordPress for businesses in Modinagar, Ghaziabad, Meerut, Delhi and across India, and we help with what comes after launch: product photos and reels, social media management and the content that brings people to the store. Every quote is written and itemised, and the domain, store and payment accounts stay in your name. See website development to get started.
Frequently asked questions
How do I start an e-commerce business in India?
Choose a small range of products that ship well and have good margins, decide between marketplaces, your own website or both, sort out GST and other registrations with your CA, set up payments and shipping, and plan how you will bring customers to your store.
Is GST registration compulsory for selling online in India?
Marketplaces generally ask for a GSTIN, and selling goods to other states generally requires GST registration from the first sale. There is limited relief for very small sellers selling within their own state. Confirm your situation with a CA.
Should I sell on Amazon and Flipkart or on my own website?
Marketplaces bring quicker orders but charge fees and own the customer relationship. Your own website gives better margins and a direct relationship, but you must bring the visitors. Many businesses use both.
Which platform is good for a small online store in India?
Shopify suits most product businesses because it is quick to launch and reliable. WooCommerce on WordPress is flexible but needs regular maintenance. A custom build only makes sense for unusual requirements.
How do I reduce cash on delivery returns?
Confirm COD orders on WhatsApp before shipping, offer a small discount for prepaid orders, and limit COD to certain pin codes or order values if refusals are high.