A Complete Guide To Start Your Online Ecommerce Business In India

By Sorted Pixel Business, Ecommerce, Startups, Tech, Website 2 Comments on A Complete Guide To Start Your Online Ecommerce Business In India

A Complete Guide To Start Your Online Ecommerce Business In India-Sorted Pixel

Here’s your quick guide on how to start E-commerce Business in India.

Know how to register Ecommerce Business in India, Online business startup cost, Payment Gateway for E-commerce Business and more.

Step 1: Business Plan and Business Model
Step 2: Ecommerce Registration in India
Step 3: Bank Account
Step 4: Ecommerce Website Design and Development
Step 5: Payment Gateway for Ecommerce Business
Step 6: Ecommerce Shipping Solution

Let’s get started.

Step 1: Ecommerce Business Plan and Business Model

If you are about to start your own business, let us start by congratulating you…Congrats!

Before anything else start by creating a business plan for your Online Store.

There are two types of Business Model for you to choose from.

Business Model 1: Own Products on Own Portal

When you want to sell your own products on an online portal, first of all, you need to make GST registration. The percentage of GST tax differs from state to state.

Business Model 2: Ecommerce Marketplace Model

When you want to implement marketplace model wherein sellers will have to register themselves on your portal, in such cases, you are required to provide payment gateways and logistics services to sellers.

Here, you need to make Service Tax Registration.

Step 2: Ecommerce Registration in India

Registration of Ecommerce Business in India depends on the type of your business model.

Here’s your step-by-step procedure to register Ecommerce business in India.

Legalisation of an online seller is similar to offline.

Documents Required:

  • 2 passport size photo
  • Identity and Address Proof– Adhar Card, PAN Card, Driving License or Passport (of the person on who’s name company is to be registered)
  • PAN Card
  • Electricity Bill or Sales Deed Copy of property owned
  • A copy of Bank Statement or a cancelled cheque
  • Rent Agreement, Electricity Bill or No Objection Certificate (NOC) to the property where business is to be conducted
  • A security (in the form of a Fixed Deposit) or a Guarantor (in some states) for GST Registration

Incorporate your business as a Private Limited Company, a Partnership Firm or a Limited liability Partnership.

Register your company under Company’s Act, 2013.

    1. Collect required Documents as listed above
    2. Registration form
    3. Undertaking
    4. Fee Payment

Tax Registration

When you start an Ecommerce Business you are required to register your company with GST and other Taxes under the Government of India. This is crucial for all the business owners.

NOTE: VAT/CST are now converted into the GST (Goods & Service Tax) Registration.

If the seller and consumer are from the same state then both CGST (Central Goods & Services Tax) and SGST (State Goods & Services Tax) are applicable.

However, if the seller and consumer are from different states i.e. if the transaction is inter-state then IGST (Integrated Goods & Services Tax) is applicable.

Required Licence:

  • Apply for GST Certification. GST certification is a must for Online Portal and can be obtained via official website of Government of India. You can register for GST here.
  • Shops and Establishment License (in case you want to have a physical store or an online store and you plan to hire employees). It’s a necessity in case of Payment Gateway Integration.
  • Professional Tax is to be paid by every businessperson and may vary from states to state.

Step 3: Bank Account

Create a Current Bank Account with any bank. This acts as a proof of your Company’s Registration.

Step 4: Ecommerce Website Design and Development

There are many Ecommerce Service providers in India which makes it easier for you to set up your online business.

Today, many Website Design and Development Companies offer you much needed support in the initial stages of your business, allowing you to upload product images and manage content of your Ecommerce Website more effectively.

Know more about Things to know before moving to Ecommerce Website.

Calculate Ecommerce Website Cost Estimate here.

Your Ecommerce Website represents your company. It helps you reach a wider audience and also grow your business. Also, cost of your Ecommerce Website depends on numerous features and complexity of your Online store.

More than an expense, it is a one-time investment which generates maximum revenues for your business.

For better results, you can implement various digital marketing strategies to drive more organic traffic, generate leads and also boost your sales on your Online Store.

Step 5: Payment Gateway for Ecommerce Business

Once your online store is created, you are required to add a payment gateway to process customers’ payments.

This allows you to accept credit card, debit card, net banking, internet banking payments from multiple banks and credit card companies.

One more thing, a well-optimized website helps you get desired results quickly. It also helps you beat the competition, create more leads, and drastically increase your profits.

Step 6: Ecommerce Shipping Solution

Logistics is a crucial part of your ecommerce store.

Your online shopping portal is incomplete without a shipping solution.

Once you receive an order you are also required to ship it to your customers.

And, without a reliable shipping partner, shipping products to your customers might be a hard task.

The key note here is that online shoppers love free shipping option.

In fact, free shipping is one the best ways to boost online sales.

So, make sure you offer free shipping option to your customers.


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2 comments
  • Jess
    Posted on March 30, 2018 at 3:12 PM

    nice one, thx!

    Reply
    • Sorted Pixel
      Posted on April 2, 2018 at 1:19 PM

      Thanks, Jess!

      Reply

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