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ECommerce Startup Costs: How much money is required to start eCommerce business?

If you are planning to start an Ecommerce store but don't know what Ecommerce Startup Costs will be, we are here to help. Read on to know more about it!

E-commerce is the online sale of products and services. E-commerce sites are often used to sell books, music, movies, clothes or anything else that can be bought and shipped from a website. The growth of E-commerce in India has been a great surprise for the industry.  Setting up an eCommerce store is usually cheaper than setting up an offline Store. However, You need to have a proper budget. In this article, we will tell you about E-Commerce startup costs and how you can plan accordingly.

What is eCommerce? 

E-Commerce is an umbrella term for all activities that involve using electronic data interchange systems to facilitate transactions between businesses, organizations, consumers, and other participants in commerce. 

It involves the buying and selling of products or services online. This can be done through a website, an online marketplace or an e-store. The buyer may be referred to as a customer, while the seller may be referred to as a merchant. 

eCommerce in India 

E-Commerce is different from traditional retailing because it does not require customers to go to a physical store and physically handle goods before buying them; instead, it requires customers to complete an order online using a computer or other electronic device such as a mobile phone with Internet access.

E-Commerce has seen some major growth in the past years and here are some reasons for this growth: 

  • Increased smartphone usage especially during COVID- 19
  • People who are working and have jobs are usually busy and do not have time to go to the market. With E-Commerce, they can easily shop from the comfort of their home.
  • Increased and improved methods of online payment.
  • Small-town Shoppers also contributed a lot to the growth of e-commerce stores. Because of the lack of availability of the latest products and trends in small towns, they reach out to online stores.

The rise of e-commerce also comes with an increase in competition from other online retailers who are trying to attract customers through special offers. India has great growth potential which tells us that the future of e-commerce is very bright here. Also, the consumers in India are very adaptable and accepting towards new technologies and advancements. 

Starting an eCommerce Business 

Looking at the growth of e-commerce stores in India and all over the world, you might want to start an Ecommerce store. But before doing that you must know E-Commerce startup costs.

We have mentioned below some basic costs for starting an Ecommerce Store and we hope it will help you.

  • One of the most basic things that you will need to start an ECommerce store is a domain name. You will need to buy a domain name that suits your brand and is attractive to consumers and customers. 
  • After that, you will need a budget for hosting. For hosting your website you will need a hosting service provider. You can either have shared hosting or private hosting. Shared hosting is good for small businesses and new startups whereas when you grow you will need private hosting to maintain the speed of the website. 
  • To Start an online store you will need some products that will be included in the inventory budget. This budget depends on what products you are selling. 
  • You will also need a small part of your budget to be invested in payment processing. Almost all payment processing services charge a small amount per transaction which is usually 2 to 3%.

Benefits of eCommerce Businesses 

The E-commerce market has a huge potential to grow and it can be considered one of the most important factors for any business to flourish. To increase their sales, many companies are focusing on marketing strategies that will help them gain more customers. There are various ways through which they can promote their products and services but e-commerce is one of the best options available for them. 

Here are the awesome benefits of e-commerce and online shopping for consumers.

  • E-Commerce platform provides a wide range of products and varieties. This allows the consumer to choose according to their needs and wants. 
  • Online shopping and e-commerce platforms provide comfort to the consumer. Customers can simply sit at home or anywhere they want to and order products online; they do not have to go to the market and struggle for hours. 
  • E-commerce provides products that are usually cheaper than the local markets.
  • E-Commerce also saves a lot of time. In today’s world when there is a lot of work and people have busy schedules, E-Commerce is a very good option for many.
  •  Consumers also get detailed information about the product and the supplier and also get information about money transactions. This makes the process easy and trustworthy.

E-Commerce has a lot of benefits for businesses as well. Here are some major benefits of Ecommerce businesses.  

  • E-Commerce allows businesses to get consumer data insights. This way online stores can predict which products are more in demand and produce them accordingly. 
  • The marketing of online commerce stores is usually cheaper and easier than offline stores. The Ecommerce Startup Costs are also comparatively lower. 
  • With the help of the Internet and Technology, E-Commerce stores can easily reach New customers and build a better network.

All these reasons justify the growth of E-commerce in the past few years. More growth in Ecommerce is being predicted in upcoming years and many new advancements will be seen in this sector. 


E-commerce has been growing at a rapid pace in India and it will continue to grow at a fast pace in the coming years. From providing cheaper rates to saving time, E-Commerce has been a boon for people with busy schedules. 

If you are planning on starting an E-Commerce Store or business and want to sort out your legal formalities then you can contact Vakilsearch. They will guide you through the legal procedures required for setting up an online store. You will also get to know how you can protect your E-Commerce store from any sort of problems in future.  Vakilsearch has a team of expert legal advisors who will make the process smooth & hassle-free for you.


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