Start an E-commerce Business

Want to start an ecommerce business? Great endeavour indeed! The ecommerce industry in India is in great shape. Therefore, starting a business in the e-commerce industry in India is both exciting and refreshing. Make your own online store up and running with a few simple steps!

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How to Register a Private Limited Company?

Registering a Company is quick, easy, and can be done online with Vakilsearch in 3 simple steps:


We help you register your directors with the Ministry of Corporate Affairs (MCA).

Step 1


We help you pick the right company name.

Step 2


We draft and file the documents required for your company registration (MoA and AoA).

Step 3

Benefits of starting an ecommerce business

Fast go-to-market time

Unlike other businesses, which need a lot of capital and time to build, starting a business in the e-commerce industry in India is simple. You do not need a building or much ground staff to start operations, as they happen over the internet. Since you don’t need a store, you save a lot of time and money, making it easier for you to get to market. Therefore, establishing such a business is much faster than a traditional business.

Considerably low or economical cost

Just like we mentioned, setting up an e-commerce business in India isn’t as capital intensive as other industries. You do not need a store, just a warehouse, and this brings down costs tremendously. You also do not need a lot of staff, as you do not need salesmen. This also helps in bringing down the overall cost of establishment.

Online shopping and marketing is available

Most people buy things online now, and this makes it easier for you to attract a crowd and sell your products. Due to rising internet penetration and rise in popularity of smartphones, more people have access to online shopping websites. Therefore, it will be easier to market and sell your products online now.

Access to insights on customer data

When people buy things online, you don’t just get revenue, you also get valuable data about them. You get information including their contact details, age, birthday, email address and even their shopping preferences. Such a goldmine of data can help predict user behaviour and understand what your users want to buy, making it easier to understand the market and grow by leveraging that information.

Reach fresh customers

Online marketing is a growing field which allows you to reach out to more people than ever before. By employing the right marketing strategy, an e-commerce business can reach fresh customers every single day.

Content marketing strategy and approach made easy

It is easier to come up with a marketing strategy for an ecommerce business as it happens completely online. Therefore, the marketing approach is made simple and accessible, enabling all types of stores to co-exist and grow sustainably.

Serve niche markets also

If you have very niche products, it isn’t always economical to set up a brick-and-mortar store. However, thanks to the advent of ecommerce websites, you now have the option to serve such niche markets.


Ecommerce stores allow customers to buy what they want, when they want it from the comfort of their homes. Therefore, there is a higher chance they will exercise their purchasing power as it is convenient for them.

Popular e-commerce business models and Business Ideas

Here are 8 e-commerce business ideas that will help you create an efficient and profitable eCommerce business plan;

  • Beauty and Health Products: Ecommerce startup ideas related to beauty and healthcare products help in establishing businesses that are extremely profitable. This is because the health and beauty industry is one of the biggest in the world. Many entrepreneurs are creating an online store to promote their customer products, using online tools such as WIX, Squarespace and other mediums, to market their products and reach a wider audience. Using these tools entrepreneurs will be able to communicate information about their products, and market them to the right target market.
  • Smart Wear: In this digital age most e-commerce startup ideas are centred around smart wear accessories, such as smartphones, Fitbit, etc. The advantage of smart wear is that it can be used by people to plan out and organize their entire day ad by extension, their life. It also allows us to connect with other digital devices, to store and transmit day. This kind of flexibility allows for cross-functional usage. Due to their popularity, their total yearly sales in 2019 crossed over 50 billion USD. Hence, creating an online store for Smart Wears, makes it one of the top eCommerce business ideas to implement.
  • Second-Hand Sales: When figuring out your eCommerce business plan, considering selling second hand or used products is one of the lucrative e-commerce startup ideas out there. People don’t mind using second-hand products, as long as they are in usable condition. Some of the common products sold on second-hand are clothes, jewellery, furniture, electronic products, etc. Websites such as OLX, Quikr, PepperFry, FabIndia, are quite popular in the sales of second-hand products.
  • Smart Home Products: People love staying connected, which is why the IoT market has grown so much in the last decade. With the advent of Smart Home Products, people can now control the appliances and their basic functions with the sound of their voice or a touch of a button. From turning on the lights when you get home, playing music or the television, or turning off appliances when you leave home. You can even program smart home products to function on their own, as per your preferences. Thus, selling smart home products provides excellent e-commerce business ideas.
  • Online Platforms For Education: To learn, to grow, to improve, one has to take a chance on himself or herself. Online classes that focus on different subjects and disciplines, allow people to expand their skill set and enhance their expertise. There are several online courses now available in the market, provided by different eCommerce vendors - Udemy, Skillshare, LinkedIn, Masterclass, etc. Even with several platforms available there is a huge demand for various education courses that focus on different vocation skills. Hence, eCommerce business ideas that focus on online education platforms are quite popular and should be definitely considered when creating an e-commerce business plan.
  • Content Writing Services: If you have a skill for content writing, then creating an online store for content writing services, such as ghostwriting, article writing, blogging, etc, is an ideal business to be included in your eCommerce business plan. You can provide different pricing options based on the services you provide, along with different payment plans. This will allow you to be more affordable and preferable than your competitors.
  • Ebook Sellers: Selling Ebooks has emerged as one of the best eCommerce business ideas in 2019, due to the increase in the number of ebook writers. With Amazon taking the lead in creating a platform for independent writers to self-publish and sell their books. In the last few years, a few more entrepreneurs have created online stores for several others to publish their ebooks.
  • Online Retailers: Online retailers are commonly known as e-commerce vendors. Hence e-commerce business ideas based on these vendors are already quite popular and in existence. These retail store examples are based on creating an internet shopping experience, through the vendor website. Some of the popular e-commerce vendors in India are Myntra, Jabong, Flipkart, JustDial, etc. Products under different brands are available online for customers to view, select and place an order, without the expenses involved in running a physical business. The orders are then shipped to customers to, as per the addresses provided by them, at their workplace or home.

Creating An Online Store

Creating an online store has become easier with each passing year. Nowadays, you can do it with a few clicks. All that is required is an online website builder, a domain, and a host to support your website. With online tools like Wix, Squarespace, and Wordpress, it has become easy to create an online store. You don’t require coding or design experience, as you can set up your website using the tools and options available with the online website builder. They are not that expensive and you can have your online store up and running in a matter of minutes. As discussed above, there are plenty of eCommerce business ideas ( health products, smart wear, education courses, etc) that can help you create your online store.

Things To Know About How To Start an Ecommerce business

Business Name:

Choose a good name for your ecommerce business to start with. You should opt for a name that is simple, yet different and memorable so that it creates an impact in the minds of the users. Remember that your business name is a big part of your brand, therefore, you need to start strong by choosing the right name.


Since you will need a website to manage your operations and conduct financial transactions, you will have to make sure it is robust and safe. Also, while choosing a domain name, try to get one that matches your company name, or atleast sounds similar to it.

Website Design:

When it comes to online retail, having the right website design is crucial. You need to provide your customers with the right user experience and for that you need to have a very intuitive website. It needs to be visually pleasing, efficient, robust and also highly functional and practical, all at the same time.

Organisational Structure:

You also have to decide what structure your organisation should have, and incorporate it accordingly. Mostly, ecommerce businesses in India register themselves as either Partnership Firms or Pvt Ltd Companies.

Legal Compliance:

This involves ensuring that all your legal requirements are met. When you start a new business, you will have to draft the required documents(MoA and AoA), incorporate yourself, get TAX registration and also obtain a PAN and other documents.


Your business will only be as successful as your products. Therefore, get in touch with multiple vendors and choose the ones that provide you with high quality products at affordable prices.


You need to make sure you have a good marketing strategy in place so that you keep attracting new customers daily. Invest in email marketing, social media marketing and coupons to get people to flock to your website.

How to start an eCommerce business in India

  • Do the required market analysis and then decide on the right ecommerce business model and plan for yourself.
  • Choose between a single vendor supply system, and multi-vendor system, wherein you have access to more products.
  • Once you have the vendors in place, start formulating a brand strategy for your company so that it stands apart from your competitors.
  • Come up with a fabulous name, decide on what organisational structure you want, and then register yourself with the ROC.
  • To incorporate your ecommerce business, you will have to draft a Memorandum and Article of Association, obtain DSCs for your directors, get a unique Employer Identification Number and Director’s Identification Number and PAN for your company.
  • Once you have incorporated your ecommerce business, you should apply for GST registration so that you can file your tax returns annually.
  • You will also require a Shops and Establishment Licence to set up a Payment Gateway for your business.
  • If you have enough employees, you can also consider opening a PF account by registering with the PFO and Employees’ State Insurance Corporation.
  • Next, open a bank account for your company to enable financial transactions.
  • Build the perfect ecommerce website and associate a payment gateway with it to allow customers to pay for the products they want.
  • Once this is done, you can start your promotional campaigns and marketing plans to get people to visit your website and buy products!

Why Vakilsearch

Legal Assistance

We execute legal work for over 1000 companies and LLPs every month, by leveraging our tech capabilities, and the expertise of our team of legal professionals. Come on board and experience the ease and convenience!

Realistic Expectations

By handling all the paperwork, we ensure a seamless interactive process with the government. We provide clarity on the incorporation process to set realistic expectations.


With a team of over 300 experienced business advisors and legal professionals, you are just a phone call away from the best in legal services.

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