India's ecommerce market is projected to cross $160 billion by 2028. Millions of new buyers are shopping online every month — from metro cities to tier-3 towns. If you have ever thought about starting an online business, 2026 is the best time to do it.
This guide walks you through every step, from choosing what to sell to getting your first customer. No jargon, no fluff — just actionable steps you can follow this week.
Step 1: Choose What to Sell
The most important decision is your product. You do not need to invent something new — you need to find a category where demand exists and you can add value. Here are the most popular categories for Indian online sellers:
Do some basic research before you commit. Check Instagram and Amazon to see what is selling in your category. Look at reviews to find what customers complain about — that is your opportunity to do better.
Step 2: Handle the Legal Basics
Legal Requirements
Good news: starting an online business in India does not require a special license for most products. Here is what you actually need:
- PAN Card — You already have this (or can get one quickly).
- Bank Account — A current account is ideal, but savings works initially.
- GST Registration — Required if your turnover exceeds ₹40 lakh for goods (₹20 lakh for services), or if you sell inter-state online. Many small sellers register early as it builds credibility.
- FSSAI License — Only if you sell food products.
Step 3: Set Up Your Online Store
You have three main options for selling online in India:
For most new sellers, we recommend starting with your own store. It costs very little (some platforms like oBizee are free to start with no monthly fees) and gives you full control. You can always add marketplace listings later.
Step 4: Set Up Payments
Accept Every Payment Method
Indian customers expect multiple payment options. Your store should support:
- UPI — By far the most popular method. Google Pay, PhonePe, Paytm all use UPI.
- Credit/Debit Cards — Still important, especially for higher-value purchases.
- Net Banking — Some customers prefer this, especially older demographics.
- Cash on Delivery (COD) — Still accounts for 40-50% of Indian ecommerce orders. Offering COD significantly boosts conversion rates.
Payment gateways like Cashfree, Razorpay, and PayU handle all of this. Most ecommerce platforms integrate them so you do not need to set up anything manually.
Step 5: Shipping and Logistics
Getting Products to Customers
Shipping is where many new sellers struggle. The key decisions:
- Delhivery — Largest network with 18,000+ serviceable pin codes. Great for light packages. Starting at ₹30-50 per shipment.
- DTDC — Strong reach in tier-2 and tier-3 cities. Competitive surface rates starting at ₹35-55.
- India Post — Cheapest option, reaches every corner of India, but slower. Good for low-value, non-urgent items.
- BlueDart — Premium, fastest delivery. Best for high-value items. ₹60-100+ per shipment.
Some ecommerce platforms (like oBizee) integrate shipping directly, so you can book, track, and manage deliveries from the same dashboard where you manage orders.
Step 6: Market Your Store
Getting Your First Customers
You do not need a big budget to start marketing. Here are the most effective channels for Indian sellers:
Common Mistakes to Avoid
Your Action Plan: Start This Week
Today: Choose your product
Day 2-3: Set up your store
Day 4-5: Configure payments and shipping
Day 6-7: Tell the world
Starting an online business in India has never been easier or cheaper. The tools exist, the customers are online, and the logistics infrastructure is ready. The only thing missing is your decision to start.