How to Start an Online Business in India in 2025

With our e-commerce market set to overtake the US by 2034, mastering how to start an online business in India might just be the smartest move you make this year. And this guide is exactly what you need to get started today!

Why Start an Online Business in India?

India is going digital at lightning speed. Whether it’s groceries, fashion, education, or electronics, people are buying everything online.

• The Indian e-commerce industry is on a meteoric rise and is expected to surpass the US to become the second-largest e-commerce market globally by 2034.
• By 2027, the market value is projected to hit $200 billion, fuelled by affordable smartphones, UPI payments, and digital India initiatives.
• Quick commerce is booming too, with projections showing the Indian market could hit $35 billion by 2030.

All this signals one thing: starting an online business in India today is an opportunity waiting to be grabbed.

How to Start an Online Business in India

Let’s break down the journey of how to start your own company online, step by step.

Step 1 – Start With a Strong Foundation

• Identify Your Niche

  If you’ve ever asked, What business should I start online, start here. Think about what you’re passionate about. It can be anything, from groceries, handmade crafts, fashion, and fitness training, to digital products or services like graphic design or coaching.

  But before you begin, understand the difference:

  • Product-Based Businesses: You sell physical or digital products.
  • Service-Based Businesses: You offer services like tutoring, web design, or consultancy.

  Further, check for demand, competition, and long-term scalability. Use tools like Google Trends and Amazon Best Sellers to spot opportunities.

• Conduct Market and Audience Research

  Understanding your market is crucial. Use free tools like SimilarWeb or Ubersuggest to analyse competitors. Build customer personas by asking:

  • What problems do they face?
  • What do they value?
  • Where do they shop online?

  Knowing this helps you refine your products, messaging, and marketing.

• Define Your Business Objectives and Unique Value Proposition

  The market you want to enter might already be flooded with good businesses, but that doesn’t mean you shouldn’t step into the niche. It all narrows down to what you have that makes you different from others. Define your USP clearly.

  Also, set SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound). For instance, “Gain 100 customers in 90 days” is a clearer target than “Grow quickly”.

Step 2 – Look Into the Legal and Structural Setup

• Choose a Suitable Business Structure

  When figuring out how to start your own business online, you need to pick the structure that suits you the best. Below is a brief comparison table of business structures and who they are ideal for:

• Register Your Business

  One of the top legal questions that arises when starting a digital business is how to register an online business. Here’s how:

  • Go to MCA and register your company.
  • Get PAN, TAN, and if applicable, GST registration.
  • Register on Startup India to access incentives.

• Open a Business Bank Account

  Another legal requirement to look out for when starting an online business is opening a separate bank account for your business. For that, you’ll need your registration documents, PAN, and address proof.

  An additional tip is to choose a bank that supports startups with online banking, low fees, and integration options.

Step 3 – Dive Into Financial Planning and Compliance

• Estimate Budgeting and Business Forecasting

  How much does it cost to start an online business in India? That depends on your business model. Expenses include:

  • Domain: Around ₹100 to ₹6,000 each year.
  • Hosting: Around ₹200 to ₹500 every month.
  • Website Setup:
    • DIY website development: ₹5,000 to ₹50,000
    • Freelancer-built websites: ₹10,000 to ₹50,000
    • Agency-developed solutions: ₹15,000 to ₹3,50,000+
  • Digital Marketing: ₹5,000 – ₹50,000/month
  • Business Registration: ₹5,000 – ₹30,000

• Accounting and Bookkeeping

  When starting an online business, managing the accounting aspect is crucial to avoid any financial mistakes. You can use tools like QuickBooks and Zoho Books to manage invoices, track expenses, and file taxes on time.

• Taxes and Legal Compliance

  Managing a business is tricky, especially handling the financial and legal parts.

  A business owner should be extremely aware of all the taxes and legal compliances, such as filing GST returns monthly or quarterly, paying income tax based on profits, and preparing for annual audits.

Step 4 – Build Your Online Presence

• Secure a Domain Name and Hosting

  Pick a short, brandable domain. Use services like GoDaddy, Hostinger, or Namecheap. Ensure your hosting is reliable, fast, and scalable.

• Build a Website or an eCommerce Store

  Here’s the most asked question: how to create your own online store. For that, you have two options:

  • DIY Platforms like Zopping, Shopify, Wix
  • Custom Development, which is usually costly and time-consuming

  If you’re looking for a no-code e-commerce online store builder, Zopping offers everything from store themes to mobile apps and delivery management, perfect for startups and hyperlocal businesses!

• Multi-Channel Selling Strategy

  If you are selling products, sticking to just one channel is not enough. Adopt a multi-channel selling strategy to help you grow your business. You can sell via your website, marketplaces (Flipkart/Amazon), and social media (Instagram/WhatsApp/Facebook).

• Set Up Payment Gateways

  Choosing a reliable payment gateway partner is important so that your customers can carry out secure and hassle-free checkouts. Some popular and trusted channels include Razorpay, Stripe, UPI, Paytm, and PhonePe.

  Zopping’s Secure Payment Solutions help in making the payment process easier and scalable by supporting multiple payment gateways, so your customers enjoy smooth checkouts.

Step 5 – Carry Out Operations and Logistics

• Product Sourcing and Inventory Management

  Starting an online business, especially when you are selling physical products, will require you to take care of all the logistics and operational parts. To source products and manage your inventory, you can use:

  • Dropshipping: No inventory, but lower margins.
  • Holding Inventory: Higher control, better margins.

• Delivery and Fulfilment Options

  Delivery is another aspect to take care of when talking about operations and logistics. There are several options for delivery fulfilment, such as Delhivery, Shiprocket, Pickrr, and more. Pick one that suits your needs and meets your goals. Moreover, set clear return policies and offer reliable delivery.

  Define your delivery zones precisely with Zopping’s smart delivery management system. Get pincode-based coverage, custom area mapping, and radius-based delivery limits, all under one roof!

• Customer Support Setup

  Providing top-notch customer support is essential. Your customers are going to get frustrated and probably will never return if you do not solve their queries quickly and efficiently. Hence make sure to always have a strong customer service setup when starting an online business.

  Use chatbots, WhatsApp, or tools like Zoho Desk to provide instant responses, CRM integration, and order-related support.

Why Choose Zopping to Start Your Online Business?

Zopping is an all-in-one no-code online store builder made for Indian entrepreneurs. Right from building a customised online store, to managing payments, orders, and handling deliveries and logistics, we help you leap in the business world!

Here’s everything you get with Zopping:

• Easy Store Builder – Launch your store with stunning, ready-to-use themes.
• End-to-End Order Management – Handle inventory, orders, and payments seamlessly.
• Integrated Delivery Solutions – Deliver anywhere with smart zone mapping and courier integrations.
• Advanced Analytics – Make data-backed decisions with real-time insights.
• Secure Payments – Accept payments via UPI, Razorpay, Stripe & more.

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