How to Start an eCommerce Business in 7 easy steps?

. 7 min read
How to Start an eCommerce Business in 7 easy steps?

The E-commerce business is exploding around the entire world. Due to the skyrocketing growth of the Smartphone market and digitalisation, the e-commerce business industry is witnessing exclusive growth in India. Besides, the strong availability and the affordability of internet connection offer a significant boost to the e-commerce industry; therefore, it inspires small-scale business people to enter into the E-commerce business world. As per the marketing statistics, the Indian e-commerce business world is boosting at the level of 25%, and all are prepared to hit $100 billion by 2022.

Suppose you have also decided to shift your traditional business store into an advanced e-commerce business. In that case, it will prove a smart and fruitful move for the success of your business in the current highly-competitive era. So, take a glance and read the information until the end:

Different Methods to Start E-commerce Business in India🔢

When we move towards different ways to start an Ecommerce business, it depends on the business requirements and model. It means how you want to set up your business model in the e-commerce world to fulfil your needs. Generally, there are two simple and highly used ways are here to select from while you are setting up your e-commerce business:

  • Collaboration with a well-established e-commerce marketplace
  • Creating your E-commerce business website

Collaboration with a well-established e-commerce marketplace🤝

Joining a well-established e-commerce marketplace and becoming a part of it is a more comfortable key to start your e-commerce business. To become a part of a well-established e-commerce marketplace, an aspirant needs to have a legal bank account and a tax registered number for an easy and smooth application procedure. However, the marketplace will consider everything for smooth running for a newbie like website design, development, technology, payment gateway, marketing, and many others. Besides, an individual can join more than one marketplace to boost their online presence.

Creating Your E-commerce website💻

Creating your e-commerce website is a more complicated option than collaborating with an established e-commerce marketplace. It becomes quite difficult because it needs website designing and development, payment gateway integration, digital marketing set-up, implementation of logistics, and even so forth. Creating your e-commerce website will help you in brand building for yourself even though it is a most prosperous business strategy with lasting outcomes.

Key Steps to Start your own Ecommerce Business💯

Many individuals want to know how to set-up their own e-commerce business. In such a decision, the business's objective should be profitable, scalable that lives for lasting life. Hence, we are mentioning some significant steps to help you achieve your goals while starting your own e-commerce business. So, let's have a look and step-up into the world of e-commerce with a long-term vision of success.

Step 1: Research the E-commerce Business Model🔎

The first and foremost step of entering into the e-commerce business industry is starting your research. It is not an individual business structure that operates for everyone, rather a service-based business with software and digital product sales. Before deciding what to sell on your ecommerce store, you are required to determine the availability of business models. Its procedure will favourably impact the business structure.

For example, you have to consider what exactly your digital business is going to offer? Will you be offering services or products? If products, then will you provide single products, subscriptions, packages, or anything else? These sorts of aspects are an integral step to the starting of your e-commerce business. Besides, it will help you to create and decide your business plan.

After finalising the stable business model for your e-commerce business, we will move forward towards selecting a business name and legal structure. Likewise, you have to choose a catchy, impressive, and unique name for all other businesses and make sure your selected business domain name is currently available and not being already used.

After making a selection of a business name, you have to select a business legal structure. In such a procedure, you have to choose the best-suited business entity as per your e-commerce business. For example -

Types of Business Entities Permitted Activities Permitted Route/FDI
E-commerce entity Market Model (for goods and services: B2C e-commerce) Completely Automatic
Manufacturer B2B and B2C e-commerce (Selling its products manufactured in India, via wholesale or retail through e-commerce) Completely Automatic
Cash & Carry Wholesale Trader B2B e-commerce (sells goods to commercial, retailers, industrial, institutional or other professional business users or other wholesalers and related subordinated service providers) Completely Automatic
Single Brand Retail Trader B2C e-commerce (at least 30% Indian sourcing of products, and must be operating through at least one brick and mortar store) Completely Automatic
Food Product Retail Trader B2C e-commerce (retail trading of food products manufactured and/or produced in India) 100% Government Approved
Services (Subject to respective conditions and applicable laws) sale of services through e-commerce ( Relevant Sectoral Cap) Automatic

Step 3: Apply for EIN✔️

Under this step, an individual must apply for an EIN (Employer identification number) for starting the e-commerce business. It is not required in all business entities, but this 9-digit number will distinguish the business and personal finances. Moreover, you can apply for free EIN via IRS or online through phone, fax, or mail.

Step 4: Obtain Business Licenses and Permits🌟

After applying for EIN, you have to apply for business licenses and permits to operate your e-commerce business within your state and city legally. However, if you are going for sole proprietorship or partnership business entities, you don't need to register your e-commerce business with the state. On the other hand, for other business entity types, an individual must register the business with the state and obtain a general operating license. If you are going to offer food products, you must take FSSAI registration, Health Trade License, Trademark registration, and Signage Licenses. On the other hand, for clothing products seller’s license, for cosmetics products registration is required of G.S.R. 426(E) under the Drugs and Cosmetics Act, 1940, and even so on. Some of the business permits that an individual has to obtain are given below:

  • Trade License for several business industries
  • Tax registration and sales tax license
  • Safety, environmental and Health License
  • Signage Permit
  • Construction and Building License

Step 5: Select your e-commerce platform and create a website🎖

Likewise, a physical storefront, a website is the first interaction and face of the business for customers. Therefore, it is significant to create your website with completely impressive, eye-catchy, and perfect aspects. Besides all factors, you have to choose the best ecommerce platform for your business, whether it is an all-around software like Shopify or an open-source like Magento. An E-commerce platform is a base to develop and build your online business. There are thousands of popular e-commerce platforms available over the internet, amongst you can choose an ideal one for your business.

Step 7: Market the Ecommerce business📊

Now, all steps are completed, and your website is ready to run, and even you are ready to start serving your customer. To do this properly, you have to market your e-commerce business correctly. You will find several marketing strategies over the internet that you can utilise for attracting high traffic on your websites, like Google Ads, Word of mouth, Social media ads, and even many others.

Significant Tips to Start an Ecommerce Business

  • Always start with simply because complexity at the initial stage can give birth to problems.
  • Share and Spread your e-commerce business across multiple channels for grabbing the target audience and boost traffic.
  • Start Investing in multiple selling channels with low shipment and other exclusive perks to attract customers.


Learning how to set up an ecommerce business is not that much easy as it seems, but by attentively taking each step, you can triumph over the process with effective management and ultra-fast growth. By following significant steps and investment, emerge your business as an internet's prosperous and successful story.

Also read:
The Rise of Ecommerce over the years
Green Architecture: What is the purpose of Green Architecture?
Internet Penetration In India Over The Years
Electric Vehicles: Is India ready for EVs?


Q. What are the different forms of E-commerce?

Ans: There are primarily four types of e-commerce businesses, namely, B2B, B2C, C2B, and C2C.

Q. How can I create a unique website?

Ans: The impressive factor of websites lies in the way how smoothly it works and how user-friendly it is. So, you must ensure that your e-commerce website is easy to use, professional, attractive, and fast.

Q. Is there any Limit decided on the customer database or the size of products on the e-commerce business?

Ans: No, there are no such limits decided on the size; therefore, you can expand your business as much as you can.

Q. Are security risks involved in e-commerce websites?

Ans: E-commerce business owners put high-security efforts to correctly maintain integrity, confidentiality, availability to the website, customer records, and secured transactions.

Q. How do we earn on E-commerce website business?

Ans: You can earn ideally via Sales and Transactional Margin.