How to Start an E-commerce Business: A 2025 Guide

Starting your own e-commerce business is an exciting venture, especially if you dream about the freedom of being your own boss. If you are crafty or have a knack for selling, then the entrepreneurial route could be a great choice for you.

Lifting a business off the ground is hard work. It requires business acumen, creativity, and discipline to take the necessary steps to put your idea out there. Nevertheless, it can be a very worthwhile and rewarding journey. Global e-commerce sales are expected to exceed 8 trillion USD by 2027 [1]. India’s e-commerce market is also rapidly expanding, and it will likely reach 325 billion USD by 2030 [2], paving the way for those with the skills and drive to profit from e-commerce.

Discover how to start your online business, the possible expenses you may encounter along the way, and cost-effective courses to help you gain the skills you’ll need to begin. 

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How to start an e-commerce business

E-commerce is on the rise, so you’ll need to consider how to stand out because everyone can use digital marketing for their business. Despite the competition, you can enjoy a bright future ahead as an e-commerce entrepreneur. The following steps can help smooth the path forward as you begin your e-commerce journey.

Step 1: Research e-commerce models and decide what to sell.

Today's e-commerce space is vast, with plenty of competition, so it is important to consider your e-commerce business model. Explore the four basic types:

• Business-to-customer (B2C): A common business model in which a business sells to consumers—anything from spices to shoes. B2C businesses can sell different brands under one umbrella, such as Amazon, Flipkart, and Swiggy.

• Business-to-business (B2B): In B2B models, businesses sell products or services to other businesses. Orders tend to be recurring purchases. Examples include Amazon Business, Reliance, and TradeIndia.

• Customer-to-customer (C2C): C2C models often function as online marketplaces connecting consumers to exchange goods and services. Online C2C businesses include Amazon, Olx, and eBay.

• Customer-to-business (C2B): In C2B, individuals sell their goods and services to companies. A good example is Upwork, which enables businesses to hire freelancers.

At the same time that you're considering your business model, you'll also want to explore the delivery method you'll use to distribute your goods or services. Generally, you'll use one of the following delivery methods:

• Direct-to-consumer (D2C): Sell your own products directly to customers without the help of wholesalers or retailers

• Dropshipping: Set up a storefront (website) so customers can pay by credit card or PayPal, sourcing from a supplier that manages inventory and packaging; dropship businesses are quick and inexpensive to start

• Wholesaling: Purchase products in bulk at a discounted rate from a retailer to sell on your website

• White label: Put your own name and brand on a generic product that you purchase from a distributor

• Private label: Hire a manufacturer to create a product to be sold exclusively (by you)

• Subscription: Deliver products such as pet food or fresh vegetable boxes on a monthly or weekly basis to loyal customers who prioritise convenience

Find your niche

To find your niche, you’ll want to consider what type of product you want to sell, to whom, and how you will distribute it. Whether you sell your own hand-crafted products or source generic ones, you make all the decisions when you start a business—and you get to decide what works best.

Step 2: Write a business plan.

After establishing your business's foundation, you’re ready to draft a business plan. This written document details your objectives and roadmap for finance, operations, and marketing. You can use it to organise your business and attract potential investors.

Do some research to figure out the current competitors and market landscape for your product or service. Determine your target market and how you might sell to potential customers. Plan the logistics, including when, where, and how you will proceed in the coming months. 

Step 3: Choose a business name and start building your brand.

Next, your business needs a name and brand identity. For those starting white-label e-commerce businesses, the brand is especially crucial to its success. 

Choosing a business name can be fun, but it requires a bit of strategic thinking. In addition to a unique yet uncomplicated name that clearly explains your product, you’ll also want to check if the web domain, social media handles, and legal name are available. Do your research to make sure it translates well across cultures, especially if you aim to go global.

In building your brand, you’ll need to design a logo that you will place on all packaging, website design, and marketing materials. Eventually, you may want to hire a designer to translate your brand’s ethos into beautiful web visuals.

See this video for ideas on branding in e-commerce.

Step 4: Register your business.

Before you begin selling, you’ll need to register your business by applying to the Ministry of Corporate Affairs (MCA). Before doing that, you need to decide the structure of your business. The nature of your business and those involved will help you make this decision. Options include the following:

• Limited liability partnership: Ideal for service-based businesses or those with low investment needs

• One-person company: You are the owner and sole proprietor of the business 

• Private limited company: Ideal for businesses with a high turnover; created as a separate entity from the directors

• Public limited company: Generally suited to a business with a high turnover offering shares to the public

Once you have decided on a structure, the first step in registering your business is to obtain a Digital Signature Certificate (DSC) from a government-recognised authority, such as the National Informatics Center (NIC) or IDRBT Certifying Authority. You can apply for the DSC online.

With your DSC, you can register your business online using the Simplified Proforma for Incorporating a Company Electronically (SPICe) form. If you are also the director of your company, you will need to obtain a Director Identification Number (DIN) from the MCA whilst registering your company, which you can get with the SPICe form.  

Using SPICe, you first register yourself as a director and complete online forms detailing various aspects of your business. Then, upload relevant supporting documents. The Registrar of Companies will review your application and documents. If successful, you’ll receive a Certificate of Incorporation of the company.

Step 5: Create your e-commerce business website.

With the paperwork ready and your business officially registered, the next step is to create an e-commerce website. The website is the “storefront” for your business, where customers arrive, browse, and place items in their shopping carts. Your business website and its functionality are critical to your success.

To start, you’ll need a domain name that matches your business name. Then, you’ll need to select an e-commerce platform that suits your bandwidth for creating and maintaining the online store. The most common type is an all-inclusive software (like Shopify), on which you can conduct business operations such as managing inventory, shipping orders, and more.

A few e-commerce platforms to choose from are as follows:

• Shopify: This popular e-commerce platform is all-inclusive and user-friendly, with plenty of customisation options. This hosted, software-as-a-service (SaaS) platform allows you to choose from several subscription options depending on your business needs.

• Squarespace: Known as a platform for building websites with modern templates, Squarespace also offers e-commerce capabilities. It is user-friendly but does not offer as many customisable e-commerce features as Shopify.

• WooCommerce: WooCommerce is an open-source plug-in that you can add to your WordPress site to start selling. It is free to download and offers a wide range of e-commerce tools, best for entrepreneurs with prior technical experience.

• Dukaan: If you’re a small business owner, you might want to use Dukaan, an easy-to-use platform that allows you to set up your online store in less than a minute.

How to create your own e-commerce website

After you’ve selected an e-commerce platform, you can move forward with building, customising, and launching your online store. You’ll decide on the template design, create a wireframe, add your product inventory, and write out descriptions to introduce your business.

Watch this video for more insights into e-commerce platforms.

Step 6: Source and develop your products or services.

Once you’ve set up a website prototype, you can begin to add your product names, descriptions, and photos. You’ll also need to obtain your products, either by going into production to develop them or sourcing them from a wholesaler.

If you are a craftsperson, you’ll want to produce enough inventory to last the first few months. That might mean creating one of each colour and size of a clothing line or twenty of each ceramic pot. This number will vary depending on your labour bandwidth and marketing strategy, like how much traffic you drive to your website’s launch.

Then, you’ll need to arrange logistics such as branded packaging, warehousing, inventory management, and shipping.

Tip: Start on an e-commerce marketplace

If you're just beginning, consider selling on an e-commerce marketplace such as Meesho or Amazon. These established companies host thousands of sellers with advanced algorithms to show desirable products to the right customers, which means you can rely less on SEO and social media marketing.

Step 7: Launch and market your business.

Once you have successfully launched the business, you can begin monitoring your metrics and key performance indicators (KPIs) as your business grows. Continue experimenting with different types of digital marketing to drive traffic to your brand. 

In addition to inventory management, logistics, and marketing, you’ll want to ensure that your shipping and fulfilment go smoothly for every customer. It is wise to prepare contingency plans in case anything goes wrong. 

How much does it cost to start an e-commerce business?

Starting an e-commerce business is an investment that can reap generous profits, especially if a large consumer base connects with your brand. However, it also requires time: it can take up to two years to get an online business off the ground and start earning a profit.

Consider some of the following upfront costs:

• Registering your business: Registering your business with MCA is essential before you start selling. The cost for this varies depending on the type of business you’re registering. The cheapest option is registering as a sole proprietor, which costs ₹2500. On the other hand, registering a private company can cost you ₹7000 [3].  

• E-commerce platform, domain name, and hosting: Software such as Shopify will set you back ₹1,499 a month for just basics and ₹1,75,000 for the most advanced plan [4]. Open-source platforms are free to download, but you’ll need to consider hosting and developer fees. Some platforms include a domain name and hosting, whilst you can purchase others separately—a domain can cost as little as ₹9 a year [5], whilst hosting can range from ₹699 to around ₹2499 per month [6].

• Product inventory: Inventory might be your biggest and most strategic expense since you’ll want to have enough to sell but don’t want to waste money on items that won’t sell. You may also need warehouse space and equipment.

• Shipping: Shipping costs will vary depending on your products, sales, shipping services, speeds, and methods, and whether it is an add-on to your e-commerce platform. You may choose to outsource the entire shipping process if you want to focus on the products and other business operations.

• Marketing: When you’re starting out, you may want to invest more in marketing and advertising. Marketing is important, and ad spending is increasing, especially in the case of digital marketing. The Economic Times reports that India’s advertising sector will continue growing by 9.86 per cent per year from 2023 through 2025 to reach a Rs 1,12,453 crore [7]. However, the amount you spend may also depend on the type of business you’re running. B2C companies may need a higher budget than B2B companies.

• Employees: Depending on how big your company is and how fast it grows, you may be running the show for the first few months or even years. Some experience rapid growth and need to hire employees shortly after launching the business, whilst others remain solopreneurs.

Generally, you’ll find fewer costs associated with e-commerce than brick-and-mortar businesses. With rent prices and inflation escalating, and a behavioural shift in the way consumers shop, e-commerce might just deliver a higher return on investment (ROI). Going online has many attractive benefits and a bright future for anyone interested in starting a business.

Although the initial start-up cost can be high, new business owners can choose to self-fund, rely on support from friends and family, or take on loans.

Tips for starting an e-commerce business

The journey to creating a successful e-commerce business requires motivation, strategy, passion, and a stroke of luck. Starting a business can feel similar to the birth of a child—hard work, but extraordinarily rewarding. Consider the following tips as you begin:

• Start small: You don’t have to invest in hundreds of products at first. If you’re a craftsperson, create an Instagram account and simple branding to gauge interest. If you’re sourcing products, give yourself a timeline to procure items, create a website, and soft-launch with targeted Google or Facebook ads. Then, build your business from there.

• Keep up with trends: AI advances are important to consider, as it is one of the biggest trends in e-commerce in 2024, resulting in options for personalised shopping, enhanced customer service through chatbots, and more [8]. 

• Experiment with marketing: People won’t know about your business unless you promote it. Thankfully, you’ll find many ways of conducting A/B testing on platforms like Google Ads with lower spending before launching a major campaign.

• Take advantage of partnerships and multi-channel strategies: Even though D2C sales are trending, your brand awareness and sales can benefit from featuring your products on channels such as large online retailers like Amazon and Flipkart. Social media partnerships, including influencer and affiliate marketing, and public relations (features in select publications) can also help you get noticed and gain traction.

Build skills that can help your e-commerce business succeed on Coursera

Starting your own business can be a thrilling yet nerve-racking undertaking. If you're starting a new business, consider setting yourself up for success by taking a cost-effective online course on Coursera. Gain strong marketing skills for your next online business by obtaining credentials like the Meta Social Media Marketing Professional Certificate or Google’s Digital Marketing & E-commerce Professional Certificate. No degree or experience is required. Learn at your own pace with Coursera.

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Google Digital Marketing & E-commerce

Get on the fast track to a career in digital marketing. In this certificate program, you’ll learn in-demand skills, and get AI training from Google experts. Learn at your own pace, no degree or experience required.

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Average time: 6 month(s)

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Skills you'll build:

Search Engine Optimization (SEO), E-Commerce, Email Marketing, display advertising, Marketing, Customer Relationship Management (CRM), Portfolio preparation, Building customer loyalty, E-commerce store optimization, Job preparedness, Social Media Branding, Social Media Analytics, Social Listening, Customer Engagement, Social Media Bidding, Google, Search Engine Marketing, Customer Awareness, Website Structure, Email marketing analytics, Email Writing, Contact management, Email marketing strategy, Email list segmentation, E-Commerce Strategy, Seasonality, E-commerce platforms, Fulfillment and delivery, Customer loyalty, Customer Outreach, Marketing Analytics, Media planning and strategies, Spreadsheet management, Presenting to stakeholders, Digital marketing KPIs

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Social Media Marketing, Generative AI in Social Media Marketing, Brand Management, Content Marketing, Digital Marketing, Performance Advertising, Social Media Marketing Strategy, Marketing, Campaign Management, Ad Management, Meta advertising, Meta Ads Manager, Marketing Content Development, content management, Content Development, Communication, Marketing Strategy, Ads Manager, Marketing Optimization, Digital Analytics