How to Start Selling Online in India: Payments, Shipping and GST
Short answer: To start selling online in India, choose a platform (Shopify or WooCommerce for your own store, or a marketplace), set up a payment gateway like Razorpay with UPI and cards, decide on cash on delivery rules, connect a shipping aggregator, add the required policy pages, and check your GST obligations with a CA. Start with a small catalogue and good photos, then grow.
Step 1: Own store, marketplace, or both?
| Your own store | Marketplace (Amazon, Flipkart, Meesho) | |
|---|---|---|
| Customers | You bring them | Already there |
| Fees | Platform + payment fees | Commission per sale |
| Brand and data | Yours | Mostly the marketplace’s |
| Pricing control | Full | Limited by competition |
Many brands start on both: marketplaces for volume, their own store for repeat customers and better margins.
Step 2: Choose a platform for your own store
- Shopify: quickest to launch and easiest to run. Monthly plan plus a fee on online payments.
- WooCommerce: runs on WordPress, no platform fee, more flexible, needs hosting and maintenance.
Our detailed comparison: Shopify vs WooCommerce for Indian businesses.
Step 3: Set up payments
Indian payment gateways like Razorpay, PayU and Cashfree accept UPI, cards, net banking and wallets. Razorpay’s standard pricing is 2% per transaction plus 18% GST on the fee. You’ll need business and bank details for verification, and your website should have clear policy pages before the gateway approves you.
On Shopify, Shopify Payments isn’t available in India, so you’ll use one of these gateways, and Shopify adds its own fee on online payments depending on your plan.
Step 4: Decide on cash on delivery
COD is still popular in India, but returned COD orders cost you shipping both ways. Common rules:
- Allow COD only up to a certain order value
- Restrict COD to pin codes with low return rates
- Offer a small discount for prepaid orders
- Confirm COD orders by WhatsApp before shipping
Step 5: Shipping
Shipping aggregators like Shiprocket connect you to several courier companies through one account, with pickup, labels and tracking. Set:
- Shipping rates (flat, free above a value, or by weight)
- Pin-code serviceability checks on the product page
- Packaging that protects products and looks good
Step 6: GST basics (check with a CA)
GST rules for online sellers depend on how and what you sell. If you sell through marketplaces (e-commerce operators), GST registration is generally required regardless of turnover. If you sell only through your own website, the usual turnover thresholds may apply, depending on your goods or services and state. Rules change, so confirm your situation with a chartered accountant before you launch.
Step 7: Pages every store needs
- Shipping policy
- Return and refund policy
- Privacy policy
- Terms and conditions
- Contact page with business name, email and phone
Payment gateways usually check for these before activating your account.
Step 8: Product pages that sell
- Clear photos from several angles, on a plain background
- Price, sizes or variants, and stock status
- Delivery time and return policy near the “Add to cart” button
- Reviews as they come in
- Fast loading on mobile
Step 9: Launch and get your first orders
Tell existing customers on WhatsApp and Instagram, set up Google Business Profile if you have a physical location, and consider a small ad budget for your best products. Track which channel brings orders.
Ready to sell online?
We set up Shopify and WooCommerce stores from ₹20,000, with payments, COD, shipping and GST invoices configured.
FAQ
Do I need a company to sell online in India?+
Not necessarily. Sole proprietors can sell online, but payment gateways and marketplaces will ask for business and bank details. A CA can advise on the best structure.
Which payment gateway is best for a small online store?+
Razorpay, PayU and Cashfree are all widely used. Compare fees, settlement time and how well they integrate with your platform.
Is GST mandatory for selling online?+
It depends on where and what you sell. Marketplace sellers generally need GST registration; own-website sellers should check thresholds with a CA.
How much does it cost to start an online store?+
A small Shopify store typically costs ₹42,000–₹65,000 in the first year including setup. See Shopify store cost in India.
Sources: Razorpay – Shopify payment gateway pricing explained · The Munim – E-commerce GST registration rules
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