How much does it cost to startup a basic eCommerce company in India?

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Since I got a lot of comments on the How to start and grow your eCommerce side “biijness”, I thought I’d take some time to outline the costs of starting a small eCommerce business in India.

Say you are a stay-at-home-dad who wants to sell your own neat apparel designs online, or a creative mom who can make some excellent handicrafts at home. Now you are interested in setting up a storefront on the web so you can “get in on this eCommerce thing” or “make money on the side” or “make some extra revenue when you sleep”. Here’s what you need to get going.

Item Who you need to set this up? How much will it cost?
Company Incorporation(MOA, AOA, PAN Card, Company legal entity, Bank Account) CA, Accountant or Company Secretary Rs. 50,000 (Bangalore)
Payment Gateway (To accept credit card, net banking or debit card online) EBS, CC Avenue, your bank (Axis, HDFC, etc.) Rs. 25,000 (initiation fee)2 – 4% transaction fee (negotiable) 

Rs. 500 – Rs. 1500 monthly fee (can get this waived)

eCommerce Software Shopping cart software companies (Shopify, Big Commerce, MartJack, IQecommerce) + Do the catalog setup yourself Rs.1000 to Rs. 10,000 per month starting
eCommerce team (Optional if you use off-the-shelf hosted software) Build your own team of 2 people to custom build eCommerce storefront Rs. 1.5 to Rs. 2.5 Lakhs per month
Computer, machines, servers for developers (if you are building a team) Go Daddy, Big Rock, your local PC reseller Rs. 50,000 + Rs 10,000 per month for hosting (basic plan)
Office Space (if you have a team that wants to work in an office) Get a small, cheap shared space instead of a big swanking office Rs. 5000 per month
Shipping Blue Dart, Aramex or Fed Ex (AFL) Rs. 20,000 (setup account, negotiable to zero) + Rs. 25 to Rs. 45 per shipment (up to 500 grams in weight)
Initial Marketing Do it yourself (poster, flyers, send email to friends) Typically zero, but budget Rs. 20,000
Computer (Desktop or Laptop) + Internet + Phone Assuming you don’t have one already Rs. 30,000 + Rs. 2000 per month (for a good internet connection)
Total starting costs Minimum: Rs. 1 Lakh plus Rs. 25,000 per month (using hosted shopping cart software)Maximum: Rs. 4-5 Lakhs plus Rs. 2 Lakhs per month (building a team and hosting yourself)

 

9 comments
  1. The costs are really funny. E-commerce websites don’t require such a big investment now. I have my own startup (www[dot]kraftpixel[dot]in) and we start at Rs. 35,000 with quarterly hosting charges (with 99.9% uptime) of Rs. 7,500 onwards (as per necessity depending on load average of CPUs)

    1. Hey abhishek , I am moving in the same direction so i would like you to please share your experience, difficulties you faced and the achievements you’d won . So that i can minimize my risk for my startup. contact me on 9453030771. If you are able to.

      Thanks.

      1. hi Abhishek , i also want to open a e-buisness ,would u like share ur experience …what difficulties u have faced to set up . and most what is the budget needed . pls contact me on 9816849211

    2. hello abhishek
      hope you are doing well.actually i have a interest to know about the bussiness process of a start up copmany and cost to set up this.pls help me… thank you.

  2. helloo abhishek i want to start a online marketin can u plz tell me what is the acctual cost to make a online site

  3. Hello Abhishek_Gharat,
    Thanks for sharing d major difficulties one who planning to start an E-Comm,
    Abhi just i want to Do Some Conversation with you, Regards to the E-Comm, So plz gimme a Call
    Cell: 9030546461
    Ty Buddy.

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