How To Start an Online Store in India (2026 Guide)

Everything you need to launch, sell, and grow — from GST registration to your first order.

India's ecommerce market crossed ₹5 lakh crore in 2025 and is projected to triple by 2030. Yet most guides about starting an online store are written for Shopify merchants in the US — they skip GST, ignore COD, and assume everyone uses Stripe. This guide doesn't.

India Ecommerce Market

₹5L Cr+

↑ 28% YoY

UPI Share of Payments

65%

↑ from 48% in 2023

Tier 2/3 City Buyers

71%

of new D2C customers

Step 1: Decide What You're Selling

Before touching a single platform, clarify your product-market fit. The best-performing Indian D2C stores in 2026 fall into three buckets: high-margin branded goods (fashion, beauty, supplements), regionally-authentic products (handlooms, artisan crafts, regional foods), and business supplies (stationery, packaging, tools).

Key Insight

Undersaturated categories win in Tier 2 India

Categories that are oversaturated globally — like candles, phone cases, or basic apparel — often have 5–10 years of real runway in Tier 2 and Tier 3 cities where organized ecommerce barely exists. The competition you're benchmarking against is local offline retail, not Amazon.

India Advantage

Categories that are oversaturated globally — like candles or phone cases — often have real runway in Tier 2 and Tier 3 cities where organized ecommerce barely exists.

You need a GSTIN before you can sell on most platforms or accept online payments at scale. Registration takes 7–10 working days through the GST portal. You'll need your PAN, Aadhaar, bank account details, and a business address.

GST Registration Checklist

PAN card of the business owner or entity

Aadhaar card for identity verification

Bank account statement or cancelled cheque

Proof of business address (rent agreement or utility bill)

Digital signature certificate (for company/LLP)

MOA/AOA if registering a Private Limited company

  • Sole proprietor: No separate registration needed. GST under your PAN.
  • Partnership / LLP: Register with MCA first, then GST.
  • Private Limited: Recommended for brands expecting VC or large scale.

Don't Skip This

If your annual turnover exceeds ₹20 lakh (₹10 lakh in special category states), GST registration is mandatory. Even below that, voluntary registration unlocks input tax credit — a significant cost advantage.

Step 3: Choose Your Platform

Your platform is your commerce operating system. It affects everything: your checkout experience, theme flexibility, payment gateway options, and how much time you spend on operations vs. growth.

PlatformBest ForIndia Payment SupportGST Invoicing
LetBuyyIndia-first brands of all sizes✓ Native UPI + COD + Razorpay✓ Auto-generated
ShopifyGlobal brands with India presence✓ Via third-party apps⚠ Plugin required
DukaanVery small / single-SKU sellers✓ Basic⚠ Limited
WooCommerceTechnical teams with custom needs✓ Manual setup⚠ Plugin required

Commerce Example

A Jaipur-based kurta brand switched from Shopify to LetBuyy in April 2026. Their checkout had 3 steps instead of 7, UPI worked without a redirect, and GST invoices generated automatically.

Cart completion rate went from 34% to 61% in 60 days. COD orders from Tier 2 cities doubled.

+79% checkout conversion

Step 4: Set Up Your Store

On LetBuyy, the onboarding flow walks you through every critical step: store name and domain, theme selection, product upload, payment setup, shipping zones, and GST configuration — in one connected flow.

01

Create your account

Sign up at accounts.letbuyy.com with your business email. Takes under 2 minutes.

02

Name and configure your store

Choose a subdomain (yourstore.letbuyy.com) or connect a custom domain you already own.

03

Select and customize your theme

Pick from 40+ India-ready themes in the marketplace. Mobile-first layouts, fast-loading, conversion-optimized.

04

Upload your first product

Add title, description, price, variants (size/color), and inventory count. Bulk CSV import available.

05

Configure payments

Enable UPI via Razorpay and COD. Both take under 10 minutes to activate. No manual bank integration required.

06

Set up shipping zones and GST

Define rates for local, state, and all-India delivery. Enter your GSTIN once — invoices auto-generate forever.

Step 5: Configure Payments

Indian buyers have strong payment preferences that differ significantly from Western markets. In 2026, UPI accounts for 65% of online transactions, COD remains at 30% for Tier 2+ cities, and cards cover the remainder.

UPI

65%

of online transactions

Cash on Delivery

30%

Tier 2/3 dominant

Cards & Wallets

5%

Metro-heavy

COD Strategy

Don't view COD as a burden — view it as your Tier 2 and Tier 3 city unlock. Brands that disable COD lose up to 40% of addressable revenue in India. Offer it, but set a ₹2,000 order minimum to manage return risk.

Step 6: Sort Your Logistics

Shipping is where most new Indian stores fail silently. Choose a courier partner with strong Tier 2 and Tier 3 coverage — not just metro cities. Look for NDR (non-delivery report) automation, real-time tracking, and RTO (return to origin) rates under 15%.

AI Recommendation

How to choose the right courier partner for your stage

Under ₹50K monthly GMV: Use Shiprocket. Aggregates 17+ couriers, no volume minimums, simple dashboard.
₹50K–₹5L GMV: Negotiate directly with Delhivery. Better per-shipment rates and Tier 2 coverage than aggregators.
₹5L+ GMV: Split across 2 couriers. Delhivery for volume + BlueDart for high-value or time-sensitive orders.
RTO above 20%: This is a marketing problem, not a logistics problem. Tighten your targeting before scaling.
  • Shiprocket: Best aggregator for small volumes (<500 shipments/month)
  • Delhivery: Strong for Tier 2/3 coverage, enterprise pricing starts lower
  • BlueDart: Premium, metro-heavy, great for high-value goods
  • DTDC: Widest PIN code coverage in India

Step 7: Launch and Validate

Don't aim for perfection before launch. Aim for your first 10 orders. Real customer feedback is worth more than any amount of internal testing. Launch to your existing network first — WhatsApp groups, Instagram, college alumni networks — before spending on ads.

Pre-Launch Checklist

Test checkout end-to-end on mobile (iPhone and Android)

Place a real test order with UPI and verify GST invoice

Check that all product images load fast on 4G

Set up WhatsApp Business number for support

Write 5 WhatsApp messages to send to your first potential buyers

Announce on Instagram Story with swipe-up link to store

First 10 Orders Milestone

Getting 10 orders from people who don't know you personally is the single most important validation milestone for any Indian D2C brand. Everything before that is planning. Everything after that is execution.

Priya Sharma

Commerce Lead

Commerce strategist with 8 years helping Indian D2C brands scale from 0 to 10 crore ARR. Previously at Meesho and Nykaa.

10 articles2 topics

EcommerceGrowth
All articles by Priya
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