What It Really Costs to Create an Online Store in India.

By Sumeet Shroff
Last Updated On : September 29, 2023
What It Really Costs to Create an Online Store in India.

E-commerce is the present and future of business. As the digital era advances, more firms seek a footing in the online marketplace. But one concern that pervades every aspiring entrepreneur's mind is, "How much does it really cost to set up an e-commerce website in India?"

Hello, my name is Sumeet Shroff, and having grown up in India's digital ecosystem, I've had my fair share of e-commerce companies. This blog will give you with an in-depth study of developing an e-commerce website in our lively country, whether you're beginning from scratch, relocating your brick-and-mortar business online, or simply interested about the costs involved. So, let us go on this illuminating adventure together.

What are the best Ecommerce Platforms?

The availability of platforms that allow businesses to construct online storefronts has increased dramatically in India's e-commerce market over the yea₹While Shopify is a worldwide leader and well-known even in India, there are a number of other platforms, both foreign and domestic, that have had a considerable impact in the Indian market. Take a closer look:

Shopify: A worldwide behemoth, Shopify provides a dependable and user-friendly platform appropriate for both new and established enterprises. Go to https://www.shopify.in/.

Wix: Known for its simple drag-and-drop interface, Wix enables customers to create an e-commerce website without the need for coding. It includes customisable templates, making it a favourite among those seeking a balance of simplicity and individuality.

BigCommerce: BigCommerce is another multinational player that serves both small companies and high-volume brands. Its scalability and versatility make it a popular choice for many businesses hoping to expand in the future.

Magento is no longer a viable option.

WooCommerce: WooCommerce is a free WordPress plugin that converts a WordPress site into an e-commerce store. Given the popularity of WordPress in India, WooCommerce has a sizable user base. Woocommerce is not suitable for large sites since it is clumsy and sluggish.

Zepo: Zepo is a native platform that caters particularly to the Indian market. They provide a complete solution that includes features such as marketplace integration, payment gateway, and logistical support.

KartRocket: Now known as Shiprocket 360, this platform is another Indian solution created with the needs of Indian enterprises in mind. They provide a full-stack solution that includes the construction of storefronts, payment gateway integration, and shipping options.

Dukaan: A recent entrant, Dukaan allows enterprises to set up an internet store in less than 30 seconds. It's growing popularity among small company owners and local stores looking to digitise.

Instamojo: Originally a payment gateway, Instamojo has expanded its services to include an online store builder. Its ease of use and integrated payment methods make it popular among aspiring businesses.

The functionality, cost, and scalability of these systems differ. While some are appropriate for small firms or individual sellers, others are designed for giant corporations. When selecting a platform for your e-commerce endeavour in India, considerations such as the anticipated size of your shop, your technological knowledge, the amount of customisation required, and, of course, your budget must all be considered. Each of these platforms has its own set of advantages, and the best option will be determined by your individual needs.

Which items are frequently sold online?

With the advent of e-commerce, customers now have quicker access to a large choice of items online. Based on worldwide and regional patterns, below is a list of items that are regularly offered online, including in India:

1. Electronics and Gadgets

  • Smartphones and accessories
  • Laptops and computers
  • Wearable technology (smartwatches, fitness trackers)
  • Audio equipment (headphones, Bluetooth speakers)

2. Fashion and Apparel

  • Clothing (casual, formal, ethnic, sportswear)
  • Footwear (sneakers, sandals, formal shoes)
  • Accessories (watches, jewelry, belts, hats)

3. Beauty and Personal Care

  • Skincare products (creams, lotions, serums)
  • Cosmetics (lipstick, foundation, mascara)
  • Haircare products (shampoos, conditioners, hair styling products)

4. Home and Living

  • Home decor (lamps, wall art, clocks)
  • Furniture (sofas, beds, chairs)
  • Kitchen and dining products (cookware, tableware)

5. Books and Stationery

  • Novels, educational books, e-books
  • Office supplies (notebooks, pens, highlighters)

6. Toys and Baby Products

  • Educational toys
  • Baby essentials (diapers, feeding bottles)

7. Groceries and Gourmet Food

  • Packaged foods and snacks
  • Health supplements and vitamins
  • Organic and specialty foods

8. Sports and Outdoor Equipment

  • Fitness equipment (dumbbells, resistance bands)
  • Outdoor gear (tents, sleeping bags)
  • Sports apparel and footwear

9. Health and Wellness

  • Medications and over-the-counter drugs
  • Health devices (blood pressure monitors, glucometers)

10. Automotive Accessories

  • Car and bike accessories (covers, mats, helmets)

11. Pet Supplies

  • Pet food and treats
  • Pet grooming products and accessories

12. Digital Products and Services

Software and apps Online courses and tutorials Music, movies, and digital streaming services

13. Crafts and Handmade Items

Handmade jewelry Artisanal soaps and candles Custom crafts and decor items

14. Subscription Boxes

Beauty product subscriptions Book subscription boxes Monthly snack or gourmet food boxes

15. Consumer Appliances

Kitchen appliances (mixers, blenders, toasters) Home appliances (vacuum cleaners, washing machines)

It's important to remember that product popularity varies depending on geography, culture, and current market trends. The goods listed above, on the other hand, have continuously witnessed high demand in online markets throughout the world.

E-commerce Platforms Self-Hosted vs. SaaS Services

When it comes to e-commerce, one of the most important considerations you'll have to make is where to host your online business. Typically, the possibilities are two: self-hosted e-commerce platforms and Software-as-a-Service (SaaS) solutions. Let us examine the distinction.

Self-hosted E-commerce Platforms

Self-hosted platforms are software solutions that you install on your own server or on the server of a web hosting provider. This means you have complete control over the software, its revisions, and its hosting location.


Customizability: You can tweak, modify, and customize every aspect of your website. Ownership: Complete ownership of your data and the entire setup. No Recurring Fee for Software: Pay once for the software (though there might be costs for updates).


Maintenance: You're responsible for updates, security, and any technical hitches. Initial Setup: The initial setup can be more complicated and may require technical knowledge.

Magento Open Source: terrible

WooCommerce: A free WordPress plugin, but costs can arise from hosting, premium themes, extensions, and security.

OpenCart: Free open-source platform, with costs associated with hosting, premium extensions, and themes.

PrestaShop: Another free open-source platform, but expect expenses for premium modules, themes, and hosting.

Software-as-a-Service E-commerce Services

SaaS e-commerce solutions are hosted on the servers of the service provider. To utilise the service, you must pay a regular cost, which includes hosting, maintenance, and frequent upgrades and security.


Ease of Use: These are often more user-friendly and do not need a high level of technical skill. Updating, security, and possible concerns are all managed by the service provider. Quick Setup: Get up and going faster.


Less Customizable:, The amount of customization available may be limited. Recurring Fees: Fees for using the platform on a monthly or annual basis.

Shopify's pricing ranges from $29 per month for Basic Shopify to $299 per month for Advanced Shopify. Shopify Plus, which is custom priced, is also available for businesses. BigCommerce's monthly plans vary from $29.95 (Standard) to $299.95 (Pro). Enterprise pricing is unique. Wix Pricing for e-commerce ranges from $23/month (Business Basic) to $49/month (Business VIP). Squarespace's e-commerce options range from $18 per month for Business to $40 per month for Advanced Commerce.

The decision between self-hosted and SaaS systems is based on your specific requirements, technical competence, budget, and long-term ambitions. If you value total control, flexibility, and are tech-savvy (or have access to technical assistance), a self-hosted platform may be the ideal option. A SaaS solution may be your best bet if you want something simpler, with less technical obligations and faster setup.


Let's break down the potential costs in Indian Rupees (INR). It's essential to remember that these are approximate figures, and actual prices can vary based on specific designers, agencies, and market fluctuations. As of my last training data (up to 2022), 1 USD was approximately equal to 73-75 INR. I'll use this conversion rate, but it might be beneficial to check the current rate.

1. Fundamental Costs:

Initial Consultation: Some designers may provide free consultations, while others may charge between ₹500 and ₹5,000 per hour.

Domain name: Usually between ₹700 and ₹1,500 per year, but can go higher for premium domains.

Web hosting: Shared hosting for self-hosted platforms can cost from ₹220 to 750/month, while dedicated hosting or cloud hosting can range from ₹2,200 to ₹15,000+/month.

2. Costs of design and development:

Pre-made Theme Customization: For platforms like as WordPress (with WooCommerce) or Shopify, customisation can range from ₹3,650 to ₹37,500 or more, depending on the extent of customization and the theme's initial cost.

Custom Design from Scratch:

For a unique design: Basic Design: ₹1,10,000 to ₹2,25,000 Intermediate Design: ₹2,25,000 to ₹3,75,000 Advanced/Complex Design: ₹3,75,000 to ₹11,25,000 or more

Responsive Design: Depending on the intricacy, ensuring that your website is mobile and tablet compatible might cost anywhere from ₹7,500 to 30,000 or more.

3. Additional expenses:

E-commerce Functionality: Depending on the needs, adding shopping carts, secure payment gateways, and other essential capabilities might cost anywhere from ₹15,000 to ₹150,000 or more.

Search Engine Optimisation (SEO): While basic SEO installations may be included, sophisticated optimisation may go from ₹7,500 to ₹75,000.

Content development: Depending on the quality and quantity, photography, copywriting, video development, and other services may cost between ₹7,500 and ₹75,000 or more.

Maintenance and updates: Many designers provide maintenance packages ranging from ₹3,750 to ₹30,000 per month. 4. Cost Influencing Factors:

Designer/Agency Experience and Reputation: Established firms or freelancers with a solid portfolio may charge more.

Platform Selection: Some platforms may need additional labour or specialised expertise, which will impact the pricing.

Designers from major cities may be paid more than those from smaller areas.

2. Graphics Design:

Logo Design:

Depending on the reputation and experience of the designer: Basic: ₹1,500 - ₹7,500 Intermediate: ₹7,500 - ₹30,999 Premium (from top agencies or very skilled designers): 30,000 - ₹200,000+

Website banners and advertising graphics:

Basic: 500-2,500 USD per banner Premium: between ₹2,500 and ₹10,000 per banner


Basic: ₹3,000 - ₹10,000 Premium: between ₹10,000 and ₹50,000

Photographing Products:

Product photography expenses vary depending on the intricacy of the session, the quantity of goods photographed, the location, the equipment utilised, and the amount of post-processing required.

Product Photography:

Basic (white background, little styling): ₹300-1,000 per item Styled shots (include backdrops, props, and so on): ₹1,000 - ₹5,000 per product

Bulk Product shots: Photographers may provide discounts for large product shots. For example, if you shoot 50 or more goods, you may receive a 10-20% reduction on overall expenditures.

Model Shoots: If your product requires models (such as clothing or jewellery):

Local/New Models: 5,000 - 20,000 each day Models Who Have Been There Before: Prices might reach ₹100,000 per day. site expenses: If you need to hire a studio or a specific site, the expenses might range from ₹5,000 to ₹50,000 per day, depending on the prestige and facilities of the place.


Basic editing: Included with the shoot or up to ₹200 per image Advanced editing and retouching: ₹500 - ₹2,500 per image

3. Payment gateway

Payment gateways are an important component of e-commerce because they enable businesses to receive electronic payments from customers. Here's a list of the most popular payment gateways in India, along with their prices as of my most recent update in 2022. It's critical to remember that these prices might change, so check the various websites or support channels for the most up-to-date information.

1. Razorpay:


There is no setup fee. Transaction Fee: Typically, local transactions cost approximately 2% and overseas transactions cost around 3%. AMC (Annual Maintenance Charges): 0

2: PayU (PayUmoney and PayUbiz):

PayUmoney URL: https://www.payumoney.com/ PayUbiz URL: https://www.payubiz.in/

PayUmoney has no setup fee; PayUbiz may have one. For domestic transactions, the transaction fee is around 2-2.5%. It may differ in foreign transactions. AMC: Usually 0 for PayUmoney; PayUbiz costs vary.

3. Instagrammojo:

Website address: https://www.instamojo.com/

There is no setup fee. For most categories, the transaction fee is around 2% + 3. AMC: ₹0

4. CCAvenue:

Website address: https://www.ccavenue.com/

Setup Fee: Depending on the plan, this fee ranges from 0 to 30,000. Most credit cards and net banking solutions have a transaction fee of 2%. It may differ for various payment options. Some plans include an AMC of $1,200 after the first year.

5. Cashless:


There is no setup fee. Transaction Fee: 1.75% for domestic transactions and various fees for international transactions. AMC: ₹0

6. EBS (Electronic Billing Solutions):


Setup Fee: This might range from 0 to 20,000+ depending on the plan. Most payment options have a transaction fee of roughly 2-3%. AMC: Depending on the plan, it might range between $2,400 and $3,600.

7. Paytm for Businesses:


There is no setup fee. For wallet transactions, the transaction fee is around 1.99%. It varies depending on the method. AMC: ₹0

8. PayPal (for international payments):


There is no setup fee. For international payments, the transaction cost starts at 4.4% plus a set fee dependent on the currency. AMC: ₹0 Consider the following points:

GST: All of the aforementioned costs are frequently subject to an extra 18% GST.

International Transactions: International transaction fees are often greater than domestic transaction fees. Negotiation: By bargaining with the payment gateway provider, large firms or businesses with big volumes may be able to obtain better prices.

Before making a selection, read the terms of service, understand the entire cost (including any hidden costs), and check the gateway interfaces seamlessly with your selected e-commerce platform.

Other Payment Gateway providers

  1. DirecPay: URL: https://www.direcpay.com/
  2. Citrus Pay (Now a part of PayU): URL: https://www.citruspay.com/
  3. BillDesk: URL: https://www.billdesk.com/
  4. HDFC Payment Gateway: URL: Direct access is through the HDFC Bank's official website, and businesses typically approach the bank directly for integration.
  5. Atom Technologies: URL: https://www.atomtech.in/
  6. Zaakpay: URL: https://www.zaakpay.com/
  7. Airpay: URL: https://www.airpay.co.in/
  8. MobiKwik: URL for Businesses: https://www.mobikwik.com/business
  9. Juspay: URL: https://www.juspay.in/
  10. FonePaisa: URL: https://www.fonepaisa.com/
  11. Easebuzz: URL: https://easebuzz.in/
  12. PayKun: URL: https://www.paykun.com/

Remember that when choosing a payment gateway, it's critical to understand your company's unique demands, the related expenses, the gateway's compatibility with your e-commerce platform, and user evaluations. Always be vigilant and check that you are accessing legitimate websites, as there are phishing sites that might imitate legitimate ones.

4. Logistics

There are several logistics businesses in India that serve to domestic needs, ranging from conventional behemoths to younger, technology-driven startups. Here is a list of some of India's most significant domestic logistics companies:

  1. Indian Postal Service (India Post)

The Indian government-run postal system, which has been in existence since 1854.

  1. DTDC

One of India's main local and international courier providers.

  1. Blue Dart Express is the third option.

It is a DHL subsidiary that provides premium courier and integrated express package distribution services.

  1. Gati-kwe

Gati, India's pioneer in express distribution and supply chain solutions, and Kintetsu World Express, Japan's premier logistics provider, have formed a joint venture firm.

  1. Safexpress is number five.

Provides a variety of supply chain services, such as express distribution, third-party logistics (3PL), and consulting.

  1. First Flight Couriers

A prominent domestic courier company with a large network across India.

  1. Professional Couriers

They provide dependable courier services and have a solid presence in India.

  1. Delhivery

A contemporary logistics business that uses technology to provide e-commerce and package delivery solutions.

  1. Gojavas

Initially began serving the e-commerce market before expanding to service other industries.

  1. Ecom Express.

They specialises in e-commerce logistics solutions powered by technology.

  1. Rivigo

A logistics firm that uses technology to offer dependability through a network of relay operators. XpressBees 12

A firm that specialises in e-commerce logistics.

  1. Shadowfax

A logistics service company focused on technology.

  1. Spoton

Provides corporate clients with road express freight services.

  1. VRL Logistics, Inc.

Provides package delivery, transportation, and logistical services.

  1. TCI Express

A subsidiary of the Transport Corporation of India Group that specialises on expedited services.

  1. Shree Maruti Courier

Provides domestic courier services throughout India.

  1. Trackon Couriers

Offers domestic and international courier services.

  1. Ekart Logistics

Flipkart's supply chain arm, largely fulfilling the needs of the e-commerce behemoth but also supplying other businesses.

  1. Pushpak Courier.

Offers extensive courier and express services throughout India.

  1. Pidge

Provides express courier services, mostly in major cities.

In the case of Shopify

Through its app ecosystem, Shopify, one of the major e-commerce platforms, enables a diverse selection of logistics suppliers. Many of these logistics suppliers may be incorporated straight into your Shopify store or through third-party apps. Here is a list of some of the most common logistics suppliers that can be linked with Shopify, either natively or via accessible plugins:

  1. ShipStation

A comprehensive shipping solution that integrates with multiple carriers worldwide. 2. Shippo

Offers discounted shipping rates and connects with multiple carrie₹3. Easyship

Provides access to over 250+ shipping solutions globally and offers tax and duties calculations. 4. AfterShip

A shipment tracking solution which supports over 700+ carriers worldwide. 5. ShipBob

Offers fulfillment services in addition to shipping solutions. 6. DHL Express

A global carrier with direct integration to Shopify for certain regions. 7. UPS

United Parcel Service is a major global carrier and can be connected to Shopify. 8. FedEx

Federal Express offers both domestic and international shipping services. 9. USPS

The United States Postal Service is a key player for U.S. based Shopify merchants. 10. Canada Post

Essential for Canadian merchants, offering various shipping services. 11. Australia Post

The major postal service in Australia. 12. Sendle

A carbon-neutral shipping service popular in Australia. 13. Starshipit

Streamlines the process of shipping and tracking for e-commerce businesses. 14. Delhivery

For Indian merchants, Delhivery offers a wide range of logistics services and can be integrated via third-party apps. 15. Ecom Express

Another option for Indian merchants, specializing in e-commerce deliveries. 16. Ninja Van

A logistics provider popular in Southeast Asia. 17. Parcelhub

A multi-carrier shipping and customer service solution for global merchants. 18. Shipwire

Provides order fulfillment from warehouses around the world. 19. Printful and Printify

While they are primarily known for print-on-demand, they also handle shipping for the products they produce. 20. Oberlo

While primarily a dropshipping app, it has a built-in logistics component for the products sourced through its platform. Remember, the right logistics solution depends on the specific requirements of your store, such as the regions you're shipping to, the volume of orders, and the type of products you're selling. Always consider reading reviews and possibly testing a solution before fully committing to ensure it's the right fit for your e-commerce business.

Cost of selling of products in amazon.in

Selling on Amazon.in involves several fees, depending on the type of selling plan you choose and the nature of the products you're selling. Here are the primary fees associated with selling on Amazon.in:

  1. Referral Fees: Amazon charges a referral fee on each item sold. This fee is a percentage of the total sales price (excluding GST). The rate varies by product category. For instance:

Electronics accessories: around 13% Apparel: around 15% Books: around 13% Consumer electronics: around 4% ... and so on. It's essential to check the Amazon.in fee schedule for the specific category you're interested in. 2. Closing Fee: For media items, like books, music, movies, and video games, there's a fixed closing fee. It might be around ₹20 for most media items.

  1. Subscription Fee:

Individual Sellers: No monthly fee, but you pay ₹20 per item sold. Professional Sellers: ₹499 per month. 4. Fulfilment by Amazon (FBA) Fees: If you opt for Amazon to store, pack, and ship your products, you'll pay FBA fees. These fees depend on the product's size and weight. They can be split into two main parts:

Pick & Pack Fee: Charges for picking and packing the product. Weight Handling Fee: Charges based on the weight of the product. 5. Storage Fees: If you use FBA, you'll also pay for storage space in Amazon's warehouse. These fees can vary based on the time of year (higher in the festive season) and the amount of space you use.

  1. Removal Fees: If items aren't selling or you want to remove them from Amazon's warehouse, there's a removal fee, which again depends on the item's size and weight.

  2. Returns Processing Fee: If a customer returns an item fulfilled by Amazon, you may be charged a returns processing fee, equivalent to the original fulfilment fee.

  3. Rental Book Service Fee: If you offer book rentals, a fee is deducted for each rental.

  4. Refund Administration Fee: If you refund a customer, Amazon will refund the referral fee you paid, minus a refund administration fee, which is the lesser of ₹300 or 20% of the referral fee.


All these fees are subject to GST. Promotions, advertising, or using additional Amazon services will have their associated costs. Given the various fee structures, it's beneficial to use Amazon's fee calculator or similar tools to get an accurate estimate of the costs for your specific products and selling circumstances. Always check the latest on Amazon's official site since fees can change and might vary based on promotions or specific agreements.

6. cost of SEO and digital marketing for an ecommerce site

The cost of SEO and digital marketing for an e-commerce site in India can vary widely based on multiple factors, including the agency's reputation, the complexity of your website, the competitiveness of your niche, and your specific goals. Here's a general breakdown of the costs:

  1. Search Engine Optimization (SEO) Initial Audit & Strategy Development: ₹10,000 - ₹1,00,000

This involves an in-depth analysis of your website, competitor analysis, and the creation of a comprehensive SEO strategy. Monthly SEO Services:

Small Business/Local SEO: ₹15,000 - ₹30,000 per month. Mid-Scale Businesses: ₹30,000 - ₹1,00,000 per month. Large E-commerce Sites & Highly Competitive Niches: ₹1,00,000 - ₹3,00,000 per month. This would typically cover on-page optimization, content creation, backlink building, and regular reporting.

One-Time SEO Projects: ₹10,000 - ₹2,00,000

Specific tasks such as website migrations, technical SEO overhauls, or content optimization. 2. Pay-Per-Click (PPC) Advertising Setup Fee: ₹5,000 - ₹25,000

This is a one-time cost for setting up your PPC campaigns. Monthly Management Fee: ₹10,000 - ₹50,000 or 10-20% of ad spend

Many agencies charge a percentage of the ad spend, especially if you're spending large amounts. Ad Spend: This varies greatly and is entirely up to you. You might start with ₹10,000 per month and go up to several lakhs depending on the ROI and the scale of your operations.

  1. Social Media Marketing (SMM) Setup Fee: ₹5,000 - ₹20,000

Covers profile creation and optimization. Monthly Management: ₹15,000 - ₹50,000

This includes content creation, regular posting, and community management. Paid Social Advertising: The costs are similar to PPC, with a setup fee, a management fee, and a separate budget for ad spend.

  1. Content Marketing Blog Posts: ₹1,000 - ₹10,000 per post

Depending on the quality, research required, and length. Infographics: ₹5,000 - ₹25,000 each

Depending on the complexity and design quality. Video Content: ₹10,000 - ₹2,00,000

Depending on the quality, duration, and production values. 5. Email Marketing Setup: ₹5,000 - ₹20,000

For integrating with your website, setting up initial templates, and segmentation. Monthly Management: ₹10,000 - ₹50,000

Covers campaign strategy, content creation, and reporting. 6. Other Costs Tools & Software: ₹1,000 - ₹50,000 per month

For SEO tools, social media management platforms, PPC tools, etc. Training & Workshops: ₹5,000 - ₹50,000

If you decide to train your in-house team. Miscellaneous Costs: Things like premium stock photos, fonts, plugins, or any other resources specific to your campaigns.

Note: These are very ballpark figures, and the actual costs can vary significantly based on your specific needs, the agency or freelancer's expertise, and market demand. It's crucial to ensure that you get detailed quotations, understand what's included in the price, and regularly review the ROI on your digital marketing investments. Always update these figures by reaching out to multiple agencies or consultants for the most current rates.

In India, setting up an e-commerce business involves adhering to a set of legal prerequisites and obtaining necessary documents. Below is a list of primary legal requirements and a ballpark estimate of the costs associated with each:

  1. Business Registration: a) Sole Proprietorship:

Documents: Single Account Bank proof. Cost: Minimal to ₹2,500. b) Private Limited Company:

Documents: Articles of Association, Memorandum of Association, PAN of directors, Aadhaar card, registered office proof, etc. Cost: ₹7,000 - ₹15,000, depending on the state and additional service charges. c) Limited Liability Partnership (LLP):

Documents: Designated Partner Identification Number (DPIN), Digital Signature Certificate, etc. Cost: ₹5,000 - ₹10,000. d) One Person Company (OPC):

Documents similar to a private limited company. Cost: Around ₹8,000 - ₹12,000. 2. Domain Name Registration: Cost: ₹500 - ₹2,000 per year, depending on the domain's popularity and extension. 3. Trademark Registration (optional, but recommended) Documents: Logo, name of the brand, and address. Cost: ₹9,000 - ₹14,000 for individuals, startups, or small enterprises. For others, it can be around ₹45,000. 4. GST Registration: Mandatory if turnover exceeds ₹40 lakh (₹20 lakh for special category states). Cost: Free on government portal, but professionals might charge ₹500 - ₹3,000 for their services. 5. Shops & Establishment License: Mandatory in some states, even for online businesses. Cost: Varies from state to state but can range from ₹500 to ₹10,000. 6. Importer Exporter Code (IEC) if dealing with international transactions: Documents: PAN card, bank certificate, etc. Cost: ₹500. 7. Website Terms of Use & Privacy Policy: Can be drafted with the help of a legal expert. Cost: ₹5,000 - ₹15,000. 8. Contracts and Agreements: If you're working with vendors, partners, or third-party service providers, you'll need specific agreements.

Cost: ₹5,000 - ₹20,000 per contract, depending on complexity. 9. Digital Signature Certificate: Required for signing e-forms submitted online to MCA (Ministry of Corporate Affairs).

Cost: ₹1,000 - ₹3,000 for 1-2 yea₹10. Payment Gateway License: If you want to start your payment gateway, you'll need a license from the Reserve Bank of India (RBI). Most e-commerce businesses use existing payment gateways, making this unnecessary.

Cost: Varies greatly but can be substantial. 11. FSSAI License: Only if you're selling food products.

Documents: Photo ID, address proof, etc. Cost: ₹100 (for street food vendors) - ₹7,500, depending on the type and scale of the business. 12. ISO Certification: Optional but can enhance credibility.

Cost: ₹4,500 - ₹30,000, depending on the nature of the business and the certifying entity. 13. Compliance with IT Act, 2000: Especially Section 43A and the IT (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011, if dealing with personal and sensitive data.

While this provides a broad overview of legal requirements for e-commerce in India, it's always recommended to consult with a legal expert or CA (Chartered Accountant) to understand the specific needs of your business. Costs provided are ballpark figures and can vary based on service providers and specific requirements.

cost for storing inventory in india

The cost of storing inventory in India is influenced by a variety of facto₹Here's a breakdown of the main factors and their respective costs:

  1. Type of Storage: a) Warehouses:

Regular Warehouses: ₹15 - ₹40 per square foot per month. Temperature-Controlled Warehouses: ₹50 - ₹150 per square foot per month, depending on the cooling requirements. b) Fulfillment Centers (like Amazon FBA):

Storage Fee: Varies by product size and season, but usually between ₹20 - ₹60 per cubic foot per month. Long-term Storage Fee: For items stored over 365 days, additional fees may apply. c) Cold Storage (for perishable items):

₹100 - ₹400 per pallet per month. 2. Location: Warehouses in metro cities (Mumbai, Delhi, Bengaluru, Kolkata, etc.) or near ports usually have higher rental rates compared to those in tier 2 or tier 3 cities.

  1. Duration of Lease: Short-term leases might have a slightly higher cost per square foot compared to long-term commitments.

  2. Additional Services: Many warehousing providers offer value-added services such as pick and pack, labeling, quality checks, and more. The costs for these services can vary widely based on the type and volume of service required.

  3. Size and Facilities: A larger space with more facilities (like better security, firefighting equipment, docks, cranes, etc.) will cost more.

  4. Insurance: This is an essential part of inventory storage. The cost depends on the value of the goods, the warehouse's location, and the duration for which insurance is sought. It might range from 0.1% to 0.5% of the inventory value annually.

  5. Utility Costs: If you're leasing a facility, utility costs like electricity, water, etc., might be additional expenses, especially if you're using temperature-controlled spaces.

  6. Labor: If you have your warehouse, labor costs for managing inventory would be an added expense. This can range from ₹8,000 - ₹20,000 per worker per month, depending on their role and the region.

  7. Inventory Management Software: Using software to manage inventory can have costs ranging from ₹1,000 per month to ₹50,000 per month, depending on the software's complexity.

  8. Maintenance: Regular upkeep, pest control, and maintenance can add additional costs.

  9. Security: Depending on the location and the value of the goods, security expenses can vary. This can range from ₹10,000 to ₹30,000 per security personnel per month.

Remember, these are ballpark figures as of 2022, and costs might vary based on the specific circumstances, negotiations, and the provider's policies. It's essential to conduct thorough research, get quotations, and potentially consult with logistics experts when planning storage in India.


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