If you’re planning to start an online store, one of the first questions you’ll ask is: how much money do I really need? The good news is that launching an eCommerce business is far more affordable than opening a physical store.
In this guide, we’ll break down the costs involved in starting an online store—from basic setup to marketing and operations—so you know exactly what to expect and how to budget smartly.
1. Domain and Hosting Costs
Every online store starts with a domain name and hosting.
- Domain Name: ₹800–₹1,200/year
- Hosting (if using WordPress/WooCommerce): ₹3,000–₹7,000/year
- eCommerce Platform (Shopify, Wix, etc.): ₹2,000–₹5,000/month
You can start with a basic plan and upgrade as your store grows.
2. Website Design and Development
If you’re tech-savvy, you can use a DIY website builder like Shopify or WooCommerce. Otherwise, you may need to hire a freelancer or agency.
- DIY with themes: ₹0–₹5,000
- Freelancer/Agency help: ₹10,000–₹50,000+ (one-time)
Start simple. You can always improve design later based on customer feedback.
3. Product Inventory (If You’re Not Dropshipping)
Your inventory budget depends on your niche. Some sellers start with as little as ₹5,000–₹20,000 for initial stock.
If you opt for dropshipping, your upfront inventory cost is zero—products are shipped directly from suppliers.
4. Payment Gateway Setup
Most platforms integrate with Razorpay, PayPal, Stripe, or Paytm. Most don’t charge setup fees, but transaction fees apply (typically 2–3%).
- Setup cost: ₹0
- Transaction fees: 2%–3% per order
5. Marketing and Branding
Marketing is where most of your initial funds should go.
- Logo and Branding: ₹1,000–₹5,000
- Social Media Ads: ₹5,000–₹20,000/month (start small)
- Email Marketing Tools: Free–₹1,000/month
- SEO and Blog Content: Free (DIY) to ₹10,000/month (outsourced)
For help with content, check our guide:
How to Create SEO Blog Content That Converts
6. Shipping and Packaging
If you’re shipping products yourself, you’ll need:
- Courier partnerships (Shiprocket, Delhivery): ₹30–₹70 per package
- Packaging materials: ₹5–₹20 per unit
Many platforms now offer integrated shipping options.
7. Legal and Business Setup
In India, registering your business and getting a GST number is essential.
- Business Registration: ₹1,000–₹5,000
- GST Registration: Free or ₹500–₹1,500 via consultant
- Accounting software or CA: ₹500–₹2,000/month
Total Estimated Budget to Start an Online Store
| Category | Estimated Cost (INR) |
|---|---|
| Domain & Hosting | ₹3,800–₹12,000/year |
| Website Design | ₹0–₹50,000 |
| Inventory | ₹0–₹20,000+ |
| Marketing | ₹5,000–₹25,000/month |
| Legal & Compliance | ₹1,500–₹6,000 |
| Shipping & Packaging | ₹1,000–₹10,000/month |
| Total (Startup) | ₹15,000–₹1,00,000+ |
You can start lean and scale gradually. Many successful stores began with just ₹20,000–₹30,000.
Final Thoughts
To start an online store, you don’t need lakhs of rupees. With smart planning, you can launch with a modest budget and grow as your sales increase. The key is to focus on product-market fit and marketing from day one.
Need help choosing the right tools or marketing strategies? Check out our free startup resources at
learn.programmingline.com
FAQ: Start an Online Store
1. Can I start an online store in India with ₹10,000?
Yes, if you use a basic Shopify plan or WooCommerce, focus on digital products or dropshipping, and use free marketing channels.
2. Is it better to use Shopify or WordPress?
Shopify is easier for beginners; WordPress offers more control and flexibility. Both are cost-effective.
3. What’s the most expensive part of starting an online store?
Marketing. It’s also the most important part to drive sales and growth.
