Once you have taken into consideration all the advantages, your next thought is how to start the business? What would be the brand name? What are the various permits and licenses required to set up the business? The list goes on. Let’s go through each one of these points one by one.

1. Decide what type of business you will run!

The giant E-commerce site Amazon offers multiple products and sellers. However, did you know that the same business can also be carried out with only one set of products and one seller? The first order of business is to choose what products you plan on selling. The range is important, as more variations mean reaching out to more people and making more money. In case you choose to deal with a single seller, you won’t have to monitor and deal with lengthy transactions. If you select multiple sellers, you’ll also need software.

2. Branding and logo

In order to distinguish yourself from others, it is essential that you have a brand name. A name gives you your uniqueness and differentiates you from others. There are too many e-commerce businesses out there, so it is important that your brand stands out in such a situation. You should consider a name and logo carefully, as they play the most important role.

3. Getting a business license

Registration for your e-commerce business is the most time-consuming and confusing part. You must obtain the e-commerce business license in India formalities such as the DIN, PAN, and digital signature certificate, and check whether the name you choose is available. For an E-commerce business, it is necessary to register yourself with GST as well as complete other formalities, such as opening a Provident Fund with the appropriate organization.

4. Select a website for your brand

It is so easy to access Amazon’s website today, right? That should be your approach to your online business as well. You should design your website in such a way that it matches well with the variety of products you deal in. Remember that the first impression is the last impression. Designing your website well will leave a good impression on viewers, and it will also create a good sense of trust.

Licensing requirements for an e-commerce business

A business license required for an e-Commerce business varies according to the type of business (i.e. product line being sold). Below is a list of the few licenses required for an e-Commerce business:

  • E-Commerce businesses in India, except for the North Eastern States, with an annual turnover of more than Rs.20 Lacs, need to register for GST. GST is a PAN-based registration.
  • In order to operate a Payment Gateway, as well as to set up a physical store and hire some staff, you need a license under this Act.

E-commerce businesses have advantages for entrepreneurs

In order to understand how to start an E-commerce business, let’s first see a few reasons you should start one as an entrepreneur.


E-commerce starts from the comfort of your own home. You are free to work on it 24 hours a day, 7 days a week, without worrying about monitoring at peak hours. One of the greatest advantages of E-commerce is the flexibility it provides.

Reduced startup costs

Although it might sound costly and difficult to start an E-commerce business, it does not require a huge outlay of capital. The major costs that you will have to incur would be the website and software costs, and also the logistics.

Make sales around the clock

As we discussed above, your business would never cease to exist. Due to the fact that the Internet is 24/7, chances are that be it a Sunday or a vacation month, you’ll never run out of potential customers.

Final thoughts

In conclusion, we can see how E-commerce works, and the advantages that it offers. The first step to starting your own E-commerce business is choosing a niche, and the second step is choosing a brand and logo. Next, we must create a website design, handle payment gateways, and logistics, and finally develop a marketing strategy.


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