The real cost of starting an online shop in India

Comparison articles rank ecommerce platforms by monthly price. That is rarely what decides whether a small shop makes money. Before you pick anything, work out these six lines for one typical order. Figures change often, so get current ones from each provider rather than trusting any blog, this one included.

1. Payment charges

Gateways take a percentage of each sale, and rates differ by card, UPI and wallets. Check what you pay on your actual mix, and how long settlement takes. A cash-flow gap can hurt more than the percentage.

2. Shipping, including the failed attempts

Quote the rate for your real parcel weight and zones. Then add cash-on-delivery fees and the cost of orders that come back undelivered. For many sellers, returns are the line that quietly removes the margin.

3. GST and invoices

Check whether you need registration for how and where you sell, and speak to an accountant, since the rules depend on your situation. Then check whether the platform produces correct invoices or leaves you doing them by hand.

4. Marketplace or your own store

Marketplaces bring buyers and charge commission. Your own store keeps the margin and the customer, but brings nobody. Most small sellers underestimate what it costs to get that first visitor to their own site. Many sensibly start on a marketplace to test demand.

5. Apps and add-ons

A cheap plan can become an expensive one after you add reviews, abandoned-cart messages and shipping connectors. Price the shop you will actually run in six months.

6. Your own hours

Count product photos, descriptions and customer messages. If you would pay someone for this work, it is a cost.

A quick test

Write out one order: sale price minus product cost, payment charge, shipping, packaging, expected return cost and any commission. If little is left, no platform will fix it.

Our interest: we build Taz Commerce, where AI drafts your storefront and you edit it visually. It is new, with no merchant track record yet. This checklist applies to whichever platform you choose. See Taz Commerce.