How to Start Selling Online in India: Complete Guide (2025-26)
Step-by-step guide to selling online in India — choosing between Amazon, Flipkart, Meesho, and D2C. GST, payments, logistics, and everything you need to launch.
India's e-commerce market is one of the fastest-growing in the world, and the barriers to entry have never been lower. Whether you want to sell on Amazon, Flipkart, Meesho, or build your own D2C brand, this guide covers every step — from choosing your platform and registering your business to handling GST, payments, and logistics.
Step 1: Choose Your Sales Channel
The first decision is where to sell. Each channel has different requirements, economics, and growth potential.
Marketplace Selling (Amazon, Flipkart, Meesho)
Selling on a marketplace gets you in front of millions of buyers immediately — without building your own website or running your own traffic. The trade-off is commissions (2–15% of selling price, depending on category) and limited access to buyer data.
Amazon India is the best choice for products with clear specs and strong search demand — electronics, home goods, books, beauty. Amazon's Fulfilled by Amazon (FBA) logistics and advertising tools are the most mature in India.
Flipkart is strong in fashion, electronics, and home goods with a particularly deep reach in Tier 2 and Tier 3 cities. Flipkart Advantage (their FBA equivalent) works similarly to Amazon's.
Meesho targets budget-conscious buyers and resellers. Commission is low (0% for some categories), but average order values are also lower. Good for products with low production cost that compete on price.
Snapdeal and Nykaa are niche choices — Snapdeal for value goods, Nykaa for beauty and personal care.
D2C (Your Own Website)
A D2C store (Shopify, WooCommerce, or a custom build) gives you full control: no platform commissions, ownership of customer data, and freedom to build a brand. But you need to drive your own traffic — through SEO, Meta/Google ads, or social commerce.
Most successful sellers combine both: marketplaces for volume and discovery, D2C for higher margins and brand building.
When to start D2C: Once you have validated demand on marketplaces and have the marketing budget to drive traffic. Early-stage sellers typically start with one marketplace and add D2C once revenue is established.
Step 2: Legal and Compliance Setup
GST Registration
If you sell on any marketplace in India, GST registration is mandatory from your first sale — regardless of your annual turnover. This is because Section 24(ix) of the CGST Act requires marketplace sellers to register regardless of the standard threshold exemptions.
What you need to register:
- PAN card
- Aadhaar card
- Business address proof (rent agreement or utility bill)
- Cancelled cheque / bank account details
- Photograph
Once registered, your 15-digit GSTIN (GST Identification Number) must appear on every invoice. Read our complete GST guide for e-commerce sellers for the full breakdown of registration, returns, and TCS.
Use our GST Registration service to get registered with CA support.
Business Structure
As a new seller, sole proprietorship is the simplest starting point. You register using your personal PAN, incur minimal compliance costs, and can start selling within days.
Private Limited Company offers limited liability and is better for raising investment, but involves annual filings with the MCA and a Statutory Audit. Convert when revenue is stable and you need the structure for funding or hiring.
Business Current Account
Open a dedicated business current account before your first sale. Keeping business and personal finances separate is critical for:
- GST reconciliation (lenders and auditors check bank statements)
- Building a credit history for business loans later
- Clean income tax filings
Step 3: Register on Your Chosen Marketplace
Amazon India Seller Registration
- Go to sellercentral.amazon.in
- Create an account with your business email
- Complete KYC: GST certificate, bank account details, PAN, address proof
- List your first product using ASIN (if it already exists) or create a new product listing
- Choose FBA (Amazon handles storage + fulfillment) or FBM (you ship yourself)
Amazon typically approves accounts within 3–5 business days. Categories like books, electronics, and baby products may require additional brand approval.
Read our Amazon Seller Registration guide for the step-by-step walkthrough.
Flipkart Seller Registration
- Go to seller.flipkart.com
- Register with your GST number and bank details
- Complete your store profile and list products via the Seller Hub
Read our Flipkart Seller Registration guide.
Meesho Supplier Registration
Meesho is particularly attractive for manufacturers and small businesses with low-cost products. Commission is 0% on many categories (you only pay payment gateway charges). The buyer base is highly price-sensitive.
Register at supplier.meesho.com — the process is similar to Flipkart.
Step 4: Product Listings That Convert
Poor product listings are the most common reason new sellers stagnate. A good listing on Amazon or Flipkart needs:
Title: Include the primary keyword + product type + key spec (e.g., "Stainless Steel Water Bottle 1 Litre — Leak-Proof BPA Free with Carry Loop")
Images: At least 5 images — main white background shot, lifestyle shots, infographic showing specs, and a size/dimension reference. Amazon requires minimum 1000px on the longest side for zoom.
Bullet points: Lead with benefits, not features. "Keeps beverages hot for 12 hours" beats "Double-wall vacuum insulated."
Description or A+ Content: Use this space to tell the brand story and handle objections. For Amazon, A+ Content significantly improves conversion for registered brands.
HSN Code and GST rate: Every product must be mapped to the correct HSN code. The GST rate determines your tax liability; an incorrect HSN can lead to compliance issues.
Step 5: Pricing and Margins
Getting pricing right is harder than it looks. Before you set a price, calculate your true unit economics:
| Cost Component | Example (₹500 selling price) |
|---|---|
| Cost of goods (COG) | ₹150 |
| Marketplace commission (10%) | ₹50 |
| Closing/fixed fee | ₹30 |
| GST on fees | ₹14 |
| Shipping (if FBM) | ₹60 |
| Packaging | ₹15 |
| Returns provision (10% rate) | ₹20 |
| Net margin | ₹161 (32%) |
Key tips:
- FBA costs more per order than FBM but often improves conversion enough to offset the cost
- Build in a returns provision from day one — 5–20% depending on category
- Price with GST included in your selling price; the marketplace handles tax collection for B2C orders
Step 6: Logistics and Fulfillment
Marketplace Fulfillment (FBA / Flipkart Advantage)
Sending inventory to the marketplace warehouse is the simplest setup. Amazon and Flipkart store, pick, pack, ship, and handle returns. You pay a fulfillment fee per order. This is the recommended starting point — delivery speed and seller metrics improve significantly with FBA.
Self-Fulfillment (FBM)
If you manage storage and shipping yourself, use a logistics aggregator — Shiprocket, NimbusPost, or Delhivery Direct. These platforms give you access to multiple courier partners with single-dashboard tracking, NDR management, and competitive per-shipment rates.
For D2C orders, a logistics aggregator is essential — you cannot negotiate directly with couriers at low volumes.
Step 7: GST Returns and Compliance
Once you start selling, GST compliance is ongoing. As a marketplace seller you must file:
- GSTR-1 (monthly or quarterly): Reports all your sales
- GSTR-3B (monthly): Summary return and tax payment
- GSTR-9 (annual): Annual reconciliation, filed by 31 December
Marketplaces deduct 1% TCS (Tax Collected at Source) from your payouts and deposit it with the government. You claim this back in GSTR-3B, reducing your monthly tax payment.
See our complete GST guide for e-commerce sellers for detailed instructions on each return, TCS, and ITC.
Use our GST Return Filing service to have a CA handle all your monthly filings.
Step 8: Payment Gateways (for D2C Stores)
If you run your own website, you need a payment gateway to accept online payments. For most Indian D2C sellers in 2026:
- Razorpay — the default choice; best ecosystem, clean dashboard, T+2 settlement
- Cashfree — best for cash-flow-sensitive brands; T+1 and instant settlement options
- Instamojo — best for new sellers with zero budget for setup
Read our payment gateway comparison for D2C sellers for full fee breakdowns.
Step 9: Funding Your Growth
Working capital is the most common bottleneck for growing e-commerce sellers. Options include:
- Marketplace seller loans (Lendingkart, Indifi) — use your GMV as collateral; fast disbursal (48–72 hours)
- Business credit lines (Axio, Flexiloans) — revolving credit for recurring cash flow needs
- Traditional bank loans (SBI, HDFC) — lower interest rates but slower process; suitable when you need ₹50L+
Read our business loans guide for e-commerce sellers to compare lenders and understand eligibility.
Free Tools to Run Your Business
- GST Due Dates Calendar — never miss a filing deadline
- EMI / Business Loan Calculator — calculate monthly repayments before applying
- SIP Returns Calculator — plan profits you can invest back into the business
- TDS Rate Chart — section-wise TDS rates for FY 2025-26
Quick-Start Checklist
- Choose your primary sales channel (Amazon / Flipkart / D2C)
- Register for GST — use our service
- Open a business current account
- Register as a seller on your marketplace
- List 5–10 products with optimised titles and images
- Set up logistics (FBA or aggregator)
- File your first GSTR-1 and GSTR-3B
GST Compliance Tools
- Complete GST Guide for Sellers →
- GST Due Dates Calendar →
- GST Registration Service →
- GST Return Filing Service →
Business Finance
Related Guides
Frequently Asked Questions
Which is the best marketplace to start selling online in India?+
For most beginners, Amazon India and Flipkart are the safest starting points — both have large buyer bases, seller support infrastructure, and clear onboarding processes. Meesho is ideal for low-cost products targeting Tier 2 and Tier 3 buyers. If you want to build a brand, a D2C website (Shopify + Razorpay) gives you more control over customer data and margins.
Is GST mandatory to sell online in India?+
Yes. Any seller using an e-commerce marketplace (Amazon, Flipkart, Meesho, etc.) must register for GST before their first sale, regardless of turnover. The normal GST threshold exemptions do not apply to marketplace sellers. Sellers with only a D2C website can use the standard threshold (₹20 lakh for services / ₹40 lakh for goods).
How much does it cost to start selling on Amazon India?+
Amazon India charges a referral fee (commission) of 2–15% depending on your product category, plus a closing fee for each order. There is no monthly subscription fee for the standard Individual plan. You do not pay listing fees. Your main upfront costs are GST registration, product sourcing or manufacturing, packaging, and your first inventory batch.
Can I sell online without registering a company?+
Yes. You can sell as a sole proprietor using your personal PAN and Aadhaar. You'll still need GST registration (for marketplaces) and a business current account. Sole proprietorship is the simplest structure to start — you can convert to a private limited company later once revenue justifies the compliance cost.
What is the difference between marketplace selling and D2C?+
Marketplace selling (Amazon, Flipkart) gives you instant access to millions of buyers but you share revenue via commissions and have limited control over customer relationships. D2C (your own website) has lower variable cost per order but requires you to drive your own traffic via SEO, ads, or social media. Most successful brands combine both — marketplaces for volume, D2C for brand building and higher margins.