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eCommerce in India. The Ultimate Guide to Setup for Success

eCommerce in India has a market worth $65 billion and is poised to grow at 25 – 30 percent per year for the next 5 years.

The market for e-Commerce in India is maturing and allowing Indians to purchase goods in an efficient and comfortable manner on the internet. The Indian middle class is seeing the benefits of purchasing goods from their smartphones and computers, as well as finding more reliable delivery services, which are providing a much higher quality of service.

eCommerce in India is Booming!

India, the second-most populous country in the world, is a highly promising market for eCommerce. The online retail market size of India is projected to grow to over USD 150 billion by 2025.

This rise in the number of online shoppers can be attributed to India’s low personal income levels and high internet penetration rates. On the other hand, there are challenges that need to be addressed too like lack of infrastructure, high shipping costs and lack of skilled manpower. E-commerce in India has grown immensely in the past few years and this trend is expected to continue for at least another decade. India, being one of the major markets for e-commerce, has a lot to gain from this exponential growth rate.

In this context, eCommerce companies are progressively entering this new market and building up their presence on a large scale with a large variety of products ranging from apparel to food items.

Develop Your Product Mix for eCommerce in India

Product mix refers to the number of product variants and product lines that a company offers to its customers. It is the way in which a company gets its products to customers.

There are four steps to developing your product mix for the Indian market:

. Understanding Indian customers’ needs

Indian customers are a fickle lot. They don’t usually want to simply buy a product as much as they want to buy an idea. Indian consumers like to be convinced and then slowly persuaded by the product, rather than being forced into buying it.

2. Determining the product(s) to fill the need gap

Filling a need is the best way to sell products. Companies should identify the unmet needs of their potential customers and then offer products that can fill those needs better than anyone else. E.g.- If there is a need determined through reliable data that people need flying shoes. Then “Shoes that can make you fly” can potentially be a product idea.

ecommerce in India - need gap

3. Determination of Investments required for products

Understanding the total investment required for a product is essential for any entrepreneur. There are two ways in which one can calculate the investment required.

One way is by understanding the cost of producing the goods or services and then adding to it all other costs that are associated with marketing and sales, whether they be of fixed or variable nature.

The second method consists in determining how much money will be needed to sell the product at a given price point and calculating backward factoring the associated costs like marketing, logistics, etc., This one is preferred in a competitive landscape.

4. Developing the Product Mix Strategy

Width – Number of Product Lines traded

The number of products a company sells determines the breadth of a company’s product mix. E.g., ABC Ltd. has two product lines – Mobile Phones and Televisions – the width of the company’s product mix is two.

In small and upstart businesses, the product mix is not typically diverse. In order to build market share, it is more practical to start with basic products. As time goes on, the company can expand into new industries and expand its product mix with its technology.

Length – Total number of Products A product mix is the total number of products that a company makes. E.g., Again ABC Ltd., has two product lines, Mobile Phones and Televisions.

In Mobile Phones, the product line is Smartphones, NOT so Smartphones and phones that are just phones. The Television line contains Smart OLED TVs, Cheap Smart TVs and Unsmart flat displays.

Thus, the product mix length would be 6. Multi-product companies may track the lengths of their product lines. The average product line of your company is 3 products long.

Depth: Variations of Products

A product mix’s depth refers to the total number of variations for each product. Any other distinguishing characteristic may be reflected in variations of size, flavor, and texture. If ABC Ltd. sells two models and three color options of Smartphones. That’s six options. In addition to the length of their product lines, companies also report the depth of their product lines.

Consistent Product lines

According to product mix consistency, products are closely related to one another based on their use, production, and distribution. Even though the distribution mix of your company is consistent, its usage may be very different. Retail stores may sell mobile phones and televisions from your company. However, one product is stationary at a location and the other (for lack of a better word) mobile.

The Strategy

A small company under usual circumstances starts out with a product mix that is limited in width, depth, and length and has a high level of consistency. Eventually, the company may want to differentiate its products or acquire new ones to enter new markets. To offer a variety of options and price points, they may also add similar products at different grades of quality to their line.

It is called extending the product line. Upward stretching occurs when you add more expensive, higher-quality products. Downward stretching occurs when you add items of lesser quality and price.

Features of a Successful Website for eCommerce in India

eCommerce is a form of retail that allows customers to purchase items online instead of going to the store. Today, there is an abundance of websites in eCommerce in India, but not all are successful. There are many factors that determine the success or failure of a website in eCommerce in India. This section discusses some key factors that are essential for the success of a website for eCommerce in India.

While most people think it’s enough just to have a simple website with good prices and quality products, it is actually not enough for an e-store to be successful in India. The first and foremost factor for any e-store is its design which has to be catchy and user-friendly on every device screen size including smartphones, tablets as well as laptops. It must also have a responsive design to work to have the modules on-page work across devices.

The success of a store that is into eCommerce in India, relies on three main factors: design, development and SEO. A website design for eCommerce should be user-friendly and provide the right balance between visual appeal and functionality. If you are looking for iPhone or Android app development for eCommerce, you need to ensure that it focuses on the mobile experience instead of desktop only. Finally, SEO is important in every country but is even more important in India due to the high level of competition.

Setting up SEO for eCommerce in India

Search Engine Optimization (SEO) is a term that refers to the series of processes ultimately boosting the number of eyeballs on the pages in search engine results pages (SERPs) of popular search engines like Google and Bing. A website’s ranking in SERPs primarily depends on how many other websites link to it, as well as how often and what kind of search terms people enter into search engines to find information.

SEO for eCommerce websites is necessary because Google ranks the websites of Indian web-store brands based on signals and optimization of content, server speed and readability (not just legibility). These are critical for the store and its products to be found on the web when users are searching for them with purchase or knowledge intent.

SEO for ecommerce

Invest in Mobile Experience Design for eCommerce in India

There are several reasons that mobile experience design is crucial for eCommerce in India. The first one is to keep up with the competition and stay ahead of the curve. The second reason is that it helps increase conversion rates by making shopping quick and easy without having to switch between multiple tabs in order to find what a customer wants to buy.

Moreover, it also helps brands build trust with their customers by making it easier to find information about them and getting in touch with them anytime they want. Mobile optimization strategy should be incorporated into every store for eCommerce in India from the beginning, not as an afterthought or at a later stage. Else you are always in the game of catching up and not expanding congruently.

Choose the Payment Gateway For eCommerce in India

In an online business, the payment gateway is the backbone of your business. It is vital for any online business to have a reliable and secure gateway that can take care of transactional needs. The choice for a payment gateway will depend on what type of payments you would like to accept, the country you operate in, the specific needs of your business and the range and cost of services that are offered by different providers.

It’s imperative that you select the right payment gateway for your online shop to get your customers through the checkout process and make their purchases. The common types of payment gateways for stores with eCommerce in India are the following:

payment gateways

CCAvenue Payment Gateway

There are many payment options available through CCAvenue. JCB, MasterCard, Visa, American Express, Diners Club, and eZeClick are among the cards supported. In addition to English, CC Avenues’ payment page is available in 18 other languages (including Indian) and 27 different currencies.

Citrus Pay Payment Gateway

Among the leading payment gateways in India, Citrus Pay is among the best. It supports the most popular credit cards, such as Visa, MasterCard, and American Express. Citrus Pay makes the payment process simple and secure, thanks to its high level of security. It also offers a number of other services, including Citrus Cash (a digital wallet) and Citrus Cube (a bill payment application online).

PayUBiz India Payment Gateway

PayUBiz allows businesses to accept payments online and manage their payments. IVR payments, wire transfers, EMI, cards, Wallets, and international cards are supported by this well-known payment gateway. Companies are able to accept 13 different currencies via the payment gateway. A number of the leading banks in India use PayUBiz’s online banking services. Mobile technology has been a big focus of the company, and Android phones can make payments with one tap.


Online payments are simplified with this payment gateway. Founded in 1989, this company has more than 4,000 merchants in India and is one of the flagship companies of the Naspers group. PayUMoney is partnered with some of the largest banks in the country and provides a safe platform for people to receive and make payments.

Direcpay Payment Gateway

Direcpay enables credit and debit card transactions. Paying by mobile, net banking, or using Direcpay is now possible for merchants. Online merchants and businesses that handle eCommerce will benefit from this product. Different types of foreign currencies can be used to make DirecPay payments.

Instamojo Payment Gateway

One of the best payment gateways for digital files, tickets, services, goods, music, videos, and more is Instamojo. Secure bank-level security ensures a quick and safe payment process. With this payment gateway, merchants can accept payments on Facebook, Whatsapp, Instagram and other social media platforms. Merchants can also collect payments via SMS, Email, and Instamojo usernames using this gateway.

Zaakpay Payment Gateway

With Zaakpay, you can pay with all international and Indian MasterCard credit cards, Visa credit cards, Discover and Diners credit cards. It is a secure gateway, and it is possible to make payments using this portal with just a few clicks.


With Razorpay, businesses are able to accept, process, and disburse payments using a single payment application. Payments can be made via credit card, debit card, net banking, UPI, and popular wallets like JioMoney, Mobikwik, Airtel Money, FreeCharge, Ola Money, and PayZapp.


Stripe accepts credit card payments via a payment gateway that transfers money between a merchant account and a payment processor. Physical credit card terminals or online processors are used for this. Many people integrate their sites with eCommerce. This is just another way to utilize this flexible and powerful payment gateway.

Bill Desk

Payment gateway Bill Desk allows people to pay and receive their bills from one place. Many Indian banks are connected with Bill Desk to simplify, speed up, and secure the payment process. Bill Desk lets customers schedule payments, set reminders, and set alerts regarding payments.

Atom Paynetz Payment Gateway

The Atom Paynetz payment gateway offers over one hundred options for payment. You can use American Express, Discover, MasterCard, JCB and Visa domestic credit cards. Merchants can use revenue boosters like Promotion and Discount Engine, Multi Bank EMI, express payments, etc.


Businesses can manage their payments with ease and efficiency using this payment gateway. E-Paisa lets merchants manage their inventory, speed up the checkout process, accept payments on tablets and smartphones, etc. Through ePaisa, businesses can accept payments via credit card, debit card, wallet, online, etc.

and many more…

Choose the Right Partners for eCommerce in India

Choosing the right partners for your e-commerce in India is no easy task. To make it easier for you, we have prepared this list of some of the top partners for e-commerce in India.

Logistics partner

The logistics partner is responsible for acquiring goods from suppliers and sending them to customers’ homes and also procuring any other service needed by the sellers. By choosing a reliable logistics partner, you can be sure that your customers will receive their orders on time. It is important to find the right logistics partner for your e-commerce in India because it will be responsible for delivering products to customers. The best partners are those who can deliver products quickly and with minimal damage while charging a reasonable fee.

Digital Marketing Partner

A digital marketing partner will help you market your company online through various channels such as social media, search engine optimization, mobile marketing, content marketing, etc. You should choose a partner that has previous experience of working on similar projects and knows how to produce results that exceed expectations. Services such as SEM (Search Engine Marketing), SEO (Search Engine Optimization), Social Media Marketing among others.

CRM Partner

A CRM system not only helps to manage communications with customers but also helps in managing marketing efforts and sales channels. In addition, it improves productivity by automating various tasks and offering insights related to campaign performance. It also helps managers to improve loyalty and reach targets for key performance indicators (KPIs) through better analysis of data related to sales and marketing.

A CRM partner (or even software operated by trained employees) helps you with the following:

– Customer Data management

– eCommerce Campaign management

– eCommerce Performance analysis

– Customer retention in eCommerce channels

Key Factors to Keep In Mind While Setting Up an Store for eCommerce in India

Competitive Landscape

If you are a retailer or an e-commerce business owner, you need to know about the competitive landscape of online business in India. The geographical distribution of the Indian population and their purchasing power is cumulatively high. The factor that determines how well your store is doing is competition.

To compete with other stores, you need to have a good price point for your products and make them easily accessible on the internet. Not only is India’s population of 1.3 billion one of the largest consumer markets, but it has also witnessed a dramatic expansion in digital infrastructure and Internet connectivity over the past few years.

competitive landscape of ecommerce

Due to this, many companies have been setting up their stores on online marketplaces such as Amazon and Flipkart which are some of the most visited websites for Indian consumers.

So if you have a large appetite make sure you arrange for the food first. It is possible to compete well, but you need to have all your bases covered. That requires investments, a large chunk of it and cutting corners won’t help. If you are game for that, the next point is optimization. Unless you are Uncle Scrooge with a change of heart, you may want to allocate your financial resources to gain optimum returns from them.

Rules and Regulations

The Following Acts and Regulatory bodies govern the functioning of eCommerce in India.

a. Regulatory Bodies

  1. Foreign Direct Investment Policy
  2. Further, the Foreign Exchange Management Act, 1999  Companies Act, 2013
  3. Payment and Settlement Act, 2007 and other RBI regulations on payment mechanisms
  4. Labelling and Packaging
  5. Legal Metrology Act, 2009 read with Legal Metrology (Packaged Commodity) Rules, 2011
  6. Sales, Shipping, Refunds and Returns
  7. Moreover, Regulations prescribed by the relevant ministry/state regulations

b. Technology & Data Protection

  1. Information Technology Act, 2000 
  2. Additionally, Information Technology (Intermediaries Guidelines) Rules, 2011 
  3. Information Technology Act, 2000 (IT Act) and General Data Protection Regulations (GDPR).
  4. Consumer Protection Act, 1986

c. Tax

  1. Income Tax Act, 1961
  2. Double Taxation Avoidance Agreement
  3. Good and Services Tax

d. Legal

  1. Indian Contract Act, 1872
  2. Indian Copyright Act, 1957
  3. The Patents Act, 1970
  4. Intellectual Property Issues
  5. Labour laws

Marketing for eCommerce in India


In India, advertising on TV has been found to be the most effective medium for brands like e-commerce companies because it reaches out to a maximum number of people at an affordable price. Most marketers employ traditional methods like TV, radio, newspapers, and print ads. However, digital marketing has also become popular in recent years. With 91% of Indian internet users using a mobile phone to access the internet, it makes sense for marketers to employ digital media to promote their products and services.

Digital marketing is cheaper than traditional methods like billboards or TV ads.

advertising for eCommerce in India

It is also better because it allows marketers to track how their campaigns are performing and make changes on the go as needed.

Social Media Marketing

A good way to get started with marketing for eCommerce in India is to understand social media demographics then customize your content strategy accordingly. Posts should be able to attract the right audience and be able to help them solve their problems.

You can promote your product or service on social media platforms like Facebook, YouTube, Twitter and Linkedin. You can also hire a team of people who are knowledgeable about these platforms to do it for you as well.

It’s imperative that you have a strong online presence as we speak because almost all transactions are done digitally now. The cost of doing business is much lower if one has a sound online marketing plan so make sure that you get a plan in place in place, optimize it, allocate resources and run with it.

Email Marketing

Email marketing campaigns are popular because of their simplicity and reach. You don’t have to spend money on distribution, you can just use your company’s email list for marketing purposes.

For an email campaign to work, you need to know who your customer is and what they want. This means that before sending out an email campaign, you need to understand what kind of content will resonate with them. Doing tests stated below may give a marketer a better understanding of consumer behavior with context to the brand.

Conducting A/B testing: If you have two different versions of an email campaign, then you can test them by sending them both to your list at the same time and compare their performance. This will allow you to determine which version is more effective.

Split Testing: Creating a list for subscribers who have been sent an email in the past three months allows for split testing your emails with a control group versus your current group. This way, you can create new segments of emails and compare their performance with your current campaigns.

Affiliate Marketing

Affiliate marketing is one way that companies can market their products to a wider audience. It works by paying someone else to market their product for them (usually in return for a commission or fee). Affiliates can be bloggers, social influencers, or just anyone with a large following on social media. This type of marketing has been proven successful by companies such as Amazon and Flipkart because it’s cost-effective and scalable.

Affiliate marketing is proven effective because it’s cost-effective and scalable. Affiliate marketing can be a powerful way to generate sales on the internet. It allows you to promote products that you like, and make money if someone buys those products through your link or referral.

The affiliate marketer provides a service by promoting someone else’s company, product, or service. In order for this transaction to happen, the affiliate marketer must have an affiliate link (a URL), which is a hyperlink that is created specifically for the purpose of making a commission from an external website.


In conclusion, eCommerce in India is a big market that is growing rapidly and it shows no signs of slowing down. It has seen significant growth as there is low penetration of PCs and the internet, coupled with high smartphone penetration provides an excellent opportunity for e-commerce.

We can see the huge opportunity that eCommerce in India presents in front of us. We at 7 Peaks Digital Marketing (7PDM) can help you with developing components of your business of eCommerce in India.

Issac Karayahabitin

Digital Explorer, Author and a wanderer

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