Starting an online store is one of the smartest investments a business can make in 2026 — but the costs vary wildly depending on your approach. A basic WooCommerce store can cost ₹15,000, while a fully custom e-commerce platform can exceed ₹5,00,000.
This guide gives you honest, detailed pricing so you can budget accurately and choose the right approach for your business.
E-commerce Website Cost Summary
| Approach | Setup Cost (INR) | Monthly Cost (INR) | Best For |
|---|---|---|---|
| Shopify (hosted) | ₹0 – ₹10,000 | ₹2,000 – ₹25,000/month | Quick launch, non-technical owners |
| WooCommerce (self-hosted) | ₹15,000 – ₹80,000 | ₹500 – ₹5,000/month | Budget-friendly, full control |
| Custom build (Next.js, React) | ₹75,000 – ₹5,00,000+ | ₹2,000 – ₹15,000/month | Unique requirements, scale |
| Marketplace (Amazon, Flipkart) | ₹0 | Commission per sale (5–25%) | Testing demand before investing |
Not sure which fits your budget? Our free website cost calculator gives you a personalised estimate in 60 seconds.
Platform Comparison with Costs
Shopify
Monthly plans: Basic ₹2,000/month → Shopify ₹5,300/month → Advanced ₹22,000/month
Pros: Easy setup, hosted (no server management), 100+ payment gateways, app marketplace, 24/7 support.
Cons: Transaction fees (2% on Basic plan unless using Shopify Payments), limited customisation, monthly cost adds up over years, data portability concerns.
Total year-1 cost: ₹35,000 – ₹3,00,000 (plan + apps + theme + setup)
WooCommerce (WordPress)
Software cost: Free (open source)
Actual cost: Hosting (₹200–₹3,000/month) + Theme (₹0–₹5,000 one-time) + Plugins (₹0–₹15,000/year) + Developer setup (₹15,000–₹80,000)
Pros: Full ownership, no transaction fees, unlimited customisation, 60,000+ plugins, massive community.
Cons: Requires hosting management, security is your responsibility, can be slow without optimisation, plugin conflicts.
Total year-1 cost: ₹20,000 – ₹1,20,000
Custom Build (Next.js / React)
Development cost: ₹75,000 – ₹5,00,000+ (one-time)
Pros: Complete control, best performance, unique features, scales to millions of products, no platform lock-in.
Cons: Higher upfront cost, needs experienced developers, longer development time.
Total year-1 cost: ₹1,00,000 – ₹6,00,000+
We build custom e-commerce solutions for businesses that have outgrown Shopify and WooCommerce. See our retail chain e-commerce case study.
Cost Breakdown by Feature
| Feature | WooCommerce | Shopify | Custom Build |
|---|---|---|---|
| Product catalogue (up to 500 products) | Included | Included | ₹15,000 – ₹40,000 |
| Shopping cart & checkout | Included | Included | ₹20,000 – ₹50,000 |
| Payment gateway (Razorpay/PhonePe) | Free plugin + 2% per txn | Built-in + 2% per txn | ₹15,000 – ₹30,000 + 2% per txn |
| Shipping integration (Shiprocket) | Free – ₹5,000 plugin | Free – ₹2,000 app | ₹10,000 – ₹25,000 |
| Inventory management | Included (basic) | Included | ₹20,000 – ₹60,000 |
| Admin dashboard | Included (WordPress) | Included | ₹30,000 – ₹80,000 |
| GST-compliant invoicing | ₹2,000 – ₹5,000 plugin | ₹500 – ₹2,000 app | ₹10,000 – ₹20,000 |
| Multi-vendor marketplace | ₹5,000 – ₹15,000 plugin | Not native (needs app) | ₹50,000 – ₹1,50,000 |
Payment Gateway Fees in India
| Gateway | Transaction Fee | Settlement Time | Notes |
|---|---|---|---|
| Razorpay | 2% per transaction | T+2 business days | Most popular in India, easy integration |
| PhonePe (PG) | UPI: 0%, Cards: 1.75% | T+1–T+3 | Growing fast, good UPI rates |
| Stripe India | 2% per transaction | T+2 | Best for international payments |
| Cashfree | 1.90% per transaction | T+1 | Fastest settlement, good for high volume |
| PayU | 2% per transaction | T+2 | Established player, EMI options |
Note: UPI transactions through PhonePe PG are currently 0% — a significant saving if most of your customers pay via UPI (which is the case for most Indian e-commerce).
Ongoing Monthly Costs
| Item | Monthly Cost (INR) | Notes |
|---|---|---|
| Hosting | ₹200 – ₹5,000 | Shared for small stores, VPS/cloud for high traffic |
| SSL certificate | ₹0 – ₹500 | Let's Encrypt is free |
| Domain renewal | ₹50 – ₹125 (annual/12) | .in or .com domain |
| Email hosting | ₹75 – ₹500/user | Google Workspace or Zoho |
| Platform subscription (Shopify only) | ₹2,000 – ₹22,000 | Not applicable for WooCommerce/custom |
| Plugin/app updates | ₹0 – ₹2,000 | Annual renewals for premium plugins |
| Maintenance & support | ₹2,000 – ₹10,000 | Bug fixes, updates, backups |
| Marketing (SEO, ads) | ₹3,000 – ₹25,000+ | Optional but recommended |
Cheapest vs Best: What You Get at Each Price Point
Budget: Under ₹25,000
WooCommerce with a free theme on shared hosting. 50–200 products, basic design, Razorpay payment. Works for testing the waters — but expect limitations in speed and customisation.
Mid-range: ₹25,000 – ₹1,00,000
WooCommerce or Shopify with premium theme, custom branding, shipping integration, GST invoicing. 200–2,000 products. This is the sweet spot for most Indian small businesses launching their first online store.
Premium: ₹1,00,000 – ₹5,00,000+
Custom-built e-commerce with unique design, advanced features (multi-vendor, AI recommendations, inventory sync with physical store), and optimised performance. For businesses where e-commerce is a primary revenue channel.
Our e-commerce development service covers all three tiers. We recommend starting at mid-range and scaling up as your online sales grow.
Frequently Asked Questions
Which platform is best for beginners in India?
Shopify if you want the easiest setup with zero technical knowledge. WooCommerce if you want lower long-term costs and more control. Both are viable — Shopify has higher monthly costs but lower upfront investment.
Can I start an online store with ₹10,000?
Yes — using WooCommerce with a free theme on budget hosting. It will not be polished, but it will be functional. Alternatively, start selling on Instagram/WhatsApp and invest in a proper store once you validate demand.
How much should I budget for the first year?
For a serious e-commerce business: ₹50,000–₹1,50,000 for year one (setup + hosting + maintenance + basic marketing). This covers a professional WooCommerce store with proper design and SEO.
Do I need GST registration to sell online?
Yes, if your annual turnover exceeds ₹40 lakhs (₹20 lakhs for services, ₹10 lakhs in special category states). Most e-commerce platforms and marketplaces require GST registration regardless of turnover. Get registered early — it also lets you claim input tax credit on your business expenses.
Should I sell on my own website or on Amazon/Flipkart?
Ideally, both. Start with marketplaces to validate demand (zero setup cost), then build your own store to avoid 5–25% marketplace commissions and own your customer relationships. Many successful Indian e-commerce businesses run both in parallel.
How to Build an E-commerce Website: Step by Step
Whether you are launching your first online store or moving from a marketplace to your own website, follow these 10 steps to build a functional e-commerce site:
- Choose your e-commerce platform. Decide between Shopify (easiest, monthly fee), WooCommerce (cheapest long-term, requires hosting), or a custom build (most flexible, highest cost). Your choice depends on budget, technical skills, and how much customisation you need. For most Indian small businesses starting out, WooCommerce offers the best balance of cost and control.
- Register a domain name. Choose a .com or .in domain that matches your brand name. Keep it short, easy to spell, and free of hyphens. Register through GoDaddy, Namecheap, or BigRock for ₹500–₹1,500/year. Check domain availability early — popular names sell out fast.
- Set up hosting. For WooCommerce, choose a hosting provider like Hostinger (₹200/month), SiteGround, or DigitalOcean. For Shopify, hosting is included in your plan. Ensure your hosting has SSL (free with Let's Encrypt), daily backups, and servers located in or near India for fast load times.
- Design your store. Select a theme that matches your product category and customise it with your brand colours, logo, and typography. Focus on clean product pages, easy navigation, and a streamlined checkout flow. Mobile-first design is essential — over 70% of Indian e-commerce traffic comes from smartphones.
- Add your products. Upload product images (minimum 3–5 per product, white background, multiple angles), write clear descriptions with specifications, set prices with GST included or excluded (be consistent), and organise products into logical categories. Use high-quality images — poor product photography is the number one reason online stores fail to convert visitors.
- Integrate a payment gateway. Set up Razorpay, PhonePe, or Cashfree to accept UPI, credit cards, debit cards, net banking, and wallets. UPI is the most popular payment method in India — ensure it works smoothly. Most gateways charge 2% per transaction and settle funds in T+1 to T+3 business days. Also consider adding Cash on Delivery (COD) as an option — it still accounts for 40–50% of Indian e-commerce orders.
- Configure shipping. Integrate with a shipping aggregator like Shiprocket (₹25–₹80 per 500g shipment) or Delhivery for automated shipping label generation, real-time tracking, and multi-courier comparison. Set shipping rates by zone (local, regional, national) and offer free shipping above a minimum order value to increase average order size.
- Set up SEO basics. Optimise every product page with a unique title tag, meta description, clean URL slug, and alt text for images. Create category pages with descriptive content. Submit your sitemap to Google Search Console. Install an SEO plugin (Yoast for WooCommerce, or built-in tools for Shopify). Good SEO from day one saves you from expensive rework later.
- Test everything before launch. Place test orders through every payment method. Check the checkout flow on mobile and desktop. Verify that order confirmation emails send correctly. Test shipping calculations for different pin codes. Check page load speed (aim for under 3 seconds). Fix any broken links or missing images. Have 3–5 people outside your team test the buying process and report issues.
- Launch and start marketing. Announce your store on social media, WhatsApp Business, and Google My Business. Set up Google Analytics to track visitors and conversions. Run initial Google Ads or Instagram ads with a small budget (₹5,000–₹10,000) to drive first traffic. Collect customer reviews from your first 10–20 orders — social proof is critical for new stores. Plan a content marketing strategy with blog posts targeting your product-related keywords.
Need help building your e-commerce store? Our e-commerce development service handles everything from platform selection to launch.
For global benchmarks, see Clutch's 2025 web design cost survey.
About the author
Ashok co-founded Redpulse Software with a vision to make enterprise-grade technology accessible to small and medium businesses. He drives business strategy and client relationships, ensuring every project delivers real value.
