How to Start an Online Store in India with Shopify: Setup, Payments, Shipping and Legal Basics

Shopify is a hosted platform that lets you build an online store without coding. It handles the technical parts: hosting, a shopping cart, a checkout and security. What it does not handle is choosing products people want, driving customers to your store or following Indian legal requirements. This guide covers the whole path.

Before you open a store

1. Pick a product and a customer. Know who you are selling to, the problem you solve and why they would buy from you rather than a marketplace.
2. Check the economics. Work out your cost, shipping, payment fees, advertising and returns before you set a price. Our profit margin calculator helps.
3. Decide the business form and registrations: proprietorship is the simplest. Selling goods online usually needs a GSTIN. Some products need other licences, for example FSSAI for food.
4. Choose a brand name and domain. Check the domain and trademark availability, and keep it easy to spell.

Setting up the store

Payments in India

Shopify Payments is not available in India at the time of writing, so you connect a third-party payment gateway that supports UPI, cards, netbanking and wallets. Popular choices include Razorpay, PayU, Cashfree and others. Compare:

• Transaction fees, usually a percentage per payment plus GST, and any setup fees.
• Settlement time to your bank account.
• Payment methods supported, particularly UPI and cards.
• Dispute and refund handling.
• KYC documents they need from you.

Cash on delivery is popular in India but increases returns and refused parcels. You can offer it with a small fee, or encourage prepaid payments with a discount. Use the discount calculator to see the impact of a prepaid offer on your margin.

Shipping

• Use a shipping aggregator such as Shiprocket or similar services, or contract courier companies directly, to get rates, pickup, tracking and COD remittance.
• Set shipping rates clearly: free above a threshold, flat rate or weight based.
• Package carefully, and share tracking updates by message or email.
• Handle returns with a clear process. Check which courier covers your customers' pin codes.

Pages and policies you need

Indian e-commerce rules and customers expect clarity. Create these pages before launch:

• About us with business name, address and story.
• Contact page with email, phone and a form, and grievance officer details where required.
• Shipping policy, with delivery times and charges.
• Return and refund policy, with timelines and conditions.
• Privacy policy and terms of service.
• FAQ answering the common questions about sizing, delivery and payment.

GST invoices and accounts

Invoices must show your GSTIN, the customer's details where needed, HSN codes, taxable value, tax rate and amount. Many Shopify apps generate GST-compliant invoices. Keep your sales, refunds and shipping records tidy so that GST returns are easy. See our GST guide for the calculations, and consider a part-time accountant.

Getting your first customers

1. Tell your personal network and ask for honest feedback.
2. Create content on Instagram and YouTube about your products and the problems they solve. See the Instagram growth guide.
3. Run small paid ad tests with a budget you can afford to lose, and learn which products and audiences convert.
4. Collect email addresses with a welcome offer, and send useful updates.
5. Ask happy customers for reviews and photos.
6. Work on search. See the SEO guide.

Costs to plan for

Mistakes to avoid

• Installing many apps that slow the store.
• Poor photos and thin product descriptions.
• Ignoring mobile design and speed.
• No clear policies, which causes disputes.
• Spending on ads before the store converts visitors into buyers.

Platform features, plans and fees change. Check Shopify's current pricing and the latest legal requirements for e-commerce sellers in India before you launch. If you sell without stock, read our dropshipping guide for the risks.

Frequently asked questions

Is Shopify good for Indian sellers?

Yes, with a third-party payment gateway and local shipping partners. Check current plan costs.

Do I need GST to start a store?

Usually yes for selling goods online. Confirm with an accountant.

Which payment gateways work with Shopify in India?

Providers such as Razorpay, PayU and Cashfree, among others. Compare fees and settlement times.

How do I ship orders?

Through a shipping aggregator or courier partners with pickup, tracking and COD options.

Should I offer cash on delivery?

It increases sales but also returns. Many stores offer it with a fee and a prepaid discount.

What pages must I have?

About, contact, shipping, returns, privacy and terms at a minimum.

Last reviewed 8 November 2026. Rates, limits and rules change, so confirm figures with the official source before you act.