Quick Answer
You can start a real online store in India for under ₹1,000 in your first month. The only fixed costs are a hosted platform (from ₹299/month on HOD Media, 0% commission) and a domain (₹500–₹900/year). Everything else — payment gateway charges (~2% per sale) and shipping — is paid per order, so it scales with revenue instead of needing money upfront.
The real cost of an online store, line by line
People assume launching a store is expensive because agencies quote ₹25,000–₹1,00,000. It isn't — that price is for custom development you don't need. Here's what it actually costs in 2026 on a modern hosted platform.
1. Platform / hosting — ₹0 to ₹2,000/month
This is your store software, hosting, SSL and themes. India-first hosted platforms bundle it all: HOD Media is ₹299/month (launch price) with 0% commission. Shopify is ~₹1,994/month plus apps. WooCommerce is “free” but you pay ₹500–₹2,000/month for hosting and a developer.
2. Domain name — ₹500 to ₹900/year
A .in or .com domain (yourbrand.in) is a one-time yearly cost. A custom domain builds trust and ranks better than a subdomain. On HOD Media you get a free subdomain to start and can connect your own domain with free auto-SSL whenever you're ready.
3. Payment gateway — ~2% per transaction
Razorpay, PayU and Cashfree charge roughly 2% per successful payment (UPI is usually cheaper). It's deducted automatically from each sale — there's no monthly minimum for most sellers. So on a ₹1,000 order you net about ₹980. COD has no gateway fee but adds courier remittance and return risk.
4. Shipping — paid per order (₹40–₹120 per shipment)
You only pay when you ship. Aggregators give discounted rates (often ₹40–₹120 for a 0.5 kg parcel depending on zone). You can charge the customer for shipping, offer free shipping above a cart value, or absorb it — your choice. HOD Media has built-in shipping with live rates and label printing.
5. GST & compliance — ₹0 software cost
GST registration itself is free (you may pay a CA a small fee to file). Generating compliant tax invoices should cost nothing — it's automatic on HOD Media for every order, with HSN codes and the correct CGST/SGST/IGST split.
6. Marketing — start from ₹0, scale when ready
Your first orders can come free from WhatsApp, Instagram and word of mouth. When you're ready to scale, Meta Ads can start at a few hundred rupees a day, and AI ad creatives cost about ₹50 per image — far less than a designer or agency retainer.
Sample first-month budget (a realistic start)
- Platform (HOD Media, launch price): ₹299
- Domain (.in, yearly): ~₹700
- Payment gateway: ₹0 upfront (~2% deducted per sale)
- Shipping: ₹0 upfront (paid per order)
- Optional ads to test: ₹500–₹2,000
Total to go live: under ₹1,000. Add a small ad budget only when your store is ready and you want to accelerate. There is genuinely no reason to spend tens of thousands of rupees to start.
How to keep costs lowest
- Pick a 0%-commission platform so growth doesn't get taxed by your tools.
- Start on the free subdomain, connect a custom domain once orders are flowing.
- Push customers to UPI/prepaid (lower fees + far less RTO than COD).
- Use AI creatives instead of a designer for your first ads.
How much does it cost to start an online store in India in 2026?
You can start a real, custom-domain online store in India for under ₹1,000 in the first month: ₹299 for a hosted platform like HOD Media (launch price, 0% commission) plus ₹500–₹900/year for a .in or .com domain. Payment gateways charge ~2% per transaction (deducted from each sale, not upfront), and shipping is paid per order. There is no big upfront investment needed.
Is there any free way to sell online in India?
Yes — you can start free on WhatsApp Business and Instagram with a catalogue and UPI/COD, and on free tiers of some builders. But a free setup usually means no custom domain, weak SEO, and manual order/GST handling. A ₹299/month hosted store pays for itself quickly once you're taking regular orders.
What are payment gateway charges in India?
Indian gateways (Razorpay, PayU, Cashfree) typically charge about 2% per successful transaction for UPI/cards (often a bit lower for UPI). It's deducted from each payment automatically, so it scales with sales rather than being an upfront cost. COD has no gateway fee but adds courier COD-remittance and higher RTO risk.
Do I need to pay commission on my online sales?
Not if you choose a 0%-commission platform. Marketplaces like Amazon/Flipkart take 5–25% per sale, and some store builders take a cut too. On your own store with HOD Media, the platform takes 0% commission — you only pay the flat monthly fee and your payment gateway's per-transaction charge.
What is the cheapest online store platform in India?
Among credible options that give you a custom domain, native UPI/COD and GST invoices, HOD Media is the cheapest at ₹299/month (launch price) with 0% commission and no per-order platform fee.