How much does an eCommerce website cost in India?

(Last Updated On: January 19, 2024)

There isn’t a one-size-fits-all answer when it comes to eCommerce website cost.

An eCommerce website can cost you anywhere between ₹4000 and ₹10,000 per year. Some platforms also offer free websites with basic eCommerce features. 

If you’re planning to opt for Instamojo to set up and grow your online business, your concerns may revolve around a bunch of questions: how much will it really cost you to set up the store? How much does Instamojo charge per sale? Is there a free plan?

Don’t worry, this article has come to your rescue!

You’ll find out how much it will cost you to make an eCommerce website and start selling online.

eCommerce cost structure

India’s e-commerce landscape is thriving, with a projected market size of $80 million by 2025. But behind the booming sales figures lies a complex web of costs that determine an online business’s success. Understanding the eCommerce cost structure in India is crucial for aspiring entrepreneurs and established players alike.

Here’s a breakdown of the key cost components:

1. Website development and maintenance:

• Building the platform: Setting up your online store is the foundation. Costs range from ₹10,000 to ₹10 lakhs, depending on factors like website complexity, features, and chosen platform.
• Maintenance and upgrades: Websites need constant attention. Expect to spend ₹1,000 to ₹5,000 per month on maintenance, including software updates, security checks, and bug fixes.

2. Inventory management

• Sourcing and procurement: Acquiring products can involve manufacturing, wholesale purchases, or dropshipping. Costs vary based on your chosen model and product categories.
• Warehousing and logistics: Storing and fulfilling orders involve rent, manpower, packaging materials, and shipping fees. These can be significant expenses, especially for bulky or perishable items.

3. Marketing and customer acquisition

• Digital marketing: Reaching your target audience online requires strategies like SEO, social media marketing, and paid advertising. Costs can range from ₹5,000 to lakhs per month, depending on campaign goals and chosen channels.
• Customer Acquisition Cost (CAC): This metric measures the cost of acquiring a new customer. Understanding your CAC helps optimize marketing spend and improve profitability.

4. Payment processing

• Payment gateways: Secure platforms enable online transactions. They charge fees per transaction, typically around 2-3%.
• Cash on Delivery (COD): This popular option in India comes with additional charges for pickup and reverse logistics, impacting margins.

5. Customer service and returns

• Building a support team: Providing efficient customer service requires manpower and technology. Costs vary depending on in-house staff, outsourced solutions, and chosen channels (phone, email, chat).
• Returns and refunds: Managing product returns and issuing refunds can eat into profits. Optimize your return policy and streamline the process to minimize these costs.

Can I create an eCommerce website for free?

Definitely yes! With Instamojo, you can get an online store for FREE. A premium online store with advanced features can cost you anywhere from ₹3,999 to ₹9,999 per year.

Additionally, there’s a Do-it-for-me (DIFM) plan which takes the task of creating the store off your hands. The paid plans have a 14-day money-back guarantee.

Instamojo is the only eCommerce store builder that give sellers a chance to build a store for FREE. It comes with all the features you need to kickstart your online business.

Let’s take a look at the different Instamojo pricing plans and how much it will cost you for an eCommerce website

Build your eCommerce website FREE

Instamojo pricing plans: Which is best for your eCommerce business?

Each Instamojo plan offers a variety of features that fits different business sizes. Instamojo is one of the few eCommerce website builders that has pricing plans in rupees. For many other platforms, you may have to pay in foreign currency, thus bringing in extra costs.

Instamojo is where you get everything you need to start, manage and grow your business.

This means that you don’t just get an eCommerce website where you can sell products; you can also easily manage repetitive tasks such as cataloguing, collecting orders, inventory management, and handling shipping.

So, you can just focus on the growth and strategic part of your business.

With the range of eCommerce tools available, marketing your business online and getting new customers (and getting old customers to come back) gets more efficient.

This means that you can market and sell your products all from one place — at the best rates in the industry.

Related Read: The benefits of an eCommerce website

Online store Lite plan: Create an online store for FREE

By signing up for this plan, you get a life-long free online store where you can sell unlimited products.

Here’s a brand that sells cosmetic products with an Instamojo free online store:

This store will be mobile-optimised and comes with an integrated payment gateway. This means that your customers can securely make purchases with a payment method of their choice.

If you’re a small business selling on social media, you must have seen your DMs getting flooded with orders. A free online store will help you collect orders without the constant back-and-forth in DMs. Plus, easily integrate with our eCommerce shipping partners and get door-doorstep delivery!

Related read: Easily manage every single task from this one dashboard. 

Do remember- on free online stores you need to pay a normal fee of 5% + 3 per successful transaction. For example, if a customer experience makes a purchase of ₹1000, it will cost you ₹53.

Starter plan for your online store

This premium online store plan comes with an annual subscription fee of ₹3,999.

This would be an ideal plan if you’re a small business that’s just starting out and want to explore the eCommerce market.

Major highlights:

Apart from all the features available on the Lite plan, here’s what you will get:

1. Custom domain linking: Get a unique brand name for your online store
2. 19+ premium online store themes: Create a beautiful store that stands out

Growth Plan for the online store

The Growth plan comes with a range of in-built tools to manage different aspects of your business, including marketing and customer experience. With the Growth plan, it will cost you ₹9,999 per year (₹1,999 per month). 

Highlights:

These are the best features you can make use of on a Growth plan store:

1. SEO tools: You can make your store discoverable and let your customers find you.
2. Customer accounts: Customers can create their own accounts on your store.
3. Manage product reviews: Leverage the power of testimonials. Allow your customers to share reviews of your products.
4. Get the .LINK custom domain for free for one year. 

Check our pricing

Online store DIFM (Do-it-for-me plan) plan

Do you find yourself with very little time as a business owner and need help with setting up your website? This is the plan for you.

Our team sets up your online store and walks you through how to manage it. You get a dedicated eCommerce advisor to help you run your business.

Set a date to connect with our team

The total cost of an eCommerce website!

In total, you can easily create an online store for around ₹5K per year.

Choosing an eCommerce platform is one of the most crucial decisions you will take as an eCommerce business owner. It will affect how you manage and grow your business.

Now that you know which features are available in each pricing plan, it’s time to decide which one is the best for your business and take the first step.

Build your online store today