{"id":174674,"date":"2019-05-17T09:51:19","date_gmt":"2019-05-17T09:51:19","guid":{"rendered":"https:\/\/webkul.com\/blog\/?p=174674"},"modified":"2025-12-02T09:36:21","modified_gmt":"2025-12-02T09:36:21","slug":"how-to-start-an-e-commerce-marketplace-in-india","status":"publish","type":"post","link":"https:\/\/webkul.com\/blog\/how-to-start-an-e-commerce-marketplace-in-india\/","title":{"rendered":"How to Start an E-Commerce Marketplace in India?"},"content":{"rendered":"

Here we”ll discuss about that How to launch eCommerce Marketplace in India?<\/p>\n

India\u2019s e-commerce market is growing at a very rapid pace, allowing retailers to sell their products online without the need of owning any physical store.<\/p>\n

But do you know what is involved in e-commerce marketplace requirements<\/a>? Hosting, SSL, domain, inventory & warehouse management, payment, and shipping partner are essential for starting an e-commerce marketplace.<\/p>\n

These are the common considerations before launch ecommerce marketplace no matter in which geolocation you will start your online business.<\/p>\n

Webkul is catering the clients around the globe. LabX is one such example. A leading Canada-based marketplace for buying and selling new and used laboratory equipment and supplies.<\/p>\n

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Another great example is Shop Disney India, selling Disney and Marvel merchandise items through an online commerce platform built with Webkul Multi-Vendor Marketplace.<\/p>\n

You can go through more of our e-commerce marketplace success stories<\/a>. And, get to know how our clients have benefitted using Webkul\u2019s marketplace solution.<\/p>\n

Before giving the actual picture of your e-commerce marketplace<\/a> business, you need to consider certain other factors based on the country you will be starting your e-commerce marketplace.<\/p>\n

Just like the e-commerce marketplace cost<\/a>\/investment varies from country to country.<\/p>\n

Similarly, there are certainly additional requirements and legal regulations you will need to consider if you are planning to start an e-commerce marketplace in India.<\/p>\n

Important Considerations For E-commerce Marketplace In India –<\/h1>\n

There are some important core considerations which you must need to take care of while starting an e-commerce marketplace in India. Let\u2019s discuss each one of them.<\/p>\n

Payment Processing<\/h2>\n

An E-commerce marketplace is all about multiple vendors and transactions which is different from a typical e-commerce business model.<\/p>\n

This makes payment processing one of the most complex and crucial sections of the e-commerce marketplace which merchants should plan carefully.<\/p>\n

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You need to take care of how? and when? the funds will be transferred to multiple sellers after every successful transaction by the customer.<\/p>\n

There are two ways of payment processing in the marketplace. One is default payment flow and the other is split payment flow.<\/p>\n

In Default Payment Flow the payment made by the customer for their purchases will come directly to the admin\u2019s bank account.<\/p>\n

Then, the admin will pay the respective multiple sellers out of the e-commerce platform such as NEFT, cheque, bank transfer, etc.<\/p>\n

But\u00a0Split Payment Flow allows split payments among multiple vendors from the single transaction made by the customer.<\/p>\n

For this, there are several Indian third-party payment gateways available that support split payments like PayU, Citrus, EBS, etc.<\/p>\n

In the marketplace, the payment will be split between the sellers and the admin automatically. T<\/p>\n

he sellers will receive the product payment in their linked bank account and the admin will get the commission and shipping amount in the admin\u2019s bank account.<\/p>\n

Taxation: The Goods and Service Tax (GST)<\/h2>\n

As the Indian government is quite on focussed on digital transformation. Therefore, the e-commerce sector will be gaining the maximum benefits under GST (The Goods and Service Tax).<\/p>\n

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For your e-commerce business, you need to register for GST and other taxes under the Government of India.<\/p>\n

GST norm has replaced all the direct and indirect Indian taxes existing earlier like VAT, excise duty, and service tax.<\/p>\n

Note: For more details, you can visit the Indian Government GST Law<\/a> page.<\/p>\n

Indian Government Selling Norms For E-commerce Merchants<\/h2>\n

The Indian government has tightened the e-commerce norms for online eCommerce marketplaces –<\/p>\n