There are three broad ways to sell online in India: run your own store with open-source software, rent a ready-made store from a hosted (SaaS) platform, or list your products on a marketplace such as Amazon or Flipkart. Each one trades cost against control and reach in a different way. This guide compares the three, adds a fourth low-cost option for very small shops, and helps you decide where to start.
Open-source software such as WooCommerce costs the least in fees and gives you full control, but you maintain it. Hosted platforms such as Shopify are the quickest to launch, with monthly fees and paid apps. Marketplaces bring ready buyers but take a commission on every sale and own the customer relationship. Many Indian sellers combine them: a store on their own domain for repeat customers, and a marketplace for reach.
1. The three routes at a glance
| Question | Open-source, self-hosted | Hosted (SaaS) platform | Marketplace |
|---|---|---|---|
| Examples | WooCommerce, PrestaShop, OpenCart, Magento Open Source | Shopify, BigCommerce | Amazon, Flipkart, Meesho |
| What you pay | Hosting, domain, optional themes and extensions | Monthly subscription, apps, sometimes transaction fees | Commission and fees on every sale |
| Payments | Your own gateway, or cash on delivery | The platform's payment options or a gateway app | The marketplace collects and pays you out |
| Who owns the customer | You | You, within the platform's rules | Mostly the marketplace |
| Technical work | Highest: you update and secure it | Low | Lowest |
| Brand visibility | Your own brand and domain | Your own brand and domain | The marketplace's brand comes first |
2. Open-source, self-hosted platforms
You install free software on your own hosting and run the store yourself.
- No subscription: you pay for hosting, a domain and any extensions you choose
- Full control over design, data and customer information
- Any Indian payment gateway with a plugin, plus cash on delivery
- You can move to another host whenever you like
- You apply updates to the software, theme and plugins
- Security and backups are your responsibility
- Custom features may need a developer
WooCommerce (a free WordPress plugin) is the usual choice for small and medium shops and runs well on ordinary shared hosting. PrestaShop and OpenCart are store-first alternatives. Magento Open Source is powerful but needs a developer and a server of its own; it does not belong on shared hosting.
3. Hosted (SaaS) platforms
You rent a complete store. The platform runs the servers, security and updates, and you work inside its admin panel.
- Quickest route to a working store, with no server to manage
- Hosting, SSL and software updates are included
- Large app stores for extra features
- Monthly fees continue for as long as the store exists
- Paid apps and transaction fees add up as you grow
- You can customise only within the platform's rules
- Moving away means rebuilding the design elsewhere
Plans, fees and India payment options change often, so check each platform's own pricing page on the day you decide.
4. Marketplaces
You list products on someone else's shopping site and sell to its existing customers.
- Millions of shoppers already searching for products
- Buyers trust the marketplace's payments and returns
- Delivery and payment collection can be handled for you
- A referral commission and other fees on every sale
- Price competition with many sellers of similar items
- Customers remember the marketplace, not your brand
- The marketplace sets the rules and can change them
India also has ONDC (Open Network for Digital Commerce), a government-backed network that lets sellers reach buyers through several participating shopping apps instead of one marketplace. Terms depend on the seller app you join.
Online sellers in India also need to think about GST: the rules for selling through a marketplace differ from selling on your own site. Confirm what applies to you with your accountant before you start.
5. A fourth option for very small shops
If you sell a small range of products to people who already know you, you may not need a full store at all. A website builder with a simple cart lets visitors pick products and send the order to you on WhatsApp or pay by UPI, with no payment gateway paperwork. It suits home businesses, food sellers and local shops, and you can move to WooCommerce later if you outgrow it.
6. How to choose
- Count your products and variants.A handful of items suits a builder cart; hundreds with sizes and colours suit WooCommerce or a hosted platform.
- Decide who does the technical work.If nobody on your team will update software every month, choose a hosted platform or a builder.
- Work out two years of cost.Add subscriptions, hosting, themes, apps or extensions, gateway fees and marketplace commissions for your expected sales.
- Decide how much the customer relationship matters.If repeat customers and your brand matter, sell on your own domain, even if you also use a marketplace.
- Start small and test.Launch with a few products, place real test orders, and grow from there.
For a detailed side-by-side of the individual platforms, see comparing PrestaShop, WooCommerce, Magento, Shopify and BigCommerce and the shorter checklist how to choose the right e-commerce platform.
Even if most sales come from a marketplace, a store or website on your own domain gives customers a place to find you again, and makes a later move between platforms much easier.
7. Where Domain India fits
- WooCommerce or PrestaShop on shared hosting. Our cPanel plans include Softaculous and WP Toolkit, so you can install WordPress and add WooCommerce, or install PrestaShop directly. Free SSL and weekly JetBackup backups (every Sunday, 5 copies kept) are included. Step by step: installing WooCommerce on cPanel hosting.
- A small shop without a full platform. The AI Website Builder Pro and Business plans include an online cart where visitors order on WhatsApp or pay by UPI.
- Magento or heavy custom stores. A self-managed VPS gives you root access. cPanel is not offered on VPS plans.
A .in domain with cPanel Starter costs ₹1,925 in the first year (Domain India list prices on 19 September 2026, excluding 18% GST); the full breakdown is in create a low-cost e-commerce website. New shared hosting purchases have a full refund within 30 days. The cards show live prices, excluding 18% GST.
- 25 GB NVMe SSD Storage
- 50 GB Monthly Bandwidth
- 1 Website
- 10 Email Accounts
- 5 websites
- Connect your own domain + free SSL
- Everything in Starter
- More AI generations
Frequently asked questions
What are the main types of e-commerce platforms?
Open-source software you host yourself, such as WooCommerce; hosted SaaS platforms, such as Shopify; and marketplaces, such as Amazon and Flipkart, where you list products on someone else's site.
Which is cheapest for a small business in India?
Usually open-source software such as WooCommerce on shared hosting, because there is no subscription or commission. With Domain India, a .in domain and cPanel Starter cost ₹1,925 in the first year, excluding 18% GST, plus payment gateway fees.
Should I sell on Amazon or Flipkart, or build my own store?
Many sellers do both. A marketplace brings ready buyers but charges a commission on every sale and keeps the customer relationship. Your own store costs less per sale and lets you build repeat customers under your own brand.
Is WooCommerce free?
The WooCommerce plugin is free. You pay for hosting and a domain, and optionally for premium themes, extensions and payment gateway fees.
Can I start with a simple website and upgrade later?
Yes. A website builder with a WhatsApp and UPI cart suits a small catalogue. When you need a full checkout, stock control and shipping rules, you can move to WooCommerce or a hosted platform on the same domain.
What is ONDC?
The Open Network for Digital Commerce is a government-backed network in India that lets sellers reach buyers through several participating shopping apps. Fees and terms depend on the seller app you join.
Ready to start selling? Compare cPanel hosting plans for WooCommerce, try the AI Website Builder for a small shop, or register your domain first.
Install WooCommerce or PrestaShop from your control panel, with free SSL and weekly backups included.
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