
An ecommerce website in India costs ₹30,000-2 lakh on a hosted platform like Shopify, ₹1.5-6 lakh on WooCommerce, ₹8-30 lakh for a custom build, and $50,000+ for marketplace-grade platforms. Add ₹5,000-50,000 per month in running costs, plus payment gateway fees of roughly 2-2.5% on every transaction.
Those ranges only help if you know which one is yours. This guide breaks down what each route actually buys, the India-specific costs almost every guide forgets (COD losses, GST compliance, logistics APIs), and when paying for custom development starts returning money instead of burning it.
The four build routes, honestly compared
- Hosted platform (Shopify, Wix, BigCommerce): ₹30,000-2 lakh setup plus ₹2,000-20,000 monthly subscription. Fastest to launch, least flexible. Transaction fees apply unless you use their preferred gateways.
- WooCommerce on managed hosting: ₹1.5-6 lakh to build properly. You own the code and the data, but you also own the maintenance, security updates and performance work.
- Custom storefront (headless, e.g. Next.js with a commerce backend): ₹8-30 lakh ($10,000-36,000). Built for conversion: custom checkout flows, sub-second loads, full design control.
- Marketplace / multi-vendor platform: $50,000+. Vendor onboarding, split payments, order routing, commissions — this is a different product category, not a bigger store.
What each route actually gets you
The hosted route buys speed. You can be selling in two weeks; the ceiling is a store that looks and behaves like every other store on the platform, with checkout and UX decisions made for you.
WooCommerce buys ownership at the cost of responsibility. It is the right middle for established brands with a developer on call and opinions about their stack.
Custom buys conversion. When your checkout, page speed, search and product experience are the competitive advantage — not just a commodity layer over a catalogue — custom development is the only route that compounds. It is also the only route where you can implement your exact pricing, bundling and B2B rules.
The India-specific line items most guides skip
This is where Indian ecommerce budgets actually surprise people:
- Payment gateway fees: Razorpay, PayU and Cashfree charge 2-2.5% per transaction plus GST on fees. On ₹1 crore of online revenue, that is ₹2-2.5 lakh a year — a real cost line, not a rounding error.
- Cash on delivery: COD still represents 15-30% of Indian orders in many categories. Each COD shipment adds ₹20-50 handling, and 15-25% of COD orders return (RTO), eating margin twice.
- Logistics integrations: Shiprocket, Delhivery, Bluedart and regional couriers each need integration, rate shopping and tracking logic. Budget ₹40-90 per shipment, and real engineering time for the integrations.
- GST and invoicing: automated GST-compliant invoices, e-invoicing readiness if you cross thresholds, and HSN code management in the catalogue.
- Multilingual and regional UX: for meaningful reach beyond metro English audiences, Hindi and regional language support changes both design and budget.
None of these appear in a generic development quote. All of them appear in your P&L.
Ongoing monthly costs: the real picture
- Maintenance and iteration: ₹10,000-50,000 per month for a serious store — security updates, speed work, new landing pages, A/B tests.
- Platform and apps: ₹2,000-20,000 per month in subscriptions, which quietly compound as you add apps.
- Performance marketing: the largest real cost of most Indian D2C stores, and the one with the most leverage from your site's conversion rate — which is exactly why conversion optimisation matters more than traffic spend.
When does custom development pay off?
Custom stops being vanity and starts being strategy when:
- Your catalogue is large (5,000+ SKUs) or complex (variants, bundles, subscriptions, B2B tiers)
- Your merchandising and checkout UX are your competitive edge, not your products alone
- You have proven product-market fit and traffic, and a 0.3% conversion improvement is worth real money
- You need ownership of data, checkout and customer experience for compliance or brand reasons
Before that point, launch on a platform, learn cheaply, and migrate when the numbers justify it. Premature custom builds are how brands burn runway decorating a store nobody visits yet.
How to keep the budget honest
- Pay for discovery on any custom build. A two-week discovery that maps catalogue structure, integrations and checkout flows is the cheapest insurance in this list.
- Launch an MVP, then iterate monthly. The stores that win treat launch as the starting line, not the finish.
- Own the code and data from day one. Your repo, your analytics, your customer database.
- Budget maintenance from month one. An unmaintained store loses speed, security and eventually rankings.
Where we come in
We build both sides of this decision: platform migrations for growing brands, and custom ecommerce platforms for teams whose commerce experience is the product. If you want a realistic number for your catalogue and traffic, start a conversation — or look at how we price engagements first.
The honest summary: in India in 2026, you can be selling within weeks for under ₹1 lakh, own a serious WooCommerce store for ₹5 lakh, or build a conversion machine for ₹10-30 lakh. The wrong answer is not the cheap one or the expensive one — it is the one that does not match your stage.
Frequently asked questions.
How much does a Shopify store cost in India?
₹30,000-2 lakh for professional setup (theme customisation, payments, logistics, GST-ready invoicing), plus ₹2,000-20,000 per month for the platform plan and apps.
Is WooCommerce cheaper than Shopify?
WooCommerce has lower platform fees but higher maintenance responsibility. Over 2-3 years, costs converge; the real decision is ownership and flexibility (WooCommerce) versus speed and simplicity (Shopify).
How much does a custom ecommerce website cost in India?
₹8-30 lakh ($10,000-36,000) for a well-built custom storefront, and $50,000+ for multi-vendor marketplaces. Custom builds include discovery, design, development and a maintenance retainer.
What do payment gateways charge in India?
Razorpay, PayU and Cashfree typically charge 2-2.5% per transaction plus GST on fees. UPI collections are cheaper; international cards cost more. Negotiate rates once your volume justifies it.
How much should I budget for ecommerce maintenance?
₹10,000-50,000 per month covers security updates, performance work, new landing pages and small feature iterations. High-traffic stores doing active conversion optimisation run higher.
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