"How much do I need?" is the most common question we get, and the answer people hope for is a single number. There isn't one — but there are three believable budgets, and the difference between them is mostly inventory, not software.
Here they are, with what each buys and where each one runs out of road.
Budget 1 — the ₹8,400 lean start
For someone who makes the product themselves and has an audience, however small.
| Line | Cost | Note |
|---|---|---|
| Domain (1 year) | ₹900 | Buy the .in and the .com if both are free |
| Store software, month 1 | ₹0–₹2,000 | Several platforms are free for a first month |
| Raw material for 15 units | ₹4,000 | Make to order after that |
| Packaging for 15 orders | ₹600 | Boxes, bubble wrap, tape |
| Courier float | ₹1,500 | Prepaid wallet with an aggregator |
| Test order and sundries | ₹400 | You will place one. Do |
| Ads | ₹0 | Deliberately |
| Total | ₹7,400–₹9,400 |
What it buys: proof. You will know within three weeks whether people who are not your friends will pay.
Where it runs out: the moment you get 10 orders in a week and have no stock. Make-to-order is a fine start and a bad steady state.
Budget 2 — the ₹24,600 standard start
The most common sensible starting point, and the one we would pick for most people.
| Line | Cost | Note |
|---|---|---|
| Domain | ₹900 | |
| Store software, 3 months | ₹4,500 | Gives you a runway to learn the platform |
| Inventory: 5 SKUs × 12 units | ₹11,000 | The single biggest line, as it should be |
| Packaging (100 orders) | ₹2,200 | Right-sized boxes matter more than printed ones |
| Photography | ₹0 | Phone, window, white sheet. Here is how |
| Courier float | ₹3,000 | |
| Instagram test | ₹2,500 | Roughly ₹300/day for 8 days |
| Buffer for mistakes | ₹1,000 | You will use it |
| Total | ₹25,100 |
What it buys: enough SKUs to learn which one sells, enough stock to ship same-day, and a small ad test that produces real data rather than a vibe.
Where it runs out: at roughly 80–120 orders a month, when the operating work stops fitting into evenings.
Budget 3 — the ₹74,000 serious start
For people leaving a job, or entering a category where presentation is the product.
| Line | Cost | Note |
|---|---|---|
| Domain and email | ₹2,400 | Proper business email from day one |
| Store software, 6 months | ₹12,000 | |
| Inventory: 12 SKUs × 20 units | ₹34,000 | |
| Packaging, branded | ₹6,000 | Justifiable at this volume, not before |
| Product photography (hired) | ₹8,000 | Worth it for jewellery, apparel, food |
| Courier float | ₹5,000 | |
| Ads, 60 days | ₹18,000 | ₹300/day, properly measured |
| Legal, GST, accounting setup | ₹4,000 | A CA for two hours is cheap insurance |
| Total | ₹89,400 gross, ~₹74,000 if you shoot your own photos |
The five costs that ambush people in month two
These never appear in a starting budget and always appear on a bank statement.
What a first year looks like at 60 orders a month
Rough annual view, average order value ₹900, ₹648,000 of revenue.
| Line | Annual | % of revenue |
|---|---|---|
| Cost of goods | ₹259,000 | 40% |
| Shipping, net of what customers pay | ₹52,000 | 8% |
| Payment charges | ₹13,000 | 2% |
| Packaging | ₹26,000 | 4% |
| Software | ₹30,000 | 4.6% |
| Ads | ₹72,000 | 11% |
| Returns, RTO and damage | ₹32,000 | 5% |
| Total cost | ₹484,000 | 74.7% |
| Left over | ₹164,000 | 25.3% |
₹164,000 for a year of evenings is not a business yet. It becomes one in exactly two ways: the average order value goes up, or the hours per order go down. Most sellers chase the first and ignore the second, which is backwards — order value is a market question and hours per order is a decision.
Where the money should go first
If you have less than you would like, spend in this order:
Inventory of the one product you are most sure about
Depth beats breadth at the start. Six units each of eight products means you stock out on the winner and sit on seven losers.
Photography that answers questions
Scale shots, in-use shots, texture close-ups. This is free if you do it yourself and is the highest-leverage unpaid work available to you.
A courier float
Running out of prepaid balance on a Saturday costs you a full day of dispatch.
Software
Genuinely. It is the cheapest line, and there is almost always a free first month.
Ads, last
Only after ten hand-sold units. Ads are a multiplier, and multiplying zero is still zero.
Frequently asked questions
Can I start an online store with no money at all?
You can start selling with no money — Instagram, a payment link, made to order. You cannot start a store with no money, because inventory and shipping are real. The honest minimum for anything with stock is around ₹8,000.
How much should I keep aside for ads?
Nothing in month one. From month two, ₹200–₹300 a day for at least 10 consecutive days, so the numbers mean something. Sporadic ₹500 bursts teach you nothing.
Is it cheaper to sell on a marketplace instead?
Cheaper to start, more expensive to run. Marketplace commission of 5–25% per order is permanent, whereas a store's costs are largely fixed and fall as a share of revenue. Marketplaces also keep the customer relationship, which is the asset you are actually building.
What is a realistic break-even timeline?
Sellers who launch with an existing audience often cover costs in month two or three. Sellers starting cold usually take six to nine months. The variable is almost always distribution, not product quality.
Do I need to register a company before spending this money?
No, but open a separate bank account on day one even as a sole proprietor. Mixing personal and business money makes the first year of accounts painful and the first tax filing worse.