Quick answer
On a small budget, spend first on the things customers notice: good stock in small quantities, clear photos, a simple store with UPI and cash on delivery, and reliable packing and delivery. A domain name is cheap and worth having early. Paid ads, custom design, printed boxes and big inventory can wait until you know what sells.
If you are starting an online store with little money, spend first on what customers actually notice: a small amount of good stock, clear photos, a simple store that takes UPI and cash on delivery, and packing and delivery you can rely on. A domain name is cheap and worth having early. Almost everything else, from paid ads and custom design to printed boxes and large stock orders, can wait until you know which products sell. Keep your monthly fixed costs low so you can afford to learn.
This guide gives you a priority list, a sample starting budget framework, and the free tools that stretch a small amount of money further.
What should you spend on first?
Think of your money in three groups: must-have now, nice-to-have soon, and later.
| Must-have now | Soon, once orders come in | Later, once you know what sells |
|---|---|---|
| A small first batch of stock | Branded stickers and thank-you cards | Custom-printed boxes |
| Basic photo set-up (tripod, background) | A higher plan with more products or team | Professional photo shoots |
| Online store plan | Small, tested ads | Larger ad budgets |
| Domain name | Better packaging materials in bulk | Large stock orders |
| Packing basics (boxes, tape, filler) | Bookkeeping help from a CA | Warehouse space or staff |
1. Stock: start narrow
The biggest mistake on a small budget is buying too much stock across too many designs. Start with a narrow range, a few designs in sensible sizes, and reorder what sells. If you make products yourself, make small batches. Pre-orders can help test demand for new designs before you buy: in UpMinutes you can take pre-orders on sold-out products with a note like "Ships from 20 November".
2. Photos: a phone and daylight
You do not need a camera or a studio. A recent phone, a cheap tripod, a plain background and window light produce photos good enough to sell. Spend time, not money, here. Our guide to product photos with a phone walks through the set-up.
3. Your online store
Choose a store builder with a predictable monthly price that includes hosting and security, rather than building a custom website or paying for many add-ons. Look for UPI, cards and cash on delivery, GST invoices if you are registered, and delivery charges by PIN code, all built in.
UpMinutes Starter is ₹500 a month or ₹5,000 a year, including 18% GST, for up to 100 products and two people, with 13 themes, hosting, HTTPS, backups and a free subdomain (yourbrand.upminutes.com). There is no commission on sales and there are no app fees. You can try any plan free for 14 days without a card. See the pricing page for all plans.
4. A domain name
A domain like yourbrand.in or yourbrand.com usually costs a modest yearly amount from a domain registrar, and it makes your store look established and easier to remember. You can start on a free subdomain and add your own domain when ready; on UpMinutes, connecting it takes two DNS records and HTTPS is set up automatically. Read choosing and connecting a domain.
5. Packing and delivery
Buy packing materials in small quantities until you know your standard box sizes. Use a shipping aggregator or a local courier you trust, and compare rates for your typical parcel weight. Set delivery charges in your store so they cover your real costs, or include them in your prices. A clear delivery policy on your store saves many questions later.
What can you get for free?
- Free calculators: GST, profit margin and discount calculators, and a store address checker, with no sign-up, on our free tools page.
- Google Business Profile for local visibility.
- Google free product listings through Merchant Center. UpMinutes produces the product feed for you.
- Instagram and WhatsApp Business for reaching your first customers.
- Your own time for content: Reels, product descriptions and customer conversations.
What does a lean monthly budget look like?
Every business is different, so here is a framework rather than fixed numbers. List your fixed monthly costs and your per-order costs separately:
- Fixed each month: store plan, domain (yearly cost divided by 12), phone and internet, any software.
- Per order: product cost, packaging, delivery, payment gateway fee, and an allowance for returns.
Keep fixed costs as low as possible at the start, because you pay them whether or not you sell. Say you sell handmade earrings at ₹450, and each order costs you ₹150 in materials, ₹30 in packing, ₹70 in delivery and a small gateway fee. You keep roughly ₹190 per order before your fixed costs. With a ₹500 monthly plan, three orders a month cover the plan; everything after that contributes to your time and growth. Work out your own version with the profit per order guide.
Which costs can wait?
- Paid ads, until you have a product that sells without them.
- Custom design and logos from agencies; a clean wordmark in a good font is fine to start.
- Printed boxes; a stamp and stickers do the job.
- Paid apps and plugins; choose a platform where the essentials are included.
- Large stock orders and warehouse space.
- Hiring, until you are clearly short of time on tasks that make money.
Which mistakes waste money?
- Spending most of the budget on a website before having products and customers.
- Buying a wide range of stock instead of testing a few designs.
- Running ads before checking that checkout and delivery work smoothly.
- Offering deep discounts to get early orders, which sets the wrong price expectations.
- Ignoring delivery costs and payment fees when setting prices.
- Signing up for long contracts or yearly plans before testing.
On the last point: a free trial and monthly billing let you test first. Once you are confident, a yearly plan can save money; on UpMinutes, yearly costs ten months' price for twelve.
How do you find your first customers without spending?
Start with people who already know you: friends, family, neighbours, former colleagues, community groups and your Instagram followers. Ask happy customers to share and review. Post steadily on Instagram, answer every WhatsApp message quickly, and list products on Google for free. Our guide to your first 100 customers has a step-by-step plan, and the launch checklist covers set-up.
When should you spend more?
Spend more when you have evidence: a product that keeps selling, customers who come back, and a margin per order you trust. Then reinvest in better photos, more stock of bestsellers, packaging and small, measured ads. Move up a plan when you need more products or team members. Growth on UpMinutes, for example, allows up to 300 products and five people, and Pro up to 1,000 products and 15 people.
More set-up guides are in the getting started category.
Frequently asked questions
Can I start an online store with very little money?
Yes. Start with a small stock range, phone photos, a low-cost store plan and free marketing channels like Instagram and WhatsApp. Spend more only after you know what sells.
Do I need a GST number before starting an online store?
It depends on what you sell, where you sell and your turnover, and the rules for online sellers have specific conditions. Ask a CA before your first sale.
Is a free website builder enough to start?
Free plans can work for a simple catalogue, but check for limits on payments, branding, products and your own domain. A low-cost paid plan with UPI, COD and GST invoices built in often costs less than adding these separately.
Should I buy a domain name at the start?
It is a small yearly cost and makes your store easier to remember and trust, so many sellers buy it early. You can launch on a free subdomain and connect your domain later.
