ratio<\/a>nalisation took effect on 22 September 2025, with 99% of items in the old 12% slab moving to 5%. MRP models built on pre-2025 slab assumptions will be wrong. Recheck your category slab before you print labels.<\/p>\nPricing differently for your own store versus marketplaces<\/h3>\n
Marketplace TCS was halved to 0.5% with effect from 10 July 2024 under Notification No. 15\/2024-Central Tax, and it is creditable against output tax liability once the operator files, so treat it as a timing cost. Even so, after commissions and fulfilment differences, your own-store price and marketplace price cannot be the same number.<\/p>\n
Build a CAC-inflation buffer into your floor price<\/h3>\n
PRO-TIP:<\/strong> India remains one of the cheapest large ad markets, with Facebook CPM at $1.36 in India against $16.08 in the United States. But Meta CPM rose 20.03% year over year in 2025 on a global, aggregate ecommerce benchmark rather than an India-specific one. Build a buffer for a 20% rise in customer acquisition cost<\/a> before you lock an MRP.<\/p>\nCategory growth is strong, with Health and Pharma up 48%, BPC 41%, and Fashion 21%, but that only compounds if the second order is economically attractive.<\/p>\n
Bootstrap vs Lean vs Proper: which starter budget tier is right for you?<\/h2>\n
Choose Bootstrap only to validate raw demand with under 100 orders. Move to Lean Launch once you have usable product photos and one proven ad angle. Spend at Proper Launch level only after you have validated repeat purchase intent.<\/p>\n
Decision checklist: match your validation stage to your budget tier<\/h3>\n
\n\n\n| Where you are right now<\/th>\n | Tier<\/th>\n | What you are buying<\/th>\n<\/tr>\n<\/thead>\n |
\n\n| Product ready, zero paid orders, no ad data<\/td>\n | Bootstrap<\/td>\n | Proof that someone will pay<\/td>\n<\/tr>\n |
\n| 50-100 paid orders, one ad angle converting<\/td>\n | Lean Launch<\/td>\n | Repeatable acquisition and better assets<\/td>\n<\/tr>\n |
\n| Measurable 90-day repeat above 20%<\/td>\n | Proper Launch<\/td>\n | Scale on proven economics<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n The gate between Lean and Proper is not revenue. It is retention. A sub-20% 90-day repeat rate means more spend buys more leakage.<\/p>\n Frequently Asked Questions<\/h2>\nDo I need GST registration before my first sale?<\/strong><\/h3>\nNot always. Thresholds are \u20b940 lakh for goods and \u20b920 lakh for services in most states. But selling through marketplaces or making inter-state taxable supplies triggers mandatory registration regardless of turnover. Many founders register early to claim input tax credit on setup and inventory costs.<\/p>\n Does Razorpay offer free payment processing for new D2C brands?<\/h3>\nYes. Razorpay’s 90-day welcome offer waives the standard 2% platform fee on domestic Payment Gateway transactions for new merchants, up to Rs 5,00,000 in cumulative GMV. Credits are applied automatically when you complete KYC and activate your account on or after 1 July 2026; no promo code needed. GST, statutory levies, and the Rs 199 KYC processing fee are not waived. The offer is limited to one redemption per PAN or bank account, and excludes prepaid cards, corporate credit cards, American Express, Diners Club, and all EMI-based payment methods. Unused credits lapse after 90 days.<\/p>\n Are UPI payments still free for merchants in India?<\/h3>\nNot entirely, from October 2026. Starting 15 October 2026, merchant UPI payments above Rs 2,000 attract an MDR of 0.4%, capped at Rs 300, borne by the merchant. Payments up to Rs 2,000, person-to-person transfers, and eligible small merchants remain exempt. NPCI has stated that 96% of transactions remain unaffected.<\/p>\n How much should I set aside specifically for RTO in my first 90 days?<\/strong><\/h3>\nUse this method: expected orders x expected COD share x India’s 25-35% RTO rate x \u20b9150-300 per RTO order. For 300 orders at 60% COD and a 28% RTO rate, that is roughly 50 returns, or \u20b97,500 to \u20b915,000.<\/p>\n Is it cheaper to register as a sole proprietor or a Private Limited company?<\/strong><\/h3>\nProprietorship is cheaper, but the gap is smaller than founders expect. MCA SPICe+ filing fees are not zero up to \u20b915 lakh authorised capital; they follow the slabs in the Companies (Registration Offices and Fees) Rules, with a typical total one-time outlay of \u20b98,000-\u20b918,000. The real difference is professional fees and ongoing compliance effort.<\/p>\n Does my product category change my starter budget significantly?<\/strong><\/h3>\nYes. Food brands carry FSSAI at \u20b9100 to \u20b97,500 depending on licence class. Category growth also differs sharply, with Health and Pharma at 48%, BPC at 41%, and Fashion at 21%, which changes how fast ad spend recovers.<\/p>\n Is a payment gateway free to set up in India?<\/strong><\/h3>\nYes. Razorpay’s Payment Gateway is free to activate and charges only on successful transactions, at a standard domestic rate of 2% plus applicable GST. A one-time Rs 199 KYC processing fee plus applicable taxes applies. There is no monthly minimum.
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