Quick answer: If you are just starting with a small product range and little money, begin by selling to people you can reach directly on WhatsApp and Instagram, and add one marketplace (Meesho, Flipkart or Amazon) once you can handle packing, dispatch and returns reliably. Since 1 October 2023, small sellers of goods can sell through marketplaces inside their own state without GST registration if they take a free enrolment number, but selling goods to other states, including from your own website, still needs GST registration (handicraft makers have a separate exception). Whatever you choose, collect your own customer list from day one so no single platform controls your business.
The six options at a glance
| Channel | Best suited to | GST needed to start? | Main costs (structure) | Returns burden | Customer data you keep |
|---|---|---|---|---|---|
| Amazon | Branded or quality-controlled products, steady stock | GSTIN, or PAN for GST-exempt categories; enrolment route for in-state small sellers | Referral fee (zero below ₹1,000 in 1,800+ categories since 16 March 2026), closing fee, shipping/weight fee | Handled by Amazon for FBA and Easy Ship; cost and loss risk partly yours | Very little |
| Flipkart | Fashion, home and value products for a wide audience | GSTIN, or enrolment route for in-state small sellers | Commission (zero on all fashion and on products below ₹1,000), plus other fees on the rate card | Significant, especially fashion | Very little |
| Meesho | Low-price fashion, home and kitchen items aimed at value buyers | No GSTIN needed to list; ads need a Regular GSTIN | Zero commission; check the supplier panel for shipping and other charges | Often high in low-price fashion; check policy | Very little |
| ONDC (via a seller app) | Local and regional sellers, SHGs, food and grocery, artisans | Set by your seller app; GST rules still apply | Seller app fee plus a buyer app fee, both set by those companies | Depends on the logistics partner on each order | Limited, varies by app |
| Your own website/store | Brands with repeat buyers and a social following | Yes, if you ship goods to other states (handicraft exception aside); otherwise normal threshold | Platform subscription, payment gateway charges, courier | Entirely yours, on your own policy | Full |
| Instagram/WhatsApp | First sales, made-to-order, local and community buyers | Same as your own website | Mostly your time; courier; optional ads | Entirely yours | Full |
All fee information is as of October 2026.
Who each channel suits
Amazon suits products that photograph well, pack safely and stay in stock: beauty, home décor, packaged food, jewellery, books.
Flipkart is strong for fashion and value categories. Its Shopsy app is aimed at price-sensitive shoppers in smaller towns and runs on a zero-commission model.
Meesho works for low-priced, high-volume items, often sarees, kurtis, home and kitchen products. Margins are thin, so it suits sellers with low production costs or who source in bulk.
ONDC is not an app you open. It is a government-backed open network: you list through one seller app, and buyers can find you on any ONDC buyer app. It suits local businesses, self-help groups (SHGs) and producers.
Your own website suits founders who already have buyers who come back, a recognisable product, and some time for marketing. A website gets no traffic on its own, so it is a weak first channel.
Instagram and WhatsApp suit almost everyone at the start, especially home bakers, boutiques, artisans and made-to-order work.
GST: what you need before you start
- Normal registration threshold. For businesses supplying only goods, GST registration is required once your annual turnover crosses ₹40 lakh in most states, and ₹20 lakh in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand (GST Council flyer). For services, it is ₹20 lakh, or ₹10 lakh in Manipur, Mizoram, Nagaland and Tripura.
- Selling goods to other states. Inter-state supply of goods needs GST registration whatever your turnover. The exception is handicraft goods, whose makers need not register until they cross the threshold. So if you sell anything else from your own website or Instagram to buyers in other states, you need a GSTIN.
- The 2023 change for marketplace sellers. Under Notification 34/2023-Central Tax, effective 1 October 2023, a small supplier of goods can sell through an e-commerce operator without GST registration if all these conditions are met:
– turnover is within the normal registration threshold, in both the previous and current financial year
– no inter-state supplies of goods at all
– selling through e-commerce operators in only one state or union territory
– holding a PAN
– declaring PAN, business address and state on the GST common portal, and receiving an enrolment number before the first sale (one number per state)
The enrolment number stops being valid once you take regular GST registration. In practice, you can only take marketplace orders from buyers in your own state. - What each marketplace says. Amazon’s seller guide asks for a GST number or, if you sell in a GST-exempt category such as books or certain handicrafts, PAN details. Meesho says sellers without a GSTIN can sell, though Meesho Ads need a Regular GSTIN.
- TCS. When you are GST-registered, marketplaces deduct tax collected at source from your payouts, at 1% in total since 10 July 2024 (0.5% CGST plus 0.5% SGST, or 1% IGST). You can claim this back in your GST returns. It is not deducted when you sell your own products through your own website.
What it costs on each channel
- Amazon. From 16 March 2026, products priced under ₹1,000 pay zero referral fee across more than 1,800 categories. Above ₹1,000, referral fees were cut and vary by category. Closing fees for self-ship are ₹20 for items under ₹300 and ₹26 for ₹300 to ₹500. You also pay shipping or weight-handling fees if you use Easy Ship or Fulfilled by Amazon (FBA), and FBA adds storage and pick-and-pack fees.
- Flipkart. Zero commission on products priced below ₹1,000 since November 2025, extended to all fashion products at every price from July 2026. Other charges, such as shipping and return fees, are on the seller rate card, which Flipkart shows only after you sign in.
- Meesho. Meesho states it takes zero commission from suppliers. Check shipping and any other deductions in your supplier panel before setting a price.
- ONDC. There is no single rate. Your seller app may charge a subscription, a per-order fee or a percentage, and the buyer app can charge a “buyer finder fee”. Ask your seller app for its full fee sheet in writing.
- Own website. A store builder subscription or hosting, a domain, payment gateway charges per transaction and courier costs.
- Instagram/WhatsApp. The apps cost nothing to use for basic selling. Your costs are courier, packaging, time spent answering messages, and ads if you run them.
Payouts. Amazon’s beginner guide says payments are sent by electronic transfer and received within 5 to 7 business days. Flipkart, Meesho and ONDC seller apps publish their settlement cycles inside the seller dashboard; check yours before you plan stock purchases.
Returns and control over customers
On marketplaces, the platform sets the return policy, not you. You may bear return fees, reverse shipping and damaged-item losses. Inspect returned items and file damage claims within the platform’s deadline. With FBA and Easy Ship, Amazon handles customer service and returns, but the cost still shows up in your settlement.
On your own site and on WhatsApp, you write the returns policy. Keep it short, clear and visible before payment, for example “exchange within 7 days for size issues, no returns on custom orders”.
Control over customers is the biggest difference. Marketplaces generally do not let you contact buyers outside the platform, so the relationship stays with them. Only your own website and direct WhatsApp/Instagram selling give you full contact details and the freedom to sell to the same person again.
Which should you start with?
- No GSTIN, small budget, home-based: start with WhatsApp and Instagram for local and community sales. If you want marketplace reach, take the free GST enrolment number and list on Meesho or Flipkart for buyers in your own state.
- Handicrafts or handloom: you can sell across states below the threshold. Look at Amazon (including its GST-exempt category route), ONDC through a seller app, and your own Instagram.
- Low-price fashion or home goods with low production cost: Meesho and Flipkart, where zero commission helps most.
- A branded product with good packaging and healthy margins: Amazon, plus a simple website once repeat orders begin.
- SHG, FPO or rural producer group: ONDC through a seller app. The Ministry of MSME’s TEAM scheme supports onboarding, cataloguing, logistics and packaging on ONDC, with half of its beneficiaries targeted to be women-led enterprises.
Start with one marketplace, not three: each has its own dashboard, penalties and dispatch deadlines.
Do not depend on one channel: own your customer list
Marketplace rules, fees and rankings change without your say, and a suspension can stop income overnight. Protect yourself:
- Collect contacts on every direct sale. Keep a sheet: name, WhatsApp number, city, what they bought, when.
- Ask permission. Ask “Can I send you new designs on WhatsApp?” and respect a no.
- Add a card to direct orders with your WhatsApp number and a reason to follow, such as early access to new stock. Check marketplace rules before adding inserts to their orders.
- Use WhatsApp Business features. The catalogue lets you show price, description and a product code inside the chat.
- Aim for a mix. A sensible target for a growing business is that no single channel brings in more than half your revenue.
FAQ
Q: Can I sell on Amazon or Flipkart without GST?
A: Yes, within your own state, if your turnover is below the threshold and you take an enrolment number on the GST portal under Notification 34/2023. Amazon also accepts PAN for GST-exempt categories.
Q: Do I need GST to sell on Instagram or WhatsApp?
A: Only once you cross the turnover threshold, or as soon as you ship goods to another state. Handicraft makers are exempt from the inter-state rule until they cross the threshold.
Q: How do I join ONDC?
A: Through an ONDC-compliant seller app. Once listed, your products can be found on all ONDC buyer apps. Compare seller apps on fees, logistics and support first.
Q: Is Meesho free to sell on?
A: Meesho says it charges suppliers zero commission. Check shipping and other deductions in the supplier panel before pricing.
Q: Should I build a website first?
A: Usually not. A website gets no traffic on its own. Build buyers on WhatsApp and Instagram, then add a store.
Official links
- Amazon seller beginner’s guide: https://sell.amazon.in/beginners-guide
- Amazon 2026 fee changes: https://sell.amazon.in/seller-blog/reduce-your-amazon-selling-costs–complete-guide-to-seller-fee-change-2026
- Flipkart Seller Hub fees: https://seller.flipkart.com/fees-and-commission
- Flipkart Shopsy seller page: https://seller.flipkart.com/shopsy
- Meesho supplier portal: https://supplier.meesho.com/
- ONDC seller network participants: https://www.ondc.org/pages/seller-network-participants.html
- GST portal (registration and enrolment): https://www.gst.gov.in/
- Notification 34/2023-Central Tax: https://gstcouncil.gov.in/sites/default/files/2024-05/gst-ct-34-2023.pdf
- Notification 37/2023-Central Tax: https://gstcouncil.gov.in/sites/default/files/2024-05/gst-ct-37-2023.pdf
- PIB on ONDC and the TEAM scheme: https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2146920
Last checked: October 2026. Rules, limits and fees change; confirm with the official source before you apply. This guide is general information, not legal, tax or financial advice.
Sources: CBIC Notifications 34/2023 and 37/2023-Central Tax via GST Council (July 2023); GST Council, Registration under GST flyer; Amazon India press release and seller blog (March 2026); Amazon Seller beginner’s guide (October 2026); Flipkart Stories (July 2026); Digital Terminal (November 2025); YourStory (March 2026); Meesho supplier portal and Meesho news page (October 2026); ONDC seller network participants page (October 2026); PIB (July 2025, December 2025); MediaNama (September 2022); Taxmann (July 2024).
