In 2026, going online is becoming an increasingly practical growth opportunity for India's small businesses. Digital payments, e-commerce networks and easier-to-use online tools are helping retailers and entrepreneurs explore markets beyond their immediate neighbourhoods without necessarily investing in expensive physical infrastructure.
Government initiatives are also supporting this transition. According to the Ministry of Commerce and Industry, more than 1.16 lakh retail sellers across over 630 cities and towns were live on the Open Network for Digital Commerce (ONDC) as of December 9, 2025. The network aims to make digital commerce more accessible by allowing participating sellers to become discoverable through multiple buyer applications. This creates additional opportunities for local retailers and small enterprises to participate in India's growing digital economy.
Digital payments are another important part of this shift. The Reserve Bank of India's research on digitalisation describes how India's payment infrastructure has improved the speed and accessibility of transactions. For small businesses, online payment options can make purchasing more convenient and help simplify transaction records. However, sellers still need to consider payment-provider charges, security and other operating costs.
Technology is also lowering some traditional barriers to starting an online business. Entrepreneurs can establish digital storefronts, display products, communicate with customers and manage orders without building every technical component independently. E-commerce can help businesses test demand, promote specialised products and reach customers in different cities while continuing to operate from their existing locations.
Platforms such as factori.com aim to simplify this process further. Through retailing.factori.com, individuals can create independent online stores using their own domains and brands, access more than 10,000 ready-to-ship products, and use integrated payment and fulfilment facilities without purchasing inventory upfront. This model can help aspiring sellers focus on promotion, customer service and business development rather than managing every part of the supply chain themselves.
Going online does not guarantee immediate sales. Businesses still need relevant products, competitive pricing, reliable delivery, customer trust and consistent promotion. Choosing suitable channels and understanding the costs involved remain essential to sustainable growth.
For small businesses, 2026 offers a timely opportunity to assess digital options and begin building an online presence. With accessible tools and expanding commerce networks, entrepreneurs can take gradual steps towards reaching new customers, strengthening their brands and developing additional sales channels.
Sources and references
1. Government of India — ONDC and Small Business Adoption
Government data on seller participation and how open digital commerce can expand market access.
Read the official announcement
2. Reserve Bank of India — Digitalisation and Payment Revolution
Research on digital payments, merchant adoption and India's changing payment infrastructure.
3. ICRIER — The Role of Digitalisation in Enterprise Development
Research examining digital adoption among MSMEs and its relationship with business development and market access.
4. McKinsey — The Great Unbundling of Indian E-Commerce
A 2026 report examining the growth of direct-to-consumer commerce and opportunities for Indian MSMEs.
Editorial note: The government statistics above refer to their stated reporting dates. YouTube links lead to related video search results rather than specific verified videos. factori.com's platform details reflect the company's stated offering.