How to launch an e-commerce store from scratch, covering platform selection, product listings, payment processing, shipping setup, and your first marketing push.
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Platform and Store Setup
Choose an e-commerce platform based on your needs
Hosted platforms cost $29-$79 per month and handle everything — ideal for beginners. Open-source platforms are free but require your own hosting and technical skills. For stores with under 100 products and under $500K in annual revenue, a hosted platform is the best value.
Compare pricing, features, and transaction fees for 3 platforms
Verify the platform supports your product type and volume
Register your store's domain name
Use a .com domain that matches your brand. Avoid hyphens, numbers, and unusual extensions. A dedicated e-commerce domain costs $10-$15 per year and looks more trustworthy than a subdomain on a free platform.
Select and customize a store theme or template
Free themes work well for launch. Premium themes ($150-$350) offer more customization and often convert better. Choose a theme designed for your product count — a single-product theme will not work for a 500-item catalog.
Set up essential pages beyond the shop
You need: About Us, Contact, FAQ, Shipping Policy, Return Policy, and Privacy Policy. Stores with visible policies have 17% higher conversion rates. Return policy pages are the second-most viewed page on e-commerce sites after product pages.
Product Listings
Write product descriptions that sell
Lead with the benefit to the customer, not the product specs. Include dimensions, materials, and care instructions in bullet points below the description. Product pages with 200+ words of unique content rank significantly better in search results.
Write a benefit-focused paragraph for each product
Add detailed specifications in a scannable format
Photograph each product with at least 4-5 images
Include a main hero shot, detail shots from multiple angles, a scale/size reference shot, and a lifestyle image showing the product in use. Products with 5+ images have 40% higher conversion rates than those with 1-2 images.
Set pricing with margin calculations
Your product price must cover cost of goods, shipping materials, platform fees (2-3%), payment processing (2.9% + $0.30), returns (plan for 8-10% return rate), and marketing. Most successful e-commerce stores maintain a 50-70% gross margin.
Organize products into logical categories and collections
Group products by type, use case, or price range. Limit top-level categories to 5-8 so customers are not overwhelmed. Add tags for filtering: size, color, material, and price range.
Set up inventory tracking
Enable low-stock alerts at 20% of your average monthly sales volume for each product. Stockouts cost you sales and search ranking. If you sell on multiple channels, use a centralized inventory tool to prevent overselling.
Payment and Legal
Set up payment processing
Most platforms include built-in payment processing at 2.9% + $0.30 per transaction. Accept credit cards, debit cards, and digital wallets at minimum. Adding alternative payment options increases conversion by 6-12% on average.
Configure sales tax collection
You must collect sales tax in states where you have 'nexus' (physical presence or significant sales volume). The threshold is $100,000 in sales or 200 transactions in most states. Automated tax calculation tools cost $20-$50 per month and handle all rates.
Write clear return and refund policies
67% of shoppers read the return policy before purchasing. Offer at least a 30-day return window — stores with 30+ day policies actually see fewer returns because the urgency to decide is removed. Be specific about condition requirements and who pays return shipping.
Create a privacy policy and terms of service
Privacy policies are legally required if you collect any personal data (including email addresses). Free privacy policy generators create compliant documents in 10 minutes. Have a lawyer review them if your annual revenue exceeds $100,000.
Shipping Setup
Choose your shipping strategy: free, flat-rate, or calculated
Free shipping increases conversion by 25-30% but must be built into your product price. Flat-rate shipping ($5-$8) is simple and predictable. Calculated shipping (real-time rates) is most accurate but can cause cart abandonment when rates are high.
Set up shipping carrier accounts
Create accounts with 2-3 major carriers to compare rates. Business accounts get 10-25% discounts versus retail rates. Most e-commerce platforms include discounted shipping labels through their built-in tools.
Order packaging materials and branded inserts
Start with 100-200 boxes or mailers in your most common size. Budget $1-$3 per shipment for packaging materials. Include a branded thank-you card or discount code for repeat purchases — this costs $0.10-$0.25 per insert and increases repeat orders by 15-20%.
Test your entire fulfillment process end-to-end
Place a test order and ship it to yourself. Time the process from order receipt to delivery. Check that order confirmations, shipping notifications, and tracking emails send correctly. Fix any issues before real customers experience them.
Launch Marketing
Build pre-launch buzz with an email list
Create a 'coming soon' page that collects emails at least 2-4 weeks before launch. Offer early access or a launch-day discount to subscribers. A list of 100-500 emails gives you a ready audience on day one.
Set up abandoned cart recovery emails
69.8% of online shopping carts are abandoned. A 3-email recovery sequence (1 hour, 24 hours, and 72 hours after abandonment) recovers 5-15% of lost sales. Include the product image, a direct link back to cart, and urgency language.
Announce your launch across all channels
Post on social media, send to your email list, tell friends and family, and post in relevant online communities. Your first 50-100 orders often come from personal networks. Share your founder story — it creates emotional connection that drives purchases.
Install analytics and conversion tracking
Set up e-commerce tracking in your analytics platform before launch so you capture data from the first sale. Track: traffic source, conversion rate, average order value, and cart abandonment rate. A healthy e-commerce conversion rate is 2-3%.
Frequently Asked Questions
How much does it cost to start an online store?
A basic Shopify store costs $39/month plus a domain ($14/year) and a theme ($0-$380). Payment processing adds 2.6-2.9% plus $0.30 per transaction. Total first-year cost for a bootstrapped store runs $500-$2,000 before inventory. WooCommerce is free software but requires hosting ($5-$30/month), an SSL certificate, and more technical setup. Add $500-$3,000 for initial inventory depending on your product category.
Which e-commerce platform is best for beginners?
Shopify is the most beginner-friendly option with built-in hosting, payment processing, and customer support. It powers 4.6 million stores worldwide and handles everything from inventory to shipping labels. WooCommerce (WordPress) offers more customization but requires technical knowledge. BigCommerce and Squarespace Commerce sit between the two. If you sell under 100 products, Shopify Basic at $39/month is the fastest path from idea to live store.
Do I need a business license to sell products online?
In most states, yes. You need a general business license from your city or county ($50-$400) and a sales tax permit from your state (free in most states). If you sell food, cosmetics, or supplements, you may need additional FDA registrations or state health department permits. Selling from home typically requires a home occupation permit ($50-$150). The specific requirements depend on your product category and location.
How do I handle sales tax for online orders in multiple states?
After the 2018 Supreme Court ruling in South Dakota v. Wayfair, states can require out-of-state sellers to collect sales tax once they exceed economic nexus thresholds — typically $100,000 in sales or 200 transactions per state per year. Shopify Tax and automated tools like TaxJar ($19/month) or Avalara calculate the correct rate at checkout and generate filing reports. Most small stores only hit nexus in 2-5 states during their first year.
What shipping strategy should a new online store use?
Offer free shipping with a minimum order threshold set at 20-30% above your average order value — this increases average cart size by 15-20%. For orders below the threshold, use real-time carrier rates from USPS, UPS, or FedEx. Shopify Shipping and Pirate Ship offer discounted commercial rates (up to 88% off retail USPS prices). Flat-rate shipping ($5.99-$8.99) is a simpler alternative that customers find predictable and transparent.