Thanks to its convenience and accessibility, online shopping has become the preferred method of purchasing goods for many people. Almost any product or service can now be bought online, making it a lucrative market for businesses to explore.
If you have a great idea for an online store and are ready to jump into eCommerce, here are some steps to help you get started.
• Part 1: Preparation and Planning
• Part 2: Setting Up Your eCommerce Store
• Part 3: Building Your Online Store
• Part 4: Getting Ready To Launch
• Part 5: Developing a Marketing Strategy
• How To Start an Online Store FAQs
Part 1: Preparation and Planning
When learning how to open an online store, the first rule is to have a clear action plan. Building an online store requires thorough preparation and planning, just like any other business venture.
This section will guide you on the essential steps to take before deciding to build an online store.
Step 1: Find Your Niche and Target Audience
A niche refers to a specific segment of the market that caters to the needs and preferences of a particular group of people. Instead of trying to appeal to everyone, you target a smaller, more defined crowd likely to be interested in your offer.
This makes it easier to tailor your products, marketing campaigns and overall brand experience when building an online store. Here are tips for choosing a sustainable and profitable niche:
• Identify your passion. Passion fuels perseverance and commitment. This could be anything from a hobby, a talent or a specific area of knowledge.
• Conduct market research. Market research will help you determine the competitiveness of your chosen niche by evaluating the feasibility of your product or service through direct research with consumers.
• Define your target audience. Creating buyer personas – fictional representations of your ideal customers based on demographic data, behavior patterns and motivations, will help you understand your target audience and cater to their needs.
• Analyze competition. As they say, keep your friends close and your enemies closer. Understanding your competition will help you identify gaps in the market and differentiate your brand from others in the same niche.
• Research the market demand. When setting up an online store, use search engine optimization (SEO) tools like Ahrefs, Semrush or Google Keyword Planner to find in-demand products people search for.
Step 2: Choose What To Sell Online
Now that you’ve identified your niche and target audience, the next step on how to start an online business, and perhaps one of the most challenging, is deciding what to sell. It’s crucial to choose something that is in demand and relatively inexpensive to produce.
You should also consider factors like storage, shipping and fulfillment when deciding on a product or service. Here are some ideas to help you brainstorm:
• Physical products that cater to a specific audience, such as eco-friendly or sustainable products, niche fashion items or handcrafted goods.
• Digital products like e-books, online courses, stock photography or design templates have low overhead costs and can be easily distributed.
• Services such as consulting, coaching or freelancing are in high demand and can be conducted remotely.
• Subscription-based products like monthly boxes or membership sites that offer recurring revenue for your business.
Finding the perfect product can be tricky when learning how to set up an online store, but don’t worry if you don’t get it right on the first try. As your business grows and evolves, you can pivot your offerings to align with your audience.
Step 3: Decide on a Business Model
A business model outlines your target market and value proposition – the products or services you offer and why customers should choose you over competitors.
If you’re building an online store, your business could fall under any of these six categories:
• Business-to-Consumer (B2C): A business that sells directly to consumers.
• Business-to-Business (B2B): A business that sells products or services to other companies.
• Direct-to-Consumer (DTC): Manufacturers sell their products directly to end-users without involving intermediaries like retailers.
• Business-to-Government (B2G): Businesses that sell to government agencies.
• Consumer-to-Consumer (C2C): Platforms facilitating direct sales between consumers, like marketplace websites and social media platforms.
• Consumer-to-Business (C2B): Consumers provide products or services to businesses.
Focusing on one business model can help you position your eCommerce business and optimize your marketing efforts to attract the right customers. However, it’s also possible to combine multiple business models to diversify your revenue streams.
Thorough research and planning are key to choosing the right business model for your online venture.
Step 4: Select a Revenue Model
On top of a business model, you’ll need a revenue model: a plan on how your eCommerce store will generate more money than you’re already spending on inventory, warehousing, shipping and other costs.
You want to avoid being stuck with a revenue model that isn’t profitable or sustainable. Here are some popular revenue models to consider if you want to build an online store:
• Wholesaling: Involves purchasing products in bulk from manufacturers or distributors at a discounted price and then reselling them at a higher price to retailers or consumers.
• Dropshipping: A retail fulfillment method where the store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. The retailer doesn’t handle the product directly.
• Subscription-Based Services: Customers pay a recurring fee at regular intervals (e.g., monthly, yearly) to access a service or receive products on an ongoing basis. Examples include subscription boxes, software-as-a-service (SaaS) and streaming services.
• White Label: Involves purchasing products from a manufacturer and rebranding them as your own, often without modifying the product. This allows businesses to sell products under their brand name without investing in product development or manufacturing.
• Private Label: Similar to white labeling, but with the added element of customizing the product to some extent. Businesses work with manufacturers to create products tailored to their specifications and branding, which are then sold under the business’s brand name.
• On-Demand Printing or Manufacturing: Products are produced only when an order is received, eliminating the need for large upfront investments in inventory. This model is commonly used for custom merchandise, such as print-on-demand apparel or personalized items.
How To Choose a Revenue Model
There is no one-size-fits-all approach to selecting a revenue model for your eCommerce business. But to set yourself up for success, here are a few questions to ask yourself when learning how to set up an online store:
• What is the demand for the products or services you plan to offer?
• Is there a large enough market for your revenue model to generate sustainable profits?
• How much control do you want over your products’ production process and branding?
• What are the potential risks and challenges associated with each revenue model?
• Do you have enough bandwidth and resources to manage the operations and logistics involved in each revenue model?
Test different revenue models to see what works best for your business and target audience. Remember that your chosen revenue model may also evolve as your business grows, so be flexible and open to adapting.
Step 5: Choose Your Business Entity Type
A business entity is a legal structure determining how your business will be taxed, managed and operated. Each business structure has its advantages and disadvantages in terms of liability protection, tax implications, management flexibility and administrative requirements.
Some common business entity types that you’ll encounter when you make an online store include:
a. Sole Proprietorship: An unincorporated business owned and run by a single individual. The owner is personally liable for all company debts and obligations and has complete control over its operations.
b. Partnership: A business owned by two or more people who share the profits and risks. There are different types of partnerships, including general partnerships, where all partners share equally in profits and liability and limited partnerships, where there are both general partners (who have unlimited liability) and limited partners (whose liability is limited to their investment).
c. Limited Liability Company (LLC): A hybrid business structure that combines the limited liability protection of a corporation with the flexibility and tax benefits of a partnership. LLC owners are called members, and their assets are generally protected from business debts and liabilities.
d. S-Corporation: A special type that elects to pass corporate income, losses, deductions and credits through their shareholders for federal tax purposes. This means that S-corporations are not subject to corporate income tax at the federal level; instead, shareholders report the corporation’s income on their tax returns.
e. C-Corporation: Owned by shareholders subject to double taxation. Shareholders pay taxes on dividends received from corporate profits after the corporation pays taxes on its earnings. C-Corporations provide limited liability protection to shareholders and allow for flexibility in ownership and stock classes but have more formal requirements and regulations than other business structures.
| Pro Tip: Consult with a lawyer or tax professional to lay out the pros and cons of each entity type. |
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Part 2: Setting Up Your eCommerce Business
We’re now entering the second phase of learning how to start an online business – the setup phase. This is where you’ll take concrete steps to turn your eCommerce idea into a reality.
Some key tasks during this phase for when you create an online store include:
Step 6: Choose a Business Name
Your business name will be plastered all over your website, social media profiles, marketing materials and product packaging. Hence, it’s important to choose one that is memorable and slides off the tongue.
Here are some tips for choosing a business name when you build an online store:
• Keep it simple: A short and straightforward name is easier for customers to remember and spell correctly.
• Make it brandable: Your business name should set you apart from the competition and reflect your brand’s personality.
• Consider SEO: Including relevant keywords in your business name can help improve search engine rankings and make it easier for potential customers to find you online.
• Check availability: Before committing to a business name, ensure it is not already used by another company or trademarked. You can quickly search the United States Patent and Trademark Office (USPTO) website to verify.
You can also look for name ideas using a domain name registrar like GoDaddy or Namecheap, which will show you available website domain names related to your chosen business name.
Once you’ve chosen a name, register it with your local government and secure a domain name for your website.
Step 7: Register Your eCommerce Business
Registering your business entity with the appropriate state or local agency cements your business’s legal foundation, allowing you to build customer trust.
Below are the documents you’re likely to come across when studying how to start an online store:
• Sole proprietorships and partnerships: Formation paperwork is only needed if a name other than the owners’ legal name is used, which requires a DBA filing.
• LLC formation: Requires filing Articles of Organization.
• C Corporation formation: Requires filing of Articles of Incorporation.
You may also need to apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). An EIN is a unique nine-digit number used to identify your business in various government forms and filings, such as tax returns, payroll taxes and business licenses.
Step 8: Obtain Necessary Permits and Licenses
Some states require specific licenses or permits for eCommerce businesses, such as a sales tax permit or home occupation permit. Check with your state and local government to determine which ones you need to operate your business legally.
Additionally, if you plan on selling products that require certification or safety regulations, such as food items or electronic devices, make sure to obtain the necessary certificates before you create an online store:
Step 9: Secure a Custom Domain Name
Match your domain name with your business name. If your business name is Honey Cake Co., use honeycake.com instead of cakesforalloccasions.com. This avoids confusion and helps customers find your website when you make an online store.
Here’s how you can secure a custom domain name:
• Search for available domains: As mentioned previously, you can use a domain registrar like GoDaddy or Namecheap to check the availability of your desired domain name.
• Purchase your chosen domain: Once you find an available domain, purchase it. Prices can range from a few dollars to hundreds, depending on the domain extension (.com, .net, .org).
• Connect your domain to your website: If you’re using a website builder or eCommerce platform, they will have instructions on connecting your custom domain to your website.
Having a custom domain not only makes your business look more professional but also helps with search engine optimization (SEO) and boosting brand credibility.
Step 10: Create Brand Assets
Brand assets, such as logos, colors and fonts, are the visual elements that represent your business. They create a cohesive and recognizable brand identity for your eCommerce store.
For some, this comes naturally, but for others, it may require the help of a graphic designer or branding agency. If you search “how to make an online store” on Google, you’ll come across various website builders and eCommerce platforms offering customizable templates and design tools for creating brand assets without technical skills.
When designing your brand assets, keep in mind the following tips:
• Consistency is key: Use the same colors, fonts and imagery across all your branding materials to create a cohesive look and feel.
• Simplicity is best: Avoid using too many colors, fonts or graphics that can clutter your brand and make it difficult to read.
• Make it adaptable: Your brand assets should be scalable and work on different channels (website, social media, product packaging) without losing quality.
• Test it out: Get feedback from others to ensure they effectively represent your business and resonate with your target audience.
Step 11: Choose an eCommerce Platform
When learning how to open an online store, choosing the right eCommerce platform will impact your website’s functionality, design and overall user experience.
Consider the following factors when choosing an eCommerce platform:
• Ease of use: Look for a platform with intuitive drag-and-drop design features that allow you to easily customize your website without any coding skills.
• Payment gateways: Ensure the platform supports multiple payment options such as credit cards, PayPal and Apple Pay.
• Integration with other tools: Consider what third-party apps or plugins you may need for your business (e.g., email marketing, inventory management system).
• Customer Support: Choose a platform that offers reliable customer support to help troubleshoot any technical issues or answer questions.
• Scalability and pricing: It can accommodate your needs at a reasonable price point. Some platforms charge monthly fees, while others take a percentage of each sale.
• Seamless checkout process: Your chosen platform should have a smooth and secure method for customers to complete their purchases.
• Security features: Look for platforms that offer security measures such as secure sockets layer (SSL) certificates and data encryption to protect your customers’ personal information.
The 6 Best eCommerce Website Builders
With a reliable eCommerce website builder, you can manage product listings, process payments and oversee shipping directly from the comfort of your store or home office.
Here are six top eCommerce platforms to help you make an online store:
• Shopify makes it easy to create an online store with its drag-and-drop interface and responsive templates. It also has excellent customer support and integrates with over 8,000 apps.
• WooCommerce is a popular option for online stores that use WordPress as their content management system. It offers flexibility in customization and has numerous extensions for added functionality.
• BigCommerce is a fully hosted eCommerce platform offering powerful features such as multi-channel selling, abandoned cart recovery and product management.
• Square Online is ideal for small businesses that are using Square for in-person payment processing. It seamlessly integrates with the point-of-sale system and has a user-friendly interface.
• Magento is a highly scalable platform but requires more technical knowledge to set up and manage than other platforms.
• Wix is a beginner-friendly website builder with eCommerce capabilities and built-in SEO tools ideal for small businesses and beginners.
Part 3: Build Your Online Store
Now that you’re done with the paperwork and have chosen the necessary tools, it’s time to start building your online store. Here’s a checklist if you’re uncertain how to make an online store:
Step 12: List Your Products
Navigate to your chosen eCommerce platform’s product or inventory management section and start listing your products. Most platforms would have an “Add a product” button where you can input the product’s name, description, price, images and other details.
Two essential things to keep in mind when listing products are:
Writing Product Titles and Descriptions
The product title should be concise but descriptive. It should also contain relevant keywords, as users see this when searching for products on search engines. A good product title would be something like “Scented Soy Wax Candle – Vanilla Bean.”
You can leave the details about your products in the description section. Be sure to incorporate relevant information, such as product features and benefits, materials used and dimensions.
Keep the following in mind when writing product descriptions:
• Ensure readability. Use bullet points, subheads, bolded text, etc., to highlight key features and make your text easy to scan.
• Be honest. Include potential drawbacks or limitations of the product.
• Optimize for SEO. Use relevant keywords throughout your description to improve visibility on search engines.
• Add incentives. Include what features, benefits and value your product offers compared to competitors.
• Answer common questions or objections. Consider reasons that may discourage customers from purchasing your product and address them in the description.
• Include details that help customers envision themselves using the product, such as dimensions and a size chart.
| Pro Tip: Don’t exaggerate or make false claims, as this can lead to unhappy customers and potential legal issues. |
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Uploading Quality Images
Shoppers can’t touch, feel, smell or try on your products online like they can in a brick-and-mortar store. Your product images, however, can help customers get a sense of what the product looks like.
Use these tips when uploading images for your products:
• Use natural lighting and neutral backgrounds. This helps highlight the product without any distractions.
• Take photos from multiple angles. Diverse images give a better sense of the product’s appearance and size.
• Show the product in use. Include photos of people using or wearing your product to help customers visualize the product.
• Include close-ups. This allows customers to see details and textures that may be hard to notice in other photos.
• Use high-quality images. Blurry or pixelated photos can make your products appear cheap and unappealing.
• Showcase different color options or sizes. If applicable, include product images in various colorways, sizes or variations.
• Consider using 360-degree product images. This feature allows customers to see the full view of your product by rotating it on their screen.
If you’re just starting, you don’t need professional photoshoots. You can take product images using your smartphone, edit them with free photo editing tools or use free stock photos. Then, consider upgrading to a professional photographer once your business picks up.
Step 13: Set Competitive Pricing
Product pricing considers several variables, including raw materials, storage, packaging, shipping, marketing and profit margin. You’ll also need to consider your competition’s pricing and the perceived value of your product.
Here are some tips for setting competitive prices:
• Research your competition. Look at what similar products are priced in the market to understand how much customers are willing to spend.
• Calculate variable costs (per product). Variable expenses are the costs incurred to produce or acquire one unit of a product. They include raw materials, packaging, storage and shipping fees.
• Determine your fixed costs. Fixed costs are expenses that stay the same regardless of how many products you sell. Examples include rent, website hosting fees and marketing costs.
• Set a profit margin. After accounting for costs, decide how much profit you want to make from each sale.
• Use a product pricing calculator. Many eCommerce platforms offer calculators to help you determine the optimal product price based on your costs and desired profit margin.
You can always adjust your prices based on customer response to your offers. Customers may be willing to pay more, especially if your products exceed their expectations.
Step 14: Manage Your Inventory
An organized inventory ensures smooth supply chain operations. It can avoid stock shortages, missed shipments, spoilage and overstocks, among other things.
Choose a Management Model
Inventory management varies based on business needs, with six common approaches including:
a. ABC Analysis This model divides inventory into three categories, each determined by the store’s stock-keeping units (SKU) – a number or code identifying each unique product. The categories are:
• A-items: The most profitable and top-selling items. They make up about 20% of your inventory but contribute up to 80% of your sales.
• B-items: Moderately important products, usually making up 30% of your inventory and contributing around 15% to sales.
• C-items: Least important products that comprise about half of your inventory and contribute only 5% to sales.
To efficiently manage stock levels, you must prioritize A-items for replenishment and reduce excess stock of C-items. You can use the Pareto Principle – an economic rule that says 20% of inputs generate 80% of outputs – to identify A-items in each category.
b. Just-In-Time (JIT) Inventory This management approach minimizes inventory costs and waste by ordering stock as needed rather than keeping large quantities on hand. However, it requires an effective supply chain and reliable suppliers, as well as frequent monitoring of stock levels.
Brands selling seasonal or limited edition items often use this model to avoid overstocking and markdowns.
c. First-In, First-Out (FIFO) This method is used for perishable items like food or when selling products with expiration dates. It ensures that the earliest stock purchased (first-in) is sold first, avoiding spoilage and loss of profit.
To employ this method, tag your products with expiration dates and manage stock levels by selling the oldest items first.
d. Safety Stock Method Also known as the Buffer Stock Method, this model reserves extra stock for unforeseen demand spikes or supplier delays. The amount of safety stock needed depends on factors like lead time, customer demand patterns and supplier reliability.
While it adds to inventory costs, having a safety stock can help prevent stockouts and missed sales opportunities.
e. Economic Order Quantity (EOQ) Determines the optimal quantity of each product to order by balancing inventory holding costs and ordering costs. The goal is to minimize total inventory costs by finding the right balance between these expenses.
To use this approach, you’ll need to know your annual demand for each product, cost per unit and cost of placing an order. While it requires some calculations, using the EOQ method can help manage inventory costs and prevent stock shortages.
What To Do Next? Once you’ve chosen an inventory management model, you can implement it using the following steps:
1. Set up a central location to store your inventory and ensure proper storage conditions.
2. Use software or spreadsheets to track your stock levels, sales data and other relevant information.
3. Regularly review your inventory records to identify trends, such as products with high demand or slow-moving items.
4. Use forecasting techniques to predict future demand and adjust stock levels accordingly, especially for seasonal items or during sales promotions.
5. Implement reorder points or automatic replenishment systems based on your chosen model to optimize inventory levels.
6. Conduct regular physical inventory counts to compare your records and identify discrepancies or shrinkage.
Add Product Options
If your products come in various sizes, designs or customization options, you must manage your inventory for each product variation. Most eCommerce platforms allow you to create variants for each product instead of creating a new listing.
This ensures customers can only purchase available variations, reducing stockout chances and improving the shopping experience.
You can also set up alerts on your inventory management system to notify you when stock levels for specific products are low, out of stock or need replenishment.
Organize and Tag Products
You can organize your catalog under the product page builder of your eCommerce platform using different filters:
• Vendor Type. Set vendor type to manufacturer, wholesaler or third party.
• Product Availability. Set product availability to in-stock, out-of-stock or discontinued.
• Product Type. Categorize products by type – for example, vinyl stickers, paper stickers or custom-made.
• Tags. These keywords or phrases describe your product – for example, waterproof, matte finish or die-cut. Tagging allows shoppers to find your products using specific search terms in the search bar.
Thousand Fell, a sneaker label using sustainably sourced materials, does an excellent job organizing its men’s collection page. On the top left side, shoppers can filter the page based on product type, colorway and size. 
Source: Thousand Fell
Want to know the latest drops or the best-selling items? You can also sort items based on release date, best-selling items, price, etc. 
Group Products Into Collections
Organizing products in collections allows you to make changes in bulk, like updating pricing, tags or descriptions for multiple products at once. You can curate products based on a target audience, theme, season or product type.
You can also feature products by event or season, like creating a collection of holiday-themed cards or decors. This helps shoppers find relevant products easily and can increase sales by promoting related items.
Finally, collections appear in prominent locations on your website, like the homepage and navigation menu. This enhances navigation and improves the overall shopping experience for customers.
Spin It, a pickleball apparel brand, has organized its clothing products into distinct collection pages for easy access. You can find everything you need – from short-sleeved tops and tanks to shorts and skorts – directly from their homepage. 
Source: Spin-it
Step 15: Design and Customize Key Pages
Besides your product page, there are other essential pages you’ll need to design to add credibility to your brand and ensure shoppers have the information they need when shopping with your brand.
Homepage
Your homepage is the first page shoppers see when they visit your website. It should offer a brief overview of your brand, highlight new or top-selling products and feature any sales or promotions.
Contact Page
The contact page allows customers to reach out to you with ease. Include a contact form, email address, phone number and other relevant communication channels. Promptly responding to inquiries builds trust and enhances customer satisfaction.
About Page
Use the About page to tell your brand story. Share your company’s history, mission, values and team members. Customers appreciate transparency and want to know who they’re buying from.
FAQ (Frequently Asked Questions) Page
Anticipate common questions customers might have and address them on the FAQ page. Cover topics related to shipping, returns, payment methods and product details. Clear and concise answers can save both you and your customers time.
Policy Pages
The policies page covers terms of service, privacy policy and other important legal information. These pages protect your brand and inform customers of their rights and responsibilities when shopping with you.
a. Privacy Policy: Inform customers how their data is collected, used and protected. This is crucial for compliance with privacy regulations.
b. Terms of Service: Outline the terms and conditions that govern the use of your website. Cover aspects like refunds, warranties and intellectual property rights.
c. Shipping and Returns Policy: Clearly explain your shipping process, estimated delivery times and return procedures.
Step 16: Optimize Your Online Store
Another thing to remember when learning how to open an online store is that excellent web design provides customers with a clear path to purchase, while an optimized website drives more traffic and conversions. Here’s how you can achieve this:
Choose a Consistent Theme
A theme is a basic template that you can use to design your website. A consistent theme across all pages makes your site look more professional and cohesive.
Most eCommerce platforms have free and paid themes from which you can choose. For example, the Shopify Theme Store offers a variety of themes you can customize based on your eCommerce needs. 
Source: Shopify
Consider the following when selecting a theme for your website:
• Design: Avoid using too many colors, fonts or layouts that can make navigating difficult for customers.
• Responsiveness: 73.1% of web designers cite unresponsive design as a top reason visitors leave a website. Ensure your theme automatically adjusts to fit various screen sizes and devices.
• Customizability: Choose a theme that allows you to customize elements like colors, fonts and layout to match your brand’s aesthetic.
• Functionality: Your chosen theme should have the features you need, like a section that displays related products or a filter option for customers to sort through your inventory.
• Compatibility: Ensure the theme is compatible with your eCommerce platform and any apps or plugins you plan to use.
Simplify Navigation
Your goal should be to make your website easy to navigate for customers. Avoid overcrowding your navigation bar with excessive options; prioritize the essentials:
• Main Menu Bar: A well-organized menu with clear categories helps shoppers find products quickly while making managing your inventory and collections easier.
• Footer Bar: This contains links to non-essential pages that customers may want to access, like policies, contact information or social media accounts.
• Breadcrumbs: These links show a customer’s path to reach a particular page. They help customers easily navigate back to previous pages and reduce confusion.
• Search Bar: Make sure your search bar is visible and easy to use – this allows customers to look for specific products using keywords.
Customize Brand Colors, Typography and Other Design Elements
Colors and typography boost brand awareness and create a visual identity for your business. Follow these key steps when learning how to make an online store:
• Implement psychological design. Use colors and typography that convey your brand’s personality and evoke the right emotions in customers. For example, bright colors can create a sense of energy and excitement, while muted tones provide a more relaxed vibe.
• Customize Font and Colors. Choose at least two to three fonts and a color palette that aligns with your brand’s image. The body font should be easy to read, while the heading or accent font can be more playful.
• Incorporate White Space. Avoid cramming too many elements on a page. Leave enough white space to create a clean, organized look that lets customers focus on your products.
• Use Contrast Best Practices. Ensure there is enough contrast between text and background colors to ensure readability. For example, use dark-colored text on a light background or highlight CTA buttons in a bold color.
• Display Your Logo. Strategically place your brand logo in appropriate places across the site, including the favicon – the small icon in the browser tab next to your website’s name.
| Brand Spotlight: What Does Effective Web Design Look Like? Vulcan Sporting Goods Co.’s homepage is clean and straightforward, with minimal copy, a simple white background and strategic use of white space. The effective use of color contrast – black and white with pops of vibrant colors – draws attention to key areas of the page, which in this case is their pickleball product.
The site’s sub-navigation is well-categorized, making it easier for customers to access their products.
Further, a responsive web design ensures their online store looks and functions well, whether on a laptop or mobile device.
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.Streamline Checkout Process
A lengthy or complicated checkout process can frustrate customers and increase cart abandonment. Ensure a frictionless checkout flow by following these best practices when setting up an online store:
• Use visual indicators like a progress bar to show customers how far they are in the checkout process.
• Offer multiple payment options like credit/debit cards, PayPal or Apple Pay to cater to different customer preferences.
• Allow guest checkout for customers who want to avoid creating an account – this can help increase conversions.
• Implement a secure system to protect customer data and give them peace of mind when purchasing.
• Offer customers the option to save their cart for later if they get interrupted during the checkout process.
• Avoid long or complex forms; stick to essential fields like name, shipping address and payment information.
• Display trust indicators, like security badges or customer reviews, to increase trust in your business and reassure customers that their information is safe.
• Request customer feedback to improve the user experience and eliminate pain points.
Joolala is known for creating environmentally conscious and ethically sourced jewelry. Their no-nonsense checkout page makes purchasing products a breeze – no need to create an account, fill out lengthy forms or waste time on multiple pages. Plus, you can opt for express checkouts through Google Pay for added convenience.
If you navigate to the right, you can see a pop-up tab displaying reviews from satisfied customers. This helps gain trust and credibility for the brand and provides social proof for potential buyers. 
Step 17: Set Up Shipping and Fulfillment
The next step when learning how to start an online business is figuring out the logistics of shipping and fulfilling orders. You want to ensure customers receive their orders on time and in good condition.
• Determine shipping rates: Consider each order’s weight, size and distance to calculate accurate shipping costs.
• Offer free shipping: This can be a great incentive for customers to make a purchase; however, consider incorporating the cost of shipping into your product prices.
• Choose a reliable carrier: Research different carriers to find one that fits your needs and budget. Some popular options include USPS, FedEx, UPS or DHL.
• Package products safely: Use sturdy packaging materials to protect products during shipping and reduce the risk of damage. Packaging peanuts, bubble wrap and air pillows are all excellent options.
• Invest in tracking services: Provide customers with tracking information for their orders. This gives them peace of mind and helps reduce customer inquiries about order status.
• Automate fulfillment processes: Consider using a fulfillment service or integrating your eCommerce platform with shipping software to streamline the shipping process.
• Offer pickup and drop-off options: Some customers may prefer picking up their orders in person or dropping off returns at a designated location instead of shipping them back.
• Charge a flat rate for shipping: Predetermined flat rates can help simplify the checkout process for you and your customers.
In your eCommerce platform’s shipping settings, you can specify shipping zones (destinations and available methods) and conditional rates (e.g., for bundles or overweight items). For example, you may offer 10% off in shipping when a customer reaches a specific spending threshold.
Step 18: Set Up Payment and Processing
The next step when learning how to start an online business is setting up a payment method. Ecommerce platforms like Shopify have built-in gateways with lower or zero transaction fees.
You can also opt for an eCommerce third-party payment solution, such as PayPal, Stripe, Braintree, Square, 2Checkout and HubSpot Payments.
After choosing a payment gateway, you should also:
• Choose payment methods: Offer multiple payment options like credit cards and one-click payment options like Apple Pay and PayPal to cater to different customer preferences
• Consider offering payment plans: If you have high-priced products, offering installment plans opens up more opportunities for customers to purchase from you.
• Display secure checkout badges: This helps build customer trust and encourages them to complete their purchase.
• Sell in multiple currencies. For international customers, consider allowing them to shop in their local currency. This makes it easier for them to understand pricing and eliminates the need for conversion.
• Set up extra fraud prevention measures: Take proactive steps to protect your business and customers by requiring CVV, postal/ZIP code verification and implementing fraud detection tools.
• Automate payment processes: Consider using a recurring billing or subscription service for products that require regular payments.
• Set a payout schedule: Choose how often you want to receive payouts from your payment processor – daily, weekly or monthly.
• Continuously monitor transactions for suspicious activity: Regularly check your records for any unusual transactions that could indicate fraudulent activity.
Step 19: Configure Tax Settings
Much like brick-and-mortar businesses, online stores are required to collect and pay taxes. Tax laws vary by state/country, and exceptions may apply to some products or business types, such as digital goods in many jurisdictions or businesses that generate revenue under a specific threshold.
Meet tax compliance and avoid getting penalized with these tips:
• Consult a tax advisor: They can help you determine which taxes apply to your business and how to report them properly.
• Automate tax calculations: To avoid manual errors and save time, consider using an automated tax calculation service or integrating it with your ecommerce platform.
• Set up tax rules: Your eCommerce platform should allow you to set up tax rates for
• Display taxes at checkout: Display any applicable taxes to avoid customer confusion.
• Keep thorough records: Maintain detailed records of all transactions and tax payments to ensure accuracy in the future and for potential audits.
| Pro Tip: To comply with tax regulations, you can adjust your online store’s settings to collect and remit taxes based on your operating region. |
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Part 4: Get Ready To Launch
Now comes the fun part – putting everything you learned on how to start an online store into practice.
Step 20: Leverage Other Sales Channels
In addition to setting up an online store, you can use other sales channels to promote and sell your products. Some options include:
• Social media: Create business profiles on popular social media platforms like Instagram, TikTok and Facebook and regularly share updates, promotions and product information with your followers.
• Marketplaces: Sell your products through established marketplaces like Amazon, Etsy or eBay to reach a larger audience.
• Influencers: Collaborate with influencers in your niche to showcase your products to their followers.
• Google: As the leading search engine, Google offers a variety of tools to help you reach potential customers, such as Google Shopping ads and Google My Business listings. You can also list products for free under the Shopping tab in Google search results.
Step 21: Do a Website Pre-Launch Check
A pre-launch check ensures your site is ready to handle traffic and sales. Here are some things to consider:
• Test all links: Make sure all internal and external links work correctly.
• Check re-directions: Ensure any old pages are redirected to the correct new ones.
• Test forms and checkout process: Try different scenarios (e.g., shipping to different countries) to ensure everything runs smoothly.
• Optimize for mobile: With more people shopping on their mobile devices, ensure your website is mobile-friendly and responsive.
• Perform a security scan: Use a security tool to scan for any vulnerabilities or malware before launching.
• Check SEO: Ensure your content is properly optimized for search engines so customers can easily find your site.
• Optimize images: Compress images to optimize page loading speed, which affects user experience.
• Test site speed: Slow loading can turn away potential customers, so test your site’s speed and optimize as needed.
• Make sure payment processing is working correctly: Place a test order to ensure the payment process runs smoothly.
• Test on Different Devices: Check your site’s looks and functions on different devices and browsers to ensure a consistent user experience.
• Create a backup plan: If something goes wrong on launch day, have a backup plan to minimize potential downtime.
Step 22: Launch Your Online Store
Once all the pre-launch checks are complete, it’s time to launch your online store. Set a D-date and begin promoting your launch on social media, email marketing and other channels to create buzz around your new website.
You can entice customers by:
• Offering early-bird discounts or promotions
• Providing limited-time offers or free shipping for the launch period
• Hosting a launch event or giveaway
• Collaborating with influencers to promote your launch
• Releasing sneak peeks or teasers of your products
The goal of launching is to attract as much traffic and sales as possible, so make sure you have everything in place to handle the influx of customers.
Part 5: Develop a Marketing Strategy
You could have a well-designed website with great products, but your online store may struggle to attract customers without a solid digital marketing strategy. Here are some tips for developing a successful marketing plan:
Step 23: Define Your Target Audience
Don’t assume that your products are for everyone. Knowing who your ideal customer is – their demographics, interests and buying habits – will help you tailor your marketing efforts to reach and engage them effectively. Some ways to determine your target audience include:
Conducting Market Research
Market research involves collecting and analyzing data about your potential customers. You can use surveys to ask potential customers what they want from a product like yours, what they’re looking for in an online store and how much they’re willing to spend. You can also conduct focus groups, where a small group of people discusses their thoughts and opinions on your brand. This is an effective way to collect first-hand feedback on your eCommerce store.
Analyzing Customer Data
If you’ve had previous sales, analyze your customer data to identify demographics and buying behavior patterns. This will give insight into who your current customers are and help target similar individuals in the future.
Utilizing Social Media Insights
Most social media platforms have built-in analytics tools that can provide valuable information about your audience, such as age, location and interests. Use this data to refine your target audience.
Using Customer Segmentation
Segmentation divides your customers into specific groups based on shared characteristics or behaviors. You can then create targeted marketing campaigns for each segment to improve the effectiveness of your efforts.
Create Personas
Personas are fictional representations of your target audience based on research and data. The goal is to create a character with unique traits, interests and behaviors that align with your target audience. This can help you visualize and understand your potential customers better.
Let’s say you’re selling skincare products. In this case, your audience could be anyone who wants to improve their skin. You can break down your audience into three personas, for example:
• Busy working professionals in their 30s-40s who prioritize convenience and are willing to pay more for high-quality products.
• Health-conscious individuals in their 20s-30s interested in natural and organic skincare options.
• College students on a budget looking for affordable yet effective skincare products.
Understanding these different personas will help you create targeted marketing campaigns that appeal to each group. For instance, you can use social media ads to target busy professionals and influencer partnerships to reach college students.
Step 24: Choose the Right Marketing Channels
Once you clearly understand your target audience, choose the right marketing channels to promote your offers and reach your audience effectively. You can use different strategies based on what you’re selling and who you’re trying to achieve. Some channels to consider include:
Social Media Marketing
Social media marketing involves using social platforms like Facebook, Instagram, X (previously Twitter) and LinkedIn to promote your brand. You can use both organic and paid strategies to reach potential customers. Here are some ways to use social media for marketing:
• Select the right channels. You don’t have to be on every social media platform, only the ones your target audience uses.
• Offer value. In addition to promoting your products, provide relevant, timely and helpful content for your followers.
• Utilize visual content. Visuals like images and videos are more engaging than text-only posts, so use them to showcase your products in action.
• Be consistent. Post regularly to keep your audience engaged with your brand. For example, when setting up an online store, use consistent themes, colors, logos and brand voice on your social media to maintain a consistent brand image.
• Run social ads. Ensure you are targeting your ads to the right audience as well. Social media platforms allow you to target specific demographics, interests and behaviors.
• Collaborate with influencers. Partner with micro-influencers or industry experts who have a following of your target audience and can promote your brand effectively.
Search Engine Optimization
Over 40% of shoppers turn to Google when researching a purchase they want to make in-store or online. Search engine optimization (SEO) ensures your website appears high in search engine results pages (SERPs) when potential customers type in relevant keywords. Here are some ways to improve your SEO:
• Conduct keyword research: Identify the keywords and phrases your target audience uses when searching for products like yours. You can use tools like Google Keyword Planner or SEMrush to discover popular and niche keywords.
• Optimize your website: Use relevant keywords throughout your website, including titles, descriptions and alt text for images. This will help search engines understand the content on your site and rank it accordingly.
• Create high-quality content: Regularly publish helpful, informative content related to your products to improve your website’s authority and increase its chances of appearing for relevant queries.
• Build backlinks: Backlinks are links from other websites to your own. Acquiring backlinks from reputable websites signals to search engines that your website is trustworthy and can improve your ranking.
Paid Advertising
Paid ads can help you target a specific audience with precision and have a higher chance of conversion since they appear at the top of search results or in users’ social media feeds.
They come in two different formats:
• Search ads: These are text ads that appear at the top of search engine results when someone searches for specific keywords.
• Display ads: These are visual ads on websites, apps or social media platforms. They can be in the form of banners, videos, images or interactive content.
Some popular ad networks where you can run paid ads include Google Ads, Facebook Ads, Bing Ads, Amazon Ads and Instagram Ads.
Content Marketing
How many times have you heard that “content is king”? Content keeps your audience engaged and helps build trust with potential customers. Unlike a brick-and-mortar store, an online store cannot rely on physical interactions to attract and retain customers.
Investing in high-quality content can help you establish your brand as a reliable source of information and guarantee the credibility of your products. Here are some content marketing tactics to consider:
• Blogging: Maintain a blog on your website and publish regular articles related to your products, industry news or customer stories.
• Guest blogging: Contribute guest posts to other relevant websites or collaborate with influencers to reach a broader audience.
• Video Marketing: Use videos to showcase product demos, tutorials or customer testimonials. You can also collaborate with influencers to create sponsored videos featuring your products.
• Case studies and whitepapers: Use data and statistics to showcase your products’ effectiveness through case studies or publish whitepapers that provide valuable insights for your audience.
• Email Marketing: Build an email list and use emails to send promotions, new product announcements or informative content. This can help drive traffic back to your website.
• Podcasts: Create a podcast around topics related to your products or industry to reach an audience through audio content.
• Infographics: Use visual representations of data or information to attract and engage potential customers.
Online Reputation Management
Over 90% of customers check online reviews and ratings before purchasing. Don’t give customers a reason to doubt your brand’s credibility by neglecting your online reputation.
Here are some ways to manage your online reputation:
• Monitor reviews and ratings: Keep an eye on what customers say about your brand on review platforms like Yelp, Google My Business or Trustpilot. Respond to both positive and negative reviews promptly and professionally.
• Engage with customers on social media: Social media is a great way to interact with customers and publicly address their concerns. Be responsive and helpful to show your commitment to customer satisfaction.
• Encourage and manage user-generated content: User-generated content, such as testimonials or social media posts about your products, can build trust with potential customers. Encourage customers to share their experiences and repost positive feedback on social media platforms.
• Keep an eye on your brand’s search results: Regularly search for your brand name on Google and other search engines to see what comes up. Address any negative content or false information that may harm your brand’s image.
• Be transparent and authentic: Be honest about your products and business practices, and avoid misleading or false claims. This will build trust with your audience and help you maintain a positive reputation.
• Collect customer feedback: Use surveys or reviews to gather feedback from your customers and use it to improve your products and services.
Step 25: Set Up Analytics
Setting up analytics can help you understand what’s working and allows you to allocate your resources for maximum ROI effectively. Most eCommerce tools have built-in analytics features, but you can also use third-party tools like Google Analytics to track your website’s performance.
Some metrics to consider tracking include:
• Website traffic: Understanding how many people visit your site and where they’re coming from can help optimize your marketing efforts.
• Conversion rate: This is the percentage of visitors who take a desired action on your website, such as purchasing or signing up for your email list.
• Average order value: The average amount customers spend on each transaction. You can identify opportunities to upsell or cross-sell products and increase revenue by tracking this.
• Customer lifetime value: This is the total amount a customer spends over their entire relationship with your brand. It helps determine the effectiveness of your marketing efforts in retaining and upselling to existing customers.
• Return on ad spend (ROAS): If you’re running paid ads, ROAS measures the revenue generated relative to the cost. This can aid in optimizing campaigns for a positive ROI.
Launch a Successful Online Store With Thrive
Convenience is a key driver in today’s consumer market. With the digital world at our fingertips, consumers are seeking ways to make their lives easier, including how they shop. This has led to online shopping becoming a highly profitable and competitive industry. If you’re considering launching an online store, you’ll need a solid plan to ensure success. Thrive Internet Marketing Agency, a full-service digital marketing agency, provides online sellers with the tools and expertise to create a successful online store. From maximizing your sales to building your brand affinity, our eCommerce marketing services can help you achieve your business goals. Some of the key services offered by Thrive include:
• eCommerce Website Design: A visually appealing and user-friendly website is crucial for any online store. Our team of web designers and developers can create a custom eCommerce website that reflects your brand’s identity, optimizes the shopping experience and drives conversions.
• Search Engine Optimization (SEO): Ranking high on SERPs is essential to attracting organic traffic to your online store. Our SEO experts can optimize your product pages and website content to increase visibility and drive more qualified leads.
• Pay-Per-Click (PPC) Advertising: For instant results, PPC advertising is a highly effective strategy for online stores. It allows you to target specific keywords and demographics, making it easier to reach your ideal customers and generate sales.
• Social Media Marketing: Social media platforms offer a vast pool of potential customers for your online store. Our social media marketing team can create and manage campaigns across various platforms to drive engagement, increase brand awareness and boost sales.
• Email Marketing: With an email list of interested subscribers, you can reach your target audience directly and promote your products or services. Our email marketing experts can help you develop effective email campaigns that lead to conversions.
• Amazon Marketing: As one of the largest online marketplaces in the world, Amazon is a crucial platform for eCommerce businesses. Our team can help optimize your product listings and run sponsored ads to increase visibility and sales on Amazon.
In addition to these services, Thrive offers data analytics and reporting to track your website’s performance and make informed decisions for your online store. Contact Thrive today to learn how we can help you launch and grow a successful online store.
Frequently Asked Questions
HOW MUCH DOES IT COST TO MAKE AN ONLINE STORE?
The cost of starting an online store varies depending on your chosen platform and the features you need. Some platforms offer a free plan or a low monthly fee, while others may have higher upfront costs. You should also consider additional expenses such as website hosting, payment processing fees and marketing costs.
CAN I START AN ONLINE STORE WITH NO INVENTORY?
Yes, you can start an online store without holding any physical inventory. This is known as dropshipping, where the supplier ships products directly to the customer upon purchase. However, you must find a reliable and trustworthy supplier to ensure timely delivery and high-quality products for your customers. Other options include selling digital products or using print-on-demand services.
IS FUNDING NECESSARY TO START AN ONLINE STORE?
It is possible to start an online store without funding, especially if you use a free or low-cost platform. However, having some initial capital can help you invest in marketing and other resources to grow your business faster. Consider applying for small business loans or seeking out investors if you need financial support for your online store.
WHAT DO I NEED TO START AN ONLINE BUSINESS?
At a minimum, you need a working device (such as a computer or smartphone), reliable internet access and a website or online platform to sell your products. You may also need to register for a business license and obtain any necessary permits depending on the type of products you’re selling and your location. A solid business plan, marketing strategy and budget are also helpful before launching your online store.
