How to Set Up Your First eCommerce Store: A Complete Guide

Online shopping has become a cornerstone of the 21st-century experience in multiple countries, and it’s hard to think of life without it. Considering that eCommerce revenue is expected to surpass $6 billion by 2029, it’s unsurprising that even more entrepreneurs and businesses are looking for opportunities in this space.

Besides the potential income, eCommerce stores are often much simpler to set up than land-based ones. And even if you already have a physical store, taking your business online will open the door to a global market and the possibility of significant growth.

Regardless of your prior retail experience, this guide will help you set up your first eCommerce store. You’ll find a complete walkthrough and also discover extra tips to ensure that you’re fully prepared.

Step 1: Determine if You’re Selling Physical or Digital Products

Before you do anything else, you need to know if you’re selling a digital or physical product. Both are viable business options, but digital products will require some additional planning and research.

You must know how you’re going to develop and ship physical products to your customers. You have two main options here:

1. Use print-on-demand services

2. Find suppliers

Both have their pros and cons, and your choice will largely depend on the types of products you sell. Let’s briefly look at both of them.

Print-on-Demand Services

Print-on-demand services are a good choice if you’re selling art; this is actually how I sell my photography prints. You can also use these services to sell customized shirts and other merchandise; in all cases, make sure that they meet your quality standards.

Many print-on-demand services let you sign up for free and will then charge you each time you make a purchase. Sometimes, you can simply list your items and get paid a commission each time they sell.

Make sure that you research whichever service you choose. Besides using good-quality materials, you should also check that they cover the regions you expect most of your customers to be in. For example, I use a supplier that ships throughout the EU and EEA. You also need to upload your pictures, etc., in a high-quality format and the correct dimensions based on the service’s demands. You can also create a print-on-demand shop in WordPress.

Distributors and Suppliers

You might think that ordering the products yourself and shipping them will be cheaper, but it often isn’t. Since you’ll also spend a lot of needless time sending items when you could’ve been growing your business instead, I don’t recommend it.

If you’re selling someone else’s items, you should partner with distributors and suppliers instead. The same is true if you’re making your own non-artistic physical products, such as furniture and electronics.

You’ll find distributors and suppliers throughout the world, and some will serve more markets than others. When looking for these, you need to consider each of these aspects:

• Product quality

• Employee safety and treatment standards

• Markets served

Before launching your product to a broader market, get your partner to send you test items of your inventory.

Step 2: Build a Cash Reserve Before Going Full-Time With Your eCommerce Store

Building any successful business takes years, and from personal experience, I can tell you that going head-first into something without a runway is stressful.

Even if your store quickly takes off, you will inevitably encounter months of slow business. If you don’t have a cash reserve, you can put yourself in genuine danger of going out of business.

You should, at the very least, have 6-12 months of operational costs saved. I suggest a similar runway for your living expenses. If you need to raise extra money, consider freelancing in the meantime.

Step 3: Choose Where You’ll Sell Your Products

After covering the first two bases, you then need to decide where you’ll host your eCommerce store. Building your own website and picking a third-party platform are the two main choices; I’ve tried both, and they both have their own advantages and disadvantages.

Building Your Own Website

When building your own eCommerce website, you can choose the branding, fonts, colors, and overall page layout. Moreover, your profit margins are often higher than if you pick a third-party platform.

WordPress has several eCommerce plugins, such as WooCommerce. You can use several WooCommerce plugins that cover aspects, such as analytics and themes. You’ll also find several WooCommerce alternatives for WordPress, such as WP Easy Cart.

It’s also possible to set up eCommerce stores on Squarespace and other website builders. While building your own website offers more customization, you also need some technical knowledge and may need to spend money on a web developer for the best results.

Third-Party Platforms

If you lack time and technical expertise, look at third-party platforms like Gumroad and Sellfy. Many let you connect your own domain.

Third-party eCommerce platforms often require little to no technical expertise. All you have to do is sign up for an account and list your products. Integrating different payment options is also easier, and you can access customer support if something goes wrong.

Step 4: Pick a Domain and Hosting Plan

I strongly suggest using your own domain and getting a hosting plan, especially if you’re a new eCommerce store. Building trust is crucial, and convincing someone to spend money on your products is even more difficult if you have a generic URL.

Getting your hosting provider right straight away is a good idea. In the past, I’ve had to migrate my website to a different supplier; even with professional support, it was complex. My site also suffered a SERP ranking drop for two months.

You should consider each of these factors when choosing a hosting plan:

• Customer support

• Server uptime (ideally at least 99%)

• Security features and practices

When buying a hosting plan, you should also consider whether you want to purchase it directly from the provider or via your website builder. How you connect a custom domain will depend on your site builder, but you should be able to find instructions.

You can change your domain later, but you should pick something that represents your brand. Check that your desired site name is available; using one of the most popular top-level domains is also a good idea for building trust.

Step 5: Decide How You’ll Market Your Products

You have several marketing options, including content marketing and paid advertising. These should be in addition to your SEO efforts, and here’s a quick rundown of some avenues to consider.

Content Marketing

Content marketing covers several forms, such as YouTube, podcasts, blogging, newsletters, and social media. Your primary objective is to provide free value, and you can do this by educating, entertaining, or both.

Since content marketing requires a lot of effort, avoid spreading yourself too thin. If you have limited resources and bandwidth, pick two methods at most (e.g., YouTube and one social media platform).

Paid Advertising

Paid ads on YouTube, Google, and social media are another potential marketing channel to consider. However, you need significant financial resources to generate a profit. You also need to consider how you’ll captivate your audience if you want them to make recurring purchases.

Word of Mouth

Word of mouth is when someone recommends your product to someone they know; it’s one of the most powerful forms of marketing. You can also encourage buyers to leave reviews if they enjoy using what you sell. Word of mouth works particularly well if you’re an established brand.

Step 6: Build, Customize, and Launch Your eCommerce Store

Once you’ve done all the background research and planning, you’re ready to build your eCommerce website! After connecting your domain, choose your payment methods. You might need to pick a payment gateway, depending on where you set up your online store.

You’ll also need to list your products and their prices. Use succinct copy and be as transparent as possible. Tell customers exactly what they’ll get and why they should buy your items, and use genuine pictures. Outlining additional costs, such as shipping and taxes, is essential—as is showcasing your policy for exchanges, refunds, and returns.

Before you launch your website, you should also optimize it for search engines. Besides using keywords, look at your layout, page speed, and get the required security certifications; these will indirectly impact your ranking. To optimize each page, you can use Yoast or All-in-One SEO.

Once you have a minimum viable product and website, you’re ready to launch. Your site probably won’t be perfect; you can iterate as you get customer feedback and learn more about running an eCommerce store.

Essential Things to Consider When Setting Up Your First eCommerce Store

Besides what we’ve already discussed, you must consider each of these points when running an eCommerce business.

1. Registering Your Business: In most countries, you’ll need to register your eCommerce store as a business. Start as a sole trader and upgrade to an S-Corp or LLC when you’re more established. Tax rates and reporting rules depend on your location and profits.

2. Business Investments: To grow a business, you need to spend money. Invest in a high-quality web hosting service and build the right systems to make your operations more efficient. Consider hiring staff (e.g., a technical customer support team); these can be freelancers if you can’t afford full-time employees.

3. Additional Costs: Many regions charge VAT, and it’s your responsibility to declare and pay sales tax. VAT thresholds vary and may depend on your business’s income. You also need to think about subscription costs.

4. Bookkeeping: In addition to reporting VAT and registering your business, you’re typically required to declare your earnings each fiscal year. Use bookkeeping software and hire an accountant.

Summary

Launching an eCommerce store is exciting, and you’ve done a great job by researching what you need to do in advance. Planning appropriately will make it much easier to launch and optimize your website, and so will understanding your strengths and weaknesses.

Build slowly over time, and make sure you get the right assistance from the beginning. Besides choosing a supplier, you should also consider signing up for Verpex’s hosting for WordPress or registering your own custom domain.

Frequently Asked Questions