Starting an online store can seem daunting, but with the right planning and preparation, anyone can launch their own successful ecommerce business. Here are some quick answers to common questions people have when first starting out:
What do I need to get started?
The basic requirements for starting an online store are:
- A product or service to sell
- A business plan
- A website and domain name
- An ecommerce platform or shopping cart software
- Payment processing solutions
- Inventory and order fulfillment plan
How do I choose products to sell?
When selecting products, focus on:
- Your interests and passions
- Profit margins
- Popular or trending products
- Solving customer problems
- Availability and ease of shipping
Research market demand and competition as well. Choose a niche you’re knowledgeable about.
What legal and tax requirements are there?
Common legal needs include:
- Business licenses and permits
- Reseller’s permit to collect sales tax
- FEC tax ID number
- Trademarking your brand name
You may also need to register your business as a legal entity like a LLC. Track all business income and expenses for tax reporting.
How much does it cost to start an online store?
Initial costs can range from $500-$5,000+ depending on factors like:
- Ecommerce platform (free to $300/month)
- Web hosting ($5-$100/month)
- Domain name ($10-$20/year)
- Website design ($500-$5,000+ one time)
- Inventory ($100-$1,000 to start)
- Marketing ($300+ per month)
Ongoing monthly expenses will include platform subscriptions, web hosting, and advertising.
How do I build my ecommerce website?
Popular options for building an online store include:
- Using an ecommerce platform like Shopify, Squarespace or WooCommerce
- Custom building a site from scratch
- Using an online store builder tool like Shopify, BigCommerce
- Hiring a web developer
Ecommerce platforms make it easy to create professional online stores without coding. Custom sites allow limitless customization.
How do I process payments?
To accept payments you’ll need:
- A payment gateway like Stripe or PayPal
- An online merchant account
- An SSL certificate for security
- A bank account in your business’s name
The payment gateway routes customer transactions. The merchant account holds your funds.
How do I fulfill orders and ship products?
Fulfillment options include:
- Self fulfillment from your own inventory
- Dropshipping with a wholesaler
- Integration with fulfillment services like ShipBob
- Local pickup locations
Choose a solution that matches your order volume, inventory size and staffing capabilities.
How can I manage everything?
Essential business management tasks include:
- Order processing and tracking
- Inventory management
- Accounting and financial records
- Customer communication
- Marketing campaigns
Your ecommerce platform should have built-in tools or app integrations to help automate operations.
How much can I earn from an online store?
Profit potential depends on factors like:
- Your profit margins
- Order volume
- Recurring vs one-time purchases
- Advertising costs
- Additional products/services
Many successful stores generate over $100,000 per year. Focus on providing an excellent customer experience.
What should I name my online store?
Tips for naming your ecommerce business:
- Choose a name related to your niche or products
- Make it short, memorable and easy to spell
- Check domain availability
- Ensure it’s a brandable name
- Consider naming conventions and trademarks
The right business name can help you stand out while conveying what you sell.
How do I market my online store?
Low cost marketing strategies include:
- Search engine optimization
- Content marketing through blogging and social media
- Email marketing such as newsletters and autoresponders
- Influencer marketing by partnering with relevant bloggers/leaders
- Social media advertising
Focus on driving targeted traffic to your site and building brand awareness.
How can I improve my online store sales?
Ways to increase sales include:
- Offering promotions and discounts
- Launching new products
- Collecting customer feedback
- Retargeting previous customers
- Improving website speed and performance
- Optimizing pricing strategies
- Expanding marketing reach
Test different approaches and track sales data to see what works best.
What are some ecommerce business risks?
Common ecommerce risks include:
- Inventory problems like shortages or excess stock
- Shipping delays or errors
- Declining online sales and traffic
- Increased advertising costs
- Competitors offering lower prices
- Economic recessions or falling consumer spending
Manage risks by staying agile and responsive to market changes.
How can I make my online store successful?
Tips for ecommerce success:
- Offer excellent customer service
- Build an email subscriber list
- Focus on long-term relationships, not one-time sales
- Set competitive prices
- Analyze data to make informed decisions
- Pay close attention to emerging ecommerce trends
- Maintain a cycle of testing and improvement
Success takes consistent effort and learning from both mistakes and wins.
What legal requirements apply to my business?
Common legal obligations include:
- Business licenses and permits
- Sales tax collection and remittance
- Income tax reporting
- Privacy policies, terms of service, and return policies
- Consumer protection regulations
- Product safety standards
- Employment laws if hiring staff
Consult a business lawyer or government agencies to ensure full compliance.
How can I make my website secure?
Ways to improve security include:
- Using HTTPS on all pages
- Installing an SSL certificate
- Implementing reCAPTCHA
- Regularly updating software
- Enabling two-factor authentication
- Selecting secure passwords
- Limiting login attempts
A secure site helps build customer trust and protect sensitive data.
What support and resources are available?
Helpful resources include:
- Online business forums and communities
- Ecommerce business podcasts and blogs
- Ecommerce guides and courses
- Small business grant programs
- Score.org for free business mentoring
- Meetups and networking events
- Conferences and trade shows
Connecting with other entrepreneurs and experts can accelerate your success.
How do I handle returns and refunds?
Best practices for returns:
- Post return and refund policies clearly
- Accept returns within a stated time frame like 30 days
- Provide pre-paid return shipping labels
- Refund to original payment method promptly
- Restock returned items back into inventory
- Learn from reasons customers return items
Handling returns smoothly preserves customer satisfaction.
How do I choose an ecommerce platform?
Factors to consider:
- Features needed for your business model and size
- Ease of use
- Themes and customization options
- Built-in payment processing
- Technical support offered
- Available apps and integrations
- Scalability for future growth
- Subscription costs
Evaluate platforms closely to select one that can support your current and future needs.
How do I source products to sell?
Sourcing options:
- Ordering inventory from wholesalers
- Manufacturing your own products
- Purchasing handmade items from artisans and crafters
- Liquidating assets from auctions, closeouts or estate sales
- Dropshipping items fulfilled by other retailers
Choose suppliers that enable competitive pricing and consistent availability.
How should I set my prices?
Pricing strategies:
- Set a baseline cost floor based on product costs
- Research competitor prices for similar items
- Factor in overhead like shipping and transaction fees
- Consider psychological price points like $X.99 or $X9.99
- Offer promotional pricing and sales incentives
- Track demand and fine-tune prices over time
Balance generating sales revenue and profits without overpricing items.
How do I provide excellent customer service?
Good customer service practices:
- Prompt, friendly email communication
- Phone/chat support during business hours
- Quick order processing and shipping
- Honoring returns and guarantees
- Following up to confirm order satisfaction
- Offering loyalty rewards or VIP benefits
Go above and beyond to ensure a smooth, enjoyable customer experience.
How do I hire staff for my business?
Steps for hiring:
- Determine roles needed and create job descriptions
- Promote open positions on job boards and social media
- Screen resumes and select top candidates to interview
- Conduct interviews to evaluate skills and fit
- Make hiring decisions and extend job offers
- Onboard new hires and provide training
Hiring the right people can enable business growth and success.
How do I monitor and improve performance?
Ways to track performance:
- Set KPIs (key performance indicators) to monitor
- Use analytics to assess website traffic, sales, costs
- Review sales numbers daily, weekly, monthly
- Survey customers for feedback and suggestions
- Audit processes regularly for efficiency
- Compare results to previous periods and forecasts
Continuously evaluating relevant metrics can inform better decisions.
What emerging ecommerce trends should I know?
Current trends:
- Mobile commerce – optimize for smartphones and tablets
- Voice search – customers using virtual assistants
- Personalization – customized product offerings
- Video marketing – engaging branded video content
- Subscription ecommerce – membership models and recurring orders
- Social commerce – shoppable social content
Stay ahead of trends shaping modern online shopping behavior and expectations.
What mistakes should I avoid?
Pitfalls to steer clear of:
- Neglecting the customer experience
- Failing to track important metrics
- Not investing enough in marketing
- Trying to copy competitors entirely
- Expanding too quickly beyond capabilities
- Running out of inventory/overstocking inventory
- Not delegating tasks and scaling team
Learn from the mistakes of other ecommerce entrepreneurs to keep your business on track.
How do I choose a web hosting provider?
When comparing web hosts, look for:
- High uptime and page speed
- Robust ecommerce features
- SSL certificates for security
- Strong technical support
- Simple control panel and admin
- Scalable plans aligned with growth
- Shared vs dedicated server options
Choose a fast, reliable host suited for online businesses.
Conclusion
Launching a successful online store takes careful planning, commitment and hard work. But the substantial profit potential makes ecommerce a compelling path for aspiring entrepreneurs. By following the steps outlined above, you can get your own ecommerce business off the ground and start delighting customers with your products or services. Don’t let complexity deter you – take it step-by-step and learn as you go. Your dream of owning an thriving online store can become reality.
