How To Start An Online Store: A Step-By-Step Guide

When considering what kind of product you want to sell, you should ask the following questions: Do you want to sell your homemade goods, or are you looking to use an existing supplier? Do you have a niche interest or unique knowledge that you can turn into a profitable business? 

Make sure that the product you choose is something you are interested in selling and promoting. If it's not something you are passionate about, it will be more challenging to be knowledgeable about your products and invest fully in your business. 

Once you’ve decided on what products you’ll be selling, it’s time to think of a catchy business name. Choosing the right business name is imperative since you want it to be memorable and informative to potential customers. 

You want to make sure that your online shop's visuals are consistent and aesthetically appealing. Invest in quality, professional photos, and videos to attract customers. If necessary, you can also hire copywriters to write the copy for your website, as well as create the right blog posts and advertisements.

You also need to think about how you plan to present your business online – do you want to look fun and casual or more formal? Whatever approach you take, you should stick with it and use the same tone across all of your material.

There are many ways to set up your online store to give it a distinguished personality. Differentiate your brand by creating a catchy slogan or appeal to a niche audience by offering unique products or services. 

Shopping online can feel impersonal, so customers are always looking for something to connect with—writing custom content and letting customers know about the origin of your business story will help them connect better with you and your products. You can do this by setting up an “About” page and writing blog posts.

Once you know what kind of online store you want to build, it's crucial to determine the costs involved. The first financial factor to consider is your start-up costs, like paying for an LLC and other business licenses, designing your website, sourcing your inventory, and paying for advertisements. You may also consider outsourcing employees, from copywriters to SEO experts, for extra help getting started. 

Once your business is up and running, there are two main categories that you need to consider – fixed and variable costs. Fixed costs will remain relatively consistent, like monthly hosting fees and payroll.

Variable costs will vary depending on the number of sales you make. This category includes shipping charges or any other cost incurred when fulfilling an order, like the packaging for your products. Your marketing and advertising needs may grow over time as well, which you can factor in if you are trying to scale your business.

You can set up a Limited Liability Company (LLC), a low-cost legal enterprise popular with small business owners. This step is essential because it means that if anything were to go wrong with your online store, your personal assets would not be at risk. 

Filing for an LLC will cost different amounts depending on what state you operate in, but they typically range between $50-100. 

You'll also have to apply for an Employer Identification Number (EIN) on the IRS website. Your EIN allows you to register for and pay state and federal taxes.  

Depending where you live, there may be additional legal requirements, such as licenses and permits, so make sure you do your research before you start selling.

Once you’ve decided on a name for your business, be sure to make sure the name isn’t already registered using the trademark database. Ensuring your business name is unique is crucial to protect your business and avoid being sued. 

Part of developing your business strategy should involve checking out (and even copying) how other businesses in the same industry generate revenue. Think about what they offer and how much it costs, then research their marketing campaigns and pricing strategies.

Many eCommerce platforms, including Shopify, Squarespace, and BigCommerce, offer a free trial, typically for 14 days. Take advantage of this opportunity to explore the different website layouts and design options to see which is the easiest to navigate.

Since the various hosting sites offer different perks, this is a fantastic way to get your feet wet and see which platform meets your operation's aesthetic and functional needs.

Show off what makes your company special and different from the competition so that people can connect with you on a more personalized level. You could think of a creative way to use a bold design concept or a specific color scheme, for instance, that will make it easy for shoppers to identify you. 

If you're not sure where to start, it would be a good idea to take a look at your competitors and see what they're doing in this area. Thankfully, many templates are customizable, so you can add your personal touch when designing your website.

Above all, make sure to showcase the products you are selling. A smart way to do this is to have a clear, compelling header above professional photos of your products.

Key pages are the core of your online storefront—it's what people will see when they first enter your site, and each page must answer a few important questions, as follows:

There are additional tabs you can add to your online store to increase customer loyalty and retention:

When adding your products to your website, product descriptions and titles are some of the most critical items you should fill out. You want to make sure this section includes an accurate description of your product and any related keywords that you feel people will use when searching for it online. This way, when someone is conducting an internet search for your product, they're more likely to find you.  

The description should be detailed and accurate, so customers know exactly what they are purchasing. You can add details like sizing, brands, and instructions for use or care.

Your online store's products aren't going to sell themselves. They need to be easy for people to see and appealing enough that they'll click "add to cart.” Make sure you add photos of your products— if possible, include more than one view.

Experimenting with adding professional videos and other forms of media, like 3D models, will give your store an edge. The better the quality of the pictures and videos, the more likely customers are to purchase items, so hiring photographers or media experts can help ensure that your images are top-tier.

Now that you’ve added your products to your online store, it’s time to organize them into collections. You can also use these sections to highlight popular items or group common items together. The goal is to make the shopping experience as streamlined as possible for customers, so organizing your products will make it easier for buyers to find what they want.

You need to think like a buyer and consider how much you would be willing to pay for each item. Aim high rather than low because if people believe they're getting something of high value for an agreeable price, they are more likely to make a purchase.

Research the current market value for similar products so that you know what to aim for. Make sure to also account for shipping costs and transaction fees from your chosen payment processor.

You have to go where your audience is, so create profiles on all of the major social media networks, like Facebook, Instagram, and Pinterest. Build a following by sharing high-quality content that will keep people coming back for more and find ways to increase traffic with targeted ads and paid boosts. 

To drive additional interest, you can also create social media contests that your followers can participate in to win free products or discounts on their next order, driving up engagement and visitors to your website at the same time.

Influencer marketing is one of the most underrated strategies for gaining traction to your online store, but it's also one of the most effective. If you can get respected people in your industry to promote your products, their followers are much more likely to trust these products and make a purchase. 

This tactic could include anything from reaching out to influencers with a significant following for a paid partnership, offering free products or discounts in exchange for promotion, or incentivizing your most loyal customers to spread the word by offering discounts.

Digital stores have an advantage compared to physical retailers when it comes to advertising. You can use Google Ads or Facebook Ads to target potential customers shopping for relevant products on search engines or social media sites, leading them straight to your listing rather than a competitor's website. 

Remember that the costs can add up since you will be charged a fee every time a customer clicks on one of your ads. However, many PPC advertising sites allow you to track analytics to ensure that your efforts and money are generating revenue.

Your email list is one of the few assets that can't be duplicated anywhere else since you have a built-in audience for your store. Sending out short updates to your subscribers will keep your customers informed about new products and deals. Promoting special offers and sales is a great way to grab the attention of online shoppers, and you can always run them for a limited time to boost urgency.