What you need before you start
Creating an online shop means choosing a platform, adding your products, setting up payment processing, and launching a storefront that customers can browse and buy from. You do not need to be a programmer — most platforms handle the technical work for you. What you do need is a product or service to sell, a way to accept payment, and a plan for shipping or delivery.
Before you pick a platform, decide what you are selling and how you will fulfill orders. Are you shipping physical items, selling digital downloads, or offering services? Will you store inventory yourself or use a supplier who ships directly to customers? These decisions affect which platform works best and what features you actually need.
You will also need a business name, a way to accept payment (usually a business bank account and a payment processor), and basic tax information for your location. Some platforms let you start without these, but you cannot accept real payments until they are in place.
Key Takeaways
- Popular platforms like Shopify, WooCommerce, and Etsy each suit different types of sellers — Shopify for brands building their own site, WooCommerce for those who want to host it themselves, and Etsy for handmade or vintage items.
- You will need a payment processor (Stripe, Square, PayPal) to accept credit cards, and these charge a percentage of each sale plus sometimes a fixed fee per transaction.
- Domain names cost $10 to $15 per year, hosting ranges from free to $300+ monthly depending on your platform, and platform fees vary widely — some charge monthly subscriptions, others take a percentage of sales.
- Product photos, descriptions, and pricing should be ready before you launch, because customers decide whether to buy based on what they see in the first few seconds.
- Most platforms offer built-in tools for shipping labels, tax calculation, and order tracking, so you do not need separate software for these tasks.
Choosing between the major platforms
Shopify is the most common choice for new sellers building a branded storefront. You pay a monthly subscription ($29 to $299 depending on the plan), and Shopify handles hosting, security, and updates. You get a domain name, customizable templates, and built-in payment processing. The trade-off is that you pay monthly whether you make sales or not, plus Shopify takes a small percentage of each transaction (2.9% plus 30 cents for online credit card sales on the basic plan). Shopify works well if you are selling physical products, have a brand you want to build, or plan to grow into a larger operation.
WooCommerce is a free plugin that turns a WordPress website into a shop. You pay for hosting separately (usually $5 to $50 per month), a domain name ($10 to $15 yearly), and any premium extensions you add. WooCommerce itself is free, but you handle more of the technical setup — you choose your hosting provider, install the plugin, and manage updates yourself. This route costs less per month but requires more hands-on work. It suits sellers who already have a WordPress site or who want full control over their setup.
Etsy is a marketplace where you list items in an existing storefront rather than building your own. You pay $0.20 per listing (listings last four months), 6.5% of the sale price, and 3% plus $0.20 per transaction for payment processing. Etsy is cheapest to start and works best for handmade items, vintage goods, or craft supplies because customers come to Etsy looking for those categories. You do not build a brand or own the customer relationship the way you do on Shopify or WooCommerce.
BigCommerce and Squarespace are middle-ground options. BigCommerce ($29 to $299 monthly) is built for larger catalogs and offers more advanced features than Shopify's basic plan. Squarespace ($18 to $33 monthly for commerce) is simpler and better for sellers who want a beautiful site without much customization. Both handle hosting and security like Shopify does.
Setting up payment processing
Every platform connects to at least one payment processor — the service that actually takes the customer's credit card information and deposits money into your bank account. Stripe and Square are the most common. Both charge 2.9% plus 30 cents per transaction for online sales. PayPal charges 2.2% plus 30 cents. Some platforms like Shopify also offer their own payment processor (Shopify Payments) with the same rates.
You will need a business bank account to receive payouts, though some processors let you start with a personal account. Payouts usually happen once per week or once per month depending on the processor. Set up your payment processor before you launch so customers can actually complete purchases.
If you are selling in person as well as online, Square and PayPal also offer card readers that plug into your phone, so you can use the same account for both channels. Shopify has a separate point-of-sale system if you need that.
Adding products and writing descriptions
Most platforms let you upload products one at a time or in bulk using a spreadsheet. For each product you need a title, description, price, and at least one photo. Take clear photos from multiple angles if possible — customers cannot touch the item, so photos are their only way to see what they are buying. Poor photos are one of the biggest reasons people abandon carts.
Write descriptions that answer the questions a customer would ask: What is it made of? What size is it? How long does it last? What problem does it solve? Include dimensions, weight, materials, and care instructions if relevant. Be honest about flaws or limitations — a customer who discovers a problem after buying will leave a bad review.
Set your price by calculating your cost, the platform and payment fees you will pay, shipping costs if you cover them, and the profit you want. If you are selling on Etsy, remember that 6.5% of the sale price goes to Etsy before you even see the money. If you are on Shopify, 2.9% plus 30 cents goes to payment processing. These add up quickly on low-priced items.
Handling shipping and taxes
Most platforms let you set shipping rules — flat rate, weight-based, or calculated by the carrier. Shopify, WooCommerce, and BigCommerce all integrate with USPS, UPS, and FedEx so customers see real shipping costs at checkout. This is better than guessing because it reduces cart abandonment — customers know the total price before they commit.
For taxes, the rules depend on where you are located and where your customers are. In the United States, you generally owe sales tax in states where you have a physical presence or where you exceed a sales threshold (usually $100,000 to $1 million annually, varying by state). Most platforms have built-in tax calculators that charge the right rate automatically. If you are just starting, you may not owe sales tax yet, but set it up correctly from the beginning so you do not have to fix it later.
If you are shipping internationally, research customs forms and duties for each country. Many sellers start with domestic shipping only and add international later once they understand the process.
Launching your shop and getting your first customers
Before you go live, test the entire checkout process yourself — add an item to the cart, enter a test address, and complete a purchase using a test card number (your platform provides these). Make sure the confirmation email works, the order appears in your dashboard, and you can print a shipping label. Small mistakes here cost you sales.
Your first customers usually come from your own network — tell friends, family, and colleagues that you have launched. Share the link on social media, in relevant online communities, or in your email signature. Do not expect organic traffic immediately. Most new shops get their first sales from people who already know the seller.
Once you have a few sales, ask customers for reviews and photos. Social proof — real people saying they liked the product — is what convinces strangers to buy. Respond to every review, even negative ones, because potential customers read how you handle complaints.
Understanding the ongoing costs
Your monthly costs depend on which platform you choose. On Shopify, expect $29 to $299 monthly for the subscription, plus 2.9% plus 30 cents per transaction, plus any premium apps you add. On WooCommerce, hosting might be $5 to $50 monthly, domain name $10 to $15 yearly, plus any paid extensions. On Etsy, you pay per listing and per transaction, so your costs scale with sales — a shop with ten listings and five sales per month might cost $10 to $15, while a shop with 100 listings and 50 sales might cost $50 to $75.
Beyond the platform, budget for product photography, shipping supplies, and marketing. Many new sellers underestimate these costs. A professional product photo might cost $50 to $200 per item. Shipping boxes and labels add up. If you advertise on Facebook or Google, budget at least $100 to $500 per month to test what works.
Track your actual costs for the first three months so you know whether you are profitable. Many new shops run at a loss initially while the seller learns what works and builds an audience.
Frequently Asked Questions
Do I need a business license to sell online?
Requirements vary by location and what you are selling. Most places require a business license or seller's permit if you are selling goods, but some do not require one if you are just starting. Check with your city or county clerk's office. You will definitely need one before you collect sales tax, and you may need one to open a business bank account.
Can I start selling before my shop is perfect?
Yes. Launch with a few products that are well-photographed and described, then add more as you go. Perfection is the enemy of starting. You will learn what customers want by selling to them, not by planning in advance. Fix problems as they come up.
What if I want to sell on multiple platforms at once?
You can list the same products on Etsy, Shopify, and Facebook Marketplace simultaneously. Tools like Sellfy and Inventory Lab sync inventory across platforms so you do not oversell. This takes more setup but spreads your risk — if one platform changes its rules, you still have customers on the others.
How long does it take to make money?
Most shops make their first sale within one to three months if the seller actively promotes it. Profitability — making more than you spend — usually takes six months to a year. Some sellers are profitable in weeks if they have a strong audience already. There is no standard timeline.
What should I do if a customer wants a refund?
Have a clear refund policy before you launch and display it on your shop. Most platforms let you process refunds directly from your dashboard, which reverses the charge to the customer's card. Decide in advance whether you refund shipping costs and whether you require the item back. Handle refund requests quickly — customers remember good service.