How to Start an Online Store: 9 Steps From Niche to First Order

Step 1. Choose a niche and a sales model

The best niche for a small online store is a narrow range of products for a specific group of customers, where you don't compete on price alone. “Handmade ceramic kitchenware” has a better chance than “home goods”, and an online boutique for petite women's workwear beats a general clothing store. Before you decide, check demand and competition.

Do it in 4 steps:

1. Compare interest in your products in Google Trends and in Amazon and Etsy search.
2. Read reviews of competing stores. Customer complaints show you what you can do better.
3. Work out your margin: selling price minus the cost of the product, packaging, shipping and payment fees.
4. Describe your customer: age, needs, budget and where they shop for products.

How will you sell online? Choose the model that fits your budget and time:

Step 2. Handle the paperwork

In the US, you can start an online store as a sole proprietor without filing anything with your state. Once you sell taxable products, though, you'll need a sales tax permit, and many cities and states also require a general business license.

What do you need to sort out before your first sale? The 3 most important things:

• Business structure: a sole proprietorship to test the idea, an LLC once you want to protect your personal assets, a corporation for bigger plans or investors.
• Sales tax: register for a sales tax permit (also called a seller's permit) in your home state. Since the 2018 South Dakota v. Wayfair ruling, other states can also require you to collect their sales tax once you pass their economic nexus threshold, most often $100,000 in yearly sales into that state.
• Business bank account: open one right away. It keeps your bookkeeping simple and makes it easier to connect a payment provider.

Do you need a business license to sell online? It depends on your city, state and products, so check your city's website and the SBA's list of licenses by state. For a full comparison of structures, EINs and startup costs, see our guide on how to start a business.

Step 3. Choose an e-commerce platform

Your platform decides how much the store costs, how fast you can launch and whether you can manage without a developer. For a small store, a website builder with built-in e-commerce is the most convenient option, because the provider takes care of hosting, updates and security.

Compare the 3 most common options for starting an ecommerce business:

What do you get in WebWave? A store on the Business plan includes:

• Products and categories: physical and digital products, photos and stock levels.
• Payments: Stripe, PayPal and traditional bank transfer.
• Shipping: your own shipping rates and delivery options, including local pickup.
• Promotions: discount codes and special offers.
• Hosting and SSL: included in the plan, together with a free .com domain for the first year.

You can see the full feature list on the WebWave online store page.

Step 4. Pick a name and connect a domain

Your store name should be short, easy to type and connected to what you sell. Before you choose one, check that the .com domain and the social media handles are free, and search the USPTO trademark database so you don't use a name that's already protected.

Check your name against 4 rules:

• Length: 2-3 words at most, with no numbers or hyphens.
• Sound: a customer should be able to spell it after hearing it once.
• Associations: the name hints at your industry or style.
• Availability: the domain and social media handles are free.

With WebWave, every paid plan includes a free .com domain for the first year. Already have an address with another provider, like GoDaddy or Namecheap? You can connect it in a few clicks.

Step 5. Add products, photos and descriptions

A product page replaces the salesperson in a physical store, so it has to answer every question a customer might have. Good photos and a specific description are the two things that decide whether someone buys.

Every product page should include:

• Name: with the key feature, e.g. “8-inch ceramic bowl, green glaze”.
• Photos: at least 3-5 shots, including one in use and one that shows the scale.
• Description: customer benefits, dimensions, material and care instructions.
• Price and availability: together with the shipping cost and delivery time.
• Reviews: as soon as your first orders come in.

No budget for a photographer? A phone, bright daylight and a plain background are enough to start. Take the same angles for every product, so the category pages look consistent.

Write your own descriptions instead of copying the manufacturer's. Unique text helps you rank in Google and sets you apart from stores that sell the same products. Selling digital products? WebWave sends customers a download link automatically after they pay.

Step 6. Design the store and its navigation

A customer should understand what you sell within a few seconds and reach any product in 3 clicks or fewer. The fastest way to create an online store like that is to start from a ready-made template or the AI builder.

In WebWave, you have 3 options:

• AI builder: you type a short description of your store, and the AI website builder generates a design with pages and text, ready to edit.
• Template: you pick a ready-made, mobile-friendly design for your industry and swap in your content.
• Blank page: you design everything yourself in the drag-and-drop editor.

Whichever route you take, check these 5 elements:

• Menu: 5-7 main categories at most.
• Search: especially once you have more than a few dozen products.
• Home page: a headline that says what you sell, your bestsellers and current promotions.
• Footer: shipping, returns, policies and contact details.
• Mobile view: most customers shop on their phones, so test the store on a smartphone.

Step 7. Set up payments and shipping

Customers abandon their cart when they can't find a payment method they trust or see high shipping costs only at checkout. So offer cards, Apple Pay, Google Pay and PayPal, and show shipping costs on the product page.

Set up payments in 3 steps:

1. Create an account with a payment provider, such as Stripe or PayPal.
2. Connect it in your WebWave store panel. Our Stripe setup guide (opens in a new tab) walks you through it.
3. Place a test order and check that the payment and the confirmation email work.

Payment providers charge a fee per transaction. Stripe's standard rate for US cards is 2.9% + 30¢ per successful payment, so build it into your prices.

For shipping, decide on 4 things:

• Carriers: USPS, UPS, FedEx or local pickup.
• Shipping cost: a flat rate, or free shipping above a set order value.
• Processing time: e.g. “ships within 1 business day”, and stick to it.
• Packaging: safe and sized to the product, because the package is the customer's first impression.

Step 8. Write your store policies and meet legal requirements

An online store needs terms of service, a privacy policy, and clear return and shipping policies. US federal law doesn't set a fixed return window for online purchases, but the FTC requires you to ship within the time you promise, or within 30 days if you don't state one.

Before you launch, check that you have:

• Terms of service: seller details, how orders, payments, shipping and returns work.
• Privacy policy: required by California's CalOPPA for any commercial website that collects personal data from California residents, including information about cookies.
• Return and refund policy: your own rules, e.g. 30 days for unused items, shown clearly before checkout.
• Shipping policy: processing times and what happens if an order is delayed. Under the FTC rule, you must offer the customer the choice to cancel for a full refund if you can't ship on time.
• Honest pricing: a “was $50, now $35” claim is only allowed if you really sold the product at $50, according to FTC guidance on former price comparisons.
• Product safety: children's products need a Children's Product Certificate under CPSC rules, and some other categories have their own labeling requirements.

You can draft the first version of your policies with AI, but have a lawyer review them before you publish. Rules differ by state, especially for privacy and gift cards.

Step 9. Launch the store and start promoting it

Before you launch, test the whole checkout path, and after launch combine 2-3 marketing channels. First orders usually come from social media, referrals and ads, while traffic from Google grows over time.

Before you click “Publish”, check that:

• adding to cart, payment and discount codes work correctly;
• prices, shipping costs and contact details are up to date;
• the store looks good on a phone;
• your policies are linked in the footer.

After launch, choose how you'll sell online day to day:

• Social media: Instagram, Facebook, TikTok or Pinterest, depending on where your customers are.
• SEO: unique product descriptions, meta titles and a blog with buying guides. The WebWave SEO Analyzer shows what to improve on each page.
• Email marketing: collect addresses in exchange for a first-order discount.
• Paid ads: Google Ads and Meta Ads, starting with a small daily budget.

Every month, check 3 KPIs: conversion rate, average order value and traffic sources.

How much does it cost to start an online store?

You can run a small store in a website builder for about $108 net a year plus the cost of your products. A bigger store on an open-source platform with a developer usually costs thousands of dollars to launch. Most of your money goes into inventory and marketing, not the platform.

Here's what a WebWave store typically costs in the first year:

How to make an online store: summary

You can start an online store in 9 steps: from your niche and paperwork, through the platform, products, payments and shipping, to your policies and promotion. You don't need a developer or a big budget to start, just a good product and a checkout that works. Want to see what your store could look like? Create a WebWave account and test the builder for 14 days, no credit card required.

FAQ

How much does it cost to start an online store?

In WebWave, a store runs on the Business plan for $9 net a month billed annually, with hosting, SSL and a free .com domain for the first year, and no commission on sales. On top of that come payment processing fees, a sales tax permit, your policies, products and marketing. A store on an open-source platform with a developer usually costs thousands of dollars to launch.

Can I build an online store myself?

Yes. In WebWave, you can build a store without coding: with the AI builder, from a ready-made template or from scratch in the drag-and-drop editor. You set up products, payments, shipping and discount codes in the panel, and WebWave takes care of hosting and security.

How do I start an online store for free?

In WebWave, you can build and test a store for 14 days without a credit card, with access to the AI builder and templates. To accept online payments and publish the store on your own domain, you choose the Business plan. Marketplaces let you sell without a subscription, but they take a fee on every sale.

Do I need a business license to sell online?

Often, yes. Many cities and states require a general business license, and you'll need a sales tax permit if you sell taxable products. You can still start as a sole proprietor without filing with your state. Check your city's website and the SBA's list of licenses by state.

How long does it take to open an online store?

You can launch a simple store with a dozen or so products in a builder within a few days. Photos, product descriptions, policies and payment setup take the most time. Building the store itself with the AI builder or a template takes a few hours.

Should I sell on my own store or on Etsy and Amazon?

Ideally both. A marketplace brings your first customers fast, but it takes a fee (on Etsy, 6.5% of each sale plus listing and payment processing fees) and limits your contact with buyers. Your own store builds your brand and a customer list you can reach again at no extra cost.