5 Essential Steps to Launch Your E-Commerce Business: A Complete Guide

Interested in starting an e-commerce business? This is your definitive guide to launching a new online store.

While many people aspire to start an e-commerce business, the process of creating an online store can seem overwhelming.

This article will guide you through the five essential steps to launching an e-commerce store, provide an overview of potential costs, and offer additional tips for starting your business.

Start an ecommerce business in 5 steps

Identify Product Opportunities and Decide What to Sell: Discover potential products and select what to offer in your store.
Conduct In-Depth Competition Research and Develop a Business Plan: Analyze your competitors and create a detailed plan for your business.
Select a Logo and Name, and Set Up Your Online Store: Choose a distinctive logo and name, and establish your online presence.
Determine Your Shipping Strategy and Set Sales and Marketing Objectives: Plan your shipping approach and define your sales and marketing goals.
Launch Your Business: Begin your business operations and start selling.

Find product opportunities and choose what to sell

Finding a product to sell

The initial step in creating an e-commerce store is deciding which products you want to sell directly to consumers. This can often be the most challenging aspect of starting a new online venture. In this section, we’ll outline strategies for identifying products with strong business potential, explore top sources for product ideas, and review trending e-commerce products to consider.

How to Identify Products to Sell Online: Discover methods for finding viable products for your online store.
17 Sources for Finding Profitable Products: Explore various places to uncover lucrative product ideas.
Trending Products to Consider Selling: Review popular products currently in demand.
How to Launch an Online Business: Learn the steps to start your online business.

Evaluating your idea

After formulating an online business idea, it's crucial to assess its market viability. This section will discuss various strategies employed by successful entrepreneurs to validate product ideas and assess market potential.

How to Validate Your Product Ideas: Explore methods for verifying the feasibility and demand for your product concepts.
How to Identify and Validate High-Potential Products: Learn techniques for finding and confirming winning products.

Obtaining your product

Once you have a viable product idea, the next step is to determine how and where you will source your products. The following four posts will explore different methods for product acquisition and the advantages and disadvantages of each approach.

Exploring Popular E-Commerce Business Models: From dropshipping to direct-to-consumer (DTC), discover the most prevalent e-commerce business models.
Finding a Manufacturer or Supplier for Your Product: Learn how to locate manufacturers or suppliers for your product idea.
Sourcing Products for Your Online Store: Top Apps and Strategies: Get insights into the best apps and strategies for sourcing products.
Print on Demand: A Low-Risk Solution for Selling Custom Products: Understand how print-on-demand can offer a low-risk way to sell personalized products.

Sell your retail products online

Transitioning your physical store to an online platform can enhance cash flow and create a more robust business model. To do this effectively, you'll need a reliable e-commerce solution, such as Shopify, to build your online store.

From Bricks to Clicks: Transitioning Your Physical Business to an Online Platform: Learn how to move your brick-and-mortar business online.
Offering Gift Cards for Your Physical Store Through an Online Platform: Discover how to sell gift cards for your physical business with an easy-to-set-up online store.
Enhancing Sales with Local Delivery Options: Explore how adding local delivery to your store can boost sales.
The Comprehensive Guide to Curbside Pickup (Including Examples from Local Retailers): Get a complete guide to implementing curbside pickup, with examples of local retailers who are doing it successfully.

Thoroughly research your competition and write a business plan

Research your competition

After identifying your product, assessing its potential, and securing a supplier, the next crucial step is to conduct thorough research on your competitors. Understanding your competitive landscape will help you distinguish your business model and strategize effectively.

Conducting a Competitive Analysis for Your Business (Including a Free Template): Learn how to perform a detailed competitive analysis and access a free template.
SWOT Analysis: A Practical Approach to Identifying Your Competitive Advantage (Including a Free Template): Discover how to use SWOT analysis to find your competitive edge, with a free template included.

Writing a business plan

Once you've completed your competitive research, the next step is to develop your business plan. This plan serves as a strategic roadmap that organizes your ideas and priorities. It’s especially crucial if you’re managing your online store as a side project. Additionally, a well-crafted business plan outlines your company’s mission statement, demonstrating your brand’s core values to potential investors and employees.

7 Business Plan Examples to Spark Your Creativity: Explore various business plan examples to inspire your own plan.
Business Plan Template: A Practical Guide for Crafting Your Plan: Utilize this template as a practical framework to create your business plan.

Choose a logo and name and set up your online store

In addition to selecting products to sell online, deciding on a business or brand name and securing an appropriate and available domain name can be a significant challenge. This blog post will guide you through these crucial steps.

Looking for a Memorable Online Store Name? Discover Ideas with These Tips and Free Name Generators: Get inspiration and find the perfect name for your online store using these helpful tips and free tools.

Creating a logo

After choosing a memorable name and securing your domain, the next step is to create a logo. These resources will guide you through various options for designing an effective logo for your new business.

Shopify’s Free Logo Maker: Utilize Shopify’s free tool to design a professional logo for your business.
Top 10 Paid and Free Logo Design Tools: Explore the best paid and free online logo makers to find the right tool for your needs.
How to Create a Distinctive Logo: Learn tips and techniques for designing a memorable and impactful logo.

Understanding search engine optimization (SEO)

You’re nearly set to start building your online store. However, before diving in, it’s crucial to grasp the fundamentals of search engine optimization (SEO). Understanding SEO will help you structure your site and pages effectively for Google and other search engines.

The Essential Guide to E-Commerce SEO: Discover the basics of SEO to enhance your online store’s visibility.
Boost Your Store’s Ranking: Use This SEO Checklist to Achieve Page One Results: Follow this comprehensive SEO checklist to improve your store’s search engine ranking.

Building your store

With a solid grasp of search engines, you’re ready to start building your store using a website builder. There are several key aspects to focus on. Below, we’ve compiled essential resources to help you create high-converting product pages, craft compelling product descriptions, capture stunning product photography, choose the perfect e-commerce color palette, and more.

50 Inspiring Shopify Stores for Entrepreneurs: Explore exceptional Shopify stores for design inspiration.
Optimizing Your Product Pages for Increased Sales: Learn how to enhance your product pages to boost sales.
Effective Product Description Examples and Tips: Discover examples and tips for writing product descriptions that inform and persuade.
Stunning Product Photography: A DIY Guide: Create beautiful product photos with this comprehensive DIY guide.
Customizing Your Shopify Theme: Using Images, Colors, and Fonts: Learn how to personalize your Shopify theme with images, colors, and fonts.
10 Essential Image Optimization Tips: Optimize your images with these crucial tips.
Creating a Coming Soon Page and Marketing Before Launch: Find out how to set up a coming soon page and start marketing your store before it launches.

Choosing your sales channels

Reaching new customers often involves choosing sales channels where they are already active. The optimal mix of sales channels will vary based on your products and target audience, but there are several excellent options that can enhance and support your self-hosted store.

Utilizing Etsy and Shopify: How Three Entrepreneurs Expanded Their Businesses with Both Platforms: Discover how three makers successfully used Etsy and Shopify to grow their businesses.
Expanding Sales on eBay: Balancing Growth, Customer Service, and Life: Learn how one business manages growth and customer service while scaling sales on eBay.
How a Jewelry Brand Achieves 76.8% of Orders on Amazon through Shopify: Explore how a jewelry business generates a significant portion of its orders by selling on Amazon with Shopify integration.

Choose your shipping strategy and set sales and marketing goals

As you approach the launch of your new business, it's crucial to prepare for shipping and fulfillment. This section provides detailed guides to help you establish an effective shipping strategy.

Comprehensive Guide to E-Commerce Shipping and Fulfillment: Everything you need to know about setting up your shipping processes.
International Shipping Essentials: Deliver Beyond Your Borders: Learn how to handle international shipping to expand your reach globally.
Developing a Shipping Strategy: Efficiently Deliver Packages Without Impacting Your Profit Margins: Strategies for delivering products to customers while maintaining your bottom line.
Reducing Shipping Costs for Small Businesses: 6 Effective Tips: Discover ways to lower shipping expenses for your small business.

Additionally, it’s important to establish your key performance indicators (KPIs) before launching, so you can effectively track your success post-launch.

Essential KPIs for E-Commerce: Key performance indicators to monitor for your online business.
Fundamental E-Commerce Metrics to Focus On: Basic metrics you should prioritize as you start.

Finally, ensure you’ve covered all necessary steps with this pre-launch checklist:

Starting Up: The Ultimate Shopify Store Launch Checklist: A comprehensive checklist to guide you through the final preparations before your store goes live.

Launch your business

Acquiring your first customer

With your store now live, the next step is to focus on marketing your products. While selling physical products in person can be beneficial, the core of digital marketing is driving targeted traffic. Below, we outline several marketing strategies to help you attract customers in the initial months.

Achieving Your First Sale in 30 Days: A Marketing Checklist for New Entrepreneurs: Follow this checklist to make your first sale within a month of launching your store.
Generating Traffic: How to Attract Visitors to a New Website (Even If You’re Starting from Scratch): Learn effective methods to drive traffic to your new site, even if you’re new to digital marketing.
Customer Acquisition: Calculating and Developing a Profitable Strategy for Your Business: Understand how to calculate customer acquisition costs and create a strategy to acquire customers profitably.

Marketing your store

With a few sales under your belt, it's time to take your marketing efforts to the next level. The following resources will guide you through optimizing your e-commerce marketing strategies, expanding into new tactics, and effectively converting traffic into sales.

Essentials of Email Marketing: Master email marketing with guides on building lists, advanced automation, and creating engaging campaigns.
Email Marketing Fundamentals: From List Building to Advanced Automation: Learn the basics of email marketing, including list management and sophisticated automation techniques.
Crafting Effective Automated Email Campaigns: Discover how to set up automated email campaigns that attract and retain customers.
Creating Compelling Welcome Emails: Tips and Examples: Get inspired to write engaging welcome emails with practical examples.

Enhancing Traffic through Social Media: Develop a robust social media strategy to drive traffic and increase sales.
Building a Social Media Strategy That Drives Sales: Go beyond likes and followers to create a strategy that boosts sales.
Growing Your Instagram Following: Effective Strategies: Learn reliable methods for increasing your Instagram audience.
Pinterest Marketing Basics: Promoting Your Business on Pinterest: Explore strategies for successful marketing on Pinterest.
Launching a Successful YouTube Channel: Find out how to start and grow a successful YouTube channel for your business.
Finding the Right Fit: A Beginner’s Guide to Influencer Marketing: Understand the basics of influencer marketing and how to choose the right influencers.

Maximizing Traffic and Conversions with Paid Ads: Utilize paid advertising to enhance traffic and conversion rates.
Facebook Advertising 101: A Comprehensive Guide for Beginners: Learn the fundamentals of advertising on Facebook with this beginner’s guide.
The Google Ads Playbook: Understanding Campaign Types and Expectations: Explore various Google Ads campaign types and what to expect from them.

Optimizing Conversion Rates: Use these strategies to increase conversion rates and drive more sales.
A Complete Guide to A/B Testing: Follow expert tips on A/B testing from Google, HubSpot, and Shopify.
Identifying and Fixing Conversion Funnel Issues: Learn how to find and resolve leaks in your conversion funnels.
Boosting Sales with Live Chat: Use live chat to drive more sales without being stuck at your desk.
Revenue Growth Without Increasing Traffic: Discover expert strategies for increasing revenue without boosting traffic.
Building Customer Trust from Scratch: Find ways to earn trust when starting with zero sales.
The 39-Point Trust Checklist for Your Online Store: Evaluate how trustworthy your online store is with this detailed checklist.
Diagnosing and Improving Sales Issues: If you're driving traffic but not making sales, learn how to diagnose and improve your store.

Using Analytics to Gain Insights: Leverage analytics to uncover valuable insights for your business.
The Beginner’s Guide to Analyzing Shopify Reports: Learn how to interpret Shopify reports and analytics to inform your strategy.
Google Analytics Segments: Using Them to Boost Revenue: Understand how to use Google Analytics segments to increase your revenue.
Creating Custom Reports in Google Analytics: Explore expert tips on creating and using custom reports in Google Analytics.
Facebook Custom Audiences 101: A starter guide for leveraging custom audiences in Facebook advertising.

What are the expenses involved in launching an ecommerce business?

Starting an ecommerce business can be surprisingly affordable, with initial costs as low as $100. This typically covers the cost of a subscription and a theme for your online store. Unlike physical retail stores, ecommerce businesses have lower overhead since they don’t require as many licenses, permits, or rental expenses for a physical location.

If you choose a dropshipping model, your startup costs will generally be lower. This is because you don’t need to invest in raw materials, inventory, or labor upfront. Instead, you purchase products only after customers make a purchase. Conversely, if you’re creating products yourself or working with manufacturers, you’ll need to invest in equipment, materials, and labor in advance.

Many ecommerce entrepreneurs manage to start their businesses on a tight budget. To provide a clearer picture of the initial expenses, we surveyed 150 entrepreneurs and 300 small business owners in the US. Our findings suggest that new ecommerce store owners can expect to spend up to $40,000 in the first year, which can be recouped through profit margins.

Expense categories include:

Product: raw materials, inventory, supplier costs, manufacturing, patents, etc.
Operating: incorporation/legal fees, additional software, business insurance, accounting, etc.
Online store: website/platform subscription, hosting/domain fees, contract developer/designer, etc.
Shipping: packaging, labels, etc.
Offline: stall/table fees, rent, gas, etc.
Team/staff: salaries, benefits, perks, etc.
Marketing: logo, branding, ads, printed materials, business cards, etc.

Expense categories include:

Product: raw materials, inventory, supplier costs, manufacturing, patents, etc.
Operating: incorporation/legal fees, additional software, business insurance, accounting, etc.
Online store: website/platform subscription, hosting/domain fees, contract developer/designer, etc.
Shipping: packaging, labels, etc.
Offline: stall/table fees, rent, gas, etc.
Team/staff: salaries, benefits, perks, etc.
Marketing: logo, branding, ads, printed materials, business cards, etc.

In the first year, business owners allocated their expenses as follows:

11% on operating costs
10.3% on marketing expenses
9% on online store costs
31.6% on product-related costs
8.7% on shipping expenses
18.8% on team-related costs
10.5% on offline expenses

However, this doesn’t necessarily mean you will need to spend $40,000 to launch your ecommerce store. Actual expenses can vary widely based on factors such as your industry, business model, whether you employ staff, and whether you’re running the business full-time.

You also don’t need to have $40,000 in cash upfront to start your ecommerce business. Many entrepreneurs fund their ventures using personal savings (66%), as well as support from friends and family (23%) and personal loans (21%).

5 tips for starting an ecommerce store

Forget about year-one profitability
Understand your target audience
Offer a product in high demand
Test different marketing and advertising strategies
Invest in outreach and link-building efforts

Forget about year-one profitability

Launching an ecommerce business is a long-term journey rather than a quick win. Instead of focusing on making a profit in the first year, allow yourself 18 to 24 months to establish and grow your business. Use the initial year to experiment, refine your strategies, and reinvest your earnings back into the business, following the budget guidelines mentioned earlier.

Know your target audience

Apart from creating or sourcing products, a significant portion of your time will be dedicated to attracting customers. The key challenge lies in reaching the right audience—those who are likely to make purchases on your site. By understanding your target audience, you can connect with them more effectively and boost your sales.

Sell an in-demand product

Create or offer a high-quality product that has a proven demand in the market. If you observe successful retailers like Allbirds, Tushy, and Bombas, you'll see that they all focus on delivering top-notch products. “Product quality is crucial because a superior product naturally attracts customers,” says Eric Even Haim, CEO of the upsell and cross-sell app ReConvert. “When you pair a great product with a receptive audience, your marketing efforts become significantly more effective.”

Eric notes that new products don't have to be revolutionary. The key is to identify emerging trends and markets where customers’ needs are not being fully met.

“Then, introduce an outstanding product that fulfills their desires,” Eric advises.

Here are two resources to help you find market demand:

Google Trends, where you can explore popular search topics.
Trends.co, which utilizes data to predict trends and business opportunities before they gain widespread popularity.

When you marry a great product with an audience who’s hungry for it, your marketing becomes 10 times easier.

Eric Even Haim, CEO, ReConvert

Experiment with marketing and advertising

Spreading the word about your new business is crucial after its launch. It’s essential to explore various marketing strategies to discover where your audience spends their time and how they best engage with your content.

Consider testing different online marketing methods such as:

Affiliate marketing
Instagram ads
Website pop-ups
Checkout upsells and cross-sells
Organic search
Content marketing
Loyalty programs

“The key to success lies in your ability to experiment, test, and analyze your advertising and marketing strategies,” says Stephen Light, CEO and co-owner of mattress company Nolah. “Experimentation is the best way to prevent assumptions about your audience that could backfire instead of benefiting your business.”

Stephen advises embracing the possibility of making mistakes, particularly in the early stages. Use the insights you gather to craft more effective campaigns that drive both traffic and profit.

“Additionally, optimizing your ad campaigns and collecting data on how your customers respond can help shape the features of your website,” Stephen adds.

Experimentation is the best way to avoid falling into any assumptions about your audience that could end up hurting you rather than helping.

Stephen Light, CEO, Nolah

Invest in outreach and link building

Another valuable tip for new ecommerce stores is to establish an outreach and link-building strategy. These techniques can significantly improve your SEO rankings on Google.

“The earlier you develop a plan for link building and enhancing your site's authority, the sooner search engines will start recognizing your website as a leader in its niche,” explains James Taylor, a UK-based SEO consultant.

“Search engines view links from authoritative sources as endorsements of your website, so the more links you have from reputable sites, the more likely search engines are to trust your site as an authority.”

James advises new ecommerce store owners and marketers to invest in digital public relations and link-building campaigns from the start. Doing so lays the groundwork for long-term SEO success, helping you rank higher on Google, attract more organic traffic, and increase sales.

The Ultimate Guide to Launching Your E-Commerce Business