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How to Start an Online Store

Written by Anna Sonnenberg    Reviewed by Noa Kaufman
Last Update: {month} {year}

When you want to maximize opportunities for reach and revenue, a brick-and-mortar store may not cut it. With an online store, you can reach a national or global audience, allow customers to shop around the clock, and keep overhead costs comparatively low.

Whether you make products by hand or you plan to dropship, launching an ecommerce shop can be a smart way to grow your business. 

In this article we'll explore how to start an online store, from getting to know your target audience to promoting your shop.

Table of Content
1. Get to Know Your Audience
2. Develop a Business Idea and a Product Line
3. Decide How to Source Products
4. Define Your Brand
5. Register Your Business
6. Secure Your Website Domain and Social Handles
7. Choose an Ecommerce Platform
8. Design Your Ecommerce Website
9. Pick a Payment Provider
10. Launch and Promote Your Online Store
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How to Set Up an Online Store in 10 Steps

Follow the steps below to create an online ecommerce store.

1. Get to Know Your Audience

To build a successful online business, you need to know your target market. Start by researching your customer base. Create a buyer persona with characteristics like:

  • Location: The countries, regions, and cities where your target audience lives

  • Demographics: Your target audience's gender and age

  • Interests: Brands, activities, and attitudes your target audience likes

  • Challenges: Problems your target audience actively manages

  • Needs: Goals your target audience wants to achieve

To research your target audience, use tools like census data, interviews with shoppers, and website or social media analytics. For example, Meta's audience analytics reveal follower age, gender, and location.

Get to Know Your Audience

2. Develop a Business Idea and a Product Line

Put your customer research to work. Develop a product line that addresses their challenges and helps them meet key goals.

Ideally, you'll offer a product that's both in demand and affordable to produce. To assess demand, use a tool like Google Trends to check search volume for related topics over time. Then, crunch the numbers to ensure the potential revenue outweighs the costs.
 Develop a Business Idea and a Product Line

3. Decide How to Source Products

Once you've decided on a product line, make a plan to source either the finished product or the raw materials. Some of the most common product sourcing options include:

  • Handcrafting items yourself

  • Purchasing products wholesale

  • White labeling or private labeling products

  • Working with dropshipping suppliers

4. Define Your Brand

Use your product line and customer research to build your brand. First, decide on a business name. It should convey a meaning that's clear to your audience, and it should reflect your creativity.

Before deciding on a brand name, make sure it won't create legal issues for your business. Run the name through a trademark checker. Then, confirm that the domain and social media handles are available.

Next, create a logo and a design aesthetic for your brand. Use a free logo generator like the options by Canva or Adobe — or seek out a graphic designer to create a custom logo.

5. Register Your Business

Before you begin taking customer payments or paying sales tax, register your business. The steps will vary based on your location, but you'll need to report your business name, business structure, and contact details.

As a general rule, starting a business involves registering at the national and state or provincial levels. In many cases, you'll also need to complete sales and use tax registration to sell physical or digital products online.

6. Secure Your Website Domain and Social Handles

Make your business official by purchasing a domain and reserving your social handles. While you can register your domain name and manage website hosting separately, it's often easier to use the same provider for both.

For example, GoDaddy is home to more than 84 million domains. The provider also offers reliable hosting with a 99.9% uptime guarantee, so you can rest assured that your ecommerce site will be available 24/7.

Secure Your Website Domain and Social Handles

Be sure to reserve your brand's social handles across all major social platforms, too. This way you can promote your products and sell online across all the channels your customers already use.

7. Choose an Ecommerce Platform

Next, evaluate ecommerce platforms and choose the right one for your business. Consider factors like:

  • Platform Costs: Most charge a flat monthly or yearly fee plus a transaction fee for payment processing.

  • Inventory Management: Look for a platform that tracks inventory and handles order fulfillment.

  • Sales Channels: Seek out a platform that lets you sell from your website and your social channels.

  • Integrated Tools: Simplify your tech stack with a platform that offers app integrations and built-in tools.

For instance, Shopify is one of the largest ecommerce platforms, with more than 4.6 million online stores. Shopify also has built-in marketing automations and abandoned cart recovery sequences.
Choose an Ecommerce Platform

8. Design Your Ecommerce Website

Most ecommerce platforms offer prebuilt templates that make it easy to set up your website in minutes. All you need to do is pick a template, add your branding, product descriptions, and images, and your site is ready to go. 

But while templates are great for getting started, they might not be the best fit as your business grows. A good alternative to using a template is hiring a web designer or using a flexible platform like WordPress with a custom-built theme. This allows you to create a unique, fully optimized website that can grow with your business and offer more personalized features as your needs evolve.


When designing your ecommerce website, it’s important to consider factors like user experience, mobile responsiveness, customization options, and scalability. These elements play a crucial role in attracting and retaining customers. 


9. Pick a Payment Provider

Choosing the right payment provider can make a big difference in your online revenue. Above all, you'll want to support the payment methods that are most popular with your customer base.

Common options include:

  • Debit and credit cards like Visa and Mastercard

  • Digital wallets like Apple Pay and PayPal

  • Cryptocurrency like Bitcoin

  • Buy now, pay later options like Klarna and Affirm

To choose the right options, poll your customers before you launch your site. Alternatively, check to see which options your competitors offer.

10. Launch and Promote Your Online Store

After building out your site, stocking products to sell, and implementing payment methods, it's time to launch your store. However, promoting your ecommerce shop requires more than just flipping a switch.

According to Activate Consulting, "Global ecommerce will reach nearly $10 trillion by 2027, growing over twice as fast as physical retail." To attract customers, generate revenue, and be part of this incredible growth, you need a strategy.

To promote your ecommerce store, take steps like:

  • Prioritize Visibility: Use search engine optimization tactics to help customers find your products.

  • Leverage Social Media: Create compelling social media content that generates interest and revenue.

  • Run Marketing Campaigns: Advertise discounts and limited-time specials to drive more sales.

If you're ready to start your online store, GoDaddy can provide you with everything you need to kickstart your business.

godaddy

Next Steps to Create an Online Store

From building your brand to launching your shop, you've mastered the process of how to create an online store. Now you're ready to put your newfound knowledge to use. 

Choose the right ecommerce tools for your needs and start growing your business today.



About Leeron Hoory: Tech and Finance Specialist


Leeron, based in New York City, writes about technology and finance for top publications like Forbes Advisor, Quartz, and Popular Mechanics. With her expertise, Leeron simplifies complex subjects, guiding you through the latest trends and strategies to boost your business.


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