How to start an ecommerce business

How to start a ecommerce business, step by step

1. 01

   Decide where your stock comes from

   An ecommerce business that holds stock has three common sources. You can make the product yourself, buy finished goods wholesale and resell them, or have a manufacturer make a product under your label. Making gives you the most control; wholesale is fastest; private label sits in between.

   Whichever you choose, ask for the minimum order, the price per unit at that minimum, and the lead time for a reorder. Those three numbers decide how much cash you tie up before your first sale.

2. 02

   Start with a small first order

   Buy or make the smallest batch your supplier allows, even if the unit price is higher. A small batch tells you which colors, sizes or flavors sell before you commit real money. Leftover stock ties up the cash you need for the next order.

   Keep a simple spreadsheet from day one: units on hand, units sold each week, and how many weeks a reorder takes to arrive. Reorder when stock on hand drops below that many weeks of sales.

3. 03

   Register for sales tax

   If your state taxes the goods you sell, register to collect sales tax before your first order. In Texas, for example, you apply for a sales and use tax permit if you're engaged in business there and sell tangible goods.

   Selling into other states can trigger their rules too. Texas doesn't require a permit from remote sellers with less than $500,000 of Texas revenue in the preceding twelve months, and other states set their own thresholds. Check each state where your sales grow.

4. 04

   Get barcodes only if you need them

   You don't need barcodes to sell from your own store. You need them when a retailer, distributor or marketplace asks for a UPC. GS1 US licenses a single GTIN for $30, and a prefix for ten items costs $250 upfront plus $50 a year.

   Buy GS1 numbers rather than cheap resold codes, because the company prefix inside a GS1 barcode ties the product to your brand in the databases retailers check.

5. 05

   Set up shipping before launch

   Weigh and measure every product in the box you'll ship it in. USPS Ground Advantage starts at $7.33 with commercial pricing and $8.40 at the Post Office counter, so buying labels online saves on every order.

   Decide what you'll charge: free shipping built into the price, a flat rate, or free above an order value. Write a shipping policy with a real dispatch time, since the FTC expects you to have a reasonable basis for any shipping time you state.

6. 06

   Build the store around your catalog

   A store with stock needs a homepage that says what you sell, collection pages that group products by use, product pages with every variant, and policy pages for shipping and returns.

   When products come in sizes, colors or bundles, run the catalog on Shopify. Replo builds the homepage, collections and product pages on top of that catalog and its checkout, on your brand and your own domain.

7. 07

   Launch, then watch the numbers weekly

   After launch, check three things every week: which pages people land on, where they stop scrolling, and which products sell through. Replo's analytics and heatmaps show this on every published page, and scheduled reports can email the numbers to your team.

   Reorder what sells before it runs out, discount what doesn't move after a few weeks, and rewrite the product page section people scroll past without reading.

What it costs to start a ecommerce business

What it costs to run an ecommerce store that ships its own stock, not counting the stock itself. Skip barcodes until someone asks for them.

Your first 30 days

1. Week 1

   Source and order samples

   • Ask three suppliers for minimum order, unit price and reorder lead time.
   • Order samples and compare quality, packaging and how fast they arrive.
   • Search your brand name on USPTO and buy the matching .com.

2. Week 2

   Register and place the order

   • Get a free EIN and register for sales tax in your state.
   • Place the smallest first order your chosen supplier will accept.
   • Set prices from unit cost, shipping, card fees and expected ad cost.

3. Week 3

   Set up shipping and the store

   • Weigh each product boxed and set shipping rates from real label prices.
   • Build the homepage, one collection, product pages and policy pages.
   • Ship yourself a test order and time it from purchase to doorstep.

4. Week 4

   Launch and track stock

   • Announce the launch to your list and point any ads at a collection.
   • Update the stock spreadsheet daily and note what sells out first.
   • Review landing pages and heatmaps, then fix the weakest product page.

What brands in this category run ads to

Build your ecommerce store

Frequently asked questions

How much do you need to start ecommerce?

The store itself costs about $12–$50 for the first month with a domain and Shopify's trial or Basic plan. Your real budget is the first stock order, which depends on your supplier's minimum, plus samples, packaging and postage. Ask for minimums before you set a budget.

What are the disadvantages of ecommerce?

Buyers can't touch the product, so returns and questions are higher. You pay for shipping, card fees and ads on every order, and competitors are one tab away. Holding stock also ties up cash. Good photos, clear policies and small first orders soften each one.

How do I choose a business name?

Pick a short name that hints at what you sell, then check it. Search the USPTO trademark system for similar marks on similar goods, confirm the .com is available, and grab the social handles. Do this before you pay for a logo or labels.

Do I need an LLC to start an online store?

No. In the US you can sell as a sole proprietor, which is the default when you don't register another structure. An LLC protects your personal assets in most cases, so it's worth forming once you hold stock or have meaningful sales.

How much can I sell online before I owe taxes?

There's no tax-free sales amount for income. The IRS requires a return once net self-employment earnings reach $400 in a year. Sales tax is separate: your home state can require you to collect it from the first sale.