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An e-commerce website allows small businesses to reach a global customer base. With a relatively low investment, you can set up shop on your own piece of digital real estate. This can be useful for small businesses looking to scale and sell their products to more customers.

Choosing the best e-commerce website is the first step. However, there’s much more that goes into the process. Here’s a look at how you can build your own e-commerce website and important considerations to improve your odds of success.

5 steps to build an e-commerce website

If you want to start selling your products and services online, following these steps will help it go smoothly.

1. Choose an e-commerce platform

Your first step is to decide how to build your website. Research e-commerce platforms and content management system (CMS) options to find the one that is right for your new business.

Top considerations when choosing an e-commerce platform include:

  • Cost: The first concern for many new businesses is cost. Depending on the platform you choose, you may have everything needed included in one monthly or annual cost, or you may need to pay for website hosting and software features separately.
  • Ease-of-use: Some e-commerce platforms are designed to be beginner-friendly, while others are better suited for business owners with stronger technology skills.
  • Integrations: Integrations with tools to help manage shipping, sales taxes, sales reporting and email marketing.
  • Order tracking: Once a customer enters an order, the business should get notifications and helpful information to pack and ship orders. You may want additional tracking post-shipment to ensure orders are received and to collect customer feedback.
  • Payment features: Last but certainly not least, you’ll need to be able to accept payments from customers. Some e-commerce platforms offer an integrated payment system, while others give you the flexibility to pick a preferred payment processor.

2. Register your domain name

Choosing a domain name is a key step in creating your online identity. Aim for a name that is unique, memorable and reflective of your brand or content. It should be easy to spell, short and may include relevant keywords for better SEO. Consider the right extension (for example, .com, .org or .net) based on your business name or products.

To check the availability of your chosen domain name, use a reputable domain registration website or web hosting service. Some e-commerce platforms have built-in tools to register your website. These platforms will confirm if the name is available or suggest similar alternatives if it’s already taken. Consider searching to find out if any part of the domain name is trademarked to avoid potential legal issues in the future.

Registering a domain gives you control over that website address for a period of time, typically one to ten years. The process involves paying a fee, which varies based on the registrar and domain extension. You may want additional services like privacy protection. Remember, domain names require periodic renewal, so be aware of the renewal terms to maintain ownership.

3. Design and build your website

Building a website can feel like an overwhelming task, but it’s much more manageable when you break it down into actionable steps. It’s okay to be creative and have fun with the website design process, but ensure you’re focused on the user experience so your site is easy to navigate and checkout is seamless for site visitors.

  • Plan your site layout and structure: Start by listing your website’s pages and sections. Define the categories and subcategories of your products and a blog section if you want to add a content marketing or news component. Plan the navigation structure to be intuitive and user-friendly.
  • Design the website interface: Focus on creating a visually appealing design that aligns with your brand. Ensure it is responsive for mobile and tablet views. Test different color schemes, fonts and layouts until you’re satisfied that the site is optimized to convert visitors into customers.
  • Organize shipping and delivery options: Define your shipping strategy, including carriers, rates and shipping speeds. Consider which shippers you want to support, such as USPS, UPS and FedEx.
  • Implement security measures: Ensure the website has SSL encryption and is PCI compliant to protect customer data. Many website hosting and e-commerce platforms include SSL at no additional cost. You know a site uses SSL when the website address starts with ‘https’ instead of ‘http.’
  • Add essential e-commerce features: Include a shopping cart, search function, user account creation, and order tracking if they’re not already in place. If you’re using a CMS like self-hosted WordPress, you can add e-commerce features with a plugin like WooCommerce. Platforms like Shopify and Square offer these features by default.
  • Optimize for SEO: Use relevant keywords, optimize product descriptions and images and ensure fast loading speeds. SEO research tools can help you find areas for improvement.
  • Set up analytics: Integrate tools like Google Analytics to track visitor behavior and gather insights. Detailed tracking can help you optimize your website and checkout process to improve conversion rates.
  • Test your website: Conduct thorough testing for functionality, usability and responsiveness across devices and browsers. Asking family and friends to try out your website can yield valuable insights and feedback.
  • Regularly update and maintain: Keep your site updated with new products and content and maintain it regularly for performance and security.

4. Add your product catalog

Adding a product catalog to your e-commerce platform is fundamental in setting up your online store. Add your products with detailed descriptions, images and pricing. Include options for sizes, colors or other variations if needed. If writing isn’t your strong suit, consider hiring a professional copywriter or using an AI tool to create descriptions.

Each product page should include basic information like price and specifications and any additional details like size, color options and unique features. High-quality images are essential to showcase the product effectively, and multiple images per product can provide customers with a better view and understanding of what they are buying.

5. Connect with a payment processor

Research and select a payment processor that best suits your business needs. Consider factors like transaction fees, security features, supported payment methods (such as credit cards, digital wallets and bank transfers) and ease of integration with your e-commerce platform.

After setting up your merchant account, integrate the payment processor with your e-commerce platform. Most e-commerce platforms offer straightforward methods to link with major payment processors. This may involve adding API keys or setting up plugins or other modules. Once integrated, thoroughly test the payment system to ensure it’s functioning correctly before going live with your store.

Adding support for PayPal, Venmo, digital wallets and pay-over-time systems can improve your cart abandonment rate.

What to consider before opening your own online store

Opening an online store isn’t a guarantee of success. Consider major challenges you may encounter before investing time and money into opening an online store.

Ability to source products

One of the first things to consider is consistently sourcing the products you plan to sell. This includes evaluating your supply chain for reliability, cost-effectiveness and the quality of the products. You must ensure you can maintain a steady flow of inventory to meet potential customer demand without overstocking or running into supply shortages.

Understanding the competition

In the crowded online marketplace, it is crucial to understand your competitors and what they offer. Conduct thorough market research to identify your direct and indirect competitors. Analyze their pricing, product range, marketing strategies and customer service approach. This insight will help you find your niche and develop strategies to differentiate your store from others.

Customer service

Excellent customer service can set your online store apart. Plan for handling customer inquiries, returns, complaints and feedback. Efficient, friendly and helpful customer service can lead to repeat customers and positive word-of-mouth, which is invaluable in e-commerce.

Digital security

Invest in robust digital security measures to protect your website and customer data. This includes secure payment processing, SSL certificates for your website, and compliance with data protection regulations. Customers need to trust your site before they make a purchase, and you need to be confident in safeguarding your data.

Financial management

A solid financial plan is essential. This should include budgeting for initial set-up costs, ongoing operational expenses, marketing and unexpected costs. Thoughtful financial management helps you price your products appropriately and maintain a stable business.

Pros and cons of selling online

PROSCONS
  • Global reach.
  • Lower operational costs.
  • Sell 24/7. Scalability.
  • Customer convenience.
  • Global competition.
  • Shipping challenges.
  • Security risks.
  • Technology knowledge requirements.
  • SEO and website visibility.

Selling online has revolutionized business operations, offering vast opportunities but also presenting unique challenges. This digital shift allows businesses to transcend traditional barriers, reaching a wider audience and operating beyond conventional time constraints.

The benefits of selling online are significant. It opens up global market access, expanding the customer base beyond local boundaries. Additionally, online businesses can scale up or down with relative ease compared to physical stores, adapting quickly to changing market demands.

On the flip side, online selling faces intense global competition, requiring strategic marketing to stand out. Security is another major concern, with the need for stringent measures to protect customer data in online transactions.

CMS vs. website builders: What’s the difference?

CMSWEBSITE BUILDERS
Flexibility
Highly flexible, allowing custom coding and extensive customization
Typically less flexible, offering pre-designed templates and limited customization options
Ease of use
Can be complex, often requiring technical knowledge or coding skills
User-friendly, designed for beginners with drag-and-drop interfaces and no coding required
Scalability
Highly scalable with the right hosting, suitable for growing businesses with changing needs
Some may have limitations on scalability and advanced features unless you upgrade
Control and ownership
Complete control over the website, with ownership of all content and data
Limited control, as the platform owns the infrastructure; restrictions may apply to data export and site migration

Content management systems (CMS) and website builders cater to different user needs in website creation. A CMS offers extensive customization and flexibility, ideal for users with technical skills seeking a tailored website. However, this flexibility comes at the cost of complexity, requiring technical knowledge or coding skills.

Conversely, website building platforms are designed for ease of use, targeting beginners with user-friendly, drag-and-drop interfaces and pre-designed templates. While these platforms simplify website creation, they offer less customization and may limit scalability and advanced features. Users also face control and data ownership restrictions, as the platform typically retains infrastructure ownership.

Tips for managing your new e-commerce website

As a new e-commerce owner, one of the first priorities should be focusing on the user experience. A well-designed, intuitive website with clear product descriptions and high-quality images can significantly enhance customer satisfaction and engagement.

  • Implement effective SEO strategies. In doing so, you can significantly increase your online visibility, drawing more traffic and potential customers to your website.
  • Engage with your customers. Regular communication through email, social media and consistent content updates keeps your audience informed and helps build a loyal community around your brand.
  • Know the power of analytics. Understanding website traffic patterns and customer behaviors through analytics tools can provide invaluable insights, guiding your marketing strategies and business decisions.
  • Prioritize the security of your website. Robust security measures are essential to protect sensitive customer information and build trust, which is fundamental for the success of any online business.

Frequently asked questions (FAQs)

Building an e-commerce website is easy for some people with technical expertise but may be difficult for others. Consider your knowledge and experience when deciding if an e-commerce business makes sense for you.

You may be able to start an e-commerce website for under $100, but product sourcing and marketing costs vary widely.

You don’t need an LLC for an e-commerce website, but it may be beneficial in providing financial and legal protection to the owner. LLCs can separate your personal assets from your business assets, which will protect you more when it comes to potential legal action. Learn more about LLC creation services here.

Every business has unique opportunities and challenges. A close focus on business finances can help your e-commerce business achieve long-term profitability.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Eric Rosenberg is a financial writer, speaker, and consultant based in Ventura, California. He is an expert in topics including banking, credit cards, investing, cryptocurrency, insurance, real estate, and business finance. He has professional experience as a bank manager and nearly a decade in corporate finance and accounting. His work has appeared in many online publications, including Business Insider, Nerdwallet, Investopedia, and U.S. News & World Report.

Sierra Campbell is a small business editor for USA Today Blueprint. She specializes in writing, editing and fact-checking content centered around helping businesses. She has worked as a digital content and show producer for several local TV stations, an editor for U.S. News & World Report and a freelance writer and editor for many companies. Sierra prides herself in delivering accurate and up-to-date information to readers. Her expertise includes credit card processing companies, e-commerce platforms, payroll software, accounting software and virtual private networks (VPNs). She also owns Editing by Sierra, where she offers editing services to writers of all backgrounds, including self-published and traditionally published authors.