How to build an online store from scratch: A beginner’s guide

Building an online store isn’t as complicated as you might think. Take it from someone who has built and managed online stores: It’s easier to build an online store than it is to grow it.

If you search for ways to build an ecommerce store online, you’ll probably find people recommending different platforms and approaches.

But here’s the truth: There’s no such thing as the best way to build an online store.

Building an online store with code-free solutions like Shopify and BigCommerce might be easier for some, while others might find platforms like WordPress or Magento more suitable for their products or niche.

So how do you know which platform is right for you? More importantly, how do you build an online store on your own?

I’ll answer all that and more in this guide. Let’s start by looking at the different options for building an online store.

5 ways to build an online store

The five most common ways to build an online store include:

1. Hire a web developer.
2. Use a no-code website builder.
3. Use an open-source platform.
4. Sell on marketplaces.
5. Build a social media store.

Each approach has its pros and cons. Here’s a closer look at each method to help you choose the best one for your business.

1. Hire a web developer

Hiring a developer to build your online store provides the most flexibility in terms of design and functionality. It gives you complete control over the look and feel of your store and the ability to add custom features and integrations.

Some of the advantages of hiring a developer to build an online store include:

• More customization options.
• Ability to add custom features and integrations.
• Complete control over the look and feel of your store.

Here’s an overview of all the steps to build an online store from scratch with the help of a web developer:

1. Identify your needs and requirements for your online store.
2. Research and hire a web developer.
3. Work with the developer to design and develop the website.
4. Test and launch the website.
5. Maintain and update the website.

It’s worth remembering that building a website from scratch is a time-consuming process. Plus, you’ll need a decent budget to fund the website development.

The average hourly rate of a website developer in the US is approximately $37 per hour, as per Salary.com. You might find cheaper overseas talent on Upwork and Freelancer. However, you’ll need to be extremely hands-on with remote freelancers.

2. Use a no-code website builder

An ecommerce website builder is an online tool that offers a drag-and-drop-style editing workflow that lets you build an online store without code. It’s the best way to build an ecommerce store if you don’t have any coding experience or technical skills.

There are hundreds of ecommerce website builders on the market. Of those, here are the top five choices I recommend:

• Shopify.
• BigCommerce.
• Squarespace.
• Wix.
• Webflow.

Website builders save you time and money and let you focus on starting your online business. They give you access to professionally designed themes and templates and handle hosting and security. You don’t need any technical skills to use them.

The downside of using website builders is that you can end up with a cookie-cutter website. When you use a website builder, you trade flexibility for ease of use. You don’t have as much control over the design elements as you might with an open-source platform or building a website with code.

Here’s an overview of the steps to build an online store using a website builder:

1. Choose a website builder.
2. Select a theme for your store.
3. Customize the design and layout of your store.
4. Add content and products.
5. Set up tax rates, payment gateways, and shipping options.
6. Launch your store.

3. Use an open-source platform

Open-source platforms are software that help you build online stores. They handle most of the back-end tasks of running an online store, such as catalog, customer, payment, and order management.

WordPress is the most popular open-source platform in the world that you can use to build an online store. But it isn’t your only option. You can also use other platforms like:

• Magento.
• Prestashop.
• Drupal.
• Joomla.

I prefer open-source platforms for building online stores because they offer more control over a website’s design and functionality. Plus, you don’t need to worry about your website looking like every other site on the internet.

Other benefits of building a website with an open-source platform are:

• Affordable access to building an online store.
• Wide range of features and integrations.
• Control over website data and design.

Dedicated ecommerce platforms are generally more feature-rich and flexible than website builders, allowing you to build more customizable websites. 

That said, building an online store with an open-source platform is more work than using a website builder. You need to install, host, and secure the application, and you may not have access to help when things go wrong.

Choosing a managed hosting service is a great way to overcome most of those issues. But you may need to deal with some code every now and then.

Cloudways is my go-to choice for hosting websites and online stores. Read my unbiased Cloudways review to understand if it’s the right choice for your online store.

Here’s a brief overview of how you can build an online store with an open-source ecommerce platform:

1. Choose an ecommerce platform that suits your needs.
2. Select a theme for your store.
3. Customize the design and layout of your store.
4. Add products and content.
5. Set up payment, shipping, and taxes.
6. Launch your store.

For more specifics, consider reading my detailed Cloudways tutorial for beginners which explains the entire step-by-step process of setting up an online store from scratch.

Want to learn more about hosting? Consider reading my detailed guide on ecommerce hosting that explains all the basics to help you start right.

4. Sell on marketplaces

Marketplaces like Amazon or Etsy allow you to sell your products to their massive customer base. They handle most of the back-end tasks of running an online store, such as hosting, security, and payment processing.

What’s great about starting an online store on a marketplace is that you don’t need any technical expertise to do it. You can start pretty quickly and at a super low cost. Plus, you get to tap into millions of loyal customers of the platform without spending on ads or marketing.

At the same time, there are several downsides to selling on online marketplaces, such as:

• Limited customization options.
• Extra costs for features and integrations.
• Multiple fees for using the platform.
• Little control over your brand.
• Brand dilution.

I’m not a fan of a marketplace-only approach because it forces you to rely on the marketplace. If, for any reason, the marketplace decides to ban your account, you’ll lose virtually all your business overnight.

If you’re interested in selling on online marketplaces, you should consider diversifying your risk with a hybrid approach where you also sell on your website and social media profiles.

That way, even if you lose traffic or sales from one channel, you still have other channels to keep you going.

5. Sell on social media

Like online marketplaces, social media-based stores allow you to sell on platforms like Facebook and Instagram. You get to tap into millions of monthly users and drive traffic to your online store from your social media profiles.

Social media stores are a great way to start selling online because they offer the following benefits:

• A low barrier to entry.
• Access to millions of users.
• Easy integrations with other platforms.

But the downside of selling on social networks are:

• Limited customization options.
• Limited ecommerce functionality.
• Platform-specific restrictions.

A social media store can help you test a product, build a direct-to-consumer brand, and increase brand awareness. Once you have a decent social media presence, you should look to expand to other channels to diversify your risk.

What are the different types of online stores you can build?

The five main types of online stores are:

1. Single brand websites.
2. Multi-brand retail stores.
3. Online marketplaces.
4. Subscription-based stores.
5. Dropshipping websites.

Here’s a brief overview of each type.

1. Single brand websites

A single-brand website is an online store that sells the products of one brand. Generally, most Business-to-Consumer (B2C) and nearly all Direct-to-Consumer (DTC) brands fall under this category.

Single-brand stores are simple websites that allow brands to sell online. That, in turn, enables them to sell internationally, build a loyal customer base, and grow their business.

Mr. Beast’s Feastables store is an excellent example of a single-brand store. It’s built using Shopify and exclusively retails products under Feastable’s brand, like cookies and chocolate bars.

2. Multi-brand retail stores

Multi-brand retail stores are the most common type of ecommerce website you’ll come across when shopping online. You’ll find B2C and Business-to-Business (B2B) businesses using a multi-brand online store.

Multi-brand retail websites are typically big retailers that sell multiple third-party products and brands. That helps customers discover and buy products from different brands on the same site.

Multi-brand stores are usually operated by companies with large product catalogs, like Walmart, Macy’s, and Nike. Such brands will generally use more sophisticated ecommerce platforms like Magento and BigCommerce to build their online stores.

3. Online marketplaces

Online marketplaces are websites that allow other companies to list and sell their products online. You’ll often find small businesses and solopreneurs using online marketplaces like Amazon, eBay, and Etsy, as they provide sellers instant access to a large customer base.

Online marketplaces allow small brands to reach many customers without investing in a dedicated website. But not all marketplaces are giants like Amazon and eBay. Niche marketplaces like StockX and Ruby Lane cater to specific audiences and industry verticals.

And that’s not all. You can even build your own online marketplace with a content management system like WordPress or Magento.

4. Subscription-based stores

Subscription-based stores are websites that allow customers to buy a product or package once and receive them on a fixed schedule, such as monthly, weekly, or annually.

The advantage of a subscription store is that it provides predictable revenue, lowers customer acquisition costs, and increases customer lifetime value. But the success of a subscription store relies heavily on the quality and consistency of the product.

Even the slightest negative experience with a product or the subscription service can lead to cancellations. And it’s tough to bring back those customers.

Examples of successful subscription-based online stores include:

• Birchbox – a monthly subscription service that delivers personalized beauty and grooming products.
• Dollar Shave Club – a monthly subscription service that delivers razors and other personal grooming products to customers.
• Blue Apron – a meal delivery service that sends subscribers all the ingredients and recipes needed to make a home-cooked meal.

5. Dropshipping websites

A dropshipping store is a website where you don’t stock products. Each time you receive an order, you ask your supplier to ship the product directly to your customer.

The best part about starting a dropshipping business is that you need very little money. You don’t need to invest in inventory or a warehouse or even sign up for an account with shipping providers.

The downside of dropshipping is that you have very little control over the products and fulfillment. Whether it’s a quality control issue on the supplier’s side or a delivery issue, your brand reputation will suffer, and you won’t be able to do much about it.

Dropshipping is an excellent business model to start making money online. But I recommend moving your fulfillment and inventory in-house as soon as possible to ensure long-term growth.

How to build an online store from scratch: 10-step guide

Here’s a step-by-step explanation of everything you need to do to build an online store from scratch.

1. Choose an ecommerce solution

Your journey of building an online store starts with choosing the right ecommerce solution. The two most common ways to build an online store are with an open source and SaaS ecommerce platform.

There are tens, if not hundreds, of options for both approaches. So I’ll try to simplify your decision.

I recommend choosing an open-source solution like WooCommerce or Magento only if you’re tech-savvy and are willing to put in the time to learn the ins and outs of the platform.

If you want a no-frills store setup experience that doesn’t require technical skills, you’re better off choosing ecommerce website builders like Shopify or BigCommerce.

And if you want to choose a different platform, that’s okay. I would recommend checking for the following features before you decide:

1. Mobile friendliness: People love mobile shopping. So choose a platform that offers a mobile-friendly website by default.
2. Product catalog management: Choose a platform that supports configurable, downloadable, grouped, and bundled products. Built-in filtering is a great bonus. If you sell clothing, your customers can sort products by size, color, and style to find what they need.
3. Order, invoice, and inventory management: Look for a platform that lets you manage orders, create invoices, adjust product inventory, and print shipping labels easily. That way, you can track orders and fulfill them efficiently, even during high-demand seasons.
4. Shipping and logistics management: Look for basic shipping management features like shipping rate calculation, free shipping, and order tracking. Ideally, you’ll also want support for table rates shipping. But you can always add that using an extension.
5. Analytics and reporting capabilities: Analytics and reporting give you insights into customers’ likes and dislikes. Choose a platform that offers features like sales, orders, and customer reporting.
6. Marketing and promotional tools: Marketing and promotional tools such as discount codes, abandoned cart recovery, and email marketing integrations are essential. They help you attract customers and incentivize them to buy from you.
7. Multiple payment method support: Speaking of buying from you, choose a platform that supports multiple payment providers, such as PayPal and Stripe. Ideally, pick one with an integrated payment gateway so you don’t need to worry about PCI compliance.
8. Extensible design and functionality: You should be able to update your website’s look and functionality by installing themes and extensions.
9. Third-party integration support: Look for API support for integrations with tools like accounting software, customer relationship management systems, and third-party applications.
10. Basic content management tools: Make sure you can add and edit product pages, images, videos, and blog posts. 

These are essential features you’ll need to run an online store. Besides these, you can also consider features like SEO, marketing, coupons, discounts, and ease of use.

Make sure you test a few different platforms before finalizing your decision. That’ll give you an idea of which platform seems more natural and intuitive. You don’t want to choose a platform and spend weeks using it before realizing you don’t like it.

Read my article on how to choose an ecommerce platform that dives deep into the topic and shares actionable advice on selecting an ecommerce platform. And if you need recommendations, feel free to read my guide to the 10 best ecommerce platforms.

2. Buy a domain name

Next, you need to buy a domain name for your online store. A domain name is the address you type in a web browser to reach a website. For example, you’ll type “google.com” in the browser to open Google search or “ecommercelauncher.com” to reach this site.

Choosing a domain name can be tricky. You need to choose one that’s unique and descriptive to build trust and convey what your brand stands for. At the same time, you shouldn’t spend too much time or money on a domain name.

Here are some tips to help you choose a domain name for your brand:

1. Choose a suitable top-level domain: A top-level domain (TLD) is the last part of a domain name such as “.com” or “.net”. A “.com” TLD is a safe bet in most cases. But if you want to sell to a specific region, choose a country-specific TLD like “.uk” or “.com.au”.
2. Avoid keyword stuffing: Using keywords in your domain to convey what your website is about is okay. But it’s not going to help you rank for those keywords.
3. Keep it short: Avoid long and complicated words. 10 to 15 characters are usually enough.
4. Steer clear of copyrighted words: Avoid trademarked or copyrighted words, as those will likely lead to lawsuits and takedown notices. Check your country’s copyright and trademark registries to be extra careful.
5. Keep it simple: Avoid double letters, check for hidden words, and avoid hyphens. Focus on choosing a brandable domain name.

Read my article on how to choose a domain name for a deeper dive into everything you need to consider when buying a domain name.

Once you settle on a domain name for your store, register it with a domain registrar. After that, you can point your domain to your website and move on to the next step.

3. Design your website

Now, it’s time to design your website. The easiest way to do that is using a predesigned theme. Most ecommerce solutions have dedicated marketplaces where you can buy professionally designed themes.

Here’s an organized list of the official theme marketplaces and the most popular ecommerce solutions:

• WordPress: WordPress themes marketplace.
• Magento: Magento theme marketplace.
• Shopify: Shopify theme store.
• BigCommerce: BigCommerce theme store.
• Webflow: Webflow ecommerce templates.
• Wix: Wix template store.
• Squarespace: Squarespace template store.

You can also buy themes from third-party websites like TemplateMonster and ThemeForest. But make sure you choose themes that offer design and layout customization options and at least one year of free support from the theme developer.

The best part about using a theme is that it takes most of the design worries off your plate. You’ll still need to customize your store’s color, text, images, and other features. But that should be pretty easy.

4. Upload products and add content to your website

With the website design out of the way, you can now focus on adding products to your store and adding content such as images, videos, and text.

The exact steps for uploading products will depend on your ecommerce solution. But to give you a brief overview, most product creation workflows will include the addition of the following:

• Product name and description.
• Price and discounts.
• Categories.
• Stock, weight, and applicable tax rates.
• Materials.
• Variations.

Pay extra attention to the product name and description. Good product descriptions help you convince customers and improve your product page SEO at the same time. Here’s an example of what a great product description looks like:

If you don’t want to write product page copy, hire a professional from a freelance marketplace or use an AI writing tool.

I recommend spending some time customizing your product images. You want them to be original, accurate, and of the highest quality possible. Helping your customers visualize products before buying them can reduce returns and exchanges tremendously.

Other ways to optimize your product images include:

• Add annotated images that highlight product features.
• Use the same size and aspect ratio for all images.
• Ensure all product variations have an image.
• Compress and resize your images before uploading them to your store.

5. Configure basic store settings

At this point, you’ll see things falling into place and probably experience a little surge of motivation. But there’s still a ton of work you need to do before launch day.

More specifically, you need to correctly configure things like SSL certificates, taxes, invoicing, and email notifications so you aren’t caught off-guard once your store is live. Here’s a list of some of the most essential things you should configure:

1. SSL certificates.
2. Tax rates and rules.
3. Invoicing and other sales documentation.
4. Store and sales emails.
5. Supported locations, currencies, and units.
6. Cart and checkout settings.

Most online store building guides rarely talk about these things. But anyone who’s ever built, owned, or operated an online business knows these are essential for every store.

Something as simple as incorrect invoice settings can lead to non-sequential invoice numbers, which can be a compliance risk, depending on where you’re based. Similarly, wrong tax rules or currency settings might have you paying the difference from your profit margin.

Addressing those things before launching your store will save you a ton of headache post-launch. It’ll ensure a much better store ownership experience and allow you to focus on growing your business.

6. Set up payment methods

A payment method allows you to accept payments on your website, just like a cash register. When selling online, you need to offer customers multiple payment options to ensure a smooth checkout process.

The most common types of payment methods include:

• Cash on delivery.
• Credit and debit cards.
• Bank transfers.
• Buy now, pay later.
• Online wallets.

You probably think that too many payment methods might complicate things. Don’t worry. Most ecommerce solutions support multiple payment methods by default. Plus, customers love the convenience of multiple payment options.

Even Baymard Institute’s analysis shows that a lack of payment options is one of the top reasons customers abandon their online shopping carts. So make sure you offer more than one payment option on your website.

Each payment method you add will have more than one provider. For example, if you set up card payments, you’ll need to choose a payment gateway like Stripe, PayPal, or Square.

Here’s a table that shows the different types of payment methods and popular providers for each method:

Remember that each payment method comes with its own set of charges and fees. So make sure you compare payment providers before choosing. That way, you won’t have to deal with unwanted costs or switch payment providers after you launch your online store.

7. Integrate shipping solutions

You could build the best online store and have an amazing product selection. But without a well-planned shipping strategy and fulfillment system, you’ll fail to bring back customers for repeat purchases.

All good shipping strategies start with a shipping policy. Define what your store shipping policy will look like. Decide if you want to offer free shipping on all orders above a certain order amount or no free shipping at all.

Then, create a list of shipping options you’ll provide. You don’t need to provide more than one shipping option if you don’t want to. But offering multiple shipping options will surely help increase your conversion rate.

The shipping providers you choose will vary based on the country you’re based in, the location of your customers, and your business model. If you’re dropshipping, you won’t have much control over shipping and fulfillment.

But you’ll need support for local freight services and shipment labels if you’re fulfilling orders yourself.

Once you figure out the best ways to ship your products and set them up on your store, proceed to the next step.

8. Prepare to launch your website

We’re almost at the finish line now. You’ve set up your store, uploaded products, and configured taxes, shipping, and payments. But you still need to do a few things before going live.

First, you must set up important store pages like terms and conditions, privacy policy, returns policy, shipping faqs, and about us. Customers look for these pages to determine if your business is legitimate.

Second, test your website thoroughly. Place test orders as a guest and registered customer. Run through different scenarios where you refund partial and complete orders. Make sure your website sends out email notifications correctly, and they aren’t marked as spam.

Remove unwanted demo pages or products and make sure every link on your website works the way it should. Broken and incorrect links hurt the end-user experience and your conversions.

Optimize your ecommerce store SEO by adding meta titles and descriptions, cleaning up your store URLs, and adding ALT text for images. Those help Google index and rank your website for the right keywords.

Then submit your sitemap to search engines to encourage them to crawl and index your site. After that, set up Google Analytics to track where you get traffic from and how visitors interact with your site.

Finally, create social media profiles on Facebook, Instagram, Twitter, and any other platforms relevant to your niche. Those are crucial for driving traffic in the first few months.

​9. Launch your website

If you’ve followed everything correctly up until now, this is probably the easiest step in the entire process. Launch day is about executing your ecommerce launch plan as efficiently as possible.

Make sure you announce your launch on every social media platform you can. A simple press release won’t cut it. Ask your friends and family to post, tweet, and share the announcement on every platform. You want every post in front of as many people as possible.

In my experience, it usually takes a few impressions before people consider clicking through to your website. You can also consider offering a special launch day or launch week discount to motivate bargain hunters and casual shoppers.

10. Keep driving traffic to your site

You’ll never forget the first order you receive. That moment when you receive your first payment notification, there’s nothing like it.

But don’t get too comfortable. That feeling will fade if you don’t continue driving traffic to your store. And there’s nothing worse than opening analytics and seeing zero active visitors.

It’ll take you months to drive traffic organically from search engines. That doesn’t mean you shouldn’t do anything on that front. You need to keep working at it, a little at a time.

Keep optimizing and improving your product and landing page copy.

Post at least two blog posts each week on your website to build topical authority. And last but not least, write guest posts for niche-relevant sites to build backlinks and improve your online store visibility.

Other ways to drive traffic to your online store include:

• Paid search.
• Social media posts.
• Social media ads.
• Influencer marketing.
• Affiliate advertising.

No matter which strategies you choose, calculate the value of your traffic by comparing the conversion rate for each one. That way, you’ll know which channels are most effective, and you can optimize your marketing budget accordingly.

Closing thoughts: Building an online store is easy

Building an online store is a lot of work, but it’s something you can do at your own pace. There’s no hard and fast timeline for any of the steps I’ve listed above. Take as long as you need to get each step right.

More importantly, remember that building an online store is as easy (or as complicated) as you make it. Don’t choose an ecommerce solution like Magento if you don’t have the technical skills to host and manage it. Choose a code-free platform like Shopify instead.

And remember that it’s okay to hire a freelancer or outsource tasks to an agency. You can’t always do everything yourself.

I hope you find this guide and the tips I’ve shared useful. Feel free to leave any questions in the comments below, and we’ll reply to them as soon as possible. And make sure you sign up for my newsletter so you don’t miss out on the latest ecommerce tips, tricks, and strategies.

Frequently asked questions about building an online store