Open for Business: 5 Options for Setting Up an Online Store

How to start selling online

Whether you want to build an online business or add e-commerce to your brick-and-mortar, here are five options for setting up an online store — plus approximate costs for each. 

1. Build an online store from scratch.

If you have programming skills or plan to hire a developer, consider building a custom e-commerce site to your exact specifications. If you do want to hire professional help, ask the web developer some essential questions before choosing one. You and your developer will need to decide precisely how your online store should look and work.

Once you’ve created your e-commerce site, you’ll need to choose and integrate a payment gateway or processor. Your developer will integrate your website’s shopping cart and payment page with the payment processor. 

These are some advantages of building your own e-commerce site:

• You can set it up exactly as you like with few limitations.
• The only ongoing costs are hosting, domain and routine maintenance.

There are some drawbacks of this approach:

• Changes such as adding new products require technical expertise.
• You’ll have ongoing costs for design and developer updates, and traffic generation.

These are some of the costs of building an online store from scratch:

• Design and programming: $3,500 to $10,000+, depending on the size of your catalog and the amount of customization you need
• Monthly maintenance and hosting: $100 to $2,000 for an offsite programmer and hosting
• Payment processing: You have the freedom to choose any payment processor. You could save money on processing fees by choosing a low-fee credit card processor such as Helcim or National Processing, which both have wholesale interchange-plus pricing. [Read our Helcim review and National Processing review for more information]

2. Build your online store with WordPress.

If you’re tech-savvy, WordPress offers customization and low recurring costs with plug-ins. Its WYSIWYG (what you see is what you get) interface enables non-programmers to design and manage stores.

These are some advantages of WordPress: 

• E-commerce themes are available.
• WordPress has a built-in content management system, which makes it easy to change or update your products, pricing and content. 
• Plug-ins allow you to add almost any function to your site (for example, WooCommerce can add shopping cart and checkout functionality).
• You can concurrently run an affiliate program with WordPress, unlike with e-commerce platforms.
• WordPress offers excellent SEO capabilities.

There are some drawbacks of WordPress:

• There is a steep learning curve for some features.
• You have to set up hosting and a custom domain for yourself. While not too difficult, it’s more of a process than with a self-hosted website builder. 
• E-commerce requires installing, configuring and maintaining several plug-ins.

While the WordPress platform is free, you’ll pay $5 to $15/month for hosting and a custom domain. You also might want to invest in some premium plug-ins or themes. [See related article: How Much Does It Cost to Start an Online Business?]

3. Use a website builder to create an online store.

A website builder may be the most straightforward option if you want to create an online store. Although building a website used to be only for experts, today’s drag-and-drop tools allow anyone with little technological know-how to create a professional-looking website in less than an hour. 

Website builders give you a choice of templates that include website design elements and programming. Add your custom content and make any necessary changes. The website builder platform includes hosting, but if you want a custom domain, you’ll need to pay for that separately. Examples of website builders include Wix, Weebly and GoDaddy.

Some website builders offer a free plan that allows you to sell one to five products. However, nearly every website builder also has an online store or e-commerce plan, allowing you to sell more products and access dedicated e-commerce tools. 

It costs around $15 to $30 per month for a website builder plan with online store or e-commerce features. Some builders limit access to advanced features (like abandoned cart emails or app integrations) to higher tiers so review plan details closely.

4. Set up shop in an online marketplace.

Online marketplaces such as Amazon, Etsy and Facebook Marketplace give you instant access to customer bases. Shoppers come to these markets to browse or perhaps buy something specific from a particular store. Each marketplace has ways for e-commerce stores to promote themselves via site-specific search features or advertising. 

Amazon

Amazon is the biggest online marketplace in the world, with more than 2.5 billion monthly visits, according to Semrush. Sellers can take advantage of Amazon’s massive traffic and customer base, including Prime members, while accessing payment processing features. With its Fulfillment by Amazon (FBA) program, sellers don’t have to worry about packing or shipping the products. No programming skills are needed. 

Costs, according to Amazon Seller Pricing, include:

• It costs $39.99/month plus referral fees (8 to 15 percent, depending on item category).
• If you use FBA, fulfillment fees start at $2.29 per package, depending on its size, weight and type. FBA sellers also pay a monthly storage fee for their inventory stored at Amazon’s warehouses of between 78 cents and $2.40 per cubic foot. 
• If you decide to advertise your store on Amazon, there will be an additional charge.

Etsy

Etsy is another popular e-commerce marketplace, but it’s a more product-oriented site, specifically for handmade and vintage items and craft supplies. With Etsy, you enter some basic information about yourself or your business, add some items and then start selling. 

Costs, according to Etsy Fees and Payments Policy, include:

• There is a 20-cent per item listing fee.
• Etsy also adds a transaction fee of 6.5 percent of the total sale. 
• Square’s payment processing fee is 30 cents plus 2.9 percent of the final price. 
• If you opt for Etsy Plus, you’ll pay a $10 monthly subscription fee and gain more customization options, a custom domain, 15 listing credits and $5 in Etsy Ads credits.
• You can opt into Etsy offsite ads to help drive customers to your Etsy store. In this case, there is a fee if a sale is made within 30 days of someone clicking on your advertising listing. This ranges between 12 and 15 percent.

Facebook Marketplace

You can also set up an online store through Facebook Marketplace. If you have a Facebook page for your business, you can integrate your shop directly onto that page. Some website builders and dedicated e-commerce sites (see below) include a Facebook store at no cost when you pay for their traditional online store service.

Like Etsy and Amazon, Facebook has a built-in customer base and creating a store is effortless. You just enter your products and wait for sales.

Costs, according to Facebook, include: 

Facebook charges a selling fee of 10 percent of the selling price (or 80 cents minimum each order) when you use their shipping services. There are no fees for local pickups that accept cash or third-party payment methods. 

5. Build an online store with a dedicated e-commerce platform.

Dedicated e-commerce platforms such as Shopify, BigCommerce and ShopWired are all-in-one solutions for online businesses. These platforms regularly add features and adjust prices; below are plan highlights. You should always check each provider’s pricing page for the latest information.

BigCommerce

BigCommerce has templates to help you design your store, but only a few are free. It takes some time and effort to set up your shop. Still, once you’re up and running, BigCommerce provides a range of valuable features, including blazing-fast loading speeds, the ability to add more than 70 discounts and promotions, merchandising options, SEO tools and cross-channel support. 

BigCommerce is easily scalable and can support a massive product catalog. Unlike some other e-commerce platforms, BigCommerce does not charge additional transaction fees. BigCommerce has four pricing plans. All include unlimited products, bandwidth and multiple payment gateways.

• Standard: $39/month or $29/month (billed annually).
• Plus: $105/month or $79/month (billed annually).
• Pro: $399/month or $299/month (billed annually).
• Enterprise: Custom pricing

Shopify

Shopify’s setup process is more straightforward than the one offered by BigCommerce, so merchants can quickly get started with its interface. Shopify offers 24 free themes, and paid themes typically cost $180 to $350+. 

Shopify sites have fast load times and plenty of integrations, including Shopify Payments, so you don’t need to work with an outside payment processing company. You can use the Shopify point-of-sale (POS) and payment processing system in your brick-and-mortar store whether or not you are selling online. Shopify sites also integrate with more than 6,000 apps. 

While Shopify provides marketing tools to boost your e-commerce sales, its SEO isn’t as good as what is available from some of the other e-commerce platforms, so sellers may need to rely more heavily on other marketing strategies. Shopify has four service plans:

• Basic: $39/month or $29/month (billed annually) for basic features and online credit card rates of 2.9 percent plus 30 cents.
• Grow: $105/month or $79/month (billed annually) with added reporting and more staff accounts, and online credit card rates of 2.7 percent plus 30 cents.
• Advanced: $399/month or $299/month (billed annually) with advanced analytics and shipping features, and online credit card rates at 2.5 percent plus 30 cents.
• Plus: Starts at $2,300/month (three-year term), with enterprise features.

If you use Shopify Payments, there is no transaction fee. Otherwise, third-party transaction fees cost between .6 percent and 2 percent per transaction.

ShopWired 

ShopWired is a relatively new player in the e-commerce platform space; it offers many of the same features as BigCommerce and Shopify. ShopWired’s monthly prices are less than those of the other two. Some features that require a higher plan on BigCommerce and Shopify, such as abandoned cart recovery, ratings and reviews, are available for free. 

ShopWired has faster load times than either BigCommerce or Shopify and shops are easy to set up. ShopWired also has several business-to-business features, such as setting up trade accounts, credit accounts, a quote-request system and bulk discounts. ShopWired does not have direct integration with Amazon.

ShopWired has four plans, none of which charge transaction fees:

• Pro: $29.95/month or $23.96/month (billed annually), all essentials and two admin accounts.
• Advanced: $76/month and $47.96/month (billed annually), extra growth tools and five admin accounts.
• Premium: $119/month and $95.96/month (billed annually), added features like advanced reports and 15 admin accounts.
• ShopWired Enterprise: From $249.95/month, includes strategic account management, advanced reports and performance reviews.

Why does your business need an online store?

If you’re not yet selling online, you’re missing out on a large and fast-growing market. E-commerce accounts for more than 20 percent of worldwide retail sales, according to Statista.

Some benefits of going online include:

• Open 24/7: You can continue to make sales even when your physical store is closed and you’re home sleeping.
• Create an additional revenue stream: If you have a brick-and-mortar store, having your products available online makes it easier and more convenient for customers to buy from you, increasing your sales.
• Expand your customer base: When you sell online, you can reach people beyond your geographic location who may never have even known about you.
• Create cross-promotion opportunities: Use your online store to promote in-store events and offer customers conveniences like buying online and picking up their products in the store.
• Are an inexpensive marketing tool: Use your online presence to market your business efficiently and inexpensively.
• Help you target customers: When you support your online store with an expanded online presence, such as social media accounts, you place your business in front of people likely to buy based on interests, demographics and history.
• Can turn browsers into buyers: Online shopping platforms often include tools that enable you to retarget customers who browsed certain items or placed products in their shopping cart and abandoned them, prompting them to complete their purchase.
• Convenient for buyers: Consumers can shop night or day and find products easily. They also don’t have to wait in lines.

How to market your online store

Setting up your e-commerce site is just the start. To drive sales, create an e-commerce marketing strategy. Here are some ways to drive traffic to your online store:

• Optimize your store for SEO: Whether you have a stand-alone e-commerce website or use a website builder, marketplace or e-commerce platform, include keywords throughout your content and coding. Keywords help search engines ― both external like Google and internal if you are using a platform or marketplace ― rank your page and show it to people searching for those terms.
• Use your email list: You’ve likely worked on building a quality email list of customers and prospects. Email marketing is one of the most cost-effective marketing vehicles. Create email marketing campaigns that send promotions and new product announcements or provide discounts with links to your e-commerce store. 
• Make it social: Social media is an excellent platform for promoting your online store. Use your social media presence to make announcements and highlight events, promotions and specific products. Be sure to include links to your store in all your social profiles.
• Enhance product pages with helpful content: If your products are unusual, innovative, custom, handmade or otherwise particularly interesting, explain why on your product pages to spur conversations and interest.
• Advertise: If you’re in a marketplace, drive shoppers to your store by advertising within the marketplace. If not, use external advertising, such as Google Ads and Instagram advertising. You can also advertise with Facebook’s business tools.
• Leverage your physical store (if you have one): Tell your in-store customers about your e-commerce store. Provide them with links or quick response codes leading to your store that they can share with friends, family and social media followers.

Choosing the right online store-building platform

For most small businesses, website-building e-commerce plans are a balanced option when starting an online store. However, many services and platforms can accommodate businesses of all sizes. 

When choosing the right online store-building platform, consider your needs, budget, anticipated timeline and technical know-how. It’s also important to find a platform that is scalable if you anticipate growing your business in the future.

Many website builders and online store platforms offer free trials so that you can test a service before committing long term. You may also want to conduct a demo with each platform to ask very specific questions while learning what the platform has to offer.

Skye Schooley and Marc Prosser contributed to the reporting and writing of this article.