Introduction

If you are asking where to start ecommerce business you are in the right place. Choosing the right platform, product strategy, and launch sequence determines whether you scale fast or waste months on avoidable work. Most new sellers make three repeatable mistakes: picking a complex platform too early, skipping cost modeling, and not validating demand with real orders.

This guide explains exactly what to evaluate, how to pick a platform, and the steps to launch in 60 to 90 days. You will get concrete pricing comparisons, a 90 day timeline with weekly tasks, platform recommendations for common use cases, and a checklist you can follow this week. Examples use real vendors such as Shopify, WooCommerce, Amazon, Etsy, Stripe, and Klaviyo to illustrate costs and tradeoffs.

Read this to stop guessing and start building a predictable ecommerce business that covers product selection, platform choice, payments, shipping, marketing, and scaling rules. The goal is to get a minimum viable store live, make your first 50 sales, and set measurable KPIs for growth.

Where to Start Ecommerce Business

Overview

Starting an ecommerce business begins with three core decisions: what you sell, where you sell, and how you fulfill orders. These decisions shape platform choice, margins, and required integrations. Start with a one-page model that projects monthly revenue, gross margin, and customer acquisition cost (CAC) for the first 12 months.

Example one-page model assumptions:

Average order value (AOV): $45
Gross margin: 45 percent
CAC target: $15
Monthly ad budget: $2,000

Under these numbers, 45 orders per month at $45 AOV hits monthly revenue of $2,025 and requires 135 site visitors if conversion rate is 3 percent. If paid traffic conversion is lower, you need more organic or marketplace channels.

Why this matters

Platform choice affects conversion, cost, and speed. Selling on Amazon gives immediate demand but lowers margin due to fees and advertising. A hosted storefront like Shopify simplifies checkout and apps, but you must drive traffic.

WooCommerce on WordPress gives maximum control and lower ongoing fees, but needs technical setup and maintenance.

Quick decision matrix

Fast demand, lower margin: Amazon, Etsy
Fast launch, low technical need: Shopify, Wix, Squarespace
Low platform fees, full control: WooCommerce with managed hosting
High customization, enterprise scale: Adobe Commerce (Magento) or Shopify Plus

Actionable test before committing

Run a 30 day demand test with a landing page and a $300 ad spend to validate AOV and conversion.
If you reach at least 10 preorders or validated email leads at the projected AOV, proceed to build the full store.

This overview sets the foundation for the principles, step-by-step setup, and best practices in the sections that follow.

Core Principles for Profitable Ecommerce

Principle 1: Profit per order matters more than revenue growth

A 20 percent increase in gross margin has the same effect on profit as a 25 percent increase in revenue when margins are thin. Focus on unit economics before scaling ad spend.

Example calculation:

AOV: $60
Product cost: $24 (40 percent)
Shipping average: $6
Payment fees (Stripe): 2.9 percent + $0.30 = $2.04

Contribution margin = 60 * 0.60 - (6 + 2.04) = 36 - 8.04 = $27.96

If CAC is $20, then profit per order = 7.96. Increase margin by reducing shipping with negotiated rates or by bundling products.

Principle 2: Validate demand before inventory scaling

Use preorders, limited runs, or dropshipping for the first 50-200 orders. This minimizes cash tied up in inventory and proves product-market fit.

Landing page with email + $1 test offer
Crowdfunding campaign for preorders
Small initial run from local manufacturer or Alibaba

Principle 3: Pick a platform that matches your go-to-market

Match platform capability to sales channel:

Social and paid ads focus: Shopify, BigCommerce
Content marketing and SEO focus: WooCommerce on WordPress
High volume marketplace demand: Amazon or Walmart Marketplace
Handmade, craft, vintage: Etsy

Principle 4: Automate repetitive tasks early

Automate these first:

Order confirmations and tracking emails (use Klaviyo or Mailchimp)
Inventory alerts and purchase orders (use Orderhive or Brightpearl)
Shipping label creation (use ShipStation or Pirate Ship)

Example automation ROI: Automating shipping label creation can cut fulfillment time per order from 4 minutes to under 1 minute. For 1,000 monthly orders, this is 50 hours saved.

Principle 5: Measure the right KPIs

Track at minimum:

Conversion rate
Average order value (AOV)
Gross margin
Customer acquisition cost (CAC)
Repeat purchase rate

Set benchmarks: aim for conversion rate 2.5 to 4 percent, repeat purchase rate 20 percent within 12 months for consumer goods.

Step by Step Setup and Launch

Overview of a 60 to 90 day launch plan

This section gives a practical week-by-week plan to go from idea to first 50 to 100 orders. Use the timeline with tasks, approximate hours, and costs.

60 day fast path (weeks)

Week 1: Validation and product sourcing

Create a landing page with shopify trial or Carrd
Run $200 in Facebook or Google ads to measure AOV and conversion

Hours: 8 to 12

Cost: $200 to $500

Week 2: Supplier and sample checks

Order 3 to 5 samples from suppliers (local, Alibaba)
Confirm production time and minimum order quantity (MOQ)

Hours: 6 to 10

Cost: $100 to $1,000

Week 3: Choose platform and set up store skeleton

Pick platform: Shopify for speed, WooCommerce for SEO control
Set up domain, payment processor, shipping zones

Hours: 12 to 20

Cost: Hosting or platform fee (see Tools section)

Week 4: Product pages and photos

Shoot product photos, write 5 product pages with benefits and specs

Hours: 12 to 20

Cost: $200 to $1,000 (photography)

Week 5: Payment, shipping, and legal

Connect Stripe or PayPal, set shipping rates, create returns policy

Hours: 6 to 10

Cost: Payment processor setup cost $0, reserve for shipping labels

Week 6: Prelaunch marketing and email capture

Install Klaviyo or Mailchimp, set up 2-email welcome flow
Run a small ad campaign to launch

Hours: 10 to 20

Cost: $300 to $1,000 ad spend

Week 7-8: Launch and fulfill first orders

Monitor metrics, adjust ads, gather reviews

Hours: Ongoing

Cost: Variable

90 day path adds:

Content and SEO plan, influencer outreach, and initial marketplace listings (Amazon or Etsy) for expanded reach.

Key setup items and actionable tips

Domain and SSL

Buy domain from Namecheap or GoDaddy for $10 to $20 per year.
Ensure SSL is enabled; most hosted platforms include it free.

Payments and fees

Use Stripe or PayPal for card processing. Expect around 2.9 percent + $0.30 per US transaction. For international cards expect higher fees.
Consider adding alternative pay methods like Apple Pay or Google Pay if using Shopify.

Shipping and fulfillment

Use courier rate shopping via ShipStation or Shippo to compare USPS, UPS, and FedEx.
Negotiate rates with carriers once you exceed 200 monthly parcels.

Minimum viable technology stack

Storefront: Shopify Basic or WooCommerce
Payments: Stripe and PayPal
Email marketing: Klaviyo (free tier for small lists) or Mailchimp
Shipping labels: ShipStation or Pirate Ship
Analytics: Google Analytics 4 and Facebook Conversions API

Example cost summary for month one (approximate)

Platform fee: $29 to $79
Domain and apps: $10 to $50
Advertising: $300 to $1,000
Product samples and photography: $300 to $1,200

Total first month budget: $700 to $2,500 for a lean launch.

When to Scale and Optimization Best Practices

Signs you are ready to scale

CAC is stable or improving with channels that are scalable.
Repeat purchase rate is at least 15 to 20 percent with an LTV to CAC ratio of at least 3:1.
Fulfillment and customer service are standardized and costed.

Scaling roadmap months 3 to 12

Months 3 to 4: Optimize conversion and retention

A/B test product pages and checkout flows. Typical uplift from simple A/B tests: 10 to 30 percent.
Implement post-purchase flows to drive second purchase within 30 days using discounts or cross-sell.

Months 5 to 8: Expand channels

Add marketplaces like Amazon, Walmart, or Etsy where product fits.
Test new ad channels: TikTok ads for younger demos, Google Shopping for intent buyers.

Months 9 to 12: Automate and outsource

Move routine fulfillment to a third-party logistics provider (3PL) once monthly orders exceed 250 to 500.
Outsource customer service to trained agents with documented scripts.

Conversion rate optimization (CRO) quick wins

Improve product images to 2000 px by 2000 px and add lifestyle shots.
Add product video; video can increase conversion by 20 to 30 percent in some categories.
Use urgency cues like low stock indicators sparingly to avoid distrust.

Retention levers that scale profitably

Subscribe and save or subscription models for consumables can increase LTV by 2x to 4x.
Loyalty programs that reward repeat purchases with points and tiers.
Email flows: welcome series, browse abandonment, cart abandonment, and post-purchase review request.

Fulfillment and cost control

Audit shipping packaging for weight and dimensional efficiency to lower carrier costs.
Use negotiated UPS or FedEx rates via a shipping platform when volume grows.
Consider distributed inventory using a 3PL network to reduce shipping zones and costs.

KPIs to track weekly and monthly

Weekly: orders, conversion rate, AOV, ad spend, CAC
Monthly: gross margin, LTV, repeat purchase rate, churn for subscriptions

Deciding between more marketing spend versus product investments

If CAC is under target and conversion is stable, increase ad spend in 20 to 30 percent increments while monitoring ROI.
If conversion is low, invest in product page improvements and UX before increasing spend.

Tools and Resources

Platforms and approximate pricing as of mid 2024 (verify current prices)

Hosted storefronts

Shopify: $29 to $299 per month for standard plans; Shopify Plus for enterprise. Transaction fees vary if not using Shopify Payments. Strong app ecosystem and fast setup.
BigCommerce: $29.95 to $299.95 per month. Good built-in features for B2B and larger catalogs.
Wix Ecommerce: $27 to $49 per month. Good for simple stores and integrated website builder.
Squarespace Commerce: $26 to $49 per month. Simple, elegant templates for small catalogs.

Self-hosted

WooCommerce: Free plugin for WordPress; hosting required. Managed WooCommerce hosting costs $20 to $100+ per month. Flexible and strong for SEO.
Adobe Commerce (Magento): High customization and cost. Licensing and hosting vary widely; typically enterprise budgets starting at $20,000 per year for full services.

Marketplaces

Amazon Seller Central: Individual plan $0.99 per item plus referral fees; Professional $39.99 per month plus referral fees. Referral fees typically 8 to 15 percent.
Etsy: Listing fee $0.20 per item, transaction fee 6.5 percent, payment processing around 3 percent + $0.25.

Payments and gateways

Stripe: Around 2.9 percent + $0.30 per transaction in the US. Lower rates for high volume or negotiated pricing.
PayPal: Similar pricing to Stripe for standard accounts.
Adyen, Braintree: Enterprise focused, negotiated pricing.

Email and marketing automation

Klaviyo: Free tier up to 250 contacts; paid plans scale with list size. Strong ecomm segmentation and flows.
Mailchimp: Free tier for small lists; pricing varies.
Omnisend: Ecomm-focused; free tier and pay-as-you-grow options.

Shipping and fulfillment tools

ShipStation: Plans start around $9 per month; multiplatform label creation and carrier rate shopping.
Shippo: A pay-as-you-go option with discounted USPS rates.
Pirate Ship: Free platform with discounted USPS rates for small shippers.

Analytics and CRO

Google Analytics 4: Free. Essential for traffic and conversion analysis.
Hotjar or Microsoft Clarity: For heatmaps and session recordings. Free tiers available.

Pricing and app budget estimation for first year (example)

Platform: $29 to $79 per month = $348 to $948 per year
Apps and plugins: $20 to $200 per month = $240 to $2,400 per year
Marketing tools (Klaviyo): $0 to $500 per year initially

Total tooling first year: $588 to $3,848 for lean to moderate setups.

Resources for learning and support

Shopify Help Center and Shopify Compass
WooCommerce Docs and WPBeginner tutorials
Amazon Seller University
Podcasts and blogs: eCommerceFuel, Practical Ecommerce, Shopify Masters

Common Mistakes and How to Avoid Them

Mistake 1: Choosing a platform before validating demand

How to avoid: Run a 30 day demand test with a landing page, simple checkout or preorder system, and a small ad budget.

Mistake 2: Underestimating total landed cost

How to avoid: Build a full landed cost model including product cost, duties, freight, packaging, returns, and payment fees. Use a spreadsheet and stress-test it against 10 percent higher costs.

Mistake 3: Ignoring mobile experience

How to avoid: Test checkout on multiple devices. Aim for a one-page mobile checkout or accelerated checkout options like Apple Pay and Google Pay.

Mistake 4: Relying on a single acquisition channel

How to avoid: Build a mix of paid ads, organic search, email, and marketplace listings. Allocate at least 20 percent of marketing budget to testing a secondary channel each quarter.

Mistake 5: Poor customer service and unclear returns

How to avoid: Write clear returns and shipping policies, and create a short customer service script. Respond to messages within 24 hours and track response time.

FAQ

How Much Money Do I Need to Start an Ecommerce Store?

A lean ecommerce launch can cost $700 to $2,500 for initial product samples, a basic storefront, product photos, and a small ad test. Plan $3,000 to $10,000 for a more polished launch with inventory and professional design.

Which Platform is Best for Beginners?

Shopify is the fastest for non-technical founders due to its managed hosting, app ecosystem, and simple checkout. WooCommerce is best if you prioritize SEO and full control and have some technical comfort.

Should I Sell on Marketplaces First or Build My Own Store?

Use marketplaces like Amazon or Etsy to validate demand and capture early sales, then build your own store to maximize margin and customer ownership. Running both in parallel is common once demand is validated.

How Long Until I See Consistent Sales?

An MVP store can get first sales within days if you validate demand and run paid ads. Consistent monthly sales typically require 3 to 6 months of optimization and growing traffic channels.

How Do I Price My Products?

Price using cost-plus plus market test. Start with: Price = (product cost + shipping + fees + desired profit) / (1 - discount rate) Test price elasticity with ads; small price changes can change conversion and AOV significantly.

Is Dropshipping Still Viable in 2025?

Dropshipping can work for testing or niche items but margins are usually lower and shipping times longer. Use dropshipping for validation, then move to private label or inventory to improve margins.

Next Steps

Build a simple one-page financial model

Fill in AOV, product cost, shipping, payment fees, and CAC assumptions.
Validate that gross margin supports your target CAC.

Run a 30 day demand test

Create a landing page, set a $300 to $500 ad budget, and measure conversions and AOV.
If you get 10 or more qualified orders or preorders at target AOV, move to full store setup.

Choose your platform and set up MVP

If you want speed, start Shopify Basic with a paid theme, connect Stripe and PayPal, and set up 10 product pages.
If you want SEO control, set up WordPress with WooCommerce on managed hosting.

Implement tracking and a basic email funnel

Install Google Analytics 4 and Facebook Conversions API.
Set up Klaviyo or Mailchimp with a 3-email welcome flow and cart abandonment.

Checklist to print and follow this week

Validate product demand with a landing page and ads.
Order samples and confirm supplier lead times.
Reserve a domain and start a 14 day Shopify trial or set up managed WooCommerce hosting.
Set up Stripe and PayPal accounts and verify payouts.

This plan gives a practical path from idea to the first meaningful revenue while keeping costs under control and focusing on the metrics that matter.

Where to Start Ecommerce Business Guide