How to start an ecommerce business

Ecommerce is one of many business avenues and is best known for being an accessible, scalable, and low-cost way to start your own business.

But having a successful ecommerce business is much more than just listing items to sell online. It takes a solid business plan, a clear strategy, strong branding, effective marketing, and a focus on delivering a good customer experience.

As with any other business venture, there are important practices that can help your business succeed, as well as common pitfalls you should avoid.

In this article, we’ll offer a step-by-step guide for ecommerce business owners, covering how to write a business plan, sourcing products, setting up an online store, marketing and shipping strategies, overall costs, and top tips for success.

What is an ecommerce business?

An ecommerce business is a venture in which you sell products or services over the internet instead of (or in addition to) a physical store.

Starting an ecommerce business is popular for many reasons, especially as online shopping continues to dominate, and it typically comes with low setup costs.

Unlike traditional retail businesses, an ecommerce business doesn’t require renting a physical store, hiring many staff, or holding large amounts of inventory. You can start with just a business website and a small product range.

Ecommerce businesses also have the ability to reach a global audience. Instead of being limited to customers in one location, ecommerce businesses can sell to people across the country or even around the world through the internet.

And finally, its flexibility and scalability mean you can run your online store from almost anywhere, manage orders online, and expand your product range as the business grows.

Types of ecommerce business models

The most common types of ecommerce business models are:

• Business to consumer (B2C): a business sells directly to a customer (such as a clothing brand selling products through its website)
• Business to business (B2B): a business sells products or services to other companies (such as online platforms that allows businesses to buy products in bulk from manufacturers and wholesalers)
• Consumer to consumer (C2C): customers sell to other consumers through third-party platforms, such as Amazon, Etsy, eBay, and Facebook Marketplace.
• Consumer to business (C2B): individuals offer products or services to businesses (such as a freelance designer selling logo designs to companies through an online platform)

Step 1. Find the right products to sell

Before setting anything up, the first thing you’ll need to decide is what products to sell. When deciding this, you should look at products with high demand and reasonable competition that can generate profit for your business.

Here are a few ways to help you get started:

• Researching market demand: look for products that people are actively searching for and buying. Explore trending items and popular categories on marketplaces like Amazon or eBay to see what customers are currently interested in.
• Finding a niche market: instead of just selling general products, it can be helpful to focus on a specific niche for your target audience. A niche market targets a smaller group of customers with specific needs and can reduce competition.
• Looking for products that solve a problem: products that solve a common pain point or make life easier often perform well. Think about everyday challenges people face and which products could help address them.
• Researching the competition: look into similar products and sellers to understand the level of competition, such as what your competitors are doing right and what could be improved.

Don’t forget to consider your profit margins as well. You should ensure that the product can be sold at a price that leaves room for profit after costs like manufacturing, shipping, marketing, and platform fees.

Common pitfalls to avoid

On the other hand, there are certain practices you should avoid when selling products. This includes:

• Selling perishable goods with a short shelf life.
• Selling heavy products that may cost almost as much to ship as to buy.
• Selling trademarked or patented items unless you are the patent or trademark owner, or a registered reseller.

Step 2. Write a business plan

Once you have decided what products to sell, you should develop a business plan that details your goals, strategies for achieving them, and your financial forecast.

A business plan is a document that explains what your business is, what it does, how it will make money, and how it will grow over time. It also helps you organise your ideas, set clear goals, and guide your decisions.

For an ecommerce business, it should detail what you’re planning to sell, how you’ll source products as well as customers, and outline the steps you will take to earn revenue and become profitable.

Here’s a quick breakdown on what it should include:

• A brief summary of the aims of the business
• Its name, vision, and brand information
• What the opportunity is
• Details of the addressable market you are targeting
• Sales product information
• Competitor analysis
• Operational details
• Your wider sales and marketing strategy
• Delivery and order fulfilment plan
• Yearly or monthly financial plan

Not sure where to start? Check out our business plan guide for everything you need to know, with a free template included.

Step 3. Source your products

Next, you’ll need to find the most effective way to source products. Prioritising value, quality, reliability, and speed will be key drivers in this market. There are many options for sourcing products, though specific options depend on the product range your ecommerce business sells.

Either way, the quality of the goods you sell is a vital consideration when sourcing products, and your business will gain a bad reputation if you sell poor-quality items. You also need your product sources to be reliable and to deliver quickly, so you have a consistent supply and can meet periods of high demand.

Here are the most common ways to source your products:

• Creating your own: selling your own designs, crafts, handmade jewellery, and other popular products via online marketplaces.
• Reselling: buying products in bulk from wholesalers or other retailers and selling them online at a markup.
• Partnering with a manufacturer: working directly with a manufacturer to produce products according to their specifications, allowing for custom designs, bulk production, and potentially lower costs per unit.
• Dropshipping: an increasingly popular route for sourcing products. Instead of holding stock yourself, when a customer places an order, a third-party supplier ships it to them. You can sell more products without having to buy them as stock.
• Micro-fulfilment centres (MFCs): these are small and highly automated storage facilities — often no larger than 10,000 square feet — located in densely populated urban areas.

Licenses and restricted goods

However you source your products, it’s important to note that certain items require additional permissions before you can sell them. For example, products like alcohol, tobacco, and certain health or cosmetic items often need licenses or approvals from the UK authorities to be sold legally. These include:

• A license to sell alcohol online, as well as following age verification rules.
• A tobacco retail licence for tobacco products, and there are also strict rules around advertising, health warnings, and age verification.
• Some supplements or health devices may need approval from the Medicines and Healthcare products Regulatory Agency (MHRA).
• Certain ingredients for cosmetics and skincare are restricted, and products must meet the UK Cosmetic Regulations with proper labelling.
• Electrical products and toys must comply with UK safety standards and have appropriate CE/UKCA markings.

Step 4. Choose your selling channels

After preparing your products and listings, you’ll need to decide where you want to start selling online. There are several options for this, including selling through your own website, an online marketplace, or social media platforms like TikTok Shop.

Ecommerce website builders

It’s relatively easy and affordable to set up an ecommerce platform to sell your products. This is a software that offers all the tools needed to run an online store in one place, including product listings, inventory tracking, checkout, payment processing, and more.

AI website builders also allow you to build a fully-functioning store in seconds, removing the need for technical setup and letting you start selling almost immediately. For example, Wix is our top-rated option as it provides an all-round solution – offering AI-powered design, ecommerce tools, and built-in marketing features in one place.

Building your own ecommerce website

If you opt to build your own ecommerce website, it can take some work (and cost) to launch. You’ll also need a reliable payment processor, known as an online payment gateway.

These use encryption and other security features to protect customer payments, which is vital and will aid with customer retention. You can further improve payment security by investing in an SSL certificate, which provides your site with a padlock in the search bar to promote your site as secure and can improve its search engine ranking. Remember to be transparent about the data privacy measures you have in place.

Online marketplace

Online marketplaces – such as Amazon, eBay and Etsy – provide you with a ready-made audience that shops on these sites, increasing the reach of your products. They also already have established traffic, built-in payment systems, and tools to help you list and manage your products.

However, the drawback is that these platforms often charge commission on every sale you make, along with listing or transaction fees. You may also have less control over your branding, pricing, and how your store is presented to customers.

Social media

Another popular channel is to sell directly on social media platforms like TikTok and Instagram. Known as social commerce, this allows customers to discover and purchase items without leaving the app. You can also promote products, interact with customers, and complete sales through features like shoppable posts, product tags, and in-app checkout.

Social commerce isn’t just an online fad either, as 83% of retailers say it has become the UK’s fastest-growing sales channel, with the industry expected to hit nearly £16bn by 2028. Moreover, social commerce sales are expected to reach £11.75bn in 2026, making it an increasingly important opportunity for businesses looking to reach customers where they already spend their time online.

Step 5. Set up payment processing

Before selling anything, you should make sure you have a safe and secure payment gateway so that customers can make payments confidently and that their financial information is protected.

A payment gateway acts as a secure intermediary between a business’s website and the bank. It also processes online payments and ensures that sensitive customer information (such as credit card details) is transmitted safely and encrypted during the transaction.

When accepting payments online, you must have Secure Sockets Layer (SSL) encryption, which encrypts the data transmitted between a customer’s browser and the website, and ensures sensitive information can’t be accessed by hackers.

Additionally, businesses must comply with Payment Card Industry Data Security Standards (PCI DSS), as these standards help ensure that customer payment information is stored and processed securely.

Other security essentials include:

• Fraud detection tools: many payment gateways include fraud detection systems that monitor transactions and flag suspicious activity, helping prevent fraudulent purchases.
• Strong authentication: additional verification, such as one-time passcodes or bank authentication (like 3D Secure), can help confirm the customer’s identity.

Ultimately, your security needs will differ depending on how you build your online store. For example, website builders offer built-in security features like SSL certificates, automatic updates and protection against common threats, so you don’t have to manage much yourself.

Step 6. List your products

To build a great online shop, you need to list products in a certain way that will effectively target and attract potential customers.

Presenting your products well so that they stand out from the competition can be achieved through brief, clear product descriptions that are engaging. Listings need to include all relevant information to reduce returns, minimising negative customer feedback.

Think about what phrases a potential customer will use to search for your products online and include them in the description. This helps people find your products. Use search engine optimisation (SEO) to add keywords that will also help customers search and find your product listings.

Your listing should also include:

• High-quality images showing the product from different angles or in use.
• Videos that demonstrate product features, unboxing or usage.
• Clear specifications and details, such as dimensions, weight, materials, colour options, and care instructions (if relevant).
• Customer reviews and ratings, as people are more likely to buy when they see positive feedback from others.
• Unique selling points (USPs) that show what makes your product different or better than competitors’.

Step 7. Build your brand and market your business

Sales aren’t going to come from nowhere, and without marketing, your store is going to lie dormant. Therefore, you’ll need to market your business to help build brand awareness, attract new customers, and ultimately win you more sales.

The first step is to develop your brand identity. This includes choosing a business name (if you don’t already have one), logo, colour scheme, and overall ethos and personality that reflect your brand and appeal to your audience. Make sure you keep it consistent across all channels so that customers can easily recognise your business and build trust wherever they come across it online.

Once you’ve established your brand, it’s time to start promoting your business. Below are some popular strategies to help you get started.

Email marketing

Email marketing is one of the most cost-effective ways to reach customers, promote products, and build loyalty. It also delivers an average return on investment (ROI) of £35-£42 for every £1 spent, so it can be extremely beneficial to your business if used correctly. Here’s a quick breakdown of how it works:

• Build your email list: Add sign-up forms to your website, checkout pages, and social media channels. You can also offer incentives like discounts and freebies to encourage sign-ups.
• Segment your audience: divide your subscribers into groups based on behaviour, purchase history, location, or interests. This will help you send more relevant and personalised emails, rather than using a “one size fits all” approach.
• Create content: emails can include product announcements, promotions, restock alerts, and personalised recommendations. Use effective subject lines to improve open rate and clear calls-to-action (CTAs) to drive clicks.
• Automate your campaigns: set up automated email flows such as a welcome series, abandoned cart reminders, and post-purchase follow-ups. This can save time and ensure consistent communication with customers.
• Track and optimise: make sure to monitor metrics like open rates, click-through rates, and conversion rates. You should also test subject lines, content, and sending times to see what works best (and what doesn’t) so that you can continuously improve performance.

Many CRM systems also offer AI tools that can generate personalised emails for certain audiences with tailored discounts. Moreover, they can analyse customer behaviour, past purchases, and engagement patterns to suggest relevant products, optimal send times, and subject lines to help increase open rates and conversions.

Paid ads

Paid ads let you reach potential customers quickly, increase brand awareness, and drive targeted traffic to your online store. Unlike organic marketing, paid ads can get you results almost immediately when done correctly.

Platforms like Google Ads allow you to reach people actively searching for products, while social media platforms like Facebook, Instagram, TikTok, and Pinterest let you showcase your products visually and retarget people who have already visited your site.

Whether you want to get more traffic, sales, or brand awareness, you should target the right audience based on demographics, interests, and behaviour. Make sure your ads have high-quality pictures, clear messaging, and clear CTAs, and monitor them through click-through rates, cost-per-click (CPC), and return on ad spend.

Social media marketing

Social media marketing should be an obvious choice, especially with the rapid rise of social commerce. That said, you don’t have to be everywhere. Instead, you should choose the right platform based on where your target audience is.

For example, TikTok and Instagram are dominant platforms for showcasing products through short-form video, trends, and influencer-led content. “Proof of humanity” in your content – such as user-generated content (UGC), shoppable livestreams, and answer engine optimisation (AEO) – will be the driving factor of attracting sales in 2026.

It’s also important to keep your content consistent, as regular posting, responding to comments, and interacting with followers can help build trust and brand loyalty. You could also look into collaborating with micro-influencers who align with your brand values, as their audiences tend to be engaged and responsive. After all, 83% of businesses say influencer marketing is effective, while 82% believe it generates the best quality leads.

Step 8. Choose your shipping strategy

How you ship orders to customers is extremely important, so you’ll need a shipping strategy that balances speed, cost, and customer experience.

Put simply, this is a plan that outlines how your business will get products to your customers efficiently, while also being cost-effective. Shipping strategies typically cover:

• Shipping methods and carriers: choosing which carriers (such as Royal Mail, DPD, Evri, etc.) to use and deciding on delivery options (standard, express, next day, etc.).
• Shipping costs: how much you’ll charge customers (flat rate, free shipping, weight-based, etc.).
• Packaging: the packaging you’ll use during transit (such as branded boxes or sustainability options).
• Delivery times and expectations: setting realistic delivery estimates for each shipping method.
• Tracking and notifications: providing tracking numbers and updates so that customers can monitor their orders.
• Returns and exchanges: establishing a clear policy for returns, exchanges, and refunds (including deciding who covers return shipping costs and how returned items are processed).
• International shipping considerations (if applicable): customs, taxes, and duties for overseas orders.

Handling shipping for your business

You can handle order fulfilment and shipping yourself to start with, but as your ecommerce business scales up and you need extra staff and resources to deliver effectively, outsourcing it will reduce costs and allow you to focus on other areas.

When choosing a shipping provider, they must be able to deliver when they say they will and handle returns quickly and efficiently. If international shipping is needed, you may need to find multiple partners for each country you sell to, and it’s worth choosing a fulfilment partner that can help you navigate UK border complexities by handling the administration of overseas sales.

Moreover, many shoppers are looking for “green” shipping options in 2026, and want to know that a business has a partner that uses sustainable transport, eco-friendly packaging, and practices that reduce their overall carbon footprint. Offering these green options not only makes your business more sustainable but also gives your store some extra appeal.

How much does it cost to start an ecommerce business?

The cost of starting an ecommerce business can start from as little as £200-£500 if you use ready-made platforms and dropshipping, while a larger and fully-branded store with inventory and custom design could cost around £3,000 or more.

However, costs typically depend on what level you want to enter the market, product range and type, operational costs and scaling up timetables. This includes:

• Website and hosting
• Ecommerce platform or marketplace fees
• Inventory costs
• Payment processing fees
• Marketing and advertising
• Branding and design
• Shipping and fulfilment

How profitable is ecommerce?

The UK is the most advanced online shopping market in Europe and Europe’s most profitable ecommerce market, according to the International Trade Administration. In 2025, the UK had over 59 million ecommerce users, and British consumers spend around £2,600 a year online.

As for the most profitable types of ecommerce businesses, fashion was reported to be the largest category by revenue contribution, accounting for 29% to the market’s total revenue.  Meanwhile, the beauty and personal care industry is worth $138.91bn in 2026, with skincare dominating 41.52% of beauty ecommerce revenue last year.

Need funds to start your ecommerce business? Read our guide on ecommerce funding options to explore different ways you can raise capital and kickstart your online store.

Final thoughts

Ecommerce is an exciting opportunity for those looking to start a business, especially with how easy and cheap it is to set up, and the UK’s advanced market for online purchases.

However, to be successful, you should plan carefully, choose the right products, build a strong brand and use effective marketing strategies to reach your target audience and get the best sales possible.

It’s also important to keep the customer experience in mind through your communications and ensure your products are delivered quickly, safely, and as expected.

With this kind of approach, ecommerce can be a rewarding way to grow a business online, building a brand that people trust and keep coming back to.

Don’t forget to download our free business plan template to map out your strategy and build a strong foundation for success.