How to start an online store in 2026: a step-by-step guide

Short answer: pick a specific product to start with, choose a platform (Shopify for your own brand, Etsy if you want built-in buyers, or both), price it with your real margin in mind, write your policies before you launch, set up payments and shipping, and plan to spend far more time than money finding your first customers. Below is the order to actually do it in, with realistic costs at each step.

Facts last checked on October 19, 2026, against the sources linked below.

Step 1: pick what to sell, specifically

"Clothes" or "candles" isn't specific enough to start with. Pick a narrow first product line you can describe in one sentence: the kind of person who'd buy it, and why they'd buy it from you instead of a bigger store. A narrow start is easier to market, photograph, price, and keep in stock than a broad catalog you build out later once you know what actually sells.

Step 2: choose a platform

Two common starting points, and many sellers eventually use both:

• Etsy puts you in front of buyers already searching for handmade, vintage, or craft items, but only allows those categories, and charges a per-listing and per-sale fee whether or not you have your own site. See our Etsy vs Shopify comparison for the fee details and who each one suits.
• Shopify gives you your own branded storefront and no per-sale commission, but you bring your own traffic and pay a monthly fee either way. Shopify offers a free trial (3 days, no credit card required) before you're charged. Shopify

If you're not sure, Etsy is the lower-risk way to test whether your product sells at all, since you're not paying a monthly fee before your first sale.

Step 3: price it, using your real margin

Before you set a price, work out what you'd actually keep after the cost of the product, payment fees, shipping, and platform fees, not just the cost of making it. Our profit margin calculator walks through gross margin versus net margin with a worked example; if you're handmade specifically, how to price handmade items covers labor and material costs too.

Step 4: write your core policies before you launch

Write these before your first sale, not after your first complaint:

• Return policy, so customers know how returns work before they buy.
• Shipping policy, stating processing time separately from delivery time.
• Refund policy, especially if you sell services or digital products alongside physical ones.
• Privacy policy and terms and conditions, covering what data you collect and the rules of using your site.

On Shopify, all of these live under Settings > Policies, where Shopify can generate automated versions from your store settings, or you can write your own. Shopify Help Center

Step 5: register your business (or decide not to, yet)

You don't have to form an LLC to start selling. If you run the business under your own legal name as a sole proprietor, the US Small Business Administration says you don't need to register anywhere to begin. The tradeoff is that you also don't get an LLC's personal liability protection, so if the business gets sued, your personal assets aren't separated from it. SBA

If you do register (an LLC is the common choice for a small store), the SBA says total registration costs are usually under $300, though the exact fee depends on your state and business structure. SBA

An Employer Identification Number (EIN), which you'll likely want for opening a business bank account, is free and takes minutes to get directly from the IRS online. IRS

Step 6: set up payments

Shopify stores typically use Shopify Payments (built in, no setup with a third party) or an external processor like PayPal or Stripe. Etsy handles payment processing itself through Etsy Payments. Whichever you use, your payment processor's fee is usually a small percentage plus a fixed amount per transaction; the fee details are covered in our Etsy vs Shopify comparison.

If you'll owe US sales tax once you start selling, see Shopify sales tax for how nexus works and how to register with a state before you collect.

Step 7: set up shipping

Decide your processing time (how long you take to pack an order) and delivery time (how long the carrier takes) separately, and state both in your shipping policy. If you ship from the US, the FTC's Mail, Internet, or Telephone Order Merchandise Rule requires you to ship within the time you stated, or within 30 days if you didn't state one, and to notify customers and offer a refund if you can't. FTC

Step 8: get your first customers

Your first sales rarely come from people randomly finding your site. They usually come from:

• People who already know you: friends, family, and your personal social accounts, asked directly rather than hoping they notice a post.
• Marketplace search, if you're on Etsy, since its own buyers are already searching.
• Social media, posting your product consistently rather than once. See Instagram bio for small business for setting that up.
• Reviews, which build trust for the next buyer who doesn't know you. See how to get Google reviews.

Realistic costs to expect

Costs vary a lot by platform and product, but the common ones are:

• Platform fee: Shopify's monthly plan (check Shopify's pricing page for the current USD rate), or Etsy's $0.20 per listing plus a percentage of each sale.
• Business registration: $0 if you stay a sole proprietor, usually under $300 if you register an LLC, per the SBA. SBA
• EIN: free, direct from the IRS. IRS
• Starting inventory or materials, which depends entirely on what you sell.
• Payment processing fees, a percentage plus a small fixed amount per sale, charged automatically as you sell, not upfront.

Once your policies, shipping details and FAQs are written, a chatbot like Chatbait can answer a new shopper's questions straight from them from day one, so you're not stuck answering "when will this ship?" by yourself while you're still setting everything else up.

Your launch checklist

Copy this into your notes and tick things off as you go.

Frequently asked questions

How much does it cost to start an online store?

It depends mostly on your platform and whether you register a business. You can start on Etsy with no monthly fee and just a $0.20 listing fee per item, or on Shopify with a monthly plan plus a free trial first. Registering a business, if you choose to, usually costs under $300, and an EIN is free.

Do I need a business license to sell online?

It depends on your state and what you're selling. A sole proprietor using their own legal name doesn't have to register to begin, according to the SBA, but registering gets you liability protection you don't have otherwise.

Should I start on Etsy or Shopify?

Etsy gives you built-in buyers already searching for handmade or vintage goods, with no monthly fee, which makes it a lower-risk way to test a product. Shopify gives you your own brand and no commission, but you have to bring your own traffic and pay monthly either way.

What policies do I need before I launch?

A return policy, a shipping policy, a privacy policy, and terms and conditions, at minimum. Add a refund policy too if you sell services or digital products. Write them before launch, not after your first customer asks.

How do I get my first sale?

Most first sales come from people who already know you, asked directly, plus marketplace search if you're on Etsy. Reviews from those first buyers then help convince the next stranger to buy.