How To Start An Ecommerce Business In 2025: An Easy 10 Step Guide

Starting a business can feel overwhelming, especially for new business owners.

Whether you’re expanding your current business reach or seeking a passive income stream, an ecommerce business presents a chance for a much quicker start.

In this article, you’ll discover 10 essential steps to launch your online store successfully, learn about the estimated costs, and gather valuable entrepreneurial insights.

What Is An Ecommerce Business?

Before diving into how to start your first ecommerce venture, let’s find out what an ecommerce business is.

An ecommerce store operates online, selling goods or services through websites, apps, marketplaces, and social media. Customers can browse products, make purchases, and complete payments without visiting a physical location.

From small ventures to global companies, ecommerce businesses include online retail stores, software companies, and subscription services. These digital sales channels enable entrepreneurs to reach an international audience without the limits of traditional brick-and-mortar stores.

To learn more about ecommerce, check out our complete guide.

How To Start An Ecommerce Business In 10 Steps

Nowadays, more people turn to online shopping, creating endless opportunities for aspiring entrepreneurs. With a well-thought-out approach, you can establish a successful online store and tap into this market.

Launching an ecommerce business involves more than setting up a website; it requires planning, strategic decision-making, and a thorough market understanding.

We’ll walk you through 10 essential steps for starting your ecommerce business. Whether you are an experienced entrepreneur or a first-time business owner, these actionable insights will help you determine how to create a profitable business.

Create your online store with Friday’s suite of e-commerce tools

Step 1: Decide What To Sell

Whether you own a private label with your products or you’re looking to source and sell products online, deciding what to sell is the first step in building your online business.

Understanding available options is key to selecting a business model that meets market demands. Common models to consider are:

• Business-to-Customer (B2C): Direct-to-consumer sales include online retailers like Amazon or clothing brands like Nike that showcase their collections on their websites.
• Business-to-Business (B2B): Provide products or services to other businesses, involving bulk orders and longer sales processes. Prime examples are wholesalers and suppliers that deliver products to retailers.
• Customer-to-Customer(C2C): Sell items directly to other consumers, usually through a third-party platform. Popular examples include marketplaces like eBay and Facebook Marketplace, where you can buy and sell goods.
• Customer-to-Business (C2B): Offer products or services directly to businesses. Freelancers and influencers who provide services or promote brands are key players in this category.
• Subscription-Based: Provide products or services on a subscription basis, creating an ongoing income stream. Examples are subscription boxes like Birchbox or streaming services like Netflix.
• Dropshipping Business: In this model, sellers don’t keep products in stock, as order fulfillment services run through a third-party supplier. Sellers handle marketing and sales, and the supplier manages the shipping process.
• Marketplace: Connects buyers and sellers, allowing multiple vendors to showcase their products. Well-known examples include Etsy and Alibaba.
• Wholesale: Selling products in bulk at discounted prices to retailers or other businesses who then resell them to consumers.
• On-Demand: Online customers order customizable items, such as print-on-demand apparel or custom-made gifts, produced after they place their order.

Understanding these models helps you select the right approach, increasing your chances of success when you start an ecommerce business.

Choose products or services that align with market demand and your interests. Identify customer needs and potential problems to solve for specific niches and hobbies. Stay ahead of trends while considering long-term profitability.

Check out the Friday blog for a variety of profitable ecommerce business ideas. This guide can help you determine what products might fit your new online business best.

Don’t rush; picking the right products is the key to a successful business!

Step 2: Do Market Research

Once you have a general idea of what you want to sell, start conducting market research. This step helps you understand your target audience’s needs and willingness to pay.

Good market research leads to more informed decisions and increases your chances of success. Identify your target audience, their location, interests, and shopping habits.

Tools like online surveys and social media polls can provide valuable insights into what your target audience is looking for. You should also check out online forums and community groups where your target customers hang out, as they can reveal valuable information about their preferences.

Analyze your competitors by looking at businesses that offer similar products to see what works. Investigate their business strategies, pricing, marketing techniques, and customer reviews. Research helps you identify gaps in the market that you can fill, making your business stand out.

Use online tools and resources to track trends and consumer behavior. Websites like Statista, Google Trends, or social media analytics can provide real-time data about in-demand and bestselling products from ecommerce stores worldwide.

Step 3: Establish Supply And Inventory

You have several options when choosing where to source your products, including manufacturers, wholesalers, or dropshipping suppliers.

Consider product quality, pricing, shipping costs, and reliability. Establish good relationships with your suppliers to get better deals and smoother operations.

If you’re concerned about business finances, check out this article on how to start a business with no money. It offers tips for funding your inventory without breaking the bank.

Determine your inventory management strategy, including tracking current products and planning for future restocking needs. A proper inventory management system prevents stockouts and overstocking by integrating with your ecommerce platform to maintain inventory levels and streamline ordering.

Consider storage options carefully. Depending on your business model, you may need to rent warehouse space or utilize third-party fulfillment centers for order processing and shipping. These choices will affect your operating costs and logistics, so select the option that best suits your new business needs.

A solid supply chain and inventory system will help you fulfill orders efficiently and keep your online customers happy.

Step 4: Write Your Business Plan

Now that you know what product you want to sell, have researched its potential, and have chosen your supplier, it’s time to write your business plan.

A business plan is like a roadmap for your ecommerce venture; it helps you outline your goals and determine how to achieve them. So, what should you include in your business plan?

Start with an executive summary that provides an overview of your business idea. Then, describe your product, target audience, and marketing strategy. Conduct a competitive SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) for your ecommerce shop.

Identify your strengths, such as unique product features or strong supplier relationships. Consider your weaknesses, such as limited marketing experience.

Look for market opportunities, such as trends or gaps your product can fill. Consider potential threats, such as rising competition or changing regulations, so that you can address them proactively.

Finally, detail your financial projections and budget so you know what to expect regarding costs and income.

For more guidance on branding, check out this article on the Friday blog about how to write a brand manifesto for your business.

If you’re unsure how to start your business plan, there are many free templates available online. The Small Business Administration (SBA) offers information, including free business plan templates, for small business owners.

Writing a formal plan might seem like a lot of work, but it will help set you up for success as you launch your ecommerce business!

Step 5: Creating Your Brand Identity

Along with figuring out what products you want to sell online, building your brand identity is an essential step in starting your ecommerce business. Your brand sets you apart and connects you with your customers.

Once your plan is in place, pick a catchy and memorable business name. A great name can make a lasting impression and help potential customers remember you. Check out this helpful article if you want ideas on choosing a suitable ecommerce business name.

Once your business name is locked in, it’s time to create your logo. A simple yet striking design is essential for establishing your brand identity.

There are several ways to create a logo. Online design tools like Canva make it easy to experiment with different styles and colors. You can also play around with how your name and logo will look on marketing materials, such as business cards or social media posts.

You can create the logo if you feel confident in your design skills or hire a professional designer to give it an expert touch. A well-crafted brand identity will help you resonate with your audience and put your ecommerce business on the spot, so invest the time to make it memorable!

Step 6: Build An Ecommerce Store

Now it’s time to create your online store! Before diving in, you must grasp the concept of search engine optimization (SEO).

SEO ensures your website appears in Google search results, helping your target audience find you. This valuable SEO starter guide teaches you the fundamentals and how to implement search engine optimization effectively.

There are many solid platforms available to host your ecommerce site. These channels are designed to bring together buyers and sellers securely. They usually include built-in payment processing and user-friendly templates. Most of them allow for an easy drag-and-drop website-building process.

Consider using Friday as your online store builder to simplify setup and management. Friday allows you to focus on growing your business instead of getting bogged down with technical details.

Start your free 7-day trial with Friday today.

Step 7: Create A Marketing Strategy

A survey by Lucidpress indicates that consistent branding and marketing efforts can increase revenue by up to 33%. 60% of brands recognize that maintaining consistency is vital for generating leads.

Develop a comprehensive ecommerce marketing plan that drives visitors to your online store, increases brand awareness, and promotes customer loyalty.

Your marketing plan should incorporate various approaches. You can decide between digital marketing tactics like paid ads and social media marketing campaigns or physical marketing tools like promotional products or billboard ads. The key is to ensure that your messaging and branding are consistent across all channels.

For more insights into effective marketing strategies, check out the ultimate guide to small business marketing. It offers various approaches that can help you raise awareness without breaking the bank.

Creating a well-rounded marketing strategy will help you be better equipped to connect with your audience and grow your ecommerce business.

Step 8: Launch Your Ecommerce Store

After choosing your products and establishing your brand, you can tackle the more technical aspects of launching your online store. Use the step-by-step checklist provided in this guide to ensure a smooth launch.

A critical decision is whether you’ll sell exclusively on your ecommerce website or utilize online marketplaces. Having your website gives you complete control over the customer experience, letting you set the URL, design layout, and product offerings. You won’t have your products displayed next to direct competitors, which happens on platforms like Amazon or Etsy.

If you sell online solely through your website, you’ll be responsible for driving all the traffic. Many consumers prefer finding products through search engines or popular marketplaces. It’s rare for someone to type in your URL out of the blue. Running marketing campaigns will be necessary to attract visitors.

A benefit of online marketplaces is that they have a built-in audience, as they already host millions of shoppers. Some popular platforms include Amazon, eBay, Etsy, Walmart, Alibaba, and Facebook (Meta).

Selling on online platforms can be fiercely aggressive. When similar, more affordable options are available, you may need to adjust your prices to stay competitive.

Once your new business is up and running, monitor your metrics and key performance indicators (KPIs) as customer purchases roll in. Continue experimenting with various digital marketing tactics to drive traffic to your brand and grow your customer base.

Step 9: Monitor Your Performance

Once your ecommerce store is up and running, you must continuously monitor its performance to ensure growth and success. The flexibility of an ecommerce platform allows you to conduct rapid testing and optimize your site on the fly.

To see which variations convert better, you can quickly run A/B tests on product descriptions, pricing strategies, or ad campaigns. This data-driven approach enables you to fine-tune your strategy and improve ecommerce sales without incurring risks.

Tracking key metrics and performance indicators helps you understand your business’s health. For example, paying close attention to website traffic for your online store can help you gauge the impact of your marketing efforts.

The bounce rate indicates how many visitors leave after viewing just one page, signaling potential issues with your site’s appeal. The visitor conversion rate is another critical metric that shows the percentage of visitors who complete a purchase.

Consider your mobile users—a remarkable portion of online shopping happens on mobile devices. Monitor email engagement to assess the effectiveness of your newsletters and product updates, making adjustments as needed to boost customer responsiveness.

Actively monitoring these metrics and making data-informed tweaks will help you build lasting relationships with your customers and keep your ecommerce business on the path to success.

Step 10: Prioritize Customer Success

Did you know that half of customers say they will move to a competitor after a single negative experience?

Providing exceptional service to your customers encourages repeat sales and can increase your profit.

Your business can deliver outstanding customer service by doing the following:

• Providing multi-channel assistance: Connecting your business with various support platforms, including social media, email, and phone, gives your target audience the flexibility to choose how to communicate with you.
• Personalizing customer interactions: Offering tailored FAQs or contact points offers consumers direct contact with helpful information or support.
• Implementing self-service support: Integrating designated information sections and a chatbot on your website helps customers find solutions to their specific problems without human intervention.

When you prioritize customer service and employ these strategies, your ecommerce business can create positive experiences that retain customers and drive growth.

How Much Does An Ecommerce Business Cost?

Starting an ecommerce business can vary widely in cost, but it’s possible to launch your venture for as low as $100, primarily for a domain name and a website theme. Overall expenses can range into thousands of dollars in the first year, depending on which business model you picked and your marketing strategy.

Key cost categories include:

1. Product costs: These include sourcing products from suppliers or manufacturing them yourself. Depending on your approach to stocking your store, expenses can vary greatly.
2. Platform costs: Building your ecommerce site entails various costs. They include domain registration ($10-$50 annually), hosting services ($3-$30+ monthly), website design ($500-$10,000+), and platform fees, which can range widely depending on your chosen solution.
3. Operational costs: Typical ongoing expenses involve payment processing fees, software subscriptions, and customer service tools.
4. Marketing costs: To grow your ecommerce business, you must plan for marketing expenses, as businesses typically allocate a certain percentage of their gross revenue to digital marketing.
5. Offline Costs: Offline expenses, such as business registration fees, packaging, and potential insurance, can also add up.

This article provides insights into the costs associated with building a website for your ecommerce business.

Check out Friday’s pricing.

Tips For Starting Your Ecommerce Business

Launching a successful ecommerce business takes strategy, self-motivation, a love for what you do, and a bit of luck. Let’s explore some valuable tips to help you get started.

• Begin with the basics: You don’t need to invest in a large inventory immediately; begin by determining interest. If you’re a craftsperson, create an Instagram account to showcase your work and build simple branding. If you are selling physical products, set a timeline for procuring items, creating a website, and soft-launching with targeted ads.
• Stay updated on trends: Keep an eye on the latest trends in the ecommerce landscape. Social commerce has become increasingly important, and platforms like TikTok are shaping consumer behavior. Knowing what’s trending can help you position your business.
• Experiment with marketing: Don’t underestimate the need to promote your business website. Use A/B testing on platforms like Google Ads to refine your marketing efforts effectively without committing a large budget upfront.
• Leverage partnerships and multi-channel strategies: Partnering with established online retailers like Amazon and Etsy can enhance brand visibility. Consider collaborations with influencers for social media promotion and aim for features on blogs and online news sites to get attention.

Learn more about shaping your ecommerce strategy, including how to sell digital products. Keeping these tips in mind equips you to handle the challenges of starting and growing your online business.

Start Your Online Store In 2025 With Friday

With Friday, you can build an attractive, user-friendly ecommerce site that looks professional and works seamlessly. Some fantastic features that make it an excellent choice for your ecommerce needs:

• Fast, reliable, and secure ecommerce infrastructure: With a speed-focused setup, your online store will load quickly, leading to a smooth and enjoyable shopping experience for your customers.
• Built to scale: Friday can easily handle high traffic levels and peak sales, ensuring your store remains stable and efficient during busy periods.
• Trusted site security: This service protects your online store with robust security features, including proactive threat protection, for your customers’ safety.
• Multiple payment gateways: Friday offers over 40 gateways, including popular options like Stripe, Square, PayPal, Authorize.net, Payeezy, and 2Checkout, making it easy for your customers to pay.

Creating your ecommerce store with Friday will set you up for success, giving you the tools you need for a thriving online business!

Build your store with Friday.

Summary

In this guide, we’ve explored ten essential steps on how to start an ecommerce business, from selecting the right products to creating a strong brand identity.

The right business model, a strategic marketing plan, and outstanding customer service are essential for attracting and retaining your target audience.

With Friday as a reliable platform for building your online store—offering fast loading times, robust security, and multiple payment options—you’ll be well-equipped to turn your ecommerce dreams into reality while keeping costs manageable.