RETAIL & ONLINE

How to Start an Online Shop

10 Minute Read

Building the shop is the quick part. Modern platforms put a working store online in an afternoon, so the storefront is rarely what decides whether you make money. The job is everything around it: a niche narrow enough that a specific buyer feels you are built for them, a platform that fits what you sell, products priced to leave you a margin, a product page that turns a curious click into an order, and a plan for getting found before you launch into silence. Online shopping is not a small or shrinking slice of where people spend. In December 2025, the Office for National Statistics reported that 28.3% of all retail sales in Great Britain were made online, up from 28.0% the month before. More than a quarter of every pound spent in shops now goes through a screen. The demand is there. This guide walks the order that turns a new online shop from a quiet website into one taking orders, with a worked example you can run against your own plan. That product page matters more than most owners expect: the average online cart is abandoned around 70 percent of the time, much of it fixable with a clearer checkout, and selling online brings legal duties around clear information, returns and refunds.

A small online shop owner wraps a product in tissue paper at a workbench surrounded by parcels ready to post to customers.

Pick a Niche Before You Pick a Platform

The first mistake new shop owners make is choosing what to sell by what excites them, then trying to sell it to everyone. A shop that sells "gifts" competes with every other gift shop and Amazon. A shop that sells "personalised gifts for new dads" speaks to one person at one moment, and that person stops scrolling because the shop is obviously for them.

This is positioning, and it is the cheapest advantage a small online shop has. Positioning means being the obvious right choice for a specific customer rather than a vague option for anyone. When a visitor lands on your page and can tell in seconds that you sell exactly the thing they came looking for, they buy without hauling out a spreadsheet to compare you against ten rivals. A narrow niche also makes everything downstream easier. Your photos, your wording, your search terms, and your first marketing all point at one buyer instead of scattering across a crowd.

Pick a niche where three things meet. There is real demand, which you can sense-check by typing what your customer would search into Google and seeing whether results and ads already exist. There is room for a small shop, which usually means a specific corner the giants treat as an afterthought. And there is a margin you can live on after the platform, the postage, and the packaging take their cut. A niche that excites you but loses money on every sale is a hobby, not a shop.

A tidy shelf of handmade products in a single style, showing a focused range built around one kind of buyer.

Choose the Platform That Fits What You Sell

Once the niche is set, the platform choice gets simpler, because you are matching the tool to the job rather than guessing in the abstract. Three routes cover almost every new online shop, and each suits a different starting point.

A hosted shop builder such as Shopify gives you your own branded store, your own checkout, and full control over the look and the customer experience. It carries a monthly fee and a learning curve, and it suits a shop that wants to build a brand customers return to directly. You own the relationship and the data, which matters as you grow.

A marketplace such as Etsy or Amazon puts you where buyers already are, with built-in traffic and a checkout people trust. You trade control and margin for that reach: fees come out of every sale, the marketplace owns the customer relationship, and you compete on the same page as everyone else. For makers, vintage sellers, and anyone testing whether a product sells at all, a marketplace is the fastest way to a first order. If that is your route, our guide on how to sell on Etsy goes deeper on listings and fees.

A self-hosted option such as WooCommerce, which turns a WordPress site into a shop, gives you the most control and the lowest platform fees, at the cost of doing more of the setup and upkeep yourself. It suits someone comfortable with a bit of technical work, or with a budget to pay a developer once.

Many shops sensibly run more than one of these in time: a marketplace to find new buyers, a branded store to keep the ones who come back. For a first launch, pick the single route that gets you to a real order with the least friction, then add a second once the first is working.

A shop owner sets up an online store on a laptop, with a product photo and a storefront layout open on the screen.

Choose Products and Price Them to Make Money

A new shop does not need a hundred products. It needs a focused range built around a few items that sell, priced so that each sale leaves you a margin after every cost. Launching with a sprawling catalogue spreads your photography, your descriptions, and your marketing thin, and buries the few products that would otherwise move.

Start with a small range you can stand behind, and price from the costs up rather than from a guess down. Add up what each item costs you: the product or materials, the platform or marketplace fee, the payment processing fee, the postage, and the packaging. That total is your floor. Your price sits above it by enough to pay you for your time and leave profit, while staying credible against what similar shops charge. If the only price the market will bear sits below your costs, that product is telling you something, and the answer is a different product or a different niche, not a sale at a loss.

Here is what that looks like with worked numbers, shown as an illustration rather than a cited figure. Say you sell a handmade candle. Materials cost you 4 pounds. The marketplace and payment fees take roughly 1.50 pounds on a typical sale. Postage and packaging come to 3.50 pounds. Your cost floor is 9 pounds before you have paid yourself a penny. Price it at 12 pounds and you keep 3 pounds, which barely covers your time. Price it at 18 pounds, position it as a considered gift rather than a cheap candle, and you keep 9 pounds a sale, which is a margin a shop can grow on.

Cost lineAmount
Materials£4.00
Marketplace and payment fees£1.50
Postage and packaging£3.50
Cost floor£9.00
Sell at £12£3.00 kept
Sell at £18£9.00 kept

The lesson is the same one positioning taught earlier. A clear, specific shop can charge for the value it offers a particular buyer, while a vague shop is forced to compete on price and starve on margin.

A maker works out the cost and price of a product with a calculator and a notebook beside finished stock on the desk.

Build a Product Page That Converts

The product page is where browsing becomes buying, and it is where most new shops lose the visitors they worked to attract. A buyer ready to spend will give up if the photos are dark, the price is buried, the description answers nothing, or they cannot tell whether the shop is safe to trust. Every one of those is a leak you can plug before launch.

A converting product page does a handful of things well. The photos are clear, bright, and show the product from the angles a buyer cares about, including one that shows scale or the product in use. The title says plainly what the thing is, in the words a buyer would use. The description answers the questions a buyer would ask before parting with money: the size, the materials, what is included, how long delivery takes, and what happens if something goes wrong. The price and the delivery cost are visible without hunting. The button to buy is obvious and says what it does.

Underneath the detail sits trust, and trust is what makes a first-time buyer hand card details to a shop they have never used. Reviews from earlier buyers, clear delivery and returns information, visible contact details, and a checkout that looks secure all tell a stranger you are real and safe. A new shop has no reviews yet, so lean on the others: a returns promise stated plainly, a real name and a way to reach you, and a checkout through a payment provider buyers recognise. Each of these removes a reason to hesitate, and hesitation is what costs you the sale.

A buyer views a clear, well-photographed product page on a smartphone, with the price and buy button plainly in view.

Get the First Traffic: Search Plus One Channel

This is the step that decides whether a shop earns or sits silent, and it is the one new owners skip. A shop with no plan for traffic launches to nobody. You do not need every channel at once. You need to be findable by people already searching for what you sell, and you need one channel where you show up consistently.

Search is the foundation because it catches buyers at the buying moment, the point where a real need sends someone looking. Someone who types "personalised new dad gift" has already decided to buy and is choosing where. To be the shop they find, write your product titles and descriptions in the words buyers type into search, give each product a page that answers the search plainly, and make sure your shop loads fast and works on a phone. On a marketplace, the same idea applies inside the platform's own search. This is intent-rich demand that keeps working long after you set it up, and most new shops leave it on the table by writing for themselves instead of the buyer.

Then add one channel and work it properly rather than scattering across five. The right channel is wherever your specific buyer already spends time. A visual product suits Instagram or Pinterest, where people browse for exactly the kind of thing you make. A gift or impulse product can suit short video. A considered purchase can suit an email list you build from day one, so you can return to interested people at the next buying moment. Showing up consistently in one place builds mental availability, which is being the shop that comes to mind when the need arrives. You build it by being seen repeatedly where your buyer looks, not by appearing once everywhere. Pick the one channel that fits your product and your buyer, post with a steady rhythm, and give it a real run before you judge it.

A shop owner photographs a product on a phone for a social channel, styling it against a clean background near a window.

Win the First Orders and the First Reviews

The first orders are worth more than the money they bring, because they are how a new shop earns the trust that wins the next hundred. Treat each early buyer as the start of a track record. Deliver a good experience: ship quickly, package with a bit of care, and include a short note that makes the order feel personal. A first buyer who feels looked after tells people and comes back, and on a new shop that word of mouth is the marketing you cannot buy.

Then ask for the review, because reviews are how every stranger after them decides you are safe to buy from. A short, friendly message a few days after delivery, once the buyer has the product in hand, recovers a meaningful share of reviews that would otherwise never appear. Make it easy by pointing them straight to where the review goes. Those first reviews lift your product page out of the trust gap every new shop starts in, and they feed the search and channel work above, because a shop with recent, positive reviews wins the click before a buyer has read a word of the description.

Watch what the first orders tell you. Which product sold, which sat still, which question buyers kept asking, where the path to checkout snagged. A handful of real orders teaches you more about your shop than weeks of planning, and the shops that grow are the ones that read those early signals and adjust the range, the pricing, and the page around what is working.

A customer smiles while opening a carefully packaged parcel at home, finding a product and a short handwritten note inside.

The Order That Works

A shop that earns is built in this order. Pick a niche narrow enough that a specific buyer feels it is for them. Choose the platform that fits what you sell and gets you to a first order with the least friction. Build a focused range priced to leave you a margin. Make the product page clear, complete, and safe to buy from. Plan the traffic before you launch, with search as the foundation and one channel worked consistently. Then turn the first orders into a great experience, the first reviews, and the lessons that tell you what to scale. Run the worked example against your own product first, because a shop that holds a margin and reads its early orders compounds, while a shop that launches on hope goes quiet. If your business sits in online retail, marketing for ecommerce goes deeper on the channels, and how to get more customers covers converting the demand once it arrives.

Liam Fisher, Founder of Starlight Tech

WRITTEN BY

Liam Fisher

Founder, Starlight Tech

Liam Fisher is the founder of Starlight Tech and the creator of Compass. He has spent 25 years leading marketing for design-led technology and creative brands, from challenger software to global entertainment names, and built Compass to put that expertise in the hands of small businesses running their own marketing.

How Compass Helps

Compass turns this guide into a plan built around your shop. It starts where the return is highest for a new store, helping you sharpen the niche and the product page before you spend on traffic, then gives you a short daily task to write search-ready listings, set up one channel, and ask your first buyers for reviews, with the reasoning in plain English so you learn the craft as you go. It recommends the order, you make the calls, and it points you at paid promotion only once a product and a channel are reliably bringing orders. Try Compass today by claiming a free 90 day growth plan for your business.

Get Your Free 90 Day Growth Plan

Compass illustration: retail counter

FAQs

The one that fits what you sell. A hosted builder like Shopify gives you a branded store and full control for a monthly fee. A marketplace like Etsy or Amazon gives you built-in traffic and a trusted checkout in exchange for fees and less control. Self-hosted WooCommerce gives the most control and lowest fees but needs more setup. For a first launch, pick the route that reaches a real order with the least friction.
Less than most people expect to begin, and the real cost is in stock and getting found, not the storefront. A marketplace can cost almost nothing upfront beyond per-sale fees. A hosted builder runs a monthly subscription plus payment fees. Price every product from its full costs up, including platform fees, payment fees, postage, and packaging, so each sale leaves you a margin rather than a loss.
Plan traffic before you launch. Write your listings in the words buyers search so you are found at the buying moment, then pick one channel where your specific buyer already spends time and post consistently to build recognition. Treat the first orders as gold, deliver a great experience, and ask each early buyer for a review, because those first reviews win the next buyers.
It is the cheapest advantage you have. A shop that sells one specific thing to one specific buyer is chosen without hesitation, while a shop that sells a bit of everything competes with giants on price. A narrow niche also makes your photos, wording, search terms, and marketing sharper, because they all point at one buyer instead of scattering across a crowd.