Starting an ecommerce business might seem simple and lucrative—just launch a website, and the profits will roll in. But the reality is far more complex.

With over 26.5 million websites competing for attention, only a small fraction of these stores achieve real success. The ecommerce success rate is startlingly low—hovering around 20%—with about 80%-90% of new ventures failing almost immediately.

Why such grim numbers?

It’s because the process of building a profitable ecommerce business is far more intricate than most people anticipate. Your success largely depends on the groundwork you lay before the launch, and there are numerous steps to take, both before and after your store goes live.

In this article, we’ll guide you through the entire journey—from start to finish—sharing best practices, tips, and tricks to help you set up an ecommerce store and start making money!

Things to Do Before You Build an Ecommerce Store

To set yourself up for success, you must lay a solid foundation before you even think about hitting that “publish” button. It’s all about making data- and research-driven decisions!

Research the market to identify gaps

Finding the right products to sell is the cornerstone of any successful ecommerce business. This isn't about picking items that just seem popular; it’s about making informed decisions based on thorough market research.

Start by identifying a broad category that interests you, then narrow it down by diving into keyword research. Look for niches within that category where the competition is relatively low, but search volume indicates strong demand.

Arm yourself with dedicated tools. For instance, Google Trends allows you to track the popularity of search terms over time, giving you insights into emerging trends and seasonal products. SEMrush and Ahrefs go a step further by showing you what keywords are driving traffic to competitors’ sites, which products are gaining traction, and where potential gaps exist in the market.

Analyze your competitors

Next, you need to understand what your competitors are doing—and more importantly, what they’re not doing. Begin by identifying your top competitors using tools like SimilarWeb or SpyFu. These platforms can give you a detailed overview of your competitors’ traffic sources, top-performing products, and even their advertising strategies.

Once you’ve identified your competitors, thoroughly examine their product offerings:

• Are there products they’re overlooking?
• Do they have negative reviews that point to a gap in quality or customer service?
• Are there opportunities to offer a better version of a product, a more affordable option, or something entirely unique?

Pay close attention to customer reviews on competitors’ sites and platforms like Amazon. Reviews can be a goldmine for identifying what customers love, what they hate, and what they wish they had.

Find product opportunities

Connect the dots between your market research and competitor analysis to identify gaps in the market. Perhaps you’ve noticed a high search volume for a product that only a few businesses are selling, or maybe customer reviews consistently highlight a need for a feature or product variation that no one is offering. These are your opportunities.

Create a business plan for your ecommerce business

Creating a business plan is crucial for the success of your ecommerce venture. It can…

• Provide clarity and direction, ensuring you have a deep understanding of your market, competition, and unique value proposition.
• Help you allocate resources efficiently, reducing the risk of costly mistakes and unexpected setbacks.
• Serve as a roadmap, breaking down your goals into manageable steps, so you can stay focused and make informed decisions at every stage.

If you’re seeking external funding, a solid business plan is also a great document to show to investors as a proof of a viable, well-thought-out business.

Here’s what to include:

Develop a brand identity for your new business

Your brand identity is the essence of your business—it's what sets you apart and makes you memorable. Consider brands like Warby Parker or Glossier. They didn’t just create products; they built identities that resonate with their audiences.

Warby Parker’s sleek, minimalist design and approachable tone made buying glasses online cool, while Glossier’s clean aesthetics and inclusive messaging redefined beauty for a new generation.

Before you start building your ecommerce store, it’s essential to nail down the following branding elements:

• Logo: Think of your logo as your business’s signature. It needs to be distinctive and reflective of your brand’s personality.
• Brand colors: Colors aren’t just decorative; they’re emotional triggers. Choose a palette that tells your brand’s story.
• Typography: The typeface you select should echo your brand’s voice—whether it’s authoritative, quirky, or refined.
• Brand voice and messaging: Your brand’s voice is how you talk to your customers. Whether it’s cheeky, straightforward, or sophisticated, it needs to be consistent and authentic across all platforms.
• Visual style: Beyond your logo and colors, your visual style—think photography, graphic elements, and overall design—needs to be cohesive.

Without these elements, your web designers and developers are flying blind. They need a clear brand identity to craft a website that’s not just functional but also visually compelling and true to your brand. Without it, your online shop risks coming off as generic, failing to make that crucial first connection with potential customers.

How to Set Up an Ecommerce Store?

Now that you’ve laid the groundwork, it’s time to move to the execution phase.

Purchase a domain name

Your domain name is your digital address, so choose wisely. It should be easy to remember, reflect your brand, and ideally include relevant keywords. If your first choice isn’t available, consider variations that still capture your brand essence.

Hire web developers to bring your online shop to life

With your domain in hand, it’s time to turn your vision into reality. Hiring experienced web developers is crucial for creating a seamless, high-quality online shopping experience. Developers will work with your branding elements—like your logo, colors, and typography—to design a site that’s not just visually appealing but also user-friendly and optimized for conversions. Whether you need a custom-built site or a tailored template, professionals will ensure that your store functions smoothly and looks polished.

Select a platform to host your ecommerce store

Choosing the right ecommerce platform is crucial—it's the foundation of your online store. Whether you’re considering WooCommerce, Shopify or BigCommerce, each offers unique advantages, so focus on what suits your business needs best. Maybe you need user-friendly tools, or perhaps scalability tops your list. Whatever the case, your platform will manage everything from product listings to payments and customer data, so it must keep up as your business expands.

Web developers can often recommend the ideal platform based on your specific requirements. They’ll guide you to a solution that aligns with your processes and provides all the features you need for smooth operation. With their input, you'll choose a platform that fits now and has the flexibility to grow with you.

Launch your ecommerce store

Once your site is built and thoroughly tested, it’s time to go live. Launching your ecommerce website is an exciting milestone, but it’s just the beginning…

How to Start Making Money from Your Ecommerce Store?

Once your ecommerce store is up and running, it’s time to focus on what really matters—making money. To turn your online shop into a profitable venture, you need to promote it effectively.

Optimize for search and regularly update your website

Search engine optimization is key to driving organic traffic to your store. Make sure your product pages are optimized with relevant keywords, clear descriptions, and high-quality images.

Regularly updating your site—whether it’s adding new products, tweaking content, or maintaining a blog—keeps it fresh and attractive to both search engines and customers.

Invest in social media marketing

Social media is a powerhouse for driving traffic and building brand loyalty, but it requires more than just posting occasionally. Here’s how to make it work:

• Choose the right platforms: Focus on the platforms where your target audience spends the most time. For example, Instagram is ideal for visual brands, while LinkedIn works well for B2B businesses.
• Create engaging content: Leverage the capabilities of your chosen social media platforms to the max and use different content types—product showcases, behind-the-scenes looks, user-generated content, and even memes or trending topics that align with your brand.
• Engage with your audience: Respond to comments, answer questions, and interact with your followers.
• Utilize paid advertising: Organic reach on social media can be limited, so consider investing in paid ads.

Partner with influencers in your niche

Influencer marketing can significantly boost brand awareness. Partner with influencers who align with your brand and target market to reach a broader audience. Focus on authentic collaborations like product reviews, giveaways, or sponsored posts. You can also make good use of any referral marketing tool to set up a referral program that can encourage common customers to become brand advocates for a chance to get something valuable for them.

Run promotions and special offers

Everyone loves a good deal. Running promotions, discounts, or flash sales can create a sense of urgency and encourage customers to make a purchase. Highlight these offers on your homepage, social media, and through email marketing to maximize their reach. Limited-time offers or seasonal sales can be particularly effective at boosting conversions.

Ready to Generate Profit from Online Sales?

With your ecommerce store set up, you're ready to start making money. It begins with solid market research, a strong business plan, and a clear brand identity. Once your store is live, optimize for search, use social media effectively, and partner with influencers to drive traffic and build credibility. Keep your content engaging and use promotions to convert visitors into loyal customers. With these steps in mind, you’ll be on the path to profitable online sales!