E-commerce store launch

Launching an e-commerce store involves selecting the right platform, forming a business entity, ensuring legal compliance (sales tax, privacy, terms), setting up payment processing and shipping, and executing a marketing plan. Over 73% of e-commerce sales now occur on mobile devices, making mobile-first design essential.

52 steps across 12 sections

1. Shopify

  • Best for: Beginners and small-to-mid-size businesses
  • Pros: Easy to use, built-in payment processing (Shopify Payments), extensive app store, handles hosting and security, built-in SEO tools
  • Cons: Monthly fees ($39-$399/month for standard plans), transaction fees if not using Shopify Payments, less customization flexibility than self-hosted solutions
  • 2026 update: Shopify now acts as a marketplace facilitator for orders placed through the Shop app, collecting and remitting sales tax on your behalf for those orders

2. WooCommerce (WordPress)

  • Best for: Technically savvy owners wanting full control and customization
  • Pros: Free core plugin, unlimited customization, no transaction fees (beyond payment processor), own your data, vast plugin ecosystem
  • Cons: Requires WordPress hosting ($10-$50+/month), self-managed security and updates, steeper learning curve, may need developer support
  • Hosting: Requires reliable WordPress hosting (SiteGround, Cloudways, Bluehost, WP Engine)

3. Etsy

  • Best for: Handmade, vintage, and unique goods; creators testing the market
  • Pros: Built-in audience of buyers, low startup cost, marketplace facilitator handles sales tax collection and remittance in all US states
  • Cons: Listing fees ($0.20/listing), transaction fees (6.5%), limited branding, marketplace competition, less control over customer data
  • Best used as: A supplementary channel alongside your own website

4. Other Platforms

  • Amazon — Massive audience, FBA fulfillment, high fees and competition
  • BigCommerce — Similar to Shopify with more built-in features, no transaction fees
  • Squarespace — Beautiful templates, good for small catalogs, limited scalability
  • Wix — Drag-and-drop simplicity, good for very small stores

5. Understanding Nexus

  • Physical nexus — Having a physical presence in a state (office, warehouse, employees, inventory)
  • Economic nexus — Exceeding a state's sales threshold (typically $100,000 in sales or 200 transactions per year, though thresholds vary by state)
  • After the South Dakota v. Wayfair (2018) Supreme Court decision, states can require out-of-state sellers to collect sales tax based on economic nexus

6. Compliance Steps

  • Determine where you have nexus — Track sales by state to identify when you cross thresholds
  • Register for a sales tax permit in each nexus state (before collecting any tax)
  • Configure your platform to collect the correct tax rates (state + county + city + special district)
  • File and remit sales tax returns on schedule (monthly, quarterly, or annually depending on state and volume)
  • Consider automation — Tools like TaxJar, Avalara, or built-in platform features can automate calculation and filing

7. Marketplace Facilitator Laws

  • Etsy, Amazon, and Shopify (Shop app) handle sales tax collection and remittance as marketplace facilitators
  • Sales on your own website (Shopify storefront, WooCommerce) remain your responsibility to collect and remit
  • Keep records of marketplace vs. direct sales for accurate filing

8. Options

  • Stripe — Developer-friendly, 2.9% + $0.30 per transaction, wide integration support
  • PayPal — Brand recognition, buyer protection, 2.99% + $0.49 per transaction
  • Shopify Payments (powered by Stripe) — No additional transaction fees on Shopify plans
  • Square — Good for businesses with both online and in-person sales, 2.9% + $0.30 online
  • Apple Pay / Google Pay — Mobile-optimized checkout; integrate through your payment processor

9. PCI-DSS Compliance

  • Any business accepting credit cards must comply with Payment Card Industry Data Security Standards
  • Using a hosted payment processor (Stripe, PayPal) simplifies compliance — they handle sensitive card data
  • Never store raw credit card numbers on your own servers

10. Key Decisions

  • Shipping rates — Free shipping (built into price), flat rate, real-time carrier rates, or tiered by order value
  • Carriers — USPS (best for small/light packages), UPS (best for heavier packages), FedEx, DHL (international)
  • Fulfillment options:
  • Self-fulfillment — Pack and ship yourself (lowest cost at low volume, most control)
  • Third-party logistics (3PL) — Outsource storage, packing, and shipping (ShipBob, ShipStation, Deliverr)
  • Dropshipping — Supplier ships directly to customer (no inventory risk, lower margins)
  • Amazon FBA — Store and ship through Amazon's fulfillment centers
  • Packaging — Branded packaging, appropriate box sizes (avoid dimensional weight surcharges), sustainability considerations
  • Shipping insurance — Consider for high-value items
  • International shipping — Customs forms, duties/tariffs, longer delivery times, higher return costs

11. Privacy Policy

  • Required by law if you collect any personal information (name, email, address, payment info)
  • Must comply with applicable laws: CCPA/CPRA (California), various state privacy laws, GDPR (if selling to EU customers)
  • Should disclose: what data you collect, how you use it, who you share it with, how users can opt out or request deletion, cookie usage
  • Use a privacy policy generator as a starting point, then have an attorney review

12. Terms of Service / Terms and Conditions

  • Governs the relationship between your business and customers
  • Should include: acceptable use, intellectual property rights, limitation of liability, dispute resolution, governing law, account termination
  • Include disclaimers about product accuracy (colors, sizes may vary)

Sources

Related Checklists