How to Set Up an Online Store from Scratch

Setting up an online store can feel a little overwhelming if you don’t know where to start, but don’t worry, because in this article we’re going to walk you through the steps you should keep in mind to get the ball rolling. From the estimated budget and the legal paperwork you need to launch, to the marketing strategies that will help you get your store noticed.

1. Work out the budget to open your online store

Below, we’ll show you the main costs you should factor in when creating your online store:

1. E-commerce platform: The platform is the heart of your e-commerce business, and there are several options available, from free platforms to paid solutions that run around 30 euros a month. Some of the most popular platforms are: Shopify, WooCommerce and PrestaShop.

2. Web design and development: The cost of web design and development can vary depending on the complexity of the project and the level of customization, but to give you an idea, it can be around 600 euros for a pre-built design and upwards of 2,000 euros for a fully custom design. If, on the other hand, you decide to do it yourself through a CMS, it can be completely free or, at the very least, dramatically reduce the total cost.

3. Hosting: You’ll need somewhere to host your online store. In general, the estimated cost of hosting is usually between 20 and 50 euros a year.

4. Domain: The price of a domain depends heavily on the extension and the provider, but it usually runs around 10 to 15 euros a year.

5. Photography and content: High-quality images are essential for your store’s reputation and for making your products look attractive to shoppers. You can choose to take the photos yourself or hire a professional photographer. If you decide to hire one, rates are around 50 to 200 euros per session, depending on their experience, the post-production and the number of images you need. If, on the other hand, you decide to do it on your own, you’ll only need a camera (or a good-quality phone), a tripod, and to make sure you have good lighting. You can buy a lightbox for photographing relatively small products for roughly 50 euros.

6. Shipping costs: Shipping costs can vary depending on the weight and size of your products, as well as the location of your customers. For example, a shipment from Madrid to Barcelona runs around 5 to 20 euros.

7. Security and data protection: It’s important to guarantee the security of your customers’ data, which can include password protection and server security. Generally speaking, if you use payment methods like Redsys or PayPal and a CMS such as WooCommerce, you’ll only need an SSL certificate, which is usually purchased alongside your hosting.

So, in total, the monthly cost of running an e-commerce store can range between 58 and 83 euros, depending on the resources and tools you use. It’s important to keep in mind that this budget is only an estimate and may change as your online store grows.

2. Sell through Shopify, WooCommerce (WordPress) and PrestaShop

An online platform, also known as a CMS, lets you manage all the content on your website without having to hire a developer or have any coding experience; it also helps you ensure consistency across all platforms so that nothing looks different when viewed on mobile, desktop, laptop or tablet devices! This is essential for securing your sales, because users are much more likely to buy if what you show in your store displays correctly.

Shopify, WooCommerce and PrestaShop are the three best platforms for selling online. Here we show you the main differences, advantages and disadvantages of each one.

1. How to build your store with Shopify:

Shopify is a fully hosted online platform, which means it takes care of everything, from hosting to the security and scalability of your online store. All you have to do is sign up and choose the plan that suits you best.

Advantages: Easy to use, with an intuitive interface and a wide selection of templates and apps to choose from and customize your website. It’s also scalable, which means you can start with a small business and grow as your audience increases. Perfect for those who have no experience.

Disadvantages: Shopify is a paid platform; prices range from 27 euros a month for its basic plan up to 289 euros a month for its most advanced plan.

2. How to build your store with WooCommerce (WordPress):

WooCommerce is an e-commerce plugin that integrates with WordPress. It’s free, but you’ll have to pay separately if you want to customize the look of your site or add extra apps.

Advantages: WooCommerce is more affordable than Shopify, and it offers flexibility and control over the look and feel of your store. It’s also a scalable option, and you can add functionality as you go.

Disadvantages: It works exclusively through WordPress. It can be more complicated to set up and use than Shopify, especially if you’re not familiar with WordPress. Also, it’s up to you to take care of the hosting, security and performance of your online store.

3. How to build your store with PrestaShop:

PrestaShop is an open-source e-commerce system, which means it’s free and you can download and use it on your own server.

Advantages: It’s free, and it offers a great deal of customization compared to the two previous platforms. On top of that, because it’s open source, there’s a large community of users and developers who can help you solve problems and add functionality.

Disadvantages: PrestaShop can be more complex to set up and, in addition, you’re responsible for hosting and maintenance, which can be a challenge if you don’t have experience in these areas. Just as with WooCommerce, some templates come at an extra cost.

In short, PrestaShop is an affordable and flexible option, but it may require more technical expertise and dedication compared to Shopify and WooCommerce. Shopify, on the other hand, is an easy-to-use and scalable option, but it can be more expensive, while WooCommerce is a free, flexible option, but exclusive to the WordPress platform.

3. Choose a good domain for your e-commerce store

The domain is the distinctive name that identifies your online store and is the address where customers can access it on the web. It’s like the address of a physical business, but in the digital world.

When choosing it, it’s important to keep a few things in mind. Here are some tips that will help you decide correctly:

1. Choose a short name that’s easy to remember and that also aligns with your brand’s values.
2. Include relevant keywords for your online store in the name; this will help improve visibility in search engines.
3. Avoid using names that are too generic and could be used by any other e-commerce store.
4. Consider the extension: There are several options available, such as .com, .es, .store, among others. Consider which one is the most suitable for your target audience.

4. Get hosting to house your e-commerce store

Web hosting, also known as “hosting”, is a service that allows online stores to have their own website on the Internet, as well as to store all the necessary content on it (text, images, database, emails, etc.).

There are different types of hosting, from shared hosting to dedicated servers. It’s important to choose reliable and secure hosting, because the loading speed and performance of your online store will depend on it.

Some of the most popular ones are:

1. Shopify: An e-commerce platform that includes integrated web hosting and a wide range of tools to create and manage your online store.

2. Bluehost: A web hosting provider that offers options for different types of websites, including online stores, with excellent value for money. For many, one of the most powerful on the market.

3. BigCommerce: Cloud-hosted. Users highlight how easy and intuitive it is to add products.

5. Keep the legal requirements for opening your online store in mind

You probably already have a physical store and now want to open your first online store. In this case, you’re already registered as self-employed (autónomo) and you’ll only need to file a census declaration (declaración censal) with the Spanish tax authority (Hacienda) reporting the new IAE business-activity code and with Social Security using form TA-521.

In addition, you’ll also need to comply with the following laws:

1. Data Protection Act: Since you’ll be handling your customers’ personal data, such as their name and surname, email address or postal address, your online store must comply with this law that ensures the protection of their data.

2. General Law for the Protection of Consumers: This is primarily based on providing your users with a withdrawal form and clearly and unequivocally displaying the final price of the product before the transaction is completed.

3. Law on Information Society Services and Electronic Commerce (LSSICE): Under this law, all the data inherent to the business and the site administrator must be visible on the website. In other words, you’ll have to provide your users with an email address or a means of contact. You can do this by creating a section on your site called “About us”.

4. Retail Trade Regulation Act: This is a set of conditions your online store must meet to guarantee the buying and selling process. For example: returns and delivery times.

6. Give marketing the importance it deserves and sell through Instagram and Facebook

Unleash your creativity by generating valuable and appealing content; this way you’ll get your online store to grow and to rank well in SEO, appearing among the top options and being more visible to potential customers. Plus, you can use your Instagram and Facebook profiles to sell your products. How? By following these strategies:

1. Make sure you have an easy way to buy: include a direct link to your online store so that customers can buy your products quickly and easily. You can do this by adding your store’s URL to the bio of your Instagram and Facebook profiles, and also by placing direct links in your stories that lead straight to the product you’re showcasing.

2. Share appealing content: You can upload photos and videos of your products, including detailed descriptions and prices. You can also share images of models wearing your garments or post fashion-related content (a blog, for example) if your store sells clothing.

3. Offer exclusive promotions and discounts: Offer discounts to your followers as an incentive to buy from your store.

4. Use hashtags: Hashtags can help you reach a wider audience and increase the likelihood of a purchase. Make sure you use relevant and popular hashtags in your posts.

5. Interact with your followers: Reply to your followers’ comments and questions and build a community around your brand.

6. Collaborate with influencers: Work with influencers relevant to your niche to promote your products through their social media profiles.

7. Analyze your results: Use analytics tools to assess the impact of your social media marketing efforts and adjust your strategies accordingly.

8. Create a blog: Creating a blog is a great way to build that engagement between your audience and your brand. What’s more, you’ll be able to share your blog posts on your social media. To do this, you’ll need to stay on top of trends and put yourself in your customers’ shoes, thinking about what kind of articles they’d like to read. Maybe you could tell them about the latest fashion trends, or how to put together outfits using clothing from your own website. That way, you’ll make them want to keep reading your blog and, on top of that, the chances of a purchase will increase.

When it comes to SEO, it’s important that, when writing your blog articles, you research which are the most searched keywords. That way you can include them within the text and rank better in Google searches. You can find this out using Google Ads.

Remember to be consistent and authentic in your posts to build your own identity and earn the loyalty of your followers!

7. What are the best payment gateways for an e-commerce store?

The popularity of e-commerce, especially in the retail and wholesale sectors, has triggered an impressive rise in the number of online payment gateways and platforms. In an increasingly competitive environment, security and efficiency are key, which is why giants like Google, Apple and Amazon have developed their own online payment systems to meet these needs and consumers’ expectations.

Among the best-known online payment gateways, we find:

1. PayPal: PayPal is a leading online payments platform, known worldwide and considered a benchmark in the industry. With PayPal, you can make online payments and transfer money to other users of the platform. It offers convenience, reliability and excellent customer service.

2. Redsys: This is the most widely used card payment platform in Spain. Easy to use, intuitive, adaptable and versatile, it allows a great deal of customization and control. It accepts every credit and debit card on the market.

3. Google Wallet: With Google Wallet, you can transfer money and make payments quickly and easily. It stands out for the customer support the company provides, both to retailers and to businesses.

In addition, offering installment payment methods can be an effective way to improve your customers’ shopping experience, earn their loyalty, boost sales and set yourself apart from the competition. One example is Sequra, an e-commerce payment method that lets customers pay up to seven days after an order has been shipped.

8. Manage and prepare your online store’s shipments

Have you ever heard of 3PL (3rd party logistics)? It’s a third-party logistics system that many e-commerce businesses use to improve their product shipping and delivery process. Instead of tackling the logistical challenges on your own, you can work with a 3PL provider to handle every aspect related to the shipping and delivery of your orders.

Some of the most popular options include:

1. Storage and package preparation: A 3PL provider can store your products and prepare packages for shipment directly to your customers.
2. Direct shipping: The 3PL provider ships your products directly to your customers on your behalf, using its own shipping infrastructure.
3. Integration with e-commerce platforms: Many 3PL providers offer integration with popular e-commerce platforms, which enables a more efficient and automated shipping process.
4. Cost optimization: By working with a 3PL provider, you can take advantage of their expertise and scale to optimize shipping costs and improve overall efficiency.
5. Tracking and monitoring: With this option, 3PL providers offer real-time shipment tracking and monitoring, allowing you to stay informed about the progress of your shipments and make sure products reach your customers on time.

There are many advantages to using a 3PL. For example, it can help you reduce the costs and the time required to handle product shipping and delivery. Remember that order management and preparation is a key aspect for any online store, since it directly affects customer satisfaction and their experience.

9. Streamline your e-commerce store’s routine tasks with management software

Having management software will become your ally when it comes to streamlining and optimizing all those routine tasks you’ll do over and over, as well as helping you make better decisions about your business and grow it. With our management software, Stockagile, you’ll be able to digitize and simplify your business’s entire supply and sales chain, from stock management and supplier purchasing to sales-channel synchronization and much more.

What’s more, our software syncs with Amazon, WooCommerce, Zalando, PrestaShop and Shopify. That way, if you decide to sell through those channels, you’ll be able to control your sales in real time and from a single place.