How do you start an online store?
A complete guide for anyone looking to get started with e-commercePublished 2026-01-17Reading time: 8–10 minOn this page
IntroductionWhat are e-commerce and an online store?1. Define your business idea and target audience2. Choose a business model and inventory strategy3. Start a business and manage administration4. Choose the right e-commerce platform5. Payment, shipping, and checkout6. Legal matters and trust7. Launch your online store8. Drive traffic and attract customersFrequently asked questionsWhat is the difference between e-commerce and an online store?
Starting an e-commerce business, or online store, means building a digital business where products or services are sold online. Success requires more than simply setting up a website—you also need a clear business idea, the right technical platform, and a well-thought-out strategy for sales, logistics, and marketing.In this guide, we explain how to start an e-commerce business step by step, from idea to launch.
What is the difference between e-commerce and an online store?
Let’s start by clarifying the two different terms, online store and e-commerce, which most people use interchangeably. But what do they mean in practice?
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Online store – the technical solution where customers shop (the website itself)
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E-commerce – the entire business surrounding it, i.e. sales, payment, delivery, marketing, and customer relationships
When you start an online store, you are also starting an e-commerce business.
1. Define your business idea and target audience
Before choosing a platform or starting to build your online store, you need clear answers to the following questions:
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What are you going to sell—and why?
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Who is your target audience?
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What problem do you solve, or what value do you offer?
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How do you differentiate yourself from your competitors?
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Is demand sufficiently high?
A common pitfall is starting with the technology instead of the business. Your e-commerce solution should be a tool for driving business, not the other way around.
2. Choose a business model and inventory management approach
How you sell affects the entire structure of your e-commerce business. Your choice of business model determines, among other things, how inventory and deliveries are managed, what technical requirements apply, and how much time and resources are required for day-to-day operations.
Common e-commerce business models
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In-house inventory
You purchase products in advance and are responsible for storage, packing, and shipping. This provides a high degree of control but ties up capital. -
Third-party warehousing (3PL)
Storage and deliveries are handled by an external logistics partner. A common solution for growing e-commerce businesses that want to scale without building their own warehousing and logistics operations. -
Dropshipping
The supplier ships the products directly to the customer. This requires a low initial investment but provides less control over delivery and the customer experience. -
Made to order
The product is manufactured only after the customer has placed an order. Suitable for personalized or customized products, for example. - Digital products or services
Products delivered digitally, such as files, courses, or subscriptions, with no physical handling required.
How the business model affects the rest of your e-commerce business
Your choice of business model affects:
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inventory and order flows
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cash flow and margins
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integration and automation requirements
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how flexible and scalable your online store needs to be>
3. Start a company and handle administration
To start an e-commerce business, you first need a company through which to operate it. Whether you plan to start small or have ambitions to grow, it is important to begin by putting the company’s basic foundations in place.To start an e-commerce business in Sweden, you need to:
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Register a company
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Apply for F-tax approval
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Register your company for VAT
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Arrange bookkeeping and accounting
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Open a business bank account
These are requirements for selling legally and building trust.
4. Choose the right e-commerce platform
To start an e-commerce business, you need an e-commerce platform that provides the technical foundation for your online store. The platform manages products, orders, payments, and content, among other things, and affects how easy it is to operate and develop the business over time.
When comparing platforms, you should consider:
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How flexible is the platform?
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Can it grow with your business?
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Are key features included, or are many add-ons required? (which, in turn, can affect costs and complexity)
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Flexibility—can the store be adapted to your way of selling?
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What will the costs look like over time?
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How good is the support?
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What does the long-term development roadmap look like?
A good e-commerce platform should not limit your business development or force you to make technical compromises later on
5. Payment solutions, shipping, and checkout
For an e-commerce business to work in practice, you need to choose payment solutions and shipping options that suit both your business and your customers. These choices affect not only costs and logistics, but also how secure and convenient the purchasing experience feels.
Some important things to consider:
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Offer the payment methods customers expect
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Provide clear shipping options and delivery times
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Provide a simple and fast checkout without unnecessary steps
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Handle VAT and fees correctly
Minor friction here can have major consequences for your sales. A complicated checkout combined with unclear fees is one of the most common reasons for abandoned purchases.
6. Legal requirements and trust
When starting an e-commerce business or online store, it is important to meet the legal requirements that apply to online commerce. Among other things, this means having the following information clearly presented and easily accessible:
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Terms and conditions of purchase describing prices, payment, delivery, and liability
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Privacy policy (GDPR) explaining how customers’ personal data is collected, used, and protected
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Right of withdrawal and returns process with clear instructions on how a customer can cancel or return a purchase
- Clear company information, such as the company name, corporate identity number, and contact details
For customers, this is often what determines whether an online store is perceived as reputable and trustworthy. Clear terms and accurate information reduce uncertainty, build trust, and contribute to a better purchasing experience, while also ensuring that the e-commerce business complies with applicable legislation.
7. Launch your online store
Once all the fundamental elements are in place, it is time to launch the online store. Launching does not mean that everything has to be perfect, but that the store is ready to accept real customers and orders.
Before opening the online store to visitors, it may be helpful to check
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that payment and shipping work as intended
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that product information, prices, and terms are correct
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that contact details and company information are clear
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that the ordering process works from start to finish
You can start with a small-scale launch, for example by sharing the online store through your own channels or allowing a limited number of customers to test it. This gives you the opportunity to ensure that everything works before increasing its visibility.
8. Drive traffic and attract customers
Once the online store has launched, you need to actively work on driving traffic and increasing visibility. A completed online store does not attract visitors by itself. However, trying to be visible everywhere right away is rarely effective. Different marketing channels are suitable for different types of businesses, and your choices should be based on both your target audience and your circumstances.
A good way to determine which channel you should start with is to ask a few fundamental questions:
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Are customers actively searching for the type of products you sell?
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Do you need to create demand or capture existing demand?
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How much time can you invest before you need to see results?
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Do you have the resources to work continuously on content or advertising?
Common e-commerce marketing channels include:
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Search engine optimization (SEO) for long-term visibility in search results
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Advertising, for example through Google or social media, to quickly reach the right target audience
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Social media for inspiration, brand building, and customer engagement
- Email marketing for building relationships and generating repeat sales
If you are unsure where to start, a good first step is to choose the channel that feels most natural for you and your business. This could be a channel you already know something about, where your target audience is active, or where you can easily showcase your products and tell your brand story.
By focusing on one channel initially, it becomes easier to get started, learn how marketing works, and understand what delivers results. Once you have gained more experience, you can gradually test additional channels and develop your marketing as your e-commerce business grows.
Frequently asked questions about starting an e-commerce business
How much does it cost to start an online store?
It depends on the platform, marketing, and business model. You can start on a small scale, but costs often arise over time as the e-commerce business grows.
How long does it take to start an e-commerce business?
A simple online store can be launched in a few weeks, but building a stable e-commerce business is a long-term project.
Do you need technical skills to start an e-commerce business?
No, but the right platform and support are essential for avoiding technical limitations.
Have you completed all the steps and are ready to test your online store in practice? With Flowshop, you can get started right away with no commitment and support throughout the launch phase.
You get a platform built to grow with your business, a simple administration interface, and support to help you when you need it.