To start an e-commerce business, choose what you will sell and how you will fulfill orders, check the unit economics on every product, register the business, follow the online selling rules where your customers live, build a fast store and start with one channel that brings customers. The products that work are usually specific: a clear audience, a margin that survives shipping and returns, and a reason to buy from you rather than a marketplace giant.
This guide covers how to start an e-commerce business in the US, the UK and Nigeria, with costs, rules and the numbers to check before you order stock.
Key takeaways
- Unit economics decide everything: price minus product, shipping, payment fees, returns and ads.
- Online selling has specific consumer rules. UK buyers can cancel within 14 days of delivery; US sellers must ship within the stated time or 30 days.
- A store platform costs less than you think. Customer acquisition costs more.
- Email turns one-time buyers into repeat customers, which is where profit usually sits.
Is e-commerce still worth starting in 2026?
Yes, but the easy growth years are over. Online sales keep taking a larger share of retail in the US, while in the UK the share has held steady since the pandemic spike.
- 17.1% of total US retail sales were ecommerce in Q2 2026 (seasonally adjusted) US Census Bureau, 2026
- $340.2 billion US retail ecommerce sales in Q2 2026 US Census Bureau, 2026
- 12.2% growth in US ecommerce sales from Q2 2025 US Census Bureau, 2026
- 41.2% of Nigerians used the internet in 2024 World Bank (ITU data), 2024
In the UK, more than a quarter of retail already happens online, so you compete for attention, not for permission. In Nigeria, the online market is smaller but growing with internet access, and many purchases still start on Instagram or WhatsApp and finish with a bank transfer or pay-on-delivery.
Which e-commerce business model should you choose?
| Model | Upfront cash | Margin | Control over quality and shipping | Best for |
|---|---|---|---|---|
| Own brand, own inventory | High | Highest | Full | A product you can improve and brand |
| Print on demand | Low | Low to medium | Limited | Designers testing ideas |
| Dropshipping | Low | Low | Limited | Testing demand quickly |
| Wholesale and resale | Medium | Medium | Medium | Known products with steady demand |
| Handmade or local products | Low to medium | Medium | Full | Makers selling to a niche |
| B2B ecommerce | Medium | Medium | Full | Suppliers to shops, restaurants or offices |
If you lean toward dropshipping, read our dropshipping guide for its specific risks.
How do you check whether a product will make money?
Do this before you order stock. Worked example (illustrative), UK store selling a £40 product:
- Product cost (landed, including import duty): £12.00.
- Packaging and pick-and-pack: £2.00.
- Shipping to the customer: £4.00.
- Payment fees: assume £1.00 (check your provider’s current rate).
- Returns allowance: 5% of orders refunded, so 5% × £40 = £2.00 per order.
- Total cost before marketing: £12 + £2 + £4 + £1 + £2 = £21.00.
- Contribution before ads: £40 − £21 = £19.00 per order.
If paid ads cost you £15 to win one customer, you keep £4 on the first order. That only works if customers come back. This is why your customer acquisition cost and repeat-purchase rate matter more than the store design.
Run the same sums in your currency. In Nigeria, include delivery partner fees per zone, failed pay-on-delivery orders and the cost of holding stock when exchange rates move.
How do you register an e-commerce business and follow the rules?
United States. Register with your state and get a free EIN. Check sales tax registration in your state and in states where you sell a lot (SBA). The FTC’s Mail, Internet or Telephone Order Merchandise Rule requires a reasonable basis for any shipping time you state, or shipping within 30 days if you state none, and prompt refunds if you cannot ship (FTC).
United Kingdom. Register as a sole trader or limited company (GOV.UK). Online buyers can cancel within 14 days after delivery without giving a reason, and you must show your business name, address, full price including taxes, delivery costs and cancellation rights before they order (GOV.UK). Register for VAT if taxable turnover passes £90,000 in 12 months (GOV.UK).
Nigeria. Register with the CAC. Packaged food, drinks, cosmetics and similar regulated products need NAFDAC registration before sale (NAFDAC). Customer data you collect falls under the Nigeria Data Protection Act 2023 (NDPC).
How much does it cost to start an online store?
| Cost item | US (USD) | UK (GBP) | Nigeria (NGN) |
|---|---|---|---|
| Registration | EIN free; state fee varies | Sole trader free; company £100 | CAC fee (check current fee) |
| Store platform | Shopify Basic $39 a month billed monthly | Similar plans priced in GBP | Hosted store or WordPress, ₦10,000–₦60,000 a month |
| Card payment fees | 2.9% + 30¢ per online card payment (Stripe and Shopify Basic standard rate) | Check your provider | Check your provider (Paystack, Flutterwave) |
| First inventory | $500–$10,000 | £400–£8,000 | ₦300,000–₦5,000,000 |
| Product photos and branding | $300–$3,000 | £250–£2,500 | ₦100,000–₦1,500,000 |
| Launch marketing budget | $500–$3,000 | £400–£2,500 | ₦200,000–₦1,500,000 |
Platform and fee figures come from Shopify’s pricing page and Stripe’s pricing page, checked October 2026. Other amounts are estimates from typical quotes we’ve seen. Plan with them, but get current quotes from suppliers and service providers before you commit.
How to start an e-commerce business: step by step
From idea to first 100 orders
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Choose a product and an audience
Specific beats broad. Check demand with search data and by talking to buyers.
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Run the unit economics
Price, landed cost, shipping, fees, returns and expected acquisition cost.
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Order samples
Test quality, packaging and shipping times yourself.
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Register and set up payments
Business registration, tax registration where needed, payment provider, business account.
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Build a fast, simple store
Clear product pages, delivery and returns information, trust signals and a quick checkout.
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Launch with one channel
Pick search, social ads, a marketplace or influencers, and measure cost per order.
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Capture emails from day one
A welcome offer and post-purchase emails drive repeat sales.
How do you get your first e-commerce customers?
- Search. Product and category pages that answer what buyers search for bring orders without paying per click. Our SEO service covers ecommerce structure and content.
- Paid social and shopping ads. Fast for testing, expensive if your product pages don’t convert. Start small and track cost per order. See our paid ads service.
- Email and SMS. Abandoned cart, welcome and post-purchase flows. Our email marketing service sets these up.
- Social selling. In Nigeria especially, Instagram, TikTok and WhatsApp catalogs drive real volume. Link them to your store so you own the customer data.
- Marketplaces. Amazon, Etsy, Jumia or Konga bring buyers but take fees and limit your customer relationship.
For an example of improving the seller side of a marketplace, see our Shopinbos case study.
Most new store owners spend weeks on the theme and an afternoon on product pages. I'd flip that. A product page has to answer every question a buyer would ask in a shop: size, material, delivery time and returns. And capture an email or WhatsApp number early, so customers you win through social or marketplaces become customers you can reach again.
Myth vs fact
- MythThe store design is what makes an online business succeed.
- FactProduct, price and acquisition cost decide success. A clean, fast store helps conversion, but it cannot fix a product with no margin after shipping and ads.
- MythYou can set any returns policy you like.
- FactIn the UK, customers buying online have a legal 14-day cancellation right after delivery. Your policy can be more generous, not less.
Before you launch your store
- Unit economics checked for every product
- Samples tested for quality and shipping time
- Business and tax registration done
- Shipping, returns and cancellation pages written to local rules
- Payment provider live and tested with a real order
- Analytics and conversion tracking installed
- Welcome and abandoned-cart emails running
- One launch channel chosen with a budget and target cost per order
Frequently asked questions
How much does it cost to start an e-commerce business?
A small store can start for a few hundred dollars or pounds if you use a hosted platform and small stock orders. Inventory and marketing are the big costs. Budget for at least three months of advertising tests.
What is the best e-commerce business to start?
One where you understand the buyer, the product has a healthy margin after shipping and returns, and you have a reason customers choose you. Niche products with repeat purchase potential tend to do well.
Do I need a license to sell online?
Most online stores need only business and tax registration. Some products need extra approval, such as food, cosmetics and supplements (NAFDAC in Nigeria; FDA rules in the US; UK product safety and labeling rules).
How do I start an e-commerce business in Nigeria?
Register with the CAC, choose reliable delivery partners for your zones, accept bank transfers and card payments, and decide how you will handle pay-on-delivery. Many stores start on Instagram or WhatsApp and add a website once orders are steady.
Shopify or WooCommerce?
Shopify is faster to launch and maintain. WooCommerce gives more control and can cost less at scale but needs more technical upkeep. Choose based on who will run the store day to day.
Not sure why traffic isn’t turning into orders? A growth audit reviews your store, tracking and acquisition channels.
