Starting an e-commerce business in 2026 comes down to ten moves: pick a product people want, choose a business model, write a simple plan, set up your legal basics, build your store, line up suppliers and shipping, set clear policies, accept payments, bring in traffic, and track your numbers.
You can begin with a few hundred dollars and a free EIN, then grow as sales prove the idea.
Online shopping keeps taking a bigger slice of retail. The U.S. Census Bureau reports that e-commerce sales hit $340.2 billion in the second quarter of 2026, up 12.2% from a year earlier and 17.1% of total retail sales (seasonally adjusted, released August 18, 2026).
The Census page says revised estimates arrive with the Q3 release on November 19, 2026. More shoppers online means more room for new stores, and more competition too.
As your business grows, you may also explore opportunities in the startup services industry by browsing ZenBusiness careers to learn about roles at a company that helps entrepreneurs launch and manage their businesses.
This guide walks through each step with current figures from the Census Bureau, the SBA, the IRS, the FTC, FinCEN, and Shopify's pricing page (all checked October 2026). Prices and rules change, so confirm anything you plan to pay for or file.
The Short Answer
- Cost to start: A lean store can start for a few hundred dollars. Shopify's Basic plan lists $29 a month billed yearly or $39 a month billed monthly, plus your state's LLC fee if you form one.
- Legal setup: Many owners form an LLC, and the EIN is free from the IRS.
- Federal ownership report: Domestic companies are exempt from FinCEN's beneficial ownership reporting under its August 11, 2026 final rule.
- Biggest early risks: Choosing a product with thin margins, ignoring shipping rules, and spending on ads before testing.
- Fastest path: Test one product with one audience, prove people buy it, then widen.
Step 1: Pick a Product and a Customer
Start with a person, not a product list. Ask who you want to serve and what problem you can solve better than the stores they already use. Good starting points:
- Something you know: Hobbies, jobs, or sports where you already understand the buyer.
- A gap in existing stores: Poor sizing info, slow shipping, or confusing choices.
- A product with repeat demand: Items people reorder, such as coffee, pet food, or skincare.
Before you commit, check the demand. Search the product on Google and marketplaces, read competitor reviews for complaints you can fix, and ask ten potential buyers what they'd pay.
Reviews and search results tell you more than a gut feeling.
Step 2: Choose a Business Model
| Model | How it works | Upfront cost | Main tradeoff |
|---|---|---|---|
| Own inventory | You buy stock and ship it | Highest | More control and better margins, but cash tied up in stock |
| Dropshipping | A supplier ships to your customer | Lowest | Less control over quality and delivery times |
| Print on demand | A partner prints and ships each order | Low | Lower margins per item |
| Wholesale or resale | You buy branded goods to resell | Medium | Brand rules and price competition |
| Handmade | You make each product | Low to medium | Your time limits growth |
None of these is the best choice for everyone. If you want to test an idea quickly, a low-cost model keeps risk down.
If you want a brand with higher margins, owning inventory gives you more control.
Before launching, consider whether you need business formation services for startups to help establish your business legally.
Choosing the right business structure and handling registration early can make it easier to manage taxes, finances, and other legal requirements as your store grows.
Step 3: Write a Simple Business Plan
You don't need a 40-page document. The SBA's business plan page (last modified October 19, 2026) describes two formats.
A traditional plan has eight sections, from executive summary to financial projections, and lenders often ask for it.
A lean startup plan covers key points like partners, activities, value proposition, customers, channels, costs, and revenue, often on one page.
The SBA says there's "no right or wrong way to write a business plan."
For most new online stores, start lean. Write down:
- Who you sell to and why they'd choose you.
- What you sell and what you charge.
- Where you find customers, such as search, social, email, or marketplaces.
- What it costs to buy, ship, and sell each item.
- What you need to launch and how long your money lasts.
If you plan to apply for a loan, upgrade to the traditional format.
Step 4: Choose a Legal Structure
The SBA's guide to business structures (last modified August 28, 2026) lists the options:
- Sole proprietorship: The default if you register nothing. It doesn't create a separate business entity, and owners can be personally liable for business debts.
- LLC: Mixes features of corporations and partnerships.
- Profits can pass through to your personal tax return, members generally pay self-employment tax, and owners are generally shielded from personal liability, though the SBA notes that protection has limits.
- C corporation or S corporation: More formal setups with extra reporting, usually for businesses planning to raise money or hire a team.
For a first online store, many founders pick an LLC for liability protection. Costs vary by state.
Two private fee compilations checked in October 2026 show filing fees from $35 in Montana to $500 in Massachusetts.
An LLC doesn't protect you from your own wrongdoing or from loans you personally guarantee, so talk to a lawyer or tax professional about your situation.
Do you need a formation service?
No. You can file with your state yourself. If you'd rather hand off the paperwork, services charge on top of the state fee.
ZenBusiness's pricing page (last modified October 20, 2026) lists $0, $199, and $299 plans plus state fees, and LegalZoom's page lists $0, $249, and $299.
One outside page tries a head-to-head of LegalZoom vs ZenBusiness. That page didn't load when we tried to read it, so its claims couldn't be verified for this guide. Compare the pricing on each company's own site instead.
A broader overview of business formation services for startups covers the options for founders.
It's an unsigned page with no affiliate disclosure, it links to a coupon-style domain for ZenBusiness, and it contains some figures that conflict with each other, such as Delaware's franchise tax listed as both $300 and $400.
Use it as background and check every number with the provider or the state.
If you're curious about the company behind a formation service, a page on ZenBusiness careers is hosted on GitHub.
That site's robots rules blocked automated reading, so its contents couldn't be checked for this guide. Check ZenBusiness's official site for current openings.
Step 5: Handle the Legal and Tax Basics
- Get an EIN. The IRS says, "You never have to pay a fee for an EIN," and it warns about sites that charge for one (IRS, page updated October 16, 2026). You'll need it to open a business bank account and hire employees.
- Open a business bank account. Keeping business and personal money separate supports your LLC's protection.
- Check licenses and permits. Requirements vary by state, city, and product type.
- The SBA's tax page (last modified July 30, 2026) says your obligations vary by location and structure and links to each state's revenue department.
- Register for sales tax where required. The SBA page doesn't give online-seller specifics, so check your state's revenue department and any states where you sell a lot. Rules differ widely.
- Skip the federal ownership report. FinCEN's final rule, issued August 11, 2026, exempts domestic companies from beneficial ownership information reporting.
Step 6: Choose Your Store Platform
You can sell on your own site, a marketplace, or both. A hosted platform like Shopify handles hosting, carts, and checkout.
Shopify's pricing page (checked October 2026) lists these details:
- Plans: Basic, Grow, Advanced, and Plus.
- Basic price: $39 a month billed monthly, or $29 a month billed yearly.
- Trial: Three days free, then $1 a month for three months.
- Card rates (Basic, online): 2.9% plus 30 cents for standard cards, and 3.5% plus 30 cents for premium cards.
Other platforms and marketplaces have their own fees, so compare total cost, not just the monthly price.
Look at transaction fees, app costs, themes, and what happens when you want to switch.
What the fees look like on one sale
Say you sell a $50 product that costs you $20 to buy and $8 to ship, and the customer pays by standard card at Shopify Basic's online rate.
- Card fee: 2.9% of $50 is $1.45, plus $0.30, for $1.75.
- Profit before ads and other costs: $50 - $20 - $8 - $1.75 = $20.25.
That $20.25 has to cover ads, software, returns, and your own pay. Run this math on every product before you launch.
Step 7: Source Your Products
Whether you use a wholesaler, a manufacturer, or a dropshipping partner, check these points:
- Quality: Order samples before you list anything.
- Lead times: Ask how long production and shipping take.
- Minimum orders: Know how much cash you need up front.
- Returns: Find out what the supplier does with defective or returned items.
- Backups: Line up a second supplier for your best seller.
Step 8: Set Shipping, Returns, and Customer Rules
U.S. online sellers must follow the FTC's Mail, Internet, or Telephone Order Merchandise Rule (FTC guidance, page modified July 22, 2025). Key points:
- You need a reasonable basis for any shipping time you state.
- If you don't state one, the default is shipping within 30 days of receiving a properly completed order.
- If you can't ship on time, you must offer customers the choice to accept a delay or cancel for a refund.
- Refunds for most non-store-credit payments are due within seven working days, and store credit can't replace a required refund.
- Keep records of order dates, notices, shipments, and refunds. If you can't document compliance, you carry the burden of proof.
Post a clear return policy, shipping times, and contact details. Plain policies cut disputes and build trust.
Step 9: Set Up Payments
Choose a processor your platform supports, and check the fee structure, payout timing, and dispute process.
Turn on fraud tools, and keep customer data secure. Pay attention to chargebacks, since they cost you the sale plus fees.
Step 10: Build Traffic and Sales
Choose two or three channels and learn them well before adding more.
- Search: Write helpful product pages and guides that match what buyers search for.
- Email: Collect addresses from day one, since email is a channel you own.
- Social media: Show the product in use and answer questions in the comments.
- Paid ads: Test small budgets and measure cost per sale before you scale.
- Marketplaces: Selling on them can bring early sales while you build your own site.
- Partnerships: Work with creators or complementary brands.
AI shopping tools are an emerging channel. A September 2026 MarketScale article, citing Digital Commerce 360, reported that Williams-Sonoma said revenue attributed to its AI assistant rose 620% in Q2.
That's one retailer's figure as relayed by a trade outlet, so treat it as a sign of direction, not a benchmark for a small store.
Clear product data (titles, sizes, materials, prices) helps both shoppers and automated tools understand what you sell.
Step 11: Handle Reviews the Right Way
Reviews drive trust, and the FTC's rule on consumer reviews and testimonials (effective October 21, 2024; page modified May 1, 2025) sets limits.
It addresses fake or false reviews, paying for reviews that must express a particular sentiment, undisclosed insider reviews, company-controlled sites posing as independent review sites, review suppression, and fake social media followers.
Courts can impose civil penalties for knowing violations. Ask real customers for honest reviews, and never write or buy fake ones.
Step 12: Launch, Measure, and Improve
Track a few numbers weekly:
- Conversion rate: Orders divided by site visits.
- Average order value: Revenue divided by orders.
- Customer acquisition cost: Marketing spend divided by new customers.
- Gross margin: Revenue minus product and shipping costs, divided by revenue.
- Return rate: Returned orders divided by total orders.
- Repeat purchase rate: Customers who buy again.
Fix the weakest number first. A store with a low conversion rate needs better pages or offers, not more traffic.
A Sample Startup Budget
These are illustrative costs built from the figures above, not a quote.
| Item | Cost | Source |
|---|---|---|
| LLC state filing fee | $35 to $500, one time | Private compilations, October 2026 |
| EIN | $0 | IRS, October 16, 2026 |
| Shopify Basic | $29 a month billed yearly, so $348 for a year | Shopify pricing page |
| Card fees | 2.9% + $0.30 per standard online sale | Shopify pricing page |
| Inventory and samples | Depends on your model | Your supplier |
| Marketing | Your choice | Your plan |
For a year of Shopify at the yearly rate, 12 x $29 = $348. Add your state's fee, your inventory, and your ad budget.
Common Mistakes to Avoid
- Skipping demand checks. Test before you buy stock.
- Ignoring margins. Count shipping, fees, returns, and ads.
- Promising shipping times you can't meet. The FTC rule applies.
- Paying for a free EIN.
- Mixing personal and business money.
- Trusting unsigned coupon pages. Verify prices and offers at checkout.
- Buying fake reviews. The FTC rule targets them.
- Spreading across too many channels. Pick two or three first.
Frequently Asked Questions
How much does it cost to start an e-commerce business?
A lean store can start for a few hundred dollars. Shopify Basic lists $29 a month billed yearly, and an LLC filing fee runs from about $35 to $500 depending on the state. Inventory and marketing add to that.
Do I need an LLC to sell online?
No. You can start as a sole proprietor. The SBA says an LLC generally shields owners from personal liability, though not completely.
Is an EIN free?
Yes. The IRS says you never have to pay a fee for an EIN.
Do I have to file a beneficial ownership report?
Under FinCEN's final rule issued August 11, 2026, domestic companies are exempt.
What's the best platform for a new store?
It depends on your budget and goals. Shopify lists plans from $29 to $39 a month for Basic, and other platforms and marketplaces differ. Compare total cost, including transaction fees and apps.
How big is U.S. e-commerce?
The Census Bureau reports $340.2 billion in Q2 2026 sales, or 17.1% of total retail sales.
Do I need to collect sales tax?
It depends on your state and what you sell. Rules vary, so check each state's revenue department, starting with the one where you operate, and ask a tax professional.
What do I do if I can't ship on time?
The FTC rule says you must offer customers the choice to accept a delay or cancel for a refund.
Can I leave customer reviews as I like?
You can't write or buy fake reviews, and you can't suppress honest ones. The FTC's rule covers both.
The Bottom Line
Start small. Pick a clear customer and product, run the numbers on one sale, set up your legal basics, and launch on a simple platform.
Follow the FTC's shipping and review rules, track your key metrics, and grow from what the data shows.
Confirm every price, fee, and legal requirement with the source before you commit.
Sources
- U.S. Census Bureau, Quarterly retail e-commerce sales. Q2 2026, released August 18, 2026.
- SBA, Write your business plan (October 19, 2026), Choose a business structure (August 28, 2026), and Pay taxes (July 30, 2026).
- IRS, Get an employer identification number. Page updated October 16, 2026.