E-commerce tools and software can help your business grow, but we recommend a simple tech stack to begin with. The beauty of eCommerce businesses is that they can be tested and launched very cheaply. Moiz Ali founded Native with $1,000. Ryan Bartlett founded True Classic with $3,000. You don't need a huge up front investment to test whether your idea has legs.
At Head West, we recommend starting with a very small tech stack. We call it the Bare Bones Tech Stack™. Software costs can add up quickly, and focus is key for new businesses starting out. We think this stack can actually scale your business to at least $10M in revenue. Keep in mind that most software tools help to optimize what you already have, and there will never be a substitute for creating a product people actually want. If your business isn't growing, it's likely not because of the tools that you're using. Go back and iterate on the product or marketing before investing more into software tools. We see too many companies with bloated tech stacks because they see larger companies using these tools and want to mimic them. Don't be that company. Start small and lean.
🛒 eCommerce platform – Shopify (cost: $29 / month when paid annually). Shopify can scale from your first dollar in revenue to your one billionth and is by far the best of the eCommerce platforms out there for new eCommerce businesses. You can use Shopify to host your site, take orders, and fulfill them. See our guide on eCommerce Platforms for more info.
🌐 Domain – Namecheap (cost: varies based on domain). Easy to use and cheaper than competitors like GoDaddy (sorry Danica!). Free Privacy protection as well. You are required to give public information when you register a new domain (full name, phone number, email address, and physical address). Namecheap will prevent this from becoming public for free.
💰 Banking – Mercury (cost: free & use our referral link to get a $250 sign up bonus when you deposit your first $10k). Mercury makes it easy to get a bank account for your business. Mercury is focused on startups, and the application takes ten minutes. Mercury will give you all the banking basics that you’ll need: FDIC insured checking accounts, virtual debit cards, and ACH payments for vendors. See our guide on Banks for eCommerce Companies for more info.
💳 Business Credit Card – Capital One Spark Cash Plus card (cost $150 / year). If you plan to spend more than $7,500 annually on your business, then the 2% cash back will cover the annual fee and any spend beyond that will create tax free cash back (not tax advice - speak to your accountant!). See our guide on Business Credit Cards for more info.
⚖️ LLC registration – Incfile (cost: $199 + $90 Delaware state filing fee, total = $289). Register your business as an LLC in Delaware. It’s the state where most large companies are registered and has the most case law. Many investors wont invest in a company unless it’s registered in Delaware (not legal advice - check with your lawyer!). Incfile offers an excellent service at a great price. Read our full guide on Legal Filing Services for more info.
📊 Data and analytics – Shopify (cost: free with plan) + Google Analytics (cost: free) + Google Sheets (cost: free) + Microsoft Clarity (cost: free). These tools are all you need to get started. Microsoft Clarity is great for watching session recordings to see how actual users are navigating your website. We find the Clarity heat maps to be less helpful (people click on CTAs and navigation). Data platforms will always pitch you on where these tools fall short, but we’ve found the insights on more advanced platforms to be interesting but not actionable especially for a business that’s doing less than $10M in revenue.
📧 Company Email – Google Workspace (Gmail) (cost: $6 / user / month). Use gmail to set up your business email with your domain name.
🙏 Customer Support – Gmail (cost: $6 / month). Start the help@yourdomain email address alias which will forward to your business email, and use this email to handle all customer service inquiries. See our guide on Customer Support Tools for more info for the best tool as you scale.
✉️ Email Marketing – Klaviyo (cost: free up to 500 sends / month then $20 month for 5,000 monthly sends). See our guide on Email Marketing Platforms for more info.
⭐ Reviews – Judge.me (cost: free). Judge.me is great for brands just starting out. It’s cheap, easy to install, and has all the basic functionality you need. Its basic plan is free, and its more fully featured plan is only $15. Eventually we recommend switching to something more robust, but Judge.me is great for brands just starting out.See our guide on Review Platforms for more info.
💲 Paid Marketing – Facebook & Google Ads account (cost: varies). Don’t try to optimize five channels at once. Pick two and focus on them until you’ve scaled your brand beyond $10M. We recommend Facebook and Google Ads, but TikTok might be more appropriate for certain brands. Taking on too many channels at once will distract you and prevent you from truly scaling a channel. There is a temptation to believe that your brand will scale if you just launch another paid channel - avoid it. Focus is key!
🌱 Organic Marketing – Instagram (cost: free), Twitter (cost: free), TikTok (cost: free), Blog - Shopify (cost: free with plan). Go ahead and grab the Instagram, Twitter, and TikTok handles when you purchase your domain. You don’t need to post on all of these channels when you’re just starting out (we actually don't recommend it), but you will be happy to have the handles as you scale and want to use the channels. Tip for creating a new Twitter account with the same email as an existing account: add a period anywhere in your email address. Twitter will see this as a new email address, and you will still get the confirmation email because periods aren't recognized by most ESPs like Gmail.
🗂️ Task management – Notion (cost: free). Notion is a super powerful project management tool but task management at this stage (one person) is highly personal. Find the system that works for you and worry about a more robust system once you have more than five people at your company.
Ecommerce tools are software applications or platforms designed to facilitate online buying and selling processes. They help businesses create and manage online stores, process payments, handle inventory, track sales, and analyze customer data. These tools streamline the ecommerce workflow, enhance user experience, and boost efficiency for both merchants and customers. Examples include Shopify, WooCommerce, Magento, and BigCommerce.
Ecommerce tools are important because they provide essential functionality and features to run successful online businesses. They enable businesses to easily set up and manage their online stores, allowing them to reach a global audience and increase their market reach. These tools also simplify the payment process, making it convenient for customers to make purchases. Moreover, ecommerce tools offer valuable insights and data analytics, helping businesses understand customer behavior and preferences, leading to informed decision-making and improved customer experiences. Overall, they play a crucial role in optimizing operations, increasing sales, and staying competitive in the digital marketplace.
To start an ecommerce website, follow these steps:
Market Research: Identify your target audience, niche, and products. Conduct market research to understand your competitors and customer preferences.
Choose Products: Select the products you want to sell. Ensure they align with your target audience's needs and are suitable for ecommerce.
Create a Business Plan: Develop a comprehensive business plan outlining your goals, budget, marketing strategies, and operational details.
Choose an Ecommerce Platform: Select a suitable ecommerce platform like Shopify, WooCommerce, or BigCommerce. Consider factors like ease of use, features, scalability, and pricing.
Domain and Hosting: Choose a domain name that reflects your brand and is easy to remember. Set up web hosting to ensure your website is accessible online.
Design Your Website: Create an attractive and user-friendly website. Use high-quality images, clear product descriptions, and intuitive navigation.
Set Up Payment Gateways: Integrate secure and reliable payment gateways to process customer transactions smoothly.
Organize Product Inventory: Set up an efficient inventory management system to track product availability and restocking.
Implement Security Measures: Ensure your website has SSL certification and other security measures to protect customer data and build trust.
Launch Marketing Campaigns: Develop a marketing strategy to promote your ecommerce website. Utilize social media, email marketing, SEO, and other digital channels.
Test and Optimize: Thoroughly test your website for usability and functionality. Gather feedback from users and make necessary improvements.
Handle Legal and Compliance Issues: Address legal matters like business registration, taxes, and compliance with ecommerce regulations in your region.
Provide Customer Support: Set up customer support channels to address inquiries and resolve issues promptly.
Monitor Analytics: Track website traffic, sales, and customer behavior using analytics tools. Use this data to make data-driven decisions and optimize your website's performance.
Continuous Improvement: Stay updated with industry trends, customer preferences, and new technologies. Continuously improve your website and offerings to stay competitive.
Remember that starting an ecommerce website requires dedication, effort, and continuous attention. But with careful planning and execution, you can build a successful online business.
There are various types of eCommerce tools available to facilitate and enhance different aspects of online business operations. These tools can be used by businesses to manage their online stores, handle transactions, improve customer experience, and more. Some of the common types of eCommerce tools are:
eCommerce Platforms: These are comprehensive software solutions that allow you to set up and manage your online store. They offer features like product catalog management, shopping cart functionality, order processing, and website customization. Examples include Shopify, WooCommerce (WordPress plugin), BigCommerce, and Magento.
Payment Gateways: Payment gateways are tools that enable secure online transactions by processing credit/debit card payments, digital wallets, and other payment methods. They act as an intermediary between the customer, the merchant, and the financial institution. Popular payment gateways include PayPal, Stripe, Square, and Authorize.Net.
Inventory Management Software: These tools help businesses keep track of their stock levels, update product availability, and manage warehouses. They help prevent stockouts and overselling. Examples include TradeGecko, Orderhive, and Zoho Inventory.
Customer Relationship Management (CRM) Software: CRM tools assist in managing and organizing customer data, tracking interactions, and analyzing customer behavior to improve customer service and marketing efforts. Salesforce, HubSpot, and Zoho CRM are some well-known CRM solutions.
Analytics and Reporting Tools: These tools provide insights into customer behavior, website traffic, and sales performance. They help eCommerce businesses make data-driven decisions and optimize their strategies. Google Analytics and Kissmetrics are widely used for this purpose.
Marketing Automation Software: Marketing automation tools enable businesses to automate marketing tasks, such as email campaigns, social media posting, and customer segmentation. This saves time and increases the efficiency of marketing efforts. HubSpot, Mailchimp, and Klaviyo are popular choices.
Live Chat and Customer Support Software: These tools allow businesses to offer real-time support to customers on their websites, addressing queries and concerns promptly. Intercom and LiveChat are examples of live chat software.
Shipping and Fulfillment Solutions: Shipping tools help manage shipping logistics, print shipping labels, and track packages. They integrate with various carriers to provide accurate shipping rates. ShipStation and ShipBob are prominent examples.
Reviews and Ratings Platforms: Customer reviews and ratings play a crucial role in building trust and credibility. Tools like Trustpilot and Yotpo enable businesses to collect and showcase customer feedback.
Security and Fraud Prevention: Tools like SSL certificates, anti-fraud systems, and security plugins help protect customer data and prevent fraudulent transactions.
These are just a few examples of the many eCommerce tools available to businesses today. Choosing the right combination of tools depends on your specific business needs, scale, and budget.
The "best" ecommerce platform can vary depending on specific needs, business size, and preferences. Several popular ecommerce platforms offer a range of features and capabilities. Some of the top choices are:
Shopify: Known for its ease of use and scalability, Shopify is a widely popular ecommerce platform. It offers a user-friendly interface, a vast app ecosystem, and excellent customer support.
WooCommerce: If you prefer to use WordPress as your website's foundation, WooCommerce is an excellent choice. It's a flexible and customizable plugin that seamlessly integrates with WordPress to turn it into a full-fledged ecommerce store.
BigCommerce: This platform is known for its robust features and high scalability, making it suitable for fast-growing businesses. It offers a wide range of built-in tools and has a reputation for excellent performance.
Magento: Magento is a powerful and customizable open-source platform, ideal for large enterprises with complex requirements. While it requires more technical expertise, it provides unparalleled flexibility and scalability.
Wix eCommerce: Wix is a website builder with an ecommerce feature, making it suitable for small businesses or those who prefer an all-in-one solution. It offers ease of use and beautiful templates.
When choosing the best platform, consider factors such as your budget, technical expertise, desired level of customization, the scale of your business, and the specific features you need. It's recommended to try out free trials or demo versions of different platforms to see which one aligns best with your requirements.
Yes, you can build your own eCommerce website. With the advancement of technology and the availability of various user-friendly website builders and ecommerce platforms, creating an online store has become more accessible to individuals without extensive technical knowledge.
Receive email updates when we drop a new guide.
