How To Set Up Your Own E-Commerce Site

Have you ever wanted to set up your own e-commerce site? It can be a rewarding experience, but can seem a bit intimidating as well. Thankfully, it's not really as difficult as it seems. It's a matter of knowing what you want to sell, getting some paperwork filed, and getting to work on the technical stuff.

First of all, take some time and think of what you want to sell. Do you have handcrafted items of your own, or will you need to find a wholesale source? If selling items you don't produce yourself, you'll want to make sure it's a product you're quite knowledgeable about. Otherwise, your store will be a hard sell. There are different options available depending on whether you're selling your own goods or selling products produced by other companies. More on this will follow.

You'll need to think of an original, attention-catching name for your business. It should be unique enough to attract attention, but should clearly tell others what your company is about. Next, you'll need to decide how to structure your business. If it's just you, you'll probably want to set up a sole proprietorship. If you want to go into business with family members or friends, but don't have a lot to put into incorporation, consider a general or limited partnership. Setting up a corporation can have its benefits because the company is a distinct entity from its owners, but this is expensive.

At the very least, you'll need a DBA (Assumed Name Certificate or Doing Business As) filed with your county clerk, a sales tax exemption certificate if your state collects sales tax, and an EIN (Employer Identification Number) from the Internal Revenue Service (unless you're a sole proprietor). Filing fees for a DBA are generally pretty low, often around $25 . This will allow you to open up a separate bank account under your business name, as most banks won't permit checks made out to a business to be deposited in a personal account. While I'm not sure about other states, the sales tax certificate in Texas is free and can be applied for online. Sales tax returns will typically have to be filed on a quarterly basis. Your state treasurer or comptroller's office can advise you of the filing due dates. An existing EIN may be required to obtain a sales tax certificate. You'll use your EIN to report your federal income taxes from your business.

Once you've gotten your paperwork filed, you'll want to get to work on finding suppliers if you don't produce your own products. A wealth of suppliers willing to sell wholesale can be found online. Some will have minimum order amounts, so keep this in mind. If you don't have the money to invest in a large wholesale order, you may be able to make other arrangements with the owner. Many suppliers are willing to negotiate with start-ups. If you don't have money to invest in minimum orders and aren't able to make other arrangements, consider starting out as an affiliate.

How does an affiliate program work? Typically, you'll be able to sign up for free, be given special links to add to your website, and receive a commission every time someone places an order through your link. Sites that offer affiliate programs usually pay on a monthly basis. You might have to already have a website to become an affiliate with some companies, so we'll move on to this next.

Do you need a free site or a paid site? You can sometimes sell products on a free site, but usually design options and features are limited. If a free host's terms of service allow it and some sort of site builder is included, this can be a good option while starting up. Keep in mind that free site URL's don't stand out as much as top-level domains (TDL's) on paid sites. Domains can be registered for low yearly rates and redirected to your free site.

Paid hosting is usually the best option. Monthly plans are often under $10/month, and many companies allow you to pay for a year in advance with a small discount being applied. Most paid hosting plans come with free software well-suited to building an e-commerce site. This eliminates the need to pay a professional for services, which can be expensive. If you don't know how to insert meta tags, be sure to select a program that will generate these for you.

Once your new site is "live", you'll want to submit it to as many search engines and directories as possible. A search engine is the way that most customers will find you. Avoid free-for-all links pages and online classifieds, as these are mostly ineffective. Forums and mail lists are good places to have signatures that direct people to your site. However, be sure you're following the rules if you do this.

Best of luck to you as you enter the enticing world of e-commerce!