How to create an online store for free (and what it really costs
Do you want to start selling online without a large budget? You can, and you can do it without paying a monthly fee. But “free” comes with limits, and it helps to know what they are before you build.
This guide explains what free really means for an online store, which platforms let you sell for free (and which only look free), what you’ll still pay for, and how to launch on a budget. Already running a physical store? Our guide to taking your brick-and-mortar store online covers the extra decisions that come with an existing retail business.
Let’s dive in.
What does “free” mean for an online store?
When a platform advertises a free store, it usually means one of three things:
- A free plan. You pay no monthly fee, but the plan limits things like the number of products, features, or how you take payments.
- A free trial. You can build and test your store for a set period, then you pay to keep it.
- Free software. Open-source tools cost nothing to download, but you pay for hosting, a domain, and sometimes extensions.
Even on a free plan, selling online has costs that don’t depend on the platform. Knowing them up front keeps the surprises small.
What you need to know before creating an online store
Understanding the nuances of ecommerce is crucial before starting an online business. Research the parts of running a product-based business that no free plan covers: payment processing fees, shipping costs, and taxes.
Payment processing fees. Most platforms and payment processors charge a percentage of each sale, often plus a small fixed fee. At a typical US card rate of 2.9% plus 30 cents, a $50 order costs about $1.75 to process. The rate varies by platform and processor.
Shipping costs. These vary greatly with the size, weight, and destination of your orders. Understand the shipping rates and delivery times for your chosen carrier, because they shape the customer experience.
Taxes. Taxes can be complex in ecommerce. You may need to collect and remit sales tax, depending on where you are and who your customers are. Researching and complying with tax regulations now can save you legal trouble later.
Most sellers also pay for a domain name (so your store has its own web address), product photography, and some marketing.
Platforms for starting a store for free or close to it
Here’s how the popular options compare. Prices are in US dollars as of October 2026, and plans change often, so confirm details on each platform before you sign up. For a fuller comparison, see our guide to ecommerce platforms.
| Platform | What’s free | The catch |
|---|---|---|
| Square Online | A free plan that lets you sell online | Transaction fees on each sale (2.9% plus 30 cents on US card payments), and paid plans add more features |
| Big Cartel | A free plan, geared toward artists and makers | Limited to 5 products. Paid plans add more products and features |
| Ecwid | A free plan that adds a store to a site you already have | Limited to 5 products on the free plan |
| Shopify | A short free trial | No free plan. After the trial, the Starter plan costs $5 per month, and full online store plans start at $39 per month ($29 with annual billing) |
| Squarespace | A 14-day free trial | No free plan. Paid plans run from roughly $16 per month with annual billing |
| Wix | A free plan for building a site | The free plan can’t take payments. Selling starts at $29 per month on the Core plan, billed yearly |
| WooCommerce | Free, open-source software for WordPress | You pay for hosting and a domain, and some extensions cost extra |
The platforms that let you sell on a free plan are genuinely free to start, but they have limits. Free plans usually cap products or charge a fee on every sale, and some leave out features like a custom domain.
The others are better described as low-cost. A free trial or a $5 plan is a fair way to test an idea, as long as you know the real price once you start selling.
How to launch your store on a budget
- Choose a platform and plan. Match the platform to your product count, your budget, and whether you want to sell only on your own site or elsewhere too.
- Add your products. Use clear photos from several angles, accurate descriptions, and prices.
- Set up payments. Register with the payment providers your platform supports, such as PayPal, Stripe, or Square.
- Set up shipping and tax. Enter your shipping rates and check your sales tax obligations.
- Write your policies. Publish clear shipping, returns, and exchange policies, and make your contact details easy to find.
- Test the checkout. Place a test order on desktop and mobile before you launch.
- Launch and promote. Share your store on social media, send email campaigns to existing contacts, and consider paid ads once you know what converts.
What to remember when setting up your online store
It’s easy to get bogged down in the details of running an ecommerce business. Here are the fundamentals to remember as you start (and grow) your business.
Keep the user experience central
A user-friendly website with accurate product descriptions, photos, and prices helps attract customers and boost sales. To help shoppers find what they’re searching for, add a search bar or organize your products into categories.
High-quality product photos from various angles help buyers make informed purchase decisions. Update your site often with new products, special offers, and sales, and make sure it works well on mobile devices.
Periodically, go through the entire shopping and checkout process as a customer would. Ask yourself:
- What’s frustrating or unintuitive?
- How can I make the process smoother?
- Are there any unnecessary friction points I can remove to encourage more sales?
- Is the checkout process intuitive on all devices?
Provide great customer service
One of the best things about starting a new business is that you have the bandwidth to treat every customer like they’re your only customer. This is a luxury even large ecommerce brands don’t enjoy.
Good customer service means clear policies on shipping, returns, and exchanges, and timely responses to customer inquiries. Going above and beyond is the best way to increase customer lifetime value and potentially turn customers into ambassadors for your brand.
One surefire way to frustrate customers is to obscure your contact info or make yourself hard to reach. Clearly post your phone number or email address on your website.
Plan your inventory management early
One of the most important parts of building a successful ecommerce brand is starting off with a solid approach to inventory management.
Many business owners shrug this off as a “nice-to-have,” likely because it’s behind the scenes and not a felt need in the early stages of an ecommerce store. But once you start growing, you’ll likely add more SKUs. More SKUs mean more storage needs, barcoding, label printing, and warehouse space. Then you’re looking at hiring employees.
By that point, you’ll be glad you built your business on a strong inventory management foundation.
When free stops being enough
Free and low-cost plans are designed to grow with you, but they do have limits. Common signs it’s time to move up:
- You’ve outgrown the product limit on your free plan
- Transaction fees are eating into your margins
- You need features the plan leaves out, such as a custom domain or better reporting
- You want to sell on marketplaces as well as your own site, and keeping stock in sync is becoming manual work
At that point, you can justify the investment in a higher tier or a more capable platform. Starting small makes it possible to build a business with little upfront spend, and the upgrade path is part of the plan.
Professional product photos and branding visuals also go a long way. If you’re not a designer or photographer, consider hiring a professional (or two). Most of what shoppers see on an ecommerce site is images, and professional images can be the difference between looking trustworthy and looking amateur.
FAQs about starting a free online store
Can you really start an online store for free?
Yes, with limits. A few platforms offer free plans that let you sell, and others offer free trials or free software. You’ll still pay payment processing fees on each sale, and most sellers pay for a domain, shipping, and marketing.
How much does it cost to start an online store?
It depends on the platform and what you sell. At a minimum, expect payment processing fees on every sale. Most sellers also pay for a domain name, shipping supplies, and product photography, and many move to a paid plan within months.
What are the steps needed to start selling online?
Choose an ecommerce platform, a domain name, and a web hosting provider if your platform doesn’t include hosting. Create product pages, register with payment providers, customize your checkout process, and market your store. Be natural and inject personality into your store while staying professional.
What is the best ecommerce platform for creating an online store?
The best platform depends on your needs and budget. Square Online, Big Cartel, and Ecwid offer free plans, while Shopify, Squarespace, Wix, and BigCommerce are paid options with trials or low-cost starting plans. See the comparison table above.
What kind of domain name should I choose for my store?
The best domain name depends on your business and brand, but aim to make it short and memorable. You can also use keywords related to what you’re selling so customers can quickly find your store.
What web hosting provider should I use for my store?
If your platform hosts your store for you, you don’t need a separate provider. If you use open-source software like WooCommerce, you will. Choose based on your anticipated traffic and desired loading speeds, and look for strong security, reliable uptime, and responsive customer support. Read reviews of providers such as Bluehost, SiteGround, and DreamHost before you decide.
How do I set up product pages for my online store?
Most ecommerce platforms have tools that make it easy to add and manage products. Customers need descriptions, images, and other details to make informed purchase decisions, so provide everything they need on each page.
What payment providers should I use for my online store?
Payment providers such as PayPal, Stripe, and Square are popular options. You’ll need to register with each provider you plan to use and connect it to your store.
How can I customize how my checkout process works?
Most ecommerce platforms let you customize checkout. This includes adding extra steps or custom fields, letting customers save payment information for future purchases, and setting up automated emails after a purchase is complete.
What strategies should I use to market my online business?
Promoting your store involves a combination of strategies. Creating unique content and sharing it on your site and social media is a popular option. Email campaigns to existing customers can be effective, and paid ad platforms like Google Ads and Facebook Ads are also worth considering. Keep your target customers in mind when choosing, so you can tailor your efforts to their preferences and behaviors.
What other tips should I know?
Beyond choosing a platform and setting up product pages, consider customer service, shipping options, website security, and local laws. Establish procedures for handling inquiries and resolving issues quickly, give accurate shipping estimates, and use SSL encryption and other security measures to protect customers. Comply with the laws of the regions where you sell, which may involve additional steps.
Conclusion
Starting an ecommerce business doesn’t have to be complex, and you can begin with little or no upfront cost. Choose a platform that fits your product count and budget, read the fine print on what “free” includes, and plan for the costs that no plan removes.
Focus on creating a user-friendly, professional website and providing excellent customer service to earn customer trust.
Once your storefront is set up, it’s time to develop your inventory management strategy. Learn how Linnworks helps ecommerce business owners manage inventory across every channel they sell on.