Last updated: May 2026.
Starting an online store in the UK has never been more accessible. This step-by-step guide covers everything from choosing a platform to taking your first payment.
Step 1: Choose your platform
The two most popular options for UK small businesses are:
- Shopify — fully hosted, no technical setup required. Best for most businesses. Plans from approximately £22/month.
- WooCommerce — free plugin for WordPress, but you manage your own hosting. More flexible, lower ongoing cost if you use managed cloud hosting like Cloudways (from approximately £10/month).
For most people starting out, Shopify is the right choice. It handles security, updates, and hosting automatically. See our Shopify vs WooCommerce comparison for a detailed breakdown.
Step 2: Register your business and domain
- Business structure — most solo sellers start as a sole trader. Register with HMRC for Self Assessment if you have not already.
- Domain name — a .co.uk domain costs around £8-£12/year. Shopify includes a free subdomain but a custom domain looks more professional.
- Business bank account — required for Shopify Payments. Tide, Monzo Business, and Starling are popular free options for UK small businesses.
Step 3: Set up your store
On Shopify, the setup wizard walks you through choosing a theme, adding your logo, creating product listings, configuring UK shipping rates, and enabling Shopify Payments for UK card processing. The Dawn theme is the best free option in 2026.
Step 4: Handle UK legal requirements
- A privacy policy (UK GDPR compliant)
- Clear returns and refunds policy — UK consumers have 14 days to return goods bought online under the Consumer Contracts Regulations
- VAT registration if your turnover exceeds £90,000/year
- Accurate product descriptions in line with Trading Standards
Step 5: Drive your first traffic
- SEO — use a keyword research tool like Mangools KWFinder to find what your customers search for and optimise your product pages accordingly
- Email your existing contacts — the cheapest marketing channel by far
- Google Shopping — Shopify integrates directly; even a small budget drives targeted traffic
What does it cost to start a UK online store?
Realistic first-year costs on Shopify Basic: Shopify plan approximately £264/year, domain approximately £10/year, apps (email marketing, reviews) approximately £200-£400/year. Total approximately £500-£700 before stock costs.