There’s a lot to consider when setting up an online store. This page is designed to help you understand your options so you can choose the eCommerce approach that best fits your business.
Questions to Ask Before You Begin
- Are you selling physical products, digital downloads, or memberships/subscriptions?
- Do you expect a few products or a large catalog?
- Will you need advanced product variations (sizes, colors, custom fields)?
- Do you plan to offer coupons, wholesale pricing, or international shipping?
- What payment methods will you accept—PayPal, credit cards via merchant account, or both?
- How hands-on do you want to be with managing hosting, security, and updates?
PayPal Carts & Integration
PayPal remains a popular entry-level solution because it’s simple to set up, secure, and widely recognized by customers. It handles credit card processing, provides SSL encryption, and transfers funds directly to your bank.
Current Costs: For most small businesses, PayPal’s standard rate is around 2.9% + $0.30 per transaction (U.S. rates; may vary by country).
You can:
- Add simple “Buy Now” or “Donate” buttons to your site.
- Create a basic cart for multiple items.
- Use PayPal’s API to offer a seamless checkout without redirecting to PayPal’s site.
Tip: Many small businesses start with PayPal and later add another payment gateway if volume increases.
Merchant Accounts
Merchant accounts allow you to process credit cards directly without a third-party service like PayPal handling the transaction. They can be ideal for larger stores or high-volume sales, but often involve:
- Monthly fees and per-transaction costs.
- Setup fees and contract terms.
- Integration with a payment gateway (e.g., Authorize.net, Stripe).
You’ll also need an SSL certificate and hosting that supports secure transactions. While modern shared hosting often includes SSL and dedicated IPs at no extra cost, the total monthly expense for merchant accounts usually makes sense only for businesses with steady, higher revenue.
Self-Hosted eCommerce
Running your own store on your own hosting offers maximum control. A popular approach is a WordPress site with WooCommerce, which:
- Integrates seamlessly with WordPress.
- Supports both physical and digital products.
- Has thousands of extensions for payment gateways, shipping, and marketing.
Considerations: You’ll be responsible for hosting, updates, backups, and security. Costs include your domain, hosting, SSL, and any premium themes or plugins you choose.
Hosted eCommerce
Hosted platforms are an all-in-one service—ideal if you want to start selling quickly with minimal technical work. They include hosting, security, and store management tools.
Popular examples:
Typical features:
- Free SSL and security monitoring.
- Multiple payment gateways.
- Mobile-optimized templates.
- Inventory management, shipping calculators, tax tools.
- Marketing features such as email integration, discount codes, and abandoned-cart recovery.
Some also integrate directly with social media (e.g., selling on Facebook or Instagram).
Quick Comparison Table
| Option | Best For | Pros | Cons |
|---|---|---|---|
| PayPal | Small shops, quick setup, low upfront cost | Easy to add, trusted brand, no monthly fee | Redirected checkout (unless using API), limited customization |
| Merchant Account | High-volume sales, established businesses | Direct processing, more control over checkout | Monthly costs, setup fees, more complex to manage |
| Self-Hosted (WooCommerce) | Businesses wanting full control & customization | Highly customizable, scalable, one-time software costs | Requires hosting, security, and maintenance |
| Hosted Platform | Those wanting a quick, all-in-one solution | No hosting to manage, built-in security, fast setup | Monthly fees, less design flexibility than self-hosted |
Final Thoughts: Choosing between PayPal-only, a merchant account, self-hosted, or hosted eCommerce depends on your budget, technical comfort level, and long-term business goals. Start simple if you’re testing the market; scale up when sales volume justifies it.