Building an online store is the easy part. What determines whether it works is what you decide before building: how customers will find it, how you will get orders to them, and what happens when something goes wrong. Most stores that fail were built competently and then sat there, because nobody solved discovery or delivery.
Decide these four before choosing a platform.
Pick the platform for what you actually sell
Hosted platforms handle security, updates and payment integration for a monthly fee, which suits almost every small business. Self-hosted options offer more control and require someone to maintain them.
Choose on what it costs to run rather than to build, and check the transaction fees, because a percentage of every sale adds up faster than the subscription.
Payments and delivery are the real decisions
Offer the payment methods your customers actually use, including card, instant EFT and mobile options, and confirm any provider is authorised with the Financial Sector Conduct Authority.
Delivery decides your economics. Know what it costs to get one order to a customer, whether you charge it or absorb it, and how long it takes. Long or unpredictable delivery produces the complaints and chargebacks that close stores.
Write the terms before you need them
Returns, refunds, delivery timeframes and what happens when something arrives damaged. Electronic transactions carry cancellation rights, and consumer protection obligations on description and quality apply regardless of what your terms say.
Publish them plainly. Most disputes come from expectations that were never set rather than from genuine disagreement.
Plan discovery, and handle data properly
Decide how people will find the store before building it: search, an existing audience, a marketplace presence, or referrals. A store with no discovery plan is a project rather than a business.
Customer information you collect carries obligations under the Information Regulator, and trading as a business requires registration with the Companies and Intellectual Property Commission to take payments in the business name.
Frequently asked questions
What kind of platform should I use?
A hosted platform for almost every small business, since it handles security, updates and payment integration for a monthly fee.
What should I compare platforms on?
Running cost including transaction fees, which add up faster than the subscription.
What decides whether an online store works?
Discovery and delivery. Most failed stores were built competently and had no plan for either.
What must my terms cover?
Returns, refunds, delivery timeframes and damaged goods. Electronic transactions carry cancellation rights regardless of your terms.
What obligations come with customer data?
Data protection duties apply from the first customer, and you need business registration to take payments in the company’s name.
Further reading
Originally published in September 2018. Updated September 2026 into practical guidance on setting up an online store.
