Start an Online Shop in the UK

The short version

1. Check current domain evidence, Companies House exact matches, and the social handles in one sitting. Verify each independently before you commit.
2. Availability can change, so repeat the domain and company checks immediately before purchase or filing.
3. Keep sales records from the start. Check whether HMRC’s sole-trader registration conditions apply, or whether a limited company suits the business.
4. Check the compliance rules for your product category before buying stock.
5. Launch with a returns and cancellation policy that reflects the distance-selling rules and their product, service and digital-content exceptions.

What it costs to start

• Initial stockbuild a product-level budget including minimum order quantities
• E-commerce platformcheck current plan, payment and transaction fees
• Limited company registrationBudget at least £100 for digital incorporation
• Domain and launch websiteabout £160 total for the £149 Launch Site and a typical first-year domain
• Packaging, fulfilment and initial marketingquote these against the actual product and test size

Dropshipping and own-stock models shift costs rather than removing them. Include returns, payment fees, compliance, packaging and fulfilment in the unit economics before ordering stock.

Naming a online shop

• The name must survive being said in a video and typed from memory afterwards. Short, spellable, distinctive.
• Check marketplaces and social platforms at the same time as the domain. A taken handle is a consistency issue, not proof that the legal name or domain is unavailable.
• A .com can suit a broad audience; .co.uk can signal a UK focus, while .shop and .store make the category explicit. Test customer recognition before choosing.

NameGenie reports current domain evidence and an exact-match Companies House search for every generated name. Verify both independently before acting. Companies House makes the registration decision, and incorporation does not grant trade mark rights. Generate names for your online shop, then follow the start a business journey to register the domain, form the company, and get a website live within 7 days of OnPoint receiving your content.

The paperwork that matters

• Keep records from the first sale. Sole traders must register for Self Assessment when gross trading income exceeds £1,000 in a tax year, or when another HMRC registration condition applies.
• Businesses that make, import, distribute or sell consumer products are responsible for product safety. Sector-specific rules and Great Britain or Northern Ireland requirements can differ.
• Many distance sales carry a 14-day cancellation period, but timing differs and exceptions apply to some contracts, products, services and digital content. Build the policy from the current rules for what you sell.

Questions founders ask

Do I need to register a company to sell online in the UK?

You do not have to incorporate solely because you sell online. As a sole trader, you must register for Self Assessment when gross trading income is more than £1,000 in a tax year, or when another HMRC condition applies. A limited company has separate registration and filing duties; incorporation does not grant trade mark rights.

How much does it cost to start an online shop?

The product and stock model drive the total, so there is no reliable universal range. Price stock, platform, payment fees, packaging, returns and compliance separately. The current planning allowance for company, domain and launch site is roughly £408 combined; confirm every live price before purchase.

What makes a good online shop name?

Short, memorable, and pronounceable. Check current .com or .shop domain evidence, Companies House exact matches, and handles on the platforms you will market through. Verify each independently.