An online store sells products through marketplaces such as Shopee, Lazada and TikTok Shop, and often a Facebook page too. Most start at home, buying stock in bulk from local wholesalers and packing orders on one table. Platform fees, vouchers, ads and returns take a big share, so the money is made on products with room for them, careful costing per order and payouts checked against every order.

This guide walks through what it takes to start an online store in the Philippines: the capital, the monthly costs, the permits and the first 90 days. The peso figures are sample estimates for a home-based reseller in Cebu as of October 2026; get your own quotes before you decide.

How much capital you need

The sample comes to about ₱168,800 including one month of fixed costs kept as a cash buffer. It splits into equipment (₱33,200), stock and packaging (₱98,500), permits (₱4,200), launch (₱17,000) and working capital (₱15,900). Other ways to start: starter, small stock only at ₱20,000–₱50,000 and small brand with its own products at ₱300,000–₱600,000.

Monthly costs and break-even

Fixed costs in the sample are ₱15,900 a month; the biggest are part-time packer (₱7,800), internet (₱1,700) and bookkeeping and BIR filing help (₱1,500). Each order sold earns about ₱91 after its own costs, so the break-even is 5.9 orders a day, and the startup capital comes back by month 11 if sales start slow and build up.

Permits and registration

Register the business name with DTI (or SEC or CDA), then get the barangay business clearance, the Mayor's permit through the city or municipal BPLO, and BIR registration; register with SSS, PhilHealth and Pag-IBIG once you hire. An online store also needs: seller account verification, FDA-registered products only and product standards marks (ask). Requirements and fees differ by city, so ask each office for its checklist first. DTI Negosyo Centers help for free.

Where to set up

  • Near the courier drop-off points you use
  • In a city with next-day delivery to most buyers
  • Close to your wholesale suppliers
  • A home with a dry, safe room for stock

Mistakes to avoid

  • Fees and ads eat the margin. Cost every product after fees, vouchers and ads, and drop the ones that do not make money.
  • Returns and lost parcels. Pack well, photograph or video every parcel, and file claims within the platform's deadline.
  • Payouts that never arrive. Check every payout against its order each week, and follow up the overdue ones.
  • Price wars with other sellers. Compete on photos, reviews and fast shipping, and never sell below cost.

Plan it with the starter kit

The Online Store · Negosyo Starter Kit has every worksheet behind this guide in a 26-page PDF, plus an Excel calculator: type in your own quotes and it works out your capital, break-even, profit and payback month. It costs ₱349 and downloads right after payment.