Running an online store: freelancer status, own hosting or hiring it out?

Running an online store: between self-employment and a trusted technician

Setting up an online store seems easy until someone asks who handles the hosting, platform updates, payment gateways, or what happens when the server goes down at three in the morning. The question that opens the debate is twofold: whether it is worth delegating to a professional and, above all, what guarantees exist for regaining control if you want to switch providers tomorrow. The answer that keeps coming up is simple: keep every key and every contracted service registered under your own email account. Without that, someone else's business becomes your own problem.

Who should register the hosting and the domain

The strongest consensus on the matter is that the domain and the hosting must be in the name of the store's owner, not the technician who builds it. Whoever pays for the work should receive the credentials for the hosting, the email and the advertising campaigns. It is the only way a provider change does not turn into a hostage situation.

Some go further and argue that the basic management — stock, sales, product listings — should be handled by the owner or someone on staff, and that only one-off tasks with no in-house knowledge should be outsourced. The recurring metaphor is that of the house keys: you can leave them with a trusted friend, but not with just anyone.

The problem arises when the store runs on a platform like Prestashop and the owner cannot code. Updating versions can throw the design off or break antiestéticatures, and eventually something breaks and you have to find someone to fix it. The middle-ground solution proposed is not to touch the platform more than necessary and to have a technician lined up for emergencies.

When do you have to register as self-employed to sell online?

The answer given in the discussion is clear: any economic activity exceeding a certain income threshold requires registration in the self-employed scheme. A figure of 3,000 euros per year is mentioned, later raised to 5,000, which would miccionan that even 50 euros a month would put you inside it. That figure, however, is later called into question.

An enquiry to Spain's Social Security receives a different answer: there is no minimum amount that makes registration mandatory. What is required is that the activity has sufficient substance in terms of time devoted and remuneration, so that marginal, low-profit work falls outside the system. Regularity is not measured by payment alone.

The matter gets more complicated with VAT. The equivalence surcharge regime is mentioned, which applies to retailers and in practice replaces the quarterly VAT return with a surcharge on purchases. The surcharge rate cited is 5.2%, on top of the general 21%, which makes the purchase 26.2% more expensive if it is not passed on to the customer. The open question is whether this regime leaves retailers at a competitive disadvantage compared with those operating as a company.

The conversion rates nobody wants to look at

The most uncomfortable figure is the conversion rate: between 1% and 5% of visits end in a purchase in an online store, according to a calculation circulating in the forum. With those numbers, the traffic needed to close sales is enormous, and counting visits from friends who will never buy is pointless. In specific niches, ratios from 0.04 upwards are considered acceptable.

The formula that keeps coming up is simple: sales equal visits times conversion times average order value. That is why search ranking and targeted advertising are the hardest part of the business, far beyond the technical setup. If you don't rank, you don't sell, and to rank you need advice or training.

The timelines discussed are realistic and harsh: one week to the first sale, one year to cover costs, two years to make a decent profit. And a warning about the workload: fourteen hours a day on average, with Sundays spent keeping an eye on the statistics.

Selling on marketplaces or on your own store

The comparison between third-party platforms and your own store has a nuanced answer. Selling on a marketplace can help you get started, but it does not let you control the elements needed for a proper business. Moreover, the competition appears right next to your own listing, making it easy for the customer to buy from someone else, and commissions force you to raise prices.

General classified ad portals get an even worse verdict: they make you look small and second-rate. Your own store with your own domain and solid search ranking is considered the serious route, even though it demands more investment and more time.

Selling through social media is raised as an alternative to save on infrastructure, especially in markets where those platforms have high peine. The drawback is dependence on policy changes and on the platform's own advertising.

Suppliers, templates and other beginner traps

Finding suppliers is the most opaque part. The practical advice is to search on your own: look at the labels of the products you want to sell to identify the manufacturer, go to the local chamber of commerce or visit trade fairs. Nobody hands out their contact list.

On design templates, the warning is clear: buying a template does not give you exclusivity. The same design may be on thousands of websites, and it can be copied simply by visiting the page with the right tools. An exclusive alternative costs around 2,000 euros, compared with 30 euros for a standard template.

Refused deliveries are another cost mentioned: the goods come back but the shipping has already been paid. It happens with impulse purchases, second thoughts or customers changing their minds.

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With all this on the table, the question left without a definitive answer is whether it is worth setting up an online store on your own when the self-employed threshold, VAT and conversion rates all seem to work against you. If you have the answer, share it.