How to Set Up WooCommerce in 2026: A Step-by-Step Guide

Why WooCommerce Remains the Go-To E-Commerce Platform

WooCommerce powers over 4.4 million online stores globally, accounting for nearly 36% of all e-commerce websites. Its popularity stems from a combination of flexibility, cost-effectiveness, and the enormous WordPress ecosystem it builds upon. Unlike hosted platforms that lock you into their infrastructure, WooCommerce gives you complete ownership of your store, data, and customer relationships.

Setting up WooCommerce correctly from the beginning saves you countless hours of troubleshooting later. A well-configured store loads faster, converts better, and is easier to maintain. This guide walks you through every stage of the setup process, from initial installation to your launch-day checklist, with practical recommendations based on real-world store configurations.

Prerequisites and Requirements

Before installing WooCommerce, ensure your hosting environment meets these minimum requirements for a stable and performant store:

• PHP: Version 8.1 or higher (8.2+ recommended for performance)
• MySQL: Version 8.0 or higher, or MariaDB 10.4+
• WordPress: Version 6.4 or higher
• Memory: 256MB PHP memory limit minimum (512MB recommended for larger catalogs)
• SSL certificate: Required for accepting payments (Let's Encrypt is free)
• HTTPS: Your entire site must run on HTTPS

For hosting, choose a provider that specializes in WordPress or WooCommerce hosting. Managed WordPress hosts like Cloudways, SiteGround, or Kinsta offer WooCommerce-optimized server stacks with automatic caching, staging environments, and daily backups. Read our WordPress Hosting Guide for detailed provider comparisons.

Installation and Initial Setup

Installing WooCommerce

Navigate to Plugins → Add New in your WordPress dashboard, search for "WooCommerce," and click Install. After activation, WooCommerce launches its Setup Wizard, which walks you through the basic configuration. While you can skip the wizard and configure everything manually, it provides a convenient starting point for essential settings.

Setup Wizard Walkthrough

1. Store Details: Enter your store address, industry, and product types (physical, digital, or both)
2. Industry: Select your business category for tailored recommendations
3. Product Types: Choose whether you sell physical goods, downloads, subscriptions, or a mix
4. Business Details: Indicate your current store size and whether you sell elsewhere
5. Theme: Select a WooCommerce-compatible theme (more on this below)
6. Enhance: Optional extensions — skip these for now and add them strategically later

Configuring General Settings

After the wizard completes, navigate to WooCommerce → Settings to fine-tune your store configuration. The General tab contains your fundamental store settings.

Key General Settings

• Store Address: Determines default tax rates and shipping calculations
• Selling Locations: Choose to sell to all countries, specific countries, or all except certain countries
• Shipping Locations: Define where you ship products to
• Default Customer Location: Set to "Geolocate" for accurate tax calculations
• Currency: Set your primary currency. For multi-currency, you will need a plugin like WPML Currency Switcher or Currency Switcher for WooCommerce
• Currency Position: Before or after the amount, with or without space

Setting Up Products

WooCommerce supports four product types, each serving different business needs. Understanding these types helps you structure your catalog effectively.

Creating a Product

Navigate to Products → Add New. The product editor includes these essential sections:

• Product name and description: Your main content area. Write compelling, keyword-rich descriptions that address customer questions
• Product Data box: Contains pricing, inventory, shipping dimensions, linked products, and attributes
• Short description: Appears next to the product image. Keep it concise (2-3 sentences) and focused on the key selling proposition
• Product image: Your main product photo. Use high-quality images with consistent aspect ratios (recommend 800x800px minimum)
• Product gallery: Additional images showing different angles, details, or the product in use
• Product categories and tags: Organize products for navigation and SEO

Variable Product Setup

Variable products are the most complex to configure but essential for stores selling products with options. The process involves creating attributes (like Size and Color), defining variations for each combination, and setting per-variation pricing and inventory. A product with 3 sizes and 4 colors creates 12 variations, each with its own SKU, price, and stock level. Use the "Create variations from all attributes" button to generate all combinations automatically, then edit each variation as needed.

Payment Gateway Configuration

Payment gateways are the mechanism through which your store collects money. WooCommerce supports multiple simultaneous gateways, allowing customers to choose their preferred payment method. Navigate to WooCommerce → Settings → Payments to configure them.

Recommended Payment Setup

• Stripe: Credit/debit cards, Apple Pay, Google Pay. Supports 135+ currencies. Transaction fees: 2.9% + $0.30
• PayPal: Adds buyer confidence through a familiar payment brand. Essential for international customers
• Bank Transfer: Direct bank deposits for B2B or high-value orders where card fees are significant
• Cash on Delivery: Required in some markets. Enable only where your delivery service supports collection

For comprehensive payment gateway setup instructions, including testing procedures and troubleshooting, see our WooCommerce Payment Gateways Guide.

Shipping Configuration

Shipping configuration in WooCommerce uses a zone-based system. You define geographic zones, then assign shipping methods and rates to each zone. Navigate to WooCommerce → Settings → Shipping.

Setting Up Shipping Zones

1. Create zones based on your shipping regions (e.g., Domestic, Europe, Worldwide)
2. Add shipping methods to each zone: Flat Rate, Free Shipping, or Local Pickup
3. Configure rates for each method. Flat rate can be a fixed amount, percentage, or calculated per item
4. Set a "Rest of the World" zone for countries not covered by specific zones

Free Shipping Strategy

Free shipping increases average order value when implemented strategically. Set a minimum order threshold (e.g., free shipping on orders over $75) that is above your current average order value. This encourages customers to add more items to their cart. Display the free shipping threshold prominently on product pages and in the cart.

For advanced shipping scenarios including table rate shipping, conditional shipping rules, and carrier-calculated rates, refer to our WooCommerce Shipping Guide.

Tax Configuration

Navigate to WooCommerce → Settings → Tax to configure tax calculations. Enable taxes by checking "Enable tax rates and calculations" on the General tab first.

Tax Settings

• Prices entered with tax: Choose whether your product prices include or exclude tax. B2C stores typically include tax; B2B stores typically exclude it
• Calculate tax based on: Customer shipping address (most common), billing address, or store base address
• Display prices in shop: Including or excluding tax
• Display prices during cart and checkout: Match your shop display for consistency

For US-based stores, tax calculation can be complex due to varying state and local rates. Use a service like WooCommerce Tax (free) or TaxJar to automate rate lookups and calculations based on customer addresses.

Email Configuration

WooCommerce sends transactional emails for order confirmations, shipping notifications, and account management. Navigate to WooCommerce → Settings → Emails to customize these templates.

• Customize the sender name and email address to match your brand
• Add your logo to the email header
• Set your brand colors for the email template
• Review and customize the content of each email type
• Send test emails to verify delivery and appearance

Use a dedicated SMTP plugin (WP Mail SMTP or FluentSMTP) with a transactional email service like SendGrid, Postmark, or Amazon SES to ensure reliable email delivery. The default WordPress mail function (wp_mail) frequently lands in spam folders.

Choosing the Right Theme

Your theme controls the visual appearance and shopping experience of your store. A WooCommerce-optimized theme includes proper product grid layouts, single product page designs, cart and checkout styling, and account page templates.

For a deeper comparison of WooCommerce-compatible themes with conversion data and performance benchmarks, visit our WooCommerce Themes guide.

Recommended Extensions by Category

WooCommerce's extensibility is one of its core strengths. Here are the extensions worth considering for a well-rounded store.

Checkout Optimization

Your checkout page is where revenue is won or lost. The average cart abandonment rate exceeds 69%, with complex or lengthy checkout processes being a primary cause. Key optimization strategies include:

• Reduce form fields: Only ask for information you genuinely need. Remove company name, phone number, or order notes if optional
• Enable guest checkout: Requiring account creation adds friction. Let customers check out as guests and offer account creation after purchase
• Display trust signals: Show security badges, money-back guarantees, and payment logos near the checkout button
• Offer multiple payment methods: Support cards, digital wallets, and buy-now-pay-later options
• Show order summary: Let customers review their items, quantities, and totals without leaving the checkout page

For a comprehensive guide to checkout conversion optimization, read our WooCommerce Checkout Optimization article.

WooCommerce Setup Checklist

Before launching your store, run through this comprehensive checklist to ensure nothing has been missed.