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You don't need a large space for your store. Usually 50mb is enough. Most hosting now will support php. You can use some shopping cart written in php. Usually such hosting will cost less than $10/mo.
If your site is an informational site, you might need a hosting with bigger storage and band with. Nowadays hosting is not expensive. A good unlimited reseller account should cost you $25 or less.
The first thing you need to do is to find a product. To do this, you need to check the online market. Is the product you are looking for has a good market online? Some product might have a good market but people may not like to buy it online for some reason.
Can you sell to me at wholesale price?
Can you drop ship?
Can I marketing your products online?
Before you sep up your online store, one thing is proven to be good to check. You can put a few of the products on online auctions such as ebay. If you can sell on auctions, that means your product definite sells online. If you can not sell it, you may check the reason. Do the product sell for less? If that's the reason, you may need to calculate how much you can make for each item you sell.
The next step is check how the intense of the competition. To do that, you can search the keyword on google. A good keyword should come up with less than 1000,000 results. If the result is too much, that means the keyword is too competitive and it's hard to compete with so many good sites already there.
After you find some good keywords, you need to determine the products you like to sell. For the beginners, you might select one product to start. After you master the process of online stores, you can go for more products.
