Ecommerce for Nonprofits: How Nonprofits Can Use Ecommerce to their Benefit

Did you know the e-commerce sales in the United States are projected to reach $1.34 trillion in 2025?

In a time when regular sources of funding are more important than ever for nonprofits, having a way to sell your branded merchandise, fundraising event tickets, and educational materials online isn't just a good way to expand your brand. It can provide your NPO with valuable sustainable revenue while building a sense of community and attracting new donors.

Plus, nonprofit ecommerce stores allow you to integrate donation prompts into your website in the form of "Donate" buttons at checkout. This provides you with a great way to fundraise online and generate another reliable income stream beyond grants and regular individual donations. Rather than be dependent on the next grant cycle, you can start planning your next series of programs, funded by a regular source of revenue.  

But just how does ecommerce relate to NPOs? In this article, we'll take a closer look at the fundamentals of a nonprofit ecommerce store and how to enjoy its benefits. We'll then take you step-by-step into the process of designing your own store and offering products and payment options that attract customers. From there, we'll provide examples of the best nonprofit ecommerce platforms, emerging trends to look out for, and how to overcome the challenges that come with managing an online store.

To further motivate you to try this innovative fundraising strategy, we've included a series of success stories that show how nonprofits really can thrive in the ecommerce industry with the right tools and support network. Ready to learn more about ecommerce for nonprofits? Read on!

What Is Ecommerce for NPOs? Definitions and Fundamentals

While you may already have donation sites that allow your supporters to fund your mission, an ecommerce store for nonprofits is an online platform specifically designed to sell goods and services to fund your mission. As such, this online store represents a unique and separate revenue-generating strategy.

Just what type of ecommerce store suits your nonprofit's needs the best depends greatly on what you want to sell. Popular online shop types include:

• Merchandise stores that focus on selling branded merchandise -- often using Print on Demand (POD) to save you from inventory risk.
• Event ticketing platforms that manage ticketing, event registration, and associated sales
• Membership/subscription platforms that focus on member management and request recurring donations -- while also providing extensions to ecommerce options

Nonprofits can typically make money from items sold through their ecommerce stores as long as the items or services they sell are mission-related. For instance, many museums make money by selling branded merchandise while using the profits to support museum activities. Likewise, event ticketing platforms can sell tickets to fundraising events for the nonprofit.  

In certain cases, nonprofit ecommerce stores do not have to charge customers sales tax on the items they sell. However, since different states and local governments set sales tax rules, your federal 501(c)(3) status does not guarantee that you can be exempt from charging sales tax on all your items. Nonprofits running ecommerce stores also need to consider the Unrelated Business Income Tax (UBIT), a federal tax on net income the nonprofit earns from business activity not related to its main mission. 

For instance, if you sell branded or donated merchandise, you could be exempt from being taxed on those items. However, if you decide to sell general merchandise (like generic electronics) through your ecommerce store, you would have to file a Form 990-T and pay taxes on any sales unrelated to your mission to maintain your 501(c)(3) status. 

Managing an online store requires nonprofits to follow certain cybersecurity guidelines. For instance, ecommerce stores must meet the standards set by the Payment Card Industry and be PCI compliant. This includes securing donor data with firewalls, password protection, encryption software, and other security measures. You'll also want to use PCI-compliant processors (Stripe, PayPal) to handle credit card processing and storage (while never storing full card numbers yourself).

Train staff and volunteers to spot scams, like phishing, which can steal customer data and limit access to donor data to only those staff members who truly need to monitor this. Security risks can change over time, so make sure to update your antivirus software and stay aware of new cybersecurity threats.  

Ecommerce Types for Nonprofits

Type                                       Use Case                                                         Example

Merchandise Store                Sell branded items to raise mission funds     UNICEF Market

Event ticketing platform         Sell tickets and manage attendees                Eventbrite

Membership platform            Manage members and request donations     Donorbox

Benefits of Implementing Ecommerce for Nonprofit Organizations

Establishing an ecommerce store for your nonprofit offers multiple financial, brand-building, and donor engagement benefits. NPOs that invest in ecommerce have the ability to:

Diversify revenue

As stated, NPOs need ways of generating multiple streams of income in case normal fundraising strategies, like applying for grants or requesting individual donations, doesn't generate sufficient funding for programs. Having an ecommerce store allows nonprofits to regularly earn income by selling branded products and other items.

Encourage donor retention

Your ecommerce store can help engage donors by offering personalized communication and invitations to become more involved with your nonprofit. For instance, by using donor data on purchasing history and interests, you can send personalized emails thanking them for their contributions and informing them of any upcoming sales or items they might be interested in based on their past purchases.

Your emails can also include reports that show how the money they contributed to your cause (through donations or actual purchases) is funding your programs and impacting the community. Once donors become more aware of how their purchases help make a difference, they're more likely to return to your store.

Finally, you can offer shoppers exclusive access to store sales or special rewards for their continued patronage. Use this as an opportunity to talk to them about becoming a recurring donor and providing your NPO with more regular funding.

Increase visibility and reach

Your ecommerce store will be available to online buyers 24/7, even when your regular fundraising and event teams are inactive. Not only is this an excellent way to generate revenue, it puts your brand out in the open and helps new online visitors learn about your nonprofit and its mission. With the internet providing you with a global reach, having an online store could potentially put you in touch with supporters across multiple countries.

Selling branded merchandise also helps promote your organization, as every T-shirt, water bottle, toy, or other item will give users a potential way to learn more about your mission. When designing your branding, use compelling imagery and clear messaging that tell your story to others. For instance, a catchy tagline that sums up your mission could make anyone who wears your T-shirt a potential walking billboard for your NPO.

Improve lead generation  

Your ecommerce store shoppers are all potential donors to your NPO (and vice versa). You can gather contact information from them to inform them about future fundraisers and campaigns they might be interested in. You can also personalize your communications better by requesting information from shoppers.

When doing this, however, be sure to be upfront about what you're doing. State what data you collect in your Privacy Policy and what it's been used for. Provide clear ways to opt-in (and out) of your email subscription list. Most importantly, show shoppers the valuable content they'll receive if they do subscribe -- like a regular newsletter about a cause they believe in, regular discounts, or special invitations to exclusive events.

Streamline fundraising

Ecommerce stores offer ways to simplify giving. Shoppers might encounter a "Pay What You Can" button, encouraging donations, or a one-click way to buy purchases. Since they're already shopping at your store, they're more likely to donate money if you show them why their contributions are so important. Notably, 2025 online fundraising statistics provided by Nonprofit Tech for Good indicate that the average gift made on desktop devices is $145 while mobile users give $76 on average. As desktop users tend to do more research for higher-value items, like those found in your store, this could potentially be a way for nonprofit ecommerce owners to raise more revenue.  

Increase cost efficiency

Having an online ecommerce store can mean reducing costs often associated with fundraising. You may not have to deal with as much physical fundraising materials or printing expenses. Many ecommerce stores sell digital products like webinars that can be sent to shoppers without any physical packing, making this a very cost effective fundraising option.

Top 6 Benefits

1. Additional revenue sources
2. Better ways to retain donors
3. Brand expansion
4. New lead generation opportunities
5. Simplifies donating
6. More cost effective

From Designing Your Ecommerce Store to Optimizing Your Performance: A Step-by-Step Guide

Let's take you step-by-step through the process of designing, setting up, and improving the performance of your ecommerce store.

Assess needs and goals

Who is the target audience for your store? What products do you intend to sell? Is your main goal to raise revenue, engage volunteers, or increase awareness of your mission?

Make sure to cover these questions as you determine what type of ecommerce store you want. You'll want to determine a specific niche market (like eco-friendly toys), develop buyer personas, and determine how your store differs from potential competitors. Outline a business model, including financial projections and budget requirements). You'll also need to determine where you'll acquire your branded merchandise and what your most cost-effective sourcing options are. 

Choose a platform

What platform will you use for your store? Do you want to use a simple, fully-hosted option like Shopify that's easier for beginners, or something like Woocommerce that provides you with full control over the design of your store (but may be more challenging for people who aren't already familiar with WordPress or its plugins?

Whatever you decide, it's good to choose a platform that integrates easily with your existing CRM that lets you centralize your customer data, allowing you to assess each customer's behavior and improve their shopper journey, ultimately leading to higher efficiency and better revenue.

Design your store 

Platforms offer many customization options, allowing you to choose a theme and branding features that reflect your nonprofit's mission and values. Spend time making your online storefront attractive, taking care to feature your logo and provide high-quality photos of your merchandise along with compelling descriptions of each item. Make your site mobile-friendly (as mobile users make up a large and growing percentage of online shoppers).

Add products

Spend time determining fair but profitable pricing for each of your products. Calculate all your expenses for each item to set a baseline and price items based on their perceived value. It can sometimes be useful to show customers the impact of paying the price you ask for (for instance, letting people know that the money from one item will be used to plant a tree or buy a child a backpack can motivate buyers).

Make sure to also work out what type of taxes shoppers must pay (or if you don't need to charge sales tax for certain items). 

Integrate payments and security

Integrate secure gateways, like Stripe or PayPal, into your ecommerce platform. This helps build customer trust, prevents fraud, and facilitates smooth transactions. You can also accept more forms of payment, from credit cards to digital wallets while protecting sensitive data through encryption features and password protection.

Launch with marketing

When building your product pages, make sure to optimize your copy with highly-searched keywords and phrases to help direct search engine users to your store. You should also develop a social media marketing plan that allows you to promote your store on the channels frequented by your target customers (Facebook, Instagram etc.). Consider investing in paid ads.

Be sure to leverage your existing email subscription list by promoting your ecommerce store to your current subscribers so they know when it opens and what they can buy there. Offer special promotional discounts to encourage online attendance at your opening (and beyond).

Monitor and optimize your performance

As your ecommerce store starts getting traffic, monitor your sales and study buyer behavior. Note the items that get purchased the most and the ones that are routinely ignored. Pay attention to analytics like Average Order Value (AOV), Cart Abandonment Rate, Conversion Rate, and Customer Lifetime Value (CLV) and discuss with your team how you can improve key metrics. For instance, if you believe your high Cart Abandonment Rate is due to a lack of preferred payment options, you can add new payment methods and see if this increases the number of people who complete their purchases.

Regularly update your ecommerce store and continue adding value to your website. For example, once you determine shopper interests by observing their behavior, you might consider adding a blog with posts that address their questions and concerns. Doing this can not only encourage existing customers to return to your ecommerce store, it can also drive more traffic from ideal customers toward your website! 

Watch for business activity that could make you subject to Unrelated Business Income Tax (UBIT). This is net income that a tax-exempt organization like your nonprofit can earn from business activity not substantially related to your exempt purpose. For instance, if your ecommerce store starts selling advertising space or items unrelated to your mission (like general retail items), you could be taxed on them. Refer to Publication 598, Tax on Unrelated Business Income of Exempt Organizations to review the guidelines and requirements the IRS sets for UBIT. 

Steps list

• Identify the customer base and goals for your ecommerce store
• Select an ecommerce platform that integrates with your CRM
• Customize your store to make it reflect your branding and mission
• Obtain the products you want to sell through your store and determine fair pricing
• Integrate secure payment gateways like Stripe to build customer trust
• Market your store on social media and email
• Regularly update your sales strategy to optimize your store's performance 

Top Ecommerce Management Software in 2025

Which platform will you use to build your ecommerce store? There are plenty of ecommerce management software platforms to choose from, each with their own advantages.

Shopify

Shopify promotes itself as an all-in-one commerce platform for businesses, allowing you to sell locally and globally on desktops and mobile devices. They offer a number of plans, starting with an NPO Lite plan that begins at $29/mo, providing flexibility. You'll enjoy reliable and secure hosting that can handle your transactions and data securely as well as integrated payment gateways for seamless payments. The intuitive interface lets you build and customize your shop with ease and you can integrate donation buttons into your site.

Since you don't have to be super tech-savvy to use this platform, your nonprofit can focus more on your mission while your store provides you with additional sources of revenue.  

WooCommerce

A free, open-source e-commerce plugin for WordPress, WooCommerce provides nonprofits with a way to turn any WordPress site into an ecommerce store. While you do pay for hosting and optional premium extensions (like advanced shipping options), the core plugin is free, letting you avoid costly monthly fees and transaction cuts.

You'll also have full control over your site and data, helping with data privacy. WordPress' free and paid plugins also let you customize your store any way you like and you can expand your ecommerce store's capabilities as business grows.

You can sell many things on WooCommerce, from physical goods to digital downloads to event tickets to memberships. This allows you to easily shift from selling merchandise to expanding your fundraising efforts, giving you greater flexibility and revenue-generating options. 

BigCommerce

A powerful SaaS platform for building ecommerce stores, BigCommerce provides a cost-effective way for nonprofits to raise revenue through merchandise sales and donations. This is a strong choice for large nonprofits due to its enterprise-grade features and an infrastructure designed to handle large traffic spikes, which can keep your site functioning during major fundraising events. 

BigCommerce also does not charge additional transaction fees on its plans, allowing nonprofits to keep more money from their ecommerce sales. You can also use advanced SEO and marketing tools to help new supporters find your store (and your nonprofit) and contribute to your mission. 24/7 technical support also relieves you of the pressure of dealing with any tech issues your store will encounter. 

Squarespace

Another all-in-one website builder and hosting platform, Squarespace lets nonprofits build a centralized hub for operating an ecommerce store, managing supporters, and educating communities about their mission. You can accept both one-time and recurring donations through Squarespace, as well as sell physical and digital products. If you hold regular fundraisers and workshops, you can sell tickets for those through Squarespace as well.

An intuitive drag-and-drop interface, along with available templates, make it easy for you to design your ecommerce store and build a professional-looking storefront with attractive product listings. Squarespace also automatically tracks donor and customer information, helping you add to your existing database and expand your supporter base.

Keep in mind that you'll need at least a Business plan to open your ecommerce store through Squarespace. More advanced plans will provide you with additional selling tools (like abandoned cart recovery) and lower transaction fees.

Things to look out for in your ecommerce platform

When selecting a platform for your store, look for any nonprofit discounts. For example, Squarespace offers a 10 percent discount to nonprofits for its plans.

Make sure you can sell merchandise, accept donations, and offer memberships on the same site, giving you more flexibility. Your platform should also offer multiple payment options (Apple Pay, Google Pay, credit cards etc.) to facilitate transactions.

Watch for any donation add-ons like recurring giving options or round-up options at checkout. These can help boost your fundraising and donor engagement efforts. 

Platform pros and cons

Shopify

• Pros: Easy to use, offers nonprofit-specific plans
• Cons: Monthly fees, transaction fees, additional fees for add-ons

WooCommerce

• Pros: Free plugin, highly customizable
• Cons: Additional plugins have hidden costs, may be challenging for non-technical users

BigCommerce

• Pros: No additional transaction fees, highly scalable
• Cons: Can be tricky for non-technical users, premium options can be costly

Squarespace

• Pros: Easy to design and customize, all-in-one solution
• Cons: Charges transaction fees on lower-tier plans

Emerging Trends in Ecommerce for NPOs for 2025 (and beyond)

As we enter a new year, you'll want to keep your eyes open for new tools and trends that nonprofits will be using in their ecommerce stores moving forward. From advances in AI to more environmentally-friendly shipping practices, here's what successful nonprofit ecommerce stores need to consider:

Incorporating AI chatbots

More and more customers are expecting personalized service in their shopping transactions, even through ecommerce stores. You can provide this service by integrating an AI chatbot into your site and programming it to answer the vast majority of routine customer inquiries about order tracking, return policies etc., saving your human staff the trouble of handling those interactions while providing customers with 24/7 availability.

Chatbots can also remember past interactions and user behaviors, reminding users of a past donation they made or recommending a new product based on a previous purchase. You can even have your AI chatbot share images or videos detailing aspects of your mission that a customer showed interest in, educating the customer while encouraging them to contribute to your cause. 

Selling more digital assets 

While many people think of ecommerce stores as a place where you ship physical assets (T-shirts, water bottles, branded merchandise) to customers, many online stores do a thriving business by selling digital items like art, videos, or music that can be directly downloaded to recipients. Not only does this allow you to sell items faster and with zero shipping costs, it attracts younger donors who are more familiar with these digital transactions. 

Some of this digital merchandise is considered "Non-Fungible Token" (NFT) merchandise, or digital assets whose ownership are recorded on a blockchain, making each token one-of-a-kind and often more valuable to select audiences. This can make NFT assets highly desirable, whether you sell them through your store or a fundraising auction. You can even link an NFT to a physical item (like a limited-edition painting), creating proof of ownership. Or you can link an NFT to an exclusive event, like a virtual meet-and-greet, attracting a new tech-savvy audience.

Using more sustainable shipping 

While online purchases are growing in popularity, consumers are also growing more conscious of the negative impact so much shipping can have on the planet. Thus, ecommerce stores that build their brand around sustainable shipping practices like using recycled cardboard and low-emission transport can build better trust with their customers.

This is particularly important if your nonprofit also advocates sustainability and responsible environmental stewardship. Being transparent about your sustainable practices helps show your supporters that you "practice what you preach," not only through your fundraising and programs but in your ecommerce operations.

Key 2025 Trends

• AI-assisted customer service
• Digital products and NFT merchandise
• Sustainable shipping practices

Challenges and Solutions for Ecommerce for Nonprofit Organizations

If you're just starting to get into ecommerce -- or even if you have some experience in this field -- you'll likely encounter the following common challenges. Here are some solutions for how to manage each one.

Tech barriers

Running an ecommerce store, by definition, requires a degree of computer literacy. If your staff isn't particularly tech savvy -- and if you don't have the budget to hire a tech guru to manage your store, this can lead to some problems. Slow website performance and security issues can hurt customer experience and prevent people from shopping at or even trusting your store. And even if your online shop does become popular, your ability to scale up your operations and take advantage of an increase in customer traffic can be limited without tech skill.

This is why it's important to invest in digital literacy training for your staff. If cost is an issue, you can put out a request in your volunteer pool for a tech savvy person to help train your teams. Alternatively, you can apply for grants or seek mentorship from tech companies. For instance, Amazon Web Services (AWS) offers funding and tech support for nonprofits using cloud technology -- which can also help reduce infrastructure costs and help your system grow with your organization via pay-as-you-go pricing.

Regulation compliance

Is your store compliant with all current data privacy laws? Is your customer credit card data secure? Not knowing the answers to these questions or not complying with legal requirements can result in large fines, legal penalties, and a negative reputation toward your ecommerce shop. 

To avoid any legal issues, seek out legal counsel early on to navigate any state and federal regulations as you set up your online business. Use payment processors and ecommerce platforms that can handle and maintain Payment Card Industry Data Security Standard (PCI DSS). Automating record keeping with software solutions can also help keep you compliant with regulations.

Low traffic

Just building an ecommerce store doesn't immediately guarantee you a steady customer base. Even if your nonprofit is well-known within your community, you need to invest in some marketing campaigns to get the word out about your online shop and merchandise. 

Targeted email campaigns that promote your store to interested people in your support network can help generate interest. Social media promotion is also a great way to let online users know what they can buy, especially if you create engaging posts with attractive photos and visuals of your shop's offerings. If you really want to get your business in front of a lot of eyeballs, consider using paid Facebook ads or Google Ads. The Google Ads Grant program can help you receive free advertising credits to promote your store.

Another way to generate traffic is to create additional online content that attracts online users to your site. For instance, you could start a blog addressing your mission and common concerns of your target audience (like ways to reduce waste or where to buy ethically sourced goods)  and suggest items that can be found at your store (like eco-friendly supplies or clothing items made from recycled cotton). Readers would then have more incentive to visit and shop at your store.

Challenges vs. Solutions

Challenge                                  Solution                                                        

Lack of digital literacy                Staff training, Mentorship from tech companies    

Regulation compliance issues   Seek legal counsel, use PCI compliant ecommerce platforms (Shopify, WooCommerce)             

Low customer traffic                   Social media and email marketing campaigns, SEO-friendly content to attract potential customers

Success Stories: Nonprofits Thriving Online with Ecommerce

Ecommerce success can be seen in revenue generation, increased donations, and greater participation in nonprofit activities. Here's how some nonprofits have benefited from ecommerce.

The Sea Shepherd Conservation Society Grew raises millions through online sales

The Sea Shepherd Conservation Society is an international nonprofit organization dedicated to protecting marine wildlife from illegal activities like whaling and sealing. They have a high public profile and have garnered media attention, notably in their Animal Planet reality  TV show Whale Wars, which ran from 2008-2013.

Their website features an ecommerce store that sells a wide variety of branded merchandise, including clothing, books, fine art prints, jewelry, and accessories. Sales proved profitable, and in 2008, the nonprofit experienced a problem many NPOs would love to have -- too many online sales!

In response, Sea Shepherd partnered with Nonprofit Business Solutions (NBS), a business that provides flexible and scalable operational solutions that support nonprofit activities like fundraising and donor stewardship. NBS took over Sea Shepherd's ecommerce fulfillment work, handling order management, international shipping, and warehousing. Using AmeriCommerce, the ecommerce software platform that powers Sea Shepherd's online store, NBS can manage multiple storefronts, customer languages, and currencies, while also preventing more than $146,000 in fraudulent orders.

Scaling up their ecommerce activities has paid off for the nonprofit. Since NBS took over, Sea Shepherd's annual sales have grown from $200,000 to more than $2 million. This is a tremendous boost in revenue that will help support the nonprofit's activities.   

City Greens Market feeds and educates a community through ecommerce

Located in the Southeast neighborhood of St. Louis, Missouri, City Greens Market is a nonprofit neighborhood grocery store that advertises itself as a year-round farmer's market. Their efforts bring affordable, nutritious vegetables, fruits, and grains to the area, which has historically been a food desert.

However, during the COVID-19 pandemic, City Greens Market found it difficult to get food to the community with lockdown restrictions in place. To adapt, they turned to ecommerce by using Google Forms and Ecwid, an e-commerce platform that lets businesses add online stores to existing websites (or build new ones from scratch) to organize grocery items and build a digital checkup process. Software tools allowed City Green Market to provide customers with needed member discounts at checkout, keeping food costs affordable, and the market even customized Ecwid's pickup tool to make sure customers could pick up their grocery orders safely. 

Ecommerce effectively allowed City Green Market to continue its mission during a time when travel restrictions and lockdown made it hard for NPOs to stay in business. Having a digital presence also lets the nonprofit raise funds, improve awareness of its mission, and streamline daily operations.

The Brain Tumor Charity builds brand awareness through ecommerce

The Brain Tumor Charity is a global organization dedicated to funding brain tumor research and finding new treatments, offering patients better support, and driving change in the field of brain tumors. Their website features an online store where 100% of the profits goes toward their cause.

The shop offers a wide range of branded merchandise, including hats, mugs, bags, jewelry, and aprons. These products function as both revenue-generating and marketing tools as they let shoppers promote the charity's mission. The store also caters to the needs of gift givers -- for instance during the holidays, they offer a range of Christmas-themed gifts, including puzzles, dog collars, cards, gift wrap, and ornaments.Visitors can also buy a range of home ware products, such as candles, oil burners, and other decor. The wide range of products accommodate the needs of many shoppers, encouraging purchases.

However, shoppers can contribute to the Brain Tumor Charity in other ways through ecommerce. Customers receive the option to round up their orders during checkout to make additional donations. You can also join easyfundraising, a free UK-based fundraising platform that allows members to pick a cause (like Brain Tumor Charity) and shop online with brands like eBay, Argos, Booking.com etc. Every time the customer makes a purchase at a member site, the site donates to the selected charity.

Beyond diversifying funding and building brand awareness, ecommerce allows Brain Tumor Charity to expand its support network. Shoppers get the chance to sign up for the charity's email list during checkout, potentially granting the charity many new donors and supporters. Efforts have been paying off, as their ecommerce sales (classified as "other trading activities") earned them £611.00k in the financial year ending in March 31, 2025.

FAQs: Essential Questions on Ecommerce for Your Nonprofit

Let's delve into some frequently asked questions about nonprofit ecommerce!

Is ecommerce taxable for nonprofits?

It depends. If the items you sell are directly related to your mission (like educational materials or branded T-shirts), if you're selling donated items, or if all the work at your online shop is done by unpaid volunteers, then you could be exempt from state sales tax. However, laws vary by state, so you should consult with local lawyers and financial advisors to see what you are liable for.

In addition, if you sell items that aren't directly related to your mission (like general electronics), and earn over $1,000 in gross income from these sales, you may be subject to a federal Unrelated Business Income Tax (UBIT) and will have to file an IRS Form 990-T. Again, make sure to review all IRS and state tax guidelines to stay compliant with all laws.

What platforms offer nonprofit discounts for ecommerce business?

Shopify and WooCommerce both provide reduced fees for nonprofit ecommerce businesses with 501(c)(3) status. Zeffy is also a 100% free platform for nonprofits that relies on voluntary donations from customers to cover transaction fees. Likewise, certain payment processors like PayPal or Stripe can offer discounted transaction fees and you can receive marketing and design discounts on other platforms if you decide to use them. Many platform websites have a "Nonprofit" or "Charity" section on their website that lists any discounts, so you should definitely take advantage of this during your research.  

How do you integrate donations into your nonprofit ecommerce shop?

You can use plugins like Give WP to allow customers to add on contributions seamlessly. To encourage shoppers to donate, take advantage of banners or buttons that remind customers of what (and who) their donations support. You can also create dedicated donation pages for giving (supported with testimonials and impact stories) and link them to the main navigation page on your store and provide one-time or recurring donation giving options at checkout.

Can small nonprofits afford to start an ecommerce shop?

Absolutely! Look into investing in free options like WooCommerce to keep your budget under control. As your expertise and customer base grows, you can add additional paid features or move to a more scalable platform like BigCommerce that can accommodate your needs better.

What is the ROI on ecommerce shops run by nonprofits?

According to Blackbaud data, nonprofit ecommerce shops average 20-30% revenue growth. Ecommerce also provides nonprofits with a way to diversify their income, making them less reliant on formal fundraisers or grants to support their programs. Beyond revenue generation, running an online shop helps NPOs expand their brand awareness and educate more people about their mission. Every customer is also a potential future donor, volunteer, or supporter, so getting into ecommerce is also a great way to expand your email list and connect with more fundraiser guests. 

Conclusion: Launch Your Ecommerce for NPO Journey

Starting your own ecommerce shop can provide you with a powerful way of not only creating a strong, reliable source of revenue, but also diversifying your current revenue-generating activities (like fundraising and applying for grants). Having an online store also gives you a great way to educate new community members about your NPO's mission and values, while the merchandise itself can be a great way for people to promote your organization (especially if you sell branded items like T-shirts). As you expand your offerings and scale up your shop, you can potentially attract a substantial number of new supporters who will be interested in volunteering for your nonprofit and attending your fundraisers.

Even if you already have an ecommerce shop, it's always a good idea to audit your current setup and see if you can make improvements. Remember, successful online stores:

• Have a clear target audience in mind (gift givers, value-driven shoppers, etc.) and know what they want to accomplish with their store (raise revenue, improve brand awareness etc.)
• Use an ecommerce platform that integrates with your CRM, is budget-friendly, and allows you to scale up as needed
• Customize their online storefront to make it eye catching and educational for shoppers and potential supporters
• Acquire ethically-sourced products that they price fairly 
• Use secure payment gateways to protect customer data and build trust
• Promote their store through multiple channels, including e-newsletters, social media posts, and potentially paid online ads
• Continually audit and improve their marketing and selling strategies and evolve alongside their customer base

Beyond the basic ecommerce steps, successful online shop owners stay aware of trends in the industry and incorporate these updates as needed. In the coming years, more stores will be using AI chatbots and assistants to interact with customers, providing more personalized service. You'll also want to consider selling more digital products, especially if you deal with a younger crowd that appreciates quick and simple transactions and delivery. If your target audience values environmentally friendly practices (and if your NPO promotes these values), then investing in more sustainable shipping options is also a must.  

Adopting ecommerce for your nonprofit organization can transform your fundraising efforts. If you're interested in exploring this form of revenue raising, start by setting goals for your shop. Research user-friendly platforms and try free trials to see if your volunteers and staff can use them effectively. Once you become accustomed to this form of online selling, you can enjoy year-round donor support and regular growth -- not only in your finances but your donor pool as well.

And don't forget to keep up with your regular fundraising efforts either! PayBee provides a user-friendly platform that can support you in traditional, virtual, and hybrid fundraisers. Using our software tools in conjunction with an ecommerce shop can greatly expand your supporter network and make managing your nonprofit programs more feasible and fun. Learn more by signing up for a free demo of our platform and discovering the expanded reach that comes with online fundraising.

Additional FAQs

Managing a nonprofit ecommerce shop takes a lot of strategy. Here are our suggestions for how to deal with common issues.

How do nonprofits handle inventory for ecommerce in 2025?

In the fast-paced world of online shopping, shifting demand, expectations for fast, personalized service, and selling across multiple channels makes managing your ecommerce inventory difficult. Nonprofits can deal with these challenges by investing in specialized inventory management software and using a unified commerce platform that integrates your online store, point of sale (POS) system, inventory, and marketing into one centralized system.

By working from one centralized system, you can streamline operations and manage all your data more efficiently. Automation tools can also automatically tag orders to keep better track of them and trigger welcome email sequences for new shoppers/donors, providing better customer service. You can also track your inventory levels in real time and check market conditions for better demand forecasting.

An alternative option is to partner with a third-party fulfillment service that can handle your inventory (and possibly your whole store operations) while you focus on managing your nonprofit. While this may not be feasible for every NPO's budget, it can be very beneficial for some nonprofits (see the Sea Shepherd Conservation Society case study above).   

What cybersecurity best practices apply to ecommerce for nonprofit organizations?

Build trust with your customers by investing in a reputable e-commerce platform with built-in security features that can protect your shoppers' credit card data and personal information. Make sure to have strong encryption tools, firewalls, and up-to-date antivirus software. You'll also want to perform regular off-site backups to prepare for emergency scenarios.

Require your staff and volunteers to create long, complex passwords for their accounts to prevent cyber criminals from hacking into your system. You should also train store workers to recognize phishing schemes and follow protocols (like not clicking on suspicious links) to prevent your system from being compromised. 

Make your policies public knowledge by posting how you collect data and protect information on your website. This can help buyers develop confidence when shopping on your website. 

How do you optimize nonprofit ecommerce when dealing with mobile users?

A high percentage of online shoppers make regular purchases via their smart phones and mobile devices. To make your online store easy for them to access to shop, make sure your website can automatically adapt to different screen sizes so mobile users can easily navigate your site. Compress images and minify code to allow for faster load times. Minimize or eliminate pop up notices that can be distracting, especially on a mobile device.

When creating content for your website, focus on writing short paragraphs and clear headings. If you need to communicate a lot of information about a product, use short, concise bullet points. While this is good practice for any website, it's especially effective for shoppers who don't want to scroll through a ton of content on their phone just to buy something.

Are there grants available for ecommerce setup in nonprofits? 

Yes! You can look into general tech grants like Google Ad Grants that provide free search advertising to drive potential customers to your shop. Amazon Web Services (AWS) IMAGINE Grant offers cloud computing resources including funding for operational expenses as well as tech support. 

If you need help with website design, digital agency Limit 8 Web provides nonprofit grants for design and marketing services while the Charity Design Co WebWish Grant provides funding for a comprehensive web design overhaul. 

When looking for grants and financial assistance, it's important to visit each provider's website and do your research. Make sure your NPO qualifies for a grant before applying and check to make sure that the grant covers the specific type of services you need. (You don't want to apply for a design grant if what you really need is help with marketing and advertising).

Can international shipping work for ecommerce nonprofit stores?

Yes, many nonprofits with ecommerce shops ship internationally. However, you'll need to work through key logistics like export regulations, duties, and customs. Many ecommerce platforms like Shopify or Squarespace can help manage global shipping. You'll also want to invest in shipping software like Shippo. Keep in mind that international shipping is expensive, and you'll want to see if your provider offers discounted nonprofit shipping programs. That said, international buyers typically expect to pay more for something shipped overseas, so you can also pass on the costs to them.