Italy is the home of fashion, and clothing is one of the most dynamic sectors of ecommerce. Selling clothes online means having access to a global market that ranges from local customers to large international markets such as the US, Europe, and Asia. The opportunities are not only for emerging producers and brands, but also for retailers and those who want to specialize in secondhand goods.

However, before opening an online clothing store, you need to know the requirements. This article will take an in-depth look at Italian regulations on distance selling, tax requirements (such as registering for value-added tax [VAT]), start-up costs, and the differences between selling on proprietary platforms and third-party platforms.

What’s in this article?

• The online clothing market in Italy and worldwide
  
• Types of businesses that sell clothes online
  
• What do you need to do to set up an online clothing store?
  
• Where should you host sales: On your own website or a third-party platform?
  
• Should your online store sell locally or globally?
  
• How much does it cost to set up an online clothing store?
  
• How Stripe can help you manage payments
  

The online clothing market in Italy and worldwide

In recent years, the ecommerce market related to fashion and clothing has continued to show stable growth. According to the B2C eCommerce Observatory at the Polytechnic University of Milan, clothing remained one of the most important sectors of online shopping in Italy in 2024, with an increase of 5% compared to 2023. Although this growth is in line with the general trend of product ecommerce, the sector maintains a central role thanks to its scale, purchase frequency, and strong consumer interest in digital clothing brands and marketplaces.

At the global level, the outlook is even more striking: according to Statista, in 2025 the fashion ecommerce segment is projected to produce revenue of more than $920 billion USD, confirming its position as one of the driving forces of the global digital economy.

In Italy, selling clothes online is a real opportunity for both big fashion houses and small artisan brands. If you’re wondering how to set up an online clothing store, remember that demand is constantly growing, but competition is fierce. An online clothing store must stand out for its range of options, quality products, efficient logistics, and secure payments.

Types of businesses that sell clothes online

When you decide to open an online clothing store, it’s important to understand what type of business you want to develop. There are three main paths you can take:

• Open an online clothing store as a retailer
  
• Sell secondhand clothes online
  
• Manufacture and sell clothes online
  

Each of these options involves different priorities, investments and strategies: knowing the advantages and issues in advance will help you choose the path that best suits your project.

Opening an online clothing store as a retailer

For retailers, choosing the right supply channel is a priority. Anyone who decides to open an online clothing store as a retailer must immediately ask themselves this question: where will I source supplies? There are three main options:

• Work with Italian and European wholesalers
  
• Use the dropshipping model (online sales on behalf of third parties)
  
• Enter into direct agreements with established brands
  

Retailers must also carefully manage margins, inventory, and logistics, because offering fast delivery and easy returns is now necessary to compete with large marketplaces. In addition, communication plays a fundamental role: to stand out in the market, it’s important to describe products effectively and offer personalized customer service.

Selling secondhand clothes online

Circular fashion (e.g., buying used clothes rather than new, to minimize waste) is one of the strongest trends in recent years. Selling secondhand clothes online allows you to reach an audience that is sensitive to sustainability, savings, and the uniqueness of garments. Dedicated platforms such as Vinted or Depop have made it easier to access this market, but you can also set up your own online store selling secondhand clothes.

The key aspects to consider are:

• Transparency with regard to product condition
  
• Photograph management (pictures must clearly show any signs of wear and tear)
  
• Return policies
  
• Sustainability-oriented communication
  

From a regulatory standpoint, the sale of secondhand clothes requires the same tax compliance as the sale of new clothes: a VAT number is required if the activity is habitual and organized.

Manufacturing and selling clothes online

Manufacturers are in a unique position: they can create an online clothing store with original collections and higher margins than retailers, but they face higher costs for production, inventory management, and marketing. For manufacturers, defining a clear strategy is key: choosing to focus on luxury goods, fast fashion, sportswear, or children’s clothing completely changes the target audience and sales channels.

Another key element is specific know-how. Manufacturing clothing requires technical skills in choosing material selection, pattern making, industrial or artisanal production, and supply chain management. Those entering this sector must have adequate training in order to ensure consistent quality, fast delivery times, and compliance with regulations (e.g., those relating to labeling and fabric safety). To fill any gaps in expertise, many emerging manufacturers choose to collaborate with external laboratories, fashion consultants, or platforms specializing in private labels, i.e., services that produce garments to be customized and resold under their own brand.

A manufacturer deciding to sell new clothes online must therefore invest not only in branding, high-quality photography, storytelling, and digital advertising channels (social media and marketplaces), but also in developing skills or selecting qualified partners. At the same time, it must take care of the technological infrastructure: having a proprietary website allows it to collect customer data and build a direct relationship, while relying on third-party platforms allows it to reach a large audience more quickly.

What do you need to do to set up an online clothing store?

If you want to set up an online clothing store in Italy, you must comply with certain rules. First, you need to register for VAT, choosing a suitable ATECO code (e.g., 47.91.10: “Retail sale of any type of product via the Internet”). After that, you must follow a series of steps to ensure you set up an online clothing business that’s compliant. Let’s take a closer look at those steps below:

• Submission of the Certified Notice of Business Startup (SCIA): The SCIA is the document that officially notifies the One-Stop Business Advisory Center (SUAP) of the municipality of residence or the municipality where your business is legally registered. Without this notification, you cannot legally operate. The SCIA allows the administration to verify the health and hygiene, urban planning, and professional requisites required by law.

• Registration in the Business Register: Registration in the Business Register is mandatory for all businesses, including those that operate exclusively online. This step serves to give public visibility to the business, ensure transparency, and provide access to tax and Social Security benefits.

• Registration with the Italian National Social Security Institute (INPS) and the National Institute for Insurance against Accidents at Work (INAIL): Whether you’re a sole proprietor or a company, you must pay Social Security contributions to the INPS. If you hire employees or collaborators, you’re also required to take out insurance against accidents at work with INAIL.

• Compliance with VAT obligations: If you sell clothing online, you must add Italian VAT (currently 22% for the textile sector) to the sale price of your products. You will then have to pay tax to the government. For this reason, on a monthly or quarterly basis (depending on your tax regime), you’re required to settle VAT, i.e., calculate the difference between the VAT collected on sales and that paid on purchases, and pay the balance to the Revenue Agency using form F24. In the case of sales to customers in other EU countries, the One Stop Shop (OSS) regime comes into play, allowing you to declare and pay foreign VAT in a single country in a simplified manner without having to register in each destination country.

• Consumer information requirements: The Consumer Code (Italian Legislative Decree No. 206/2005) requires online sellers to ensure transparency regarding prices, product characteristics, shipping costs, and delivery times. It’s also mandatory to inform the buyer of their right to withdraw from the purchase within 14 days, offering the possibility of returning the goods without penalty.

• Product labeling: Garments must clearly and permanently display the fiber composition, country of origin, and washing and care instructions, as required by Regulation (EU) No. 1007/2011. Incorrect or missing labeling can result in penalties and undermine customer confidence.

Where should you host sales: On your own website or a third-party platform?

When selling clothes online, one of your biggest decisions will be whether to use your own web store or a third-party platform. Not only does this selection affect your initial budget, but also the level of control you will have over your online clothing store and customer relations.

Proprietary website

Selling on a proprietary platform means creating a dedicated, customized website (e.g., with Shopify, WooCommerce, or Magento). This solution gives you full control over design, customer data management, and marketing strategies. It’s a good choice if you want to build a strong, independent brand that stands out in the market. The main disadvantages are higher initial costs (which can range from a few hundred euros for basic solutions to several thousand for complex sites) and the need to directly manage maintenance, security, and technological updates. However, in the long term, it is the model that typically offers greater autonomy and wider margins.

Third-party platform

Marketplaces such as Amazon, Zalando, and eBay offer immediate access to millions of loyal customers and are useful solutions if you want to start selling clothes online quickly, without investing too much in technology or marketing. On the other hand, you will have to pay sales commissions, adapt to marketplace rules, and accept having less freedom in building your brand identity. It can be a strategic choice if you want to test the market with a modest investment or if you aim to complement your physical (i.e., brick-and-mortar) business with a digital channel.

Comparison of online clothing sales channels: Proprietary versus third-party platforms

Should your online store sell locally or globally?

Italian clothing enjoys a very strong international appeal, and the export figures prove it: in 2023, the Italian fashion and clothing industry had a turnover of €63.7 billion, of which approximately €38.7 billion (just over 60%) came from exports. The main destination countries for Italian garments are France, Germany, and the US, followed by China. Asia is showing growing interest in Italian clothing; in 2024, fashion exports to Asia alone reached approximately €14.5 billion, highlighting the strategic importance of Asian markets for Italian-made products.

One of the great opportunities offered by ecommerce is the ability to transcend geographical boundaries. When you decide to set up a business, you need to carefully consider whether to focus initially on the Italian market or aim for an international audience right from the start. The two options have different rationales and complexities; let’s take a look at what needs to be considered.

Selling at the local level

By focusing on the Italian market, you can simplify many operational aspects; logistics are more straightforward, shipping costs are lower, and customer service can be handled in a single language. Additionally, you might be more familiar with the tastes, seasonality, and purchasing behavior of Italian customers, so you can set up targeted marketing strategies. This approach is a good fit for those who are taking their first steps and want to consolidate their brand without immediately facing the challenges of cross-border sales.

Selling at the global level

Targeting foreign markets greatly expands growth potential. The market for online clothing sales is well established in European countries and the US, and the demand for international fashion is booming in Asia (especially China and South Korea). However, international sales require more complex management, as you have to deal with:

• Customs regulations
  
• Duties
  
• International returns
  
• Website translations
  
• Multilingual customer support
  

Also, customers expect to pay in their own currency,using local payment methods, so you need a payment service provider that allows you to accept different currencies and integrate payment methods that are widespread in the countries where your buyers are located.

Many brands choose a gradual approach: they start selling clothes online locally to refine their business model, and only after consolidating their store do they move on to a global strategy. This approach helps reduce risks and build solid foundations before tackling highly competitive markets. On the other hand, those who already have a recognized brand can immediately benefit from the international exposure offered by global marketplaces.

How much does it cost to set up an online clothing store?

One of the most common concerns for anyone starting an online clothing store is cost. In reality, there’s no single answer: the budget for opening an online clothing store depends on the chosen business model, the complexity of the website, and the level of investment in marketing.

The main expenses to consider are:

• Bureaucratic and administrative costs: VAT registration, registration with the Business Register, and submission of the SCIA to the municipality. These costs typically amount to a few hundred euros in total.
  
• Technical development: If you use platforms such as Shopify or WooCommerce, you can start at around €20–€30 per month for a basic plan. A customized ecommerce site, on the other hand, can cost anywhere from €3,000–€15,000.
  
• Inventory and stock: If you want to sell new clothes, the initial investment for purchasing merchandise can range from a few thousand euros to tens of thousands of euros. With dropshipping, this cost is greatly reduced.
  
• Marketing and promotion: Online advertising campaigns, SEO, and social media are key to drawing traffic. A realistic budget starts at a few hundred euros per month.
  
• Logistics and shipping: Packaging, warehousing, and returns affect recurring costs. If you use an external fulfillment service, there will be variable fees depending on the volume of orders.
  

How Stripe Payments can help

Stripe Payments provides a unified, global payments solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world.

Stripe Payments can help you:

• Optimize your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 125+ payment methods, and Link, a wallet built by Stripe.
  
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Learn more about how Stripe Payments can power your online and in-person payments, or get started today.