Email marketing basics for an online store: setup, compliance, and automations

For a new online store, email marketing turns one-time visitors into repeat buyers. Entry plans are free under 250 contacts, and recovering a single abandoned cart often covers your email software for the entire month. This guide shows what tools cost at different list sizes, how cart recovery math works, how to follow FTC CAN-SPAM and ICO rules, and which three automations to turn on first.

Worked example: what email tools cost and what cart recovery pays

These two store models are hypothetical, but the rates and email tool limits come from official documentation. Both sell a $40 physical product.

Part 1: What email sends cost at 500, 2,500, and 10,000 contacts

Most standalone tools charge by contact database size, while Shopify Email charges strictly on email send volume. Suppose you send four campaigns a month (one email per week):

• At 500 contacts (2,000 sends/mo): On Shopify Email, 2,000 sends fall well inside the 10,000 free monthly emails included on paid plans (Basic, Grow, Advanced, Plus), costing $0. Free tiers on Omnisend, MailerLite, Klaviyo and Mailchimp cap at 250 contacts. At 500 contacts, Omnisend Standard is $16 a month (500 contacts, 6,000 emails) and MailerLite Comfort is $12 a month (up to 1,000 subscribers, 10,000 emails).
• At 2,500 contacts (10,000 sends/mo): On Shopify Email, 10,000 sends use the free monthly allowance, costing $0. A fifth send that month (12,500 sends) adds 2,500 overage emails at $1 per 1,000, adding $2.50 to your store bill.
• At 10,000 contacts (40,000 sends/mo): On Shopify Email, the first 10,000 emails are free. The 30,000 extra emails at $1 per 1,000 cost 30 × $1.00 = $30.00 a month. On Mailchimp Standard, lists with 10,000 or more contacts qualify for a 15% discount on the first 12 months.

Shopify Email abandoned checkout automations are always free and do not count toward your 10,000 monthly limit. Extra charges appear directly on your Shopify bill once reaching $0.005, and unused free sends do not roll over.

Part 2: The math of abandoned cart recovery

Assume a hypothetical store selling a $40 order: product cost is $12.00, postage is $6.00, and card processing (2.9% + 30¢) is $1.16 + 30¢ = $1.46. Net gross margin per order is $40.00 - $12.00 - $6.00 - $1.46 = $20.54.

Now suppose 100 shoppers enter checkout but abandon each month ($4,000 in potential sales). If, as a hypothetical, your recovery email wins back 3% of them (3 orders; change this to your own rate):

• Recovered revenue: 3 orders × $40.00 = $120.00
• Recovered gross margin: 3 orders × $20.54 = $61.62

On Shopify, checkout recovery emails are free. Even on a list of 10,000 contacts paying $30.00 a month for extra marketing sends, recovering two abandoned orders (2 × $20.54 = $41.08 gross margin) covers your entire software bill.

Rule of thumb to remember: One recovered $40 order pays for 20,000 extra marketing emails on Shopify Email.

Run it with your own numbers: Recovered monthly profit = (abandoned checkouts × recovery rate) × (order value - product cost - shipping - card fee) - monthly email software cost

Calculate your margin per sale with our profit per order calculator. For full operating costs, see our guide to the monthly cost of running an online store.

Commercial email regulations: FTC CAN-SPAM and UK ICO rules

Before collecting email addresses, understand commercial marketing laws.

The FTC CAN-SPAM Act (United States)

Enforced by the Federal Trade Commission (FTC), CAN-SPAM establishes seven core requirements for commercial email:

1. Accurate header information: From, To, Reply-To, and routing domain names must identify your business.
2. Non-deceptive subject lines: Subject lines must accurately reflect message content.
3. Disclose commercial intent: Clearly disclose that the message is an advertisement.
4. Valid physical postal address: Include a valid street address, a USPS-registered PO Box, or a private mailbox with a commercial mail receiving agency.
5. Clear opt-out explanation: Explain clearly how the recipient can opt out of future marketing.
6. Honoring opt-outs: The opt-out mechanism must work for at least 30 days. You must honor opt-outs within 10 business days without charging fees or requiring more than an email address or single webpage visit. Never sell or transfer opted-out addresses.
7. Third-party accountability: Hiring an agency or software does not shift legal liability. Your business remains legally responsible for compliance.

UK rules: ICO and PECR

For shoppers in the United Kingdom, the Information Commissioner’s Office (ICO) enforces stricter rules under PECR (EU countries have their own rules; check them before you email EU buyers):

• Specific opt-in consent: Regulation 22 prohibits marketing to individuals without specific, informed, and unambiguous consent. Consent requires affirmative action, such as ticking an empty box; pre-ticked boxes or silence do not count.
• Soft opt-in exception: You may email past customers without prior opt-in only if details were gathered during a sale or negotiations for a sale, marketing covers your own similar products, an opt-out was given at collection and in each message, and the customer has not opted out. Soft opt-in does not apply to general newsletter signups or bought lists.
• Entity distinctions: Sole traders and some partnerships are treated as individuals requiring consent. Corporate bodies may be emailed without prior consent, but you must offer an opt-out.

Choosing your email tool: four platforms compared

Your choice depends on store platform, database size, and whether you need multichannel messaging.

Shopify Email: for stores on Shopify wanting lowest send costs

Built into Shopify admin for Basic, Grow, Advanced, and Plus plans. You get 10,000 free emails per calendar month. Additional emails cost $1 per 1,000 up to 300,000 ($0.65 from 300,001 to 750,000; $0.55 above). Abandoned checkout automations are always free and do not count toward your 10,000 allowance. Extra charges appear on your store invoice once reaching $0.005. Best for Shopify stores wanting low-cost broadcasts. See our Shopify pricing explained guide.

Omnisend: for multichannel email, SMS, and push

Omnisend combines email, SMS, and web push in a visual workflow builder. Its Shopify app syncs contacts, orders, and products. The Free plan includes up to 250 contacts, 500 emails per month, and 24/7 live chat and email support. Standard provides 6,000 emails per month at the 500-contact tier; Pro offers unlimited monthly emails under fair use. Abandoned cart emails trigger only for identified contacts who clicked an Omnisend link, completed a form, or typed their email at checkout, firing at most once every 24 hours per contact. See our comparison of Klaviyo vs Omnisend vs Mailchimp.

MailerLite: for content newsletters and editorial stores

Best for stores that publish newsletters or guides. The Free plan allows 250 subscribers and 2,500 monthly emails with 3 editors (drag-and-drop, rich text, HTML) and 2 seats. Comfort offers 10 times the subscriber ceiling in monthly emails (10,000 sends at 1,000 contacts). Note: MailerLite documentation states its Shopify, Squarespace, and BigCommerce integrations cannot currently create abandoned cart automations. For WooCommerce or Wix, cart automations require shoppers to be logged into their store account. See free tools for a new online store.

Klaviyo: for advanced segmentation and data tracking

Klaviyo focuses on behavioral segmentation. The Free plan supports 250 active profiles, 500 emails per month, and 60 days of email support. Paid tiers bill monthly on active marketable profiles. Pre-built flows include Welcome Series, Abandoned Cart, and Customer Thank You. Klaviyo recommends sending the first cart reminder 2 to 4 hours after checkout starts, and a second 20 to 48 hours later. Turn off Shopify’s default checkout notifications to prevent duplicate emails. Read Klaviyo pricing explained and best email marketing for a new online store.

The three automations to turn on first

Turn on these three automations before sending broadcast campaigns:

1. The welcome sequence

Triggers immediately after signup. Shopify’s pre-built welcome automation sends a discount code followed by two brand emails. Deliver your discount code immediately, introduce your story two days later, and remind subscribers four to five days later before the offer expires.

• Sample subject line (written by us as an example): Welcome to [Store Name] — here is your 10% discount code

2. The abandoned checkout flow

Targets shoppers who entered checkout but left before paying. Klaviyo recommends sending message 1 between 2 and 4 hours after abandonment, and message 2 between 20 and 48 hours later. On Shopify, configure this under Automations > Abandoned checkout (always free).

• Sample subject line (written by us as an example): Did you leave something behind? Your cart is saved

3. The post-purchase thank-you and follow-up

Builds customer trust and repeat orders. Send order confirmation immediately, share product care or sizing tips upon delivery, and request a review two to three weeks later.

• Sample subject line (written by us as an example): Your order is confirmed: here is how to care for your [Product Name]

For setup walkthroughs, see our guide to abandoned cart and welcome emails setup.

Building an opt-in list without buying contacts

Never buy or scrape email lists. Purchased lists contain spam traps that cause domain blacklisting by Google and Yahoo, prompt immediate account termination by email platforms, and violate FTC CAN-SPAM and ICO regulations.

Build your audience through permission-based methods:

• Storefront popup: Offer a clear incentive, such as a 10% discount on the first order or a sizing guide.
• Checkout opt-in: Provide a signup box at checkout. For UK and European buyers, keep the box unticked by default to meet ICO consent rules.
• Dedicated landing pages: Route ad or social traffic to focused product pages with an email capture form.

For required storefront policies, see our guide to legal pages and policies for an online store.

Who should pick something else

• Marketplace-only sellers: If you sell exclusively on Etsy or Amazon, the marketplace owns buyer contacts and does not share emails for external marketing. See sell on Etsy, Amazon, or your own store.
• Physical-first retail counters: If you sell primarily at pop-ups or a shop counter, collect emails on POS receipts before configuring online automations.
• Stores under 250 contacts with zero budget: Do not buy software yet. Use free plans on Omnisend, MailerLite, or Mailchimp, or use the 10,000 free monthly emails on Shopify.

Common mistakes when starting email marketing

• Sending from free webmail: Never send marketing from @gmail.com or @yahoo.com. Mailbox providers enforce DMARC policies that reject bulk commercial email from free addresses. Use a custom domain address with SPF, DKIM, and DMARC records. See domain and business email setup.
• Sending duplicate cart emails: When activating an app like Klaviyo or Omnisend on Shopify, turn off Shopify’s default checkout notification so buyers do not receive two emails.
• Omitting a physical postal address: Every commercial email must include a street address, USPS PO Box, or private mailbox in the footer under CAN-SPAM.
• Pre-ticking opt-in boxes: In the UK and EU, pre-checked boxes violate ICO affirmative consent rules.
• Relying solely on open rates: Apple Mail Privacy Protection inflates open rates by pre-loading images. Track clicks, conversion rates, and revenue per recipient instead.

How to decide in five steps

1. Verify your sending domain: Set up a custom domain email with SPF, DKIM, and DMARC DNS records before sending campaigns.
2. Choose your platform: On Shopify, activate Shopify Email for 10,000 free monthly sends and free checkout recovery. On other hosts, use a free tier from Omnisend, MailerLite, or Mailchimp.
3. Add your postal address: Save your street address, USPS PO Box, or registered private mailbox into your email footer settings.
4. Activate core automations: Turn on a welcome sequence with your signup discount and an abandoned checkout flow scheduled 2 to 4 hours after abandonment.
5. Publish an opt-in form: Add a storefront popup with a welcome incentive, keeping consent checkboxes unselected by default for international shoppers.

Sources (checked 2026-10-03)

• FTC: CAN-SPAM Act Compliance Guide for Business, seven legal requirements, physical address rules, opt-out mechanisms, and 10-business-day processing deadlines
• ICO: Electronic Mail Marketing Guidance, Regulation 22 requirements, affirmative opt-in consent standards, and soft opt-in conditions for existing customers
• Shopify Help Center: Shopify Messaging Email Pricing, 10,000 free monthly emails, $1 per 1,000 overages, and free abandoned checkout automations
• Shopify Help Center: Marketing Automations, creating abandoned checkout automations and welcome sequences
• Omnisend: Pricing, free plan limits, contact tiers, and 24/7 support availability
• Omnisend: Marketing Automation, pre-built workflow templates for cart recovery, welcome series, and multichannel workflows
• Omnisend Help: Abandoned Cart and Abandoned Checkout Automations, contact identification rules, 24-hour frequency limits, and phone number sync behavior
• MailerLite: Pricing, Free plan limits, Comfort plan send multiples, and 14-day premium trial
• MailerLite Help: Abandoned Cart Email Automation, integration limits for Shopify and Squarespace, and logged-in customer requirements
• Klaviyo: Pricing, free plan contact limits, send volumes, billable profile rules, and 60-day email support
• Klaviyo Help: Getting Started with Flows, pre-built flow library and event-triggered sequences
• Klaviyo Help: Creating an Abandoned Cart Flow, 2-to-4-hour timing delays and disabling default store notifications
• Mailchimp: Marketing Pricing, Free plan contact limits, send multiples, and 10,000-contact discounts

General information, not legal or tax advice.