Great question as this is definitely something that comes up often when people are launching their first eCommerce site.
While it is technically possible to run an eCommerce site on shared hosting, it’s not ideal in most cases. Shared hosting environments come with limitations in terms of performance, security, and control. Because you're sharing resources with multiple other websites, one compromised account on the server could potentially pose a risk to others. That doesn't mean your data will be compromised, but the risk is higher compared to more isolated hosting environments.
For any site that processes payments or collects sensitive customer data, security should be a top priority. PCI compliance is a major factor, and many shared hosting plans simply don’t meet all the requirements out of the box.
VPS (Virtual Private Server) or dedicated hosting gives you more control over server configurations, security patches, and isolation from other users, making it a much better choice for eCommerce. That said, no hosting environment can offer 100% security. You’ll still need to implement solid security practices like SSL certificates, secure payment gateways (like Stripe or PayPal), firewalls, and regular updates.
Bottom line: if your site handles transactions, upgrading to VPS or dedicated hosting is worth the investment. You’re protecting not just your business, but your customers' trust as well.