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How Much Does It Cost to Start An eCommerce Business

how much does it cost to start an ecommerce business

You have come to this page, which means you want to start your e-commerce business. Because nowadays everyone is doing it or wants to, and it’s a good idea.

But you might not know how much it will cost, so I will provide you with all the details on how much does it cost to start an eCommerce business. Let’s get started with a bit of detail.

Average costs for starting an eCommerce business

Starting an e-commerce business involves various expenses. Today, I’ll share with you not only the usual costs associated with starting an e-commerce business but also those aspects that are typically not disclosed by others. Only someone with experience and who has faced challenges in this field can provide insights into these aspects.

I will tell you about all the things that are needed to start an eCommerce business.

  • Website Platform
  • Web Design
  • Domain Name
  • Web Hosting
  • Product or Service Expenses
  • Marketing
  • Web Performance
  • Support System
  • Technical SEO
  • Security of Website
  • Content For Website
  • Payment Processing Fees
  • Shipping and Packaging
  • Product Sourcing
  • Legal and Tax Costs

How Much Does It Cost to Start An eCommerce Business

Starting an online store involves spending money on different things. The costs depend on how big your business is, what you sell, and how you plan to market and sell your products.

Website Platform:

You need a website platform to set up your online store. Popular ones include Shopify, WooCommerce with wordpress, and Squarespace. WooCommerce is free for basic functionality to start the initial phase of your business, However, to access all the features, you may need to purchase the premium plan.

Shopify and Squarespace cost between $20 to $30 per month.

Web Design

Selecting a website platform is not the only step; after that, designing the website is also necessary.

Now, this depends on what functionalities you want on your website and how complex your website will be. Keep in mind that the more functionalities you want on your website, the higher the cost will be.

If you choose a ready-made template or theme from platforms like WordPress or Shopify for web design, the cost may be lower, perhaps around 100-200$.

If you opt for Custom Web Development, the cost can be significantly higher. This is because web developers usually charge per hour. However, my advice is to hire the developer for the full task.

Explain all the requirements of your site in detail, discuss the cost along with any potential discounts, and finalize the agreement. This way, you can reduce the cost of the website, and the developer can complete your work faster, as they know there’s no benefit in taking extra time when the amount is fixed.

how much does it cost to start an ecommerce business

Domain Name:

Domain is identity of your business, This is your website’s address, like “” “” It typically costs between $10 to $15 per year.

Web Hosting:

To add your product images, create categories, To store your website files online, and have the required space, you need web hosting to attach space to your domain.
Basic hosting can be around $5 to $10 per month.

Ongoing Costs :-

Product or Service Expenses:

The money you spend to make your products or offer your services is the initial expense that is a must.
For example, if you want to sell shoes online, you must either make the shoes or buy them from a wholesale market. This is the initial cost that you may need to invest.


Marketing is how you tell people about your business. Costs can include social media ads, email marketing, and paid ads, depending on your plans.

There are two types of costs in marketing:

  1. The person you hire will charge you a service fee.
  2. The amount they spend on platforms for marketing.

For example, if you advertise on Facebook or Google AdWords, these platforms charge for clicks or impressions.

Marketing guy may ask you to provide your Google Ads account, Facebook Ads account, or you both will agree on some kind of contract. Whatever these platforms charge the marketing person, you will pay them. It all depends on how you mutually understand and agree on the terms.

There are always different e-commerce marketing strategies where you explore how to market more by spending less on your marketing. You will need to learn marketing or hire a person who can do marketing for you.

Maintenance cost

To make your web platform secure, you must update the website script/software. If you don’t do it yourself, you have to pay a fee to the person/platform that does it for you.

Web Performance:

It’s not just about making a website; performance matters a lot in e-commerce. To make your website fast and easily accessible, in simple words, user-friendly, you will have to hire the best developers to achieve this.

Support System:

When you set up your e-commerce website, users will have questions related to your products and services. While you can try to list all the questions in FAQs, you still can’t anticipate the imagination of a visitor. So, you will need a support team available during working hours to respond to customer queries.

Technical SEO:

In the very start of your website, you might focus on its appearance, but over time, you may notice various technical errors related to SEO. These can be checked using tools like “Google Search Console Tools.” To resolve these issues, you’ll need an SEO expert.

Security of Website:

Over time, you may face issues related to the security of your website, especially since it handles customer payments and user interactions. Potential vulnerabilities could compromise your website. To secure this, hiring a web security expert is crucial. They will thoroughly check all parts of the website to ensure there are no loopholes that could cause problems in the future.

Content For Website:

When you hire an SEO specialist, they primarily focus on technical aspects to make your website SEO-friendly. However, they don’t usually handle content writing. To make your website accessible to a broader audience and signal relevance to search engines, you’ll need to hire a content writer.

Payment Processing Fees:

When discussing e-commerce, it’s definitely important to talk about the payment gateway. Some payment gateways charge a yearly fee for using their services, while others charge a fee only when you receive a payment.

When you’re doing good business, the payment gateway fee should not be an issue, I guess. However, you must choose a payment gateway that is easily accessible in the territory where you want to market your e-commerce business.

There might be fees for processing payments, usually around 2% to 3%.

Shipping and Packaging:

If you’re selling physical products, you’ll need to budget for shipping and packaging, which depends on the size and weight of your items.

Product Sourcing:

If you don’t make your own products, you might buy them from others. This can be cheaper if you use crowd-sourcing, but it might take more time. Buying from factories gives you more control but can be pricier.

Legal and Tax Costs:

You might need legal and tax services, including advice and accounting. These costs can vary

How Much Does It Cost To Start An eCommerce Business

Important Conclusion:

Keep in mind that in this article, I have discussed two different aspects about how much does it cost to start an ecommerce business. One includes things enabling you to immediately start your e-commerce business, while the other involves technical aspects that you may feel the need for over time.

Although it’s not necessary to prioritize these technical elements at the beginning, as starting your e-commerce business with minimal investment is possible. Some technicalities might not be essential initially, and if you don’t initiate your work by considering them, it’s crucial to understand how your business or potential unfolds.

Therefore, it’s essential to start your e-commerce business with the least expenses and then see how it goes.

Tips for Starting Your Online Business:

Look into your market to see if there’s demand for what you’re selling.

Budget Wisely:
Figure out how much money you’ll need to start your online business.

Make a Simple Plan:
Have a clear plan for your business, including who you’re selling to, how you’ll market, and your financial goals.

Remember, these are general ideas, and the actual costs can change based on your specific business and industry.

Your Local Commerce make you limited to a certain area, E-commerce transcends geographical limitations, allowing you to reach a global audience 24/7. This opens doors to new markets, expands your customer base exponentially, and boosts your sales potential significantly.

e-commerce eliminates the need for physical rent, utilities, and sales staff, leading to lower operational costs. This translates to competitive pricing for your customers and higher profit margins for you.

Online shopping offers unmatched convenience for customers. They can browse your products, compare prices, and make purchases from anywhere, anytime, on any device. This flexibility caters to busy lifestyles and impulsive buying habits, driving sales and customer satisfaction.

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