Cost to Start Ecommerce – A Straight‑forward Breakdown

Thinking about launching an online store? The first question that pops up is always the price tag. People swear you can start with $0, while others say you need six figures. The truth lives somewhere in between. Below you’ll find a realistic look at the main costs, plus a few tricks to keep the budget tight.

Core Expenses You Can’t Skip

Platform or CMS: Whether you pick Shopify, WooCommerce, or BigCommerce, expect a monthly fee. Shopify’s basic plan sits at $29, WooCommerce itself is free but you’ll need hosting ($5‑$15 / month). Add a modest budget of $30‑$50 / month for the first year.

Domain & Hosting: A .com domain costs about $12‑$15 a year. Hosting can be $5‑$20 / month for shared plans, or $30‑$80 / month for managed WordPress hosting. Plan on $150‑$200 a year total.

Design & Theme: Free themes are okay for testing, but a professional look often needs a premium theme ($50‑$150 one‑time). If you hire a designer, $300‑$800 is a common range for a custom design.

Payment Processing: Stripe, PayPal or similar charge 2.9% + $0.30 per transaction. No upfront cost, but factor the percentage into your product pricing.

Legal & Accounting: Registering a business, a trademark and basic accounting software can add $100‑$300 in the first year.

Optional but Important Add‑ons

Inventory: If you sell physical goods, you need stock. Starting small with $500‑$1,000 gives you room to test demand. Dropshipping lets you avoid this cost, but margins are lower.

Marketing: Paid ads, email tools and SEO services make a big difference. Allocate at least $200‑$500 for the first month, then $100‑$300 monthly to keep traffic flowing.

Apps & Plugins: Most platforms have add‑ons for reviews, shipping calculations or upsells. They usually charge $5‑$30 per month each. Pick the ones that solve a real problem.

Photography: Good product photos boost conversion. DIY with a smartphone works, but a professional shoot can cost $100‑$300 for a small catalogue.

Adding all the basics together, a lean ecommerce launch can be done for $800‑$1,200 in the first three months. A more polished site with inventory and a modest ad budget will land around $2,500‑$5,000.

So, what should you do next? Start by choosing a platform that fits your budget, grab a cheap domain, and test the market with a minimal inventory or dropshipping. Watch the numbers, reinvest the profit, and upgrade design or marketing as you grow.

Remember, the biggest cost isn’t the software or the ads – it’s the time you spend figuring out what your customers actually want. Keep the spend low, learn fast, and scale when the data tells you it’s safe.