Online Store Expenses – Simple Ways to Track and Reduce Costs

If you run an online shop, you probably feel the pressure of every £ you spend. Shipping fees, platform fees, ads, and even tiny things like app subscriptions add up fast. The good news? You can get a clear picture of where your money goes and start cutting the waste without hurting sales.

Common Expense Categories

First, put every cost into a bucket. Most e‑commerce owners see these five groups dominate their budgets:

• Platform fees – monthly subscription, transaction fees, and add‑on costs from Shopify, WooCommerce, or similar.
• Shipping and fulfilment – carrier rates, packaging, and any third‑party fulfilment service fees.
• Marketing spend – Google Ads, Facebook ads, influencer fees, and email marketing tools.
• Payment processing – Stripe, PayPal, or bank gateway percentages plus any chargeback fees.
• Software & apps – inventory tools, accounting software, SEO plugins, and other SaaS subscriptions.

Write down the average monthly spend for each bucket. You don’t need a fancy spreadsheet – even a Google Sheet with three columns (Category, Monthly Cost, Notes) works.

How to Keep Costs Under Control

Now that you know the buckets, it’s time to shrink them. Here are practical steps you can start this week:

• Audit your platform plan. Many shops stay on a high‑tier plan even after sales dip. Downgrade to the lowest tier that still gives you the features you need, and add apps only when they prove ROI.
• Negotiate shipping rates. If you ship more than a few hundred orders a month, ask carriers for volume discounts or explore multi‑carrier shipping software that auto‑chooses the cheapest option.
• Test cheap ad channels. Instead of pouring cash into broad Google Search campaigns, try retargeting ads, TikTok creators, or Pinterest pins, which often cost less per click but still drive traffic.
• Switch payment processors wisely. Some processors charge a flat fee plus a lower percentage. Run a side‑by‑side comparison and switch if the savings are significant.
• Trim unused apps. Disable or cancel any subscription you haven’t used in the past 30 days. A $10 app unused for weeks is money wasted.

One more tip: set a monthly expense ceiling for each bucket. When you hit the limit, pause new spending until the next month. This forces you to ask, “Do I really need this?” before every purchase.

Finally, track everything in one place. Tools like QuickBooks, Xero, or even a well‑structured spreadsheet let you see trends at a glance. When you notice a category creeping up, you can act fast before it blows your profit margin.

Running an online store doesn’t have to be a constant battle with costs. By bucketing expenses, auditing regularly, and using simple tracking tools, you’ll keep more profit in your pocket and spend less time worrying about money.