How Much Does It Cost to Start an Online Store in 2025?

Introduction

Starting an online store is one of the most accessible ways to launch a business in 2025. But how much does it really cost? While some platforms advertise “free” store creation, real-world expenses go beyond setup. From domain names and software to design and marketing, it’s important to budget for each phase of your launch.

In this post, we’ll break down common ecommerce startup costs so you can plan confidently—whether you’re launching a side hustle or a full-time brand.

Domain Name and Hosting

Estimated Cost: $12–$50/year for domain, $60–$300/year for hosting (if self-hosted)

A custom domain (e.g., yourstore.com) helps build credibility and brand identity. Most domains cost around $12 to $20 annually. If you choose a hosted ecommerce platform like Shopify or Squarespace, domain management may be bundled or optional.

If you use a self-hosted platform like WooCommerce, you’ll also need a reliable web host.

Related post: [The Best Ecommerce Platforms for 2025]

 

Ecommerce Platform Subscription

Estimated Cost: $16–$79/month (or higher for advanced features)

Most ecommerce platforms charge a monthly fee. Pricing depends on features such as abandoned cart recovery, reporting, or shipping support.

Sample Plans:

  • Shopify Basic: $39/month

  • Squarespace Business: $33/month

  • Wix Business Basic: $27/month

  • WooCommerce (WordPress plugin): Free, but hosting and add-ons may cost extra

 

Design and Branding

Estimated Cost: $0–$500+

You can choose a free theme or invest in a premium one. Some sellers use tools like Canva for DIY logos and graphics, while others may hire a designer for a custom look.

  • Free theme: $0

  • Premium theme: $50–$350

  • Logo design (DIY or freelance): $0–$150

If you’re not ready to invest heavily in design, start with a clean free theme and upgrade later.

 

Apps and Plugins

Estimated Cost: $0–$100/month depending on tools used

Most platforms offer app stores where you can extend functionality. Popular apps include:

  • Email marketing (free up to 500 contacts)

  • Reviews and social proof ($5–$30/month)

  • Upsells and cross-sells ($5–$20/month)

  • Inventory management or bundling tools

Apps can be added gradually as your needs grow.

See also: [Recommended Tools to Run Your Ecommerce Business Efficiently]

 

Payment Processing Fees

Estimated Cost: 2.9% + $0.30 per transaction (typical)

While there’s no upfront cost, you’ll pay transaction fees every time someone makes a purchase. Shopify, Stripe, and PayPal all have similar fee structures.

Some platforms charge additional fees unless you use their in-house processor.

 

Product and Fulfillment Costs

Estimated Cost: Varies widely based on business model

If you’re buying inventory upfront, this could be your biggest cost. For print-on-demand or dropshipping models, you won’t pay until a customer orders.

Typical models:

  • Handmade or small batch: Cost of materials + time

  • Print-on-demand: Base cost per item + markup

  • Wholesale: Bulk purchasing or MOQs (minimum order quantities)

More on this in: [How to Start an Ecommerce Business: A Step-by-Step Guide]

 

Marketing and Advertising

Estimated Cost: $0–$500/month depending on your strategy

Initial marketing can be done organically through social media or SEO, but many sellers use paid ads to accelerate traffic.

Examples:

  • Meta ads: Minimum $5–$10/day

  • Google Shopping: Cost-per-click model

  • Email tools: Free up to a threshold, then $15–$100/month

Set a launch-phase budget to test which channels bring in sales.

 

Optional Costs

ItemEstimated Cost
Professional product photos$50–$300+
Copywriting for product pages$100–$500+
Business registration$0–$200 (varies by state or country)
Custom packaging$100–$1,000+ (bulk orders)

These investments can improve branding and customer experience, but many sellers start lean and reinvest profits over time.

 

Sample Budget for Beginners

ExpenseLow-End EstimateMid-Range Estimate
Domain$15$15
Platform subscription (3 mo)$50$120
Logo + design$0$150
Marketing$30$300
Apps$0$60
Initial inventory/tools$100$500
Total$195$1,145

 

Conclusion

You can start an online store with just a few hundred dollars, especially if you’re using print-on-demand or dropshipping. As your business grows, you may want to invest in more advanced tools, marketing, or branding. Start small, scale strategically, and focus on delivering value to your customers.