How Much Does It Cost to Start an Online Store?
One of the first questions many first-time ecommerce sellers ask is: how much does it cost to start an online store? The answer depends on your goals, product type, and the platform you choose. In this guide, we break down the real startup costs so you can launch confidently and budget smart.
Core Costs to Start an Online Store
While you can technically start with almost nothing using free tools and marketplaces, building a professional, branded store involves some upfront investment. Let’s look at the most common startup costs.
1. Ecommerce Platform Subscription
Your ecommerce platform will likely be your largest recurring cost. Here are a few popular options:
- Shopify: Starts at $39/month
- Wix: Starts at $27/month for ecommerce plans
- Squarespace: Starts at $27/month for commerce
- WooCommerce (WordPress): Free plugin, but you pay for hosting
Estimated monthly cost: $25–$39
2. Domain Name
A custom domain is critical for brand credibility. You can purchase one from registrars like Namecheap or Google Domains for about $12–$20 per year.
Estimated cost: $15/year
3. Website Design or Theme
Most platforms offer free themes, but if you want a custom or premium design, budget $30–$180. For custom development or branding, costs can go much higher, especially if hiring a designer.
Estimated cost: $0–$200 one-time
4. Logo and Branding
You can create your own logo using tools like Canva or hire a freelancer. Expect to spend more if you work with a brand designer.
Estimated cost: $0–$150
5. Product Inventory or Production
If you sell physical products, your biggest cost may be inventory. For dropshipping or digital products, this cost may be much lower.
Estimated cost: $0–$1,000+ depending on your model
6. Payment Processing Fees
These are not upfront costs, but they affect your profit margins. Most platforms charge about 2.9% + 30¢ per transaction through Stripe, PayPal, or Shopify Payments.
Optional but Recommended Costs
7. Email Marketing Platform
Building your email list early can help increase revenue. Tools like Mailchimp, Klaviyo, or ConvertKit offer free tiers, but paid plans start around $10–$30/month.
Estimated monthly cost: $0–$30
8. Apps and Integrations
You may want apps for reviews, popups, SEO tools, or upselling. These often range from free to $20/month per app.
Estimated monthly cost: $0–$50
9. Marketing and Ads
Whether you run Facebook ads, hire influencers, or pay for Google Shopping, set aside a testing budget. You do not need a huge budget, but $100–$300 is common to start.
Estimated cost: $100–$300 one-time or monthly
Total Estimated Startup Costs
| Category | Estimated Cost |
|---|---|
| Ecommerce Platform | $25–$39/month |
| Domain Name | $15/year |
| Design/Theme | $0–$200 |
| Branding | $0–$150 |
| Inventory/Products | $0–$1,000+ |
| Email & Apps | $0–$80/month |
| Marketing | $100–$300 |
How to Save on Startup Costs
If you want to reduce how much it costs to start an online store, consider:
- Using free ecommerce themes and logo tools
- Starting with a small product range or digital product
- Leveraging content marketing and social media before ads
- Using a free email platform to collect early subscribers
Many sellers successfully launch stores under $500 by focusing on lean tools and organic marketing.
Conclusion
So how much does it cost to start an online store? For most new sellers, the initial investment ranges from $250 to $1,000 depending on the platform, products, and marketing needs. With a clear plan and smart budgeting, you can launch a professional online store without overspending. Ready to take the next step? Explore our comparison of ecommerce platforms or check out recommended tools for beginners.
