When it comes to dropshipping, that’s the basic minimum. What’s the real cost, and how important is it to have it versus just having it?
I will lay down the real costs of starting an eCommerce business today. How much does it cost to start an internet store? I’ll tell you, along with some tips on how to save money while doing so. Count me in.
THE BARE NECESSITIES: ECOMMERCE STARTUP COSTS YOU CAN’T AVOID
When launching an internet store, you’ll just have to pay these four expenses:
- The web address
- The exchange of money
You don’t need a domain name or hosting if you sell your products on third-party marketplaces like Etsy, eBay, Amazon, or others. On the other hand, you’ll be saddled with additional expenses, such as a percentage cut of all of your sales.
To get started, let’s have a look at the costs involved.
Domain Names: $0.99-$15/Year Price Range
The URL of your website is known as its domain name. Your website will need a domain name if you plan to start an online business selling goods and services.
HOSTING: $3.50-$250/MONTH ($29/MONTH AVERAGE)
When you hire a hosting company to host your website, you’re paying for the use of their server. Unless you have a web host free trial to make your website live on the internet, it will not be accessible to the general public.
In the world of Webhosting, there are two main options: shared hosting and dedicated servers (aka dedicated server).
Due to the fact that you’re “sharing” your server (left) with other people (right), shared hosting is the most affordable hosting option (beginning at $3.50/month and going up to roughly $40/month).
Up to roughly 100,000 monthly visitors, this is fine for a new store. Afterwards, you’ll want to upgrade to private hosting for faster speed and reduced downtime.
For private hosting, you’re paying for your own private server, which is different from shared hosting. If you have a lot of monthly visitors, you may want to choose this option, which is more expensive (often starting at $200/month).
Since you’re launching an ecommerce business, I suggest using a platform like Shopify, BigCommerce, or WooCommerce as your ecommerce backend solution. Shopify and BigCommerce have their own hosting, so you don’t have to bother about purchasing separate hosting for your website.
- The pricing is as follows:
- Shopify starts at $29/month
- BigCommerce starts at $29.95/month
- WooCommerce (a WordPress extension) is free, but you have to pay for additional features, and you have to purchase separate hosting
INVENTORY: $0-$1000 TO START
Unless you have anything to sell, you can’t open an internet store!
However, the amount of money you’ll need to invest here will depend on whether or not you’ll be dropshipping and how much inventory you plan on starting with.
Customer orders from your store are shipped directly to the customer’s doorstep by a third-party vendor on your behalf.
To put it simply, it’s a method of selling things without having to physically store, pack or transport your own inventory to make money online.
When it comes to dropshipping, there is a lack of branding and customisation options. Anything additional, like a handwritten note in the package, is out of your hands. It’s possible that your shipments will arrive damaged.
PAYMENT PROCESSING: 2-3% OF REVENUE
Processing of payments is the last step. However, the fees charged by payment processors (like Shopify and Stripe) aren’t necessary part of the startup costs of your firm.
When deciding on a product to sell and pricing it, it is crucial to consider all of these expenditures. It’s critical that you generate enough revenue from each transaction to cover your expenses, including advertising, product costs, payment processing fees, shipping charges, and so on.
And that’s all you need to know about ecommerce startup fees (as long as you don’t forget to register your firm with your local government). But this is just the beginning; there are a lot of other things you can do right now to help.
THE NICE-TO-HAVES: COSTS THAT AREN’T REQUIRED, BUT HELP
Once you’ve got your basics covered, it’s time to dive into the fun stuff to give you that “slight edge” over your competition I have read more about TV Activation code on Hubdesk.
Specifically, I’ll cover:
- Using a G Suite account for email management
- Website designer or premium themes
- Incorporating your business
- Designing a logo
- Developing a marketing budget
- Warehouse storage costs
- High-quality product photos or studio area
- Website apps and plugins
- Lots and lots of coffee (and tacos)
- Let’s break it all down!
G SUITE ACCOUNT: $5/MONTH
Even though it is not essential in any way, shape, or form, having a G Suite account for your email is something that comes highly recommended from me. Not familiar with Google’s G Suite? In the event that you are not familiar with it, you most likely know it by its previous moniker, Google Apps. When you use G Suite, the appearance of your email will change to look like this…
In comparison to the built-in webmail providers that are included with the majority of hosting companies, this one is far simpler to administer, more pleasing to look at, and offers a significantly wider range of functionalities.
A G Suite account also has a higher email deliverability (less likelihood of going to the spam folder) and wonderful features such as pausing your inbox and holding emails for 30 seconds in case you need to undo a send if you make a mistake. Additionally, a G Suite account has a higher email deliverability.
WEBSITE DESIGNER: $300-$3000+
A website that has been thoughtfully created inspires trust among site visitors and makes it easier for users to complete a purchase. You require a reliable website.
If you aren’t familiar with designing websites or don’t have the time to devote to learning how to do so, it may be beneficial to work with a professional website designer. Nevertheless, the expense may be significant because designers do not come cheap.
You should budget at least $300 up to $3,000 to have your website professionally designed. The cost will vary based on the amount of expertise of the designer and the intricacy of your business. It is also possible that you may want the assistance of a third party in order to successfully install and set up your shopping cart.
You also have the option of purchasing a premium theme for either WordPress, Shopify, or BigCommerce and then designing the website on your own.