One of the most common questions about starting an online store is: "How much will this actually cost me?" Here's a transparent breakdown so you can plan your budget.
Startup Cost Breakdown
| Item | Monthly | One-Time |
|---|---|---|
| Domain Name | $1 | $12/yr |
| Web Hosting | $5-25 | — |
| Ecommerce Platform | $23-39 | — |
| Theme/Design | $0-20 | $0-200 |
| Logo & Branding | $0-10 | $0-100 |
| Product Samples | — | $50-200 |
| Initial Inventory | — | $100-1000 |
| Photography Equipment | — | $0-300 |
| SSL Certificate | Included | $0-70 |
| Business License | — | $0-100 |
| Total (First Year) | $400 - $3,500 | |
Monthly Running Costs
| Expense | Monthly Cost |
|---|---|
| Platform Subscription | $23-39 |
| Transaction Fees (2.9% + $0.30/sale) | $15-100 |
| Payment Processing ($30/mo) | ~$30 |
| Marketing (ads, email tools) | $50-500 |
| Apps & Plugins | $0-50 |
| Replacement Inventory | $100-500 |
| Shipping Supplies | $20-50 |
| Total Monthly | $240 - $1,300 |
Hidden Costs to Watch Out For
- Transaction fees — Some platforms charge extra if you use third-party payment processors
- App subscriptions — That "free" shipping calculator app costs $20/month after trial
- Returns & refunds — Budget 2-5% of revenue for handling returns
- Chargebacks — Each chargeback costs $15-25 in fees
- Tax software — Automated sales tax filing costs $10-30/month
How to Start with Almost Nothing
If you're on a tight budget, here's a sub-$100 approach:
- Use WooCommerce (free plugin) on a $5/month shared hosting plan
- Find a free theme (WordPress has thousands)
- Start with dropshipping or digital products — no inventory
- Use free marketing: social media organic posts, Pinterest
- Use free product photography with natural lighting
💡 Bottom Line: You can start a real online store for as little as $100-200 in the first month. The key is starting small and reinvesting profits to grow.