The fees to take into consideration when you start an online store
Creating an online store will take time and money; however, several options exist for different budgets. We then list the fees you must remember if you want to sell online. Please note that an online store can cost between $100 and $100 000 according to your needs and the number of products. Your online store will likely cost less than the Amazon website.
A domain name
Let us start with the beginning. Every website and online store needs a domain name to work. The fees for a domain name are between $20 and $30 a year, although they can be more expensive according to the field of activity, the extension, or the chosen keywords. If you have an idea for your website name, take the time to check if the domain name is available.
The e-commerce platform
It has never been this easy to sell online with all the available tools we find today. Before choosing your e-commerce platform, take the time to analyze your needs. Do you need any specific features? How many items do you wish to sell? Do you want to create your online store yourself or work with other professionals? Your answers can impact the overall price.
Online store created by a professional
If you are looking for a custom online store, want to sell thousands of items, or do not have the time to create everything, it could be relevant to work with a professional. Many agencies and freelancer web developers specialize in making websites and online stores. Therefore, take the necessary steps to explain your project and get some quotes. Please note that a basic online store made by a professional will cost a few thousand dollars at least.
PS If you do not have the time, you can hire WebSelf’s team to get a custom online store at a very competitive price. Do not hesitate to contact us!
Online store created by yourself
If you are resourceful or want to save money, creating an online store by yourself is also possible. Many e-commerce platforms have simplified and democratized the process for a fraction of the price; however, you will need some time. Many hours are necessary to create a functional and optimized online store. The cost of these tools also varies from one to another, according to the features and number of items. Consequently, take the time to analyze more than one option.
In addition, WebSelf is one of the least expensive platforms regarding online stores. We also have some promotions from time to time. Do not hesitate to take a look!
The hosting fees
Then, there are the hosting fees. According to the chosen options and e-commerce platform, these fees can be included in the subscription price. Generally, the more you have traffic, the more you need bandwidth and hosting. Once more, take the time to compare the different options to see which ones meet your needs the best. Most hosting companies have offers that start at $10 per month or less.
The transaction fees
If you want to create an online store, it is surely to have sales. It is important to mention that most e-commerce platforms have transaction fees when there is a sale and a payment. Tools like Stripe or PayPal request a 2% commission on every transaction. Thus, it is essential to remember that when it is time to calculate your product prices.
The shipping fees
Moreover, if you sell products, you also need to consider the shipping fees, whether it is the working force who prepares the orders, the returns and exchanges, the packaging, and the delivery. Do you plan on offering free shipping? If it is the case, remember to calculate everything to ensure the shipping fees do not take all your profits.
The production fees
Let us now pass on the fees related to the production of your products. Of course, they vary according to the field of activity. You will need to think about buying the materials to make what you want to sell, the working force, the storage fees, etc. If you want to have interesting revenues, it is recommended that your selling price is two to three times higher than your production fees.
The marketing fees
Since the competition is fierce on the web, there are great chances that you need to promote your online store with marketing campaigns. Whether it is with influencers, ads on social media, or emailing campaigns, it will likely not be free. It is then essential that you keep this in mind if you want to start an online store. Using at least 10% of your profits for marketing is also recommended.
In conclusion, how much does it cost to create an online store? As we saw, it varies significantly between a few hundred and thousands of dollars, according to the person who makes it and your needs. In addition, to increase your chances of success, you can hire an SEO specialist to appear on search engine results pages or a graphic designer to have a brand that catches people's attention easily. Regarding this, do not hesitate to check our designers’ tips. Good luck!