Cost to create an E-Commerce Business
How much does it cost to create an E-commerce business? E-commerce businesses require technical knowledge and time, but can be managed on an affordable budget! But how much is affordable exactly? How about $50? Yes, you hear right, you can create an e-commerce business in $50. It’s the minimum cost to get started, but there are other expenses you can add.
How Much Does it Cost to create an E-Commerce Business?
You should pay for the following four things to get an online store:
- Domain name
- Payment processing
If you use the third-party Amazon, eBay and other third-party market places to offer your products then you don’t need to pay for the domain name of web hosting. You must pay for other expenses such as the commission they get from the sales.
If you don’t use them, then you will have to buy the domain and hosting as well.
1) Domain name:
A domain name is you choose the name for your website. So, your website must have a domain name to specify the business. It’s cheap to buy a domain name through the different website starting from a few to a few hundered dollars a year depending on the name.
Different domain registrars offer varying degrees of management for your domain. Beyond that you will need to purchase a form of Web-Hosting to host and build/run your site.
The best domain registration companies, or domain registrars, are Godaddy, Namecheap and Hostgator. Your domain registration is separate from your hosting, so they don’t need to be on the same company.
Check out Domain Registration on Hostgator for up to 60% off hosting and $4.99 on select domains!
Buying hosting means getting your website to host on hosting provider’s server. It’s to make your new site visible on the internet to the audience. If you don’t have hosting, no one can see your website on the internet. You can buy the hosting starting from $3.50 to $40 monthly. Check out Hostgator for reliable web-hosting, customer service and affordable costs for businesses of any size.
Other expenses are to get the products. What will you do when you have nothing to offer? It’s up to you how much you invest on catalogs to start with. Some sellers also upload pictures and have no inventory available. When someone place order for a product, they buy it from the shop at the same time and then ship it. So, they don’t need to invest in the inventory. Most of the new sellers do this to prevent any loss. You can spend one lac or even a million dollars on the catalog.
If your supplier is local, you can invest $100, or if it’s an international or he is far away, then it’s $1000.
4) Payment processing:
Every payment processor takes 2 to 3 percent of every transaction. So, you need to choose the price of products wisely. Like a price which can give you profit to pay for other transactions expenses and your savings.
So, you can invest a total of $1500- $15000 to set up e-commerce. It includes your domain name, hosting, inventory cost and payment processing.
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