Today, eCommerce total sales are worth an approximated $2.8 trillion and by 2021, sales are expected to total $4.5 trillion.
This massive and consistent growth is mostly being driven by consumer needs and changing buying practices. Almost two-thirds of US customers with internet access currently buy products in an online marketplace at least once a month, and the number of individuals who on a regular basis take advantage of eCommerce websites is constantly growing.
If you run a business from a physical area and are trying to find ways to expand your client base, or if you're looking to start a small business with limitless geographical reach, an online store could be just what you're searching for.
You've made the plan, decided on the domain name, and have a business model you want to tell others about. You're ready to know the expenses of owning an on the internet store? Grab a pen and paper and let’s get started!
What you need to know when computing the total cost
What makes an online store cost only $500 while others $50,000? What companies need to be done on their website is what will make the difference in the final cost.
Below are some features that impact the cost to build an online store:
Your domain name is what people will search for in the search engines, and you need to pay for a domain so you can have a website. You need a website if you want to be present online.
Where you get your domain name depends on you, however, keep in mind that the price can differ massively.
Resources and tools required for an online store
As an online business, your startup will be fairly affordable and won't have any upfront costs; your crucial resource will be your website.
As a bare minimum, you'll also need to spend for holding, web development, maintenance, and inventory. The typical expenses for tools and resources for an online store include:
Professionally-built online store - $5,000 to $10,000
Domain - $0.95+ per year
Hosting - $300 monthly
Working with a team and searching for suppliers
One of the most attractive reasons for starting an online store is that it needs very few people to get business ideas off of the ground.
Even though you can hire an additional team to take care of the website, pack items, and ship orders, it's just as possible to manage these aspects of the business on your own.
If you decide you want to build an internal team, you can expect to pay:
Web designer - $54,000 yearly
Ecommerce manager - $59,000 yearly
Director of eCommerce - $100,000 yearly
Website design and style
Price: $2000 - $15,000
Website design does not cost the same for every company. Businesses that want more challenging designs will certainly invest more money than a company that requires a straightforward design.
The online store expense will differ relying on who creates your website's design and style. If you're using a third-party host like WordPress or Shopify, you may need to pay a small charge for your site's design. The designs you receive from these websites are design templates, so they're not completely custom to your company.
You can have extra expenses, too, for creating a responsive design for your site, which is extremely suggested.
The responsive template can cost anywhere from $3000-- $25,000. A responsive design enables your website to adjust to any device your target market utilizes to offer them a positive experience.
Price: $50 - $300/page
Another crucial expense to build an online store is copywriting. Well-written, insightful content is an important part of your website, so you need to make sure you count the price on the total cost for your online store.
Usually, product pages are around $60 since they need fewer words. Longer pages, like “About Us” pages, will get on the higher end since they need more words.
Very few customers are likely to find your store by mishap online. Internet search engines use formulas to place your site, and where to present it in their SERPs(results) pages, thus, marketing is an extremely fundamental part of an online store.
Advertising costs can vary, however, usually, online store owners spend between 7% and 12% of their total profits on marketing. This money goes in the direction of the marketing campaigns, social media campaigns, and email campaigns that are designed to increase brand awareness and drive traffic to your online store.
Online store start-up prices will vary with each private business and will depend on many factors. How big is the business? If you are not marketing a lot of items and you do not have a broad client base, it is better to keep things easy, which will decrease your costs. You need to believe think about your website design. If you want to give your store a custom-made look, you will need to hire a professional UI/UX designer.
Likewise, you will need to make up the prices of the platform for any kind of development job that needs to be done. here is a pricing conclusion:
- For small online stores (as much as 1000 articles) - around $5000 in advance expense and $500 a month.
- For medium-sized online stores (10,000 articles) in addition to a custom design - $15,000 - $20,000 upfront, and the maintenance will be 10% of the upfront expense.
- For an online store with full customization and all of the essential combinations - $30,000 - $50,000 in advance and the maintenance will be 10% of the upfront expense.
If you're already feeling overwhelmed, trying to decide what your online store needs, Digital 923 Ventures is here to help.