Covid-19 has seen an increase in eCommerce sales as many consumers were confined to their homes and forced to migrate their spending habits online. Comprehensive eCommerce platforms like Shopify, Magento, and WooCommerce make it easy to set up an eCommerce store, especially if you have help from an eCommerce digital agency.
However, you will need to make an initial investment upfront, after which you can add additional plug-ins and features to boost online performance. The average cost for an eCommerce website is between $5,000 to $10,000, domain names are between $2- $20 per year, and hosting is $300 per month.
You can either set up an eCommerce store using templates provided by a platform like Shopify, WooCommerce, or Magento, which costs between $10 – $300 per month, or you can create your website. These eCommerce startup costs will vary depending on how large your inventory is and what your design requires.
You can’t start an online store without having things to sell. The amount you invest depends on the products you’re selling and whether you’re drop-shipping. On average, you probably want to start with at least $1000.
Payment processors usually charge between 2-3% plus $0.30 per transaction. The cost of setting up a fast and secure payment process is unavoidable and important to keep in mind when choosing a product to sell and setting its price.
All products that are sold online require licensing and insurance. This can cost anywhere between $500 for small start-ups and $100,000 or more for massive corporations like Amazon, for example.
There are eCommerce optional costs that can elevate your eCommerce business to the next level after you’ve made an initial investment. Their costs will vary depending on your store’s needs.
As your business grows, you might need to outsource talent or hire in-house. Hiring a website developer and marketing professionals can be costly but should produce a high ROI. You can hire an agency or freelancers, which each come with pros and cons.
All renowned brands have a recognizable logo. As your eCommerce business becomes more recognizable, you’ll want to design a corporate identity package to boost your notoriety online.
You will need a robust and strategic marketing plan to reach your target audience and effectively sell your products. The online marketplace is highly competitive, and getting online leads will require additional marketing spend.
As your business grows, you will have to meet the demands of an increased inventory and might need to invest in renting a warehouse. These costs vary by a wide margin depending on the location and size but will be impossible to avoid as your business scales.
Once you’ve established your eCommerce initial costs, you should think about improving your customer experience and enhancing marketing capabilities with apps and plugins that support different areas of your business. For example, campaign tracking tools and customer support plugins.
Opening an eCommerce business can be exciting and daunting, which why we’re here to help you get things going. At Catapult Revenue, our eCommerce development and marketing team can advise you on which platforms to use and how best to market your business. Click here for a free consultation.
Sasha serves as Managing Partner and VP of Client Solutions for Catapult Revenue, ensuring that all client’s revenue goals are met via Catapult’s marketing strategies.
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