How Much Does eCommerce Startup Cost – Guide to Calculate and Plan Budget

Quick Overview: The mind-freaking question and thought of new entrepreneurs is how much does it cost to start an eCommerce business. Deciding, calculating, managing, and finalizing the eCommerce startup budget is a troublesome task. You need the experts’ POV to get into the right pathway. Take a dig into this article and learn the factors that affect eCommerce startup costs and some savior tips as well. 

eCommerce startup business is the never-ending trend of this era. The online world has uplifted the solution to be effective and user-friendly. Accordingly, the owners overwhelm the eCommerce website with sophisticated features. As a result, they might end up overspending. As an experienced eCommerce development service provider, we understand the budget constraints of startups. 

Moreover, it is critical to navigate you through the proper budget management process. You will learn the calculation and consideration aspects below. However, to know the process to begin business read the blog on how to start an eCommerce business from scratch. 

It’s the high time to make it happen, as the reports say the global eCommerce market size is anticipated to reach USD 10.19 trillion in 2025. And the figures will be more than twice in 5 years. See the below graph for more information. 

Next, let’s move into the calculator of costs for starting an eCommerce business. Take a look at the points and consider each detail thoroughly. 

How to calculate the eCommerce Startup Costs?

To start your eCommerce business in recent times, the basic things to calculate the estimated or even accurate cost are; 

• Inventory & Product Range
• Domain Name & Hosting 
• Payment Processing
• SaaS Platform or Scratch Coding 

Well, the above is the case for B2C eCommerce startups. If you are using Amazon or Etsy to sell your product the domain name and hosting cost will be avoided. On the other hand, the eCommerce business model is also a relevant aspect to be planned earlier. 

Instead of mentioning the cost separately on the above essentials, we give you the range of the total eCommerce startup cost. It will roughly range between $10,000 to $70,000+, this amount includes all the major to advance things. However, it may increase based on your specific project scope and requirements.  

Influential Factors that Affect eCommerce Startup Costs

Although the total eCommerce startup development cost is already mentioned, some factors affect it. So, explaining them with strategic solutions is also added along with them. Have a look and understand them properly.

eCommerce Platform Prices  

First comes the eCommerce platform package fees. It is important to decide and select a reliable one. Based on your business type and size, you can easily skim through the cost-effective platforms. The most popular eCommerce platforms for you to look from are;

• Shopify
• WooCommerce 
• Magento
• BigCommerce and so on.

All of the aforementioned have exceptional features and integrations like inventory, pricing structure, and customization options. Therefore, the cost of starting an eCommerce business is incomplete without ideal eCommerce platforms.

Website or App Development Process 

No matter how well-prepared you are with a website and app development plan, its prolonged nature impacts cost. Your eCommerce startup is jam-packed with tons of consideration. In that, the development stages also play a vital role as you make the overall budget of the website startup cost for the eCommerce business. 

Additionally, your website development process contains steps from discovery, designing, development, and deployment. It consists of various things to do and don’ts list of eCommerce development. You can also take a glance at our blog on responsive eCommerce web design to create compelling layouts. Therefore, the cost to build an eCommerce website is the top-tier factor affecting the budget.

Development Team’s Location

Secondly, to create an eCommerce app/website, you have to hire experienced developers. It directly influences website startup costs. The non-negotiable thing holds great ground about your eCommerce app quality and performance. You can easily transform the startup idea into a great digital store, only with the right resources. However, remote hiring will be best suited for startups. 

The catch here is their residing region or location. When you go for developers from Western countries like the USA, the cost will be higher than the sky for startups. While considering Asian regions won’t break the bank with the necessary technical skills. This region has developers’ hourly rates around $25 to $50. 

Payment Gateways Charges 

The payment gateway integration charges are compulsory for e-commerce startups to take into account. It is a critical aspect and differs based on the gateway you pick. However, the payment gateway fees per transaction fall between 2.9% to 3.5% (approx). Other than that, the payment gateway also requires a monthly subscription cost. So, look for the pricing packages for the gateway platforms and pick the most affordable ones.      

eCommerce Website/App Features  

Whether you have an idea to make a basic eCommerce app or an advanced one, you must integrate user-centric features. Although payment gateways are also one of the feature types but have separate significance on security things. You can’t make wholesome software in one go. Developing MVP (minimum viable product) to validate your e-commerce store idea. Accordingly, keep enhancing it with the latest features and better technical integrations.

Technology Stack for eCommerce Store 

Your tech stack choice impacts the cost to build an eCommerce business website. Likewise, if you want to make a website from scratch, you need frontend and backend technologies like Vue, Node, Angular, PHP, etc. You can use full-stack development solutions like MERN and MEAN. 

Aside from that the Android and iOS apps have their own separate set of software toolkits. Outpassing all the above, there are a few technologies namely, Flutter, React Native, and Xamarin, that offer a cross-platform solution. Using their single codebase you can create and deploy web/apps for diverse platforms. So, it’s a win-win choice with regard to saving both effort and money.  

Well, this is about the cost to start an eCommerce business website. You have to think prior about these costs to plan out the budget allocation proficiently. So, here we bring it to light.

Cost of Starting an eCommerce Business (Post Website Launch)

Website/App Maintenance

No matter how robust an eCommerce store you create, maintaining cost is unavoidable. Also, it’s relevant to keep up your business website with emerging marketplace trends. Making your eCommerce website use the required technologies and retaining its performance cost is continuous. 

Although the development team you hire will initially take forward the maintenance process. However, you need to openly discuss that in your first interaction with eCommerce app development service providers.

Marketing & Advertising

The marketing campaigns and promotional activities are important. After the eCommerce store launch, it is the driving force to grab market recognition. As a fresh business enterprise, you have to take your business to a new level with effective digital marketing strategies. So, you have to consider and plan the budget for such user-driven marketing campaigns.

Customer Support

Once your eCommerce startup app is live, the instant and 24/7 support team setup is a major thing. As they come across your website, knowing that your business offers products reliant on their needs, their queries may arise. Thus, you have to prioritize customer support solutions to attract and retain customer interest in your business. You can take inspiration to make app like Walmart. It offers commendable customer support without any doubt.  

Version Upgrades

Next comes the version upgrades and bug fixing on your eCommerce website. You must keep improving and upgrading your website with new, more performance-rich versions. It simply enhances your overall functioning and offers user satisfaction.    

Other Operational Cost 

Aside from that, there are other costs associated with the eCommerce application like security upgrades, invoice management, plugin subscriptions, etc. So, these fall under the daily operations of business. Accordingly, proper funds are also allocated for that purpose. 

Huh! The eCommerce startup business obviously enables you to collect and save funds to manage any uncertainty during the process. To make your entry a bit budget-friendly, follow the below tips. Its practical implementation will give you advantageous results.

Sure-Shot Tips to Reduce Costs for Starting an eCommerce Business

• Outsourcing Resources remotely 
• Prioritize Low-Code Platform 
• Consider MVP development
• Use Automated approaches
• Make Flexible strategies for instant changes 

Give Your eCommerce Startup Idea Boost At Affordable Rates! 

Partnering with the right eCommerce development company is the turnkey solution. All of the above discussions will be put into the palace and become effective with the right developers. Because the majority of the essentials are technical, a development team with good knowledge can proceed with it. Hire web app developers from Rlogical and lock the deal at a reasonable eCommerce startup cost. You can even check out our portfolio or directly converse with the team.