How much does it cost to start an online store?

Starting an online store can cost very little or quite a lot, depending mostly on what you sell and how much stock you buy. The platform itself is often the smallest cost. Stock, shipping, payment fees and marketing usually dominate. The ranges below are rough guides, not quotes, so check current prices before you budget.

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Costs depend on the model you choose

A print-on-demand or dropshipping store needs little upfront money because the supplier makes and ships the product, but margins are thinner and you have less control over quality. A store that holds its own stock needs capital for inventory, space and packaging, and in return you control the experience and usually earn more per item.

Handmade sellers sit in between. Materials are cheaper than finished stock, but your time is the largest cost, and many first-time sellers forget to put a value on it.

Business registration and admin

Registration costs vary by country and structure. A sole proprietor often pays nothing or a small fee, while a registered company usually has a filing fee and ongoing annual costs. Some products need licences or certification, which can add noticeably to the total.

Budget also for a business bank account, which may have monthly fees, and possibly a bookkeeper or accounting software. Even a part-time bookkeeper pays for themselves if they stop you from missing a tax deadline.

The platform or marketplace

Hosted builders such as Shopify, Wix and Squarespace normally charge a monthly subscription that rises with the plan. WooCommerce is free software, but you pay for hosting, a domain, and sometimes paid extensions or themes. Marketplaces such as Takealot or Etsy usually cost little to join but take a commission or listing fee on each sale.

As a rough guide, a small store can run on a monthly platform and hosting cost somewhere in the tens of dollars, plus a domain name for a modest annual fee. Look at what is included on each plan, as apps and add-ons can double the headline price.

Stock, materials and packaging

This is where most of the money goes for a store that holds inventory. Buy a small first batch, enough to test demand and fulfil your first weeks of orders, rather than a year of stock. Minimum order quantities from suppliers can push you to spend more than you planned, so negotiate or look for a supplier with lower minimums.

Packaging is a surprise cost for many beginners. Boxes, mailers, tape, labels, tissue and printed inserts add up per order. Calculate the packaging cost of a single parcel and include it in your pricing.

Photography, branding and content

You can start with a phone camera, natural light and a free design tool for a logo. Hiring a photographer or designer is a reasonable upgrade once sales justify it, and the price range is wide. Spend first on clear product photos, since they influence sales more than almost any other visual detail.

Payment fees and shipping

Payment providers usually take a percentage of each sale plus, often, a small fixed amount. These costs are easy to underestimate because you do not pay them upfront. They come out of each order, so check the fee schedule and include it in your margin calculation.

Shipping is another per-order cost. Decide whether you pass it on to the customer, absorb it or build it into the price. Get quotes from several carriers, since rates for the same parcel can differ considerably.

Post-purchase tools and the cost of 'where is my order?'

One cost that new stores rarely budget for is time spent answering delivery questions. Each message takes a few minutes, and a store with steady orders can lose hours every week to them. That time is a real cost even though no invoice arrives for it.

TrackIt For Business is one way to reduce it. It costs $14.99 a month for the dashboard, tracking, alerts, automation, API and team access, plus R1.50 per package the first time its Wallet passes are generated, billed monthly. Packages that are only tracked cost nothing extra, and you can cancel at any time. It follows parcels across 3,000+ carriers so you keep your own couriers, and customers receive automatic notifications, a tracking page and a branded Apple Wallet or Google Wallet pass. Whether it is worth it depends on your volume. A store shipping a few parcels a month probably does not need it, while one answering delivery questions every day might.

Marketing and the money you will not see coming

Cost area	Rough range (varies widely)	One-off or ongoing
Business registration and licences	Nothing to a few hundred dollars	Mostly one-off
Platform, hosting and domain	Tens of dollars a month	Ongoing
First batch of stock	Hundreds to several thousand dollars	Repeated
Packaging	Under a dollar to a few dollars per parcel	Per order
Payment fees	A percentage plus a small fixed fee per sale	Per order
Shipping	Depends on weight, distance and carrier	Per order
Marketing	From free to a monthly budget you set	Ongoing
TrackIt For Business	$14.99 a month plus R1.50 per package with Wallet passes	Ongoing

Marketing can cost as little as your time on social media or as much as thousands in paid advertising. A sensible approach is to begin with free or low-cost channels, learn what resonates and then put money into what works. Set a cap on ad spend and measure the cost per order before increasing it.

Leave room in the budget for things that go wrong. Returns, refunds, damaged parcels, a stock mistake or a month with slow sales are normal. Many advisers suggest holding a cushion equal to a few months of fixed costs, but the right figure depends on your situation.

Preguntas frecuentes

What is the cheapest way to start an online store?

Usually a marketplace listing or a dropshipping or print-on-demand model, because you avoid buying stock upfront. Margins are generally lower, so check the numbers carefully.

How much stock should I buy at the start?

Enough to test demand and cover your first weeks, not a year of supply. Re-order as you learn what sells.

Are payment fees a big cost?

They are modest per order but add up, and they hit low-priced items harder because of the fixed part of the fee. Include them in your pricing from the beginning.

How much does TrackIt For Business cost?

It is $14.99 a month for the dashboard, tracking, alerts, automation, API and team access, plus R1.50 per package the first time its Wallet passes are generated, billed monthly. Tracking-only packages cost nothing extra, and you can cancel at any time.

Do I need to pay for tracking software at the start?

Not necessarily. Many stores begin by sending tracking numbers manually. A tool starts to make sense when delivery questions and manual updates take noticeable time.