Thinking about launching an online store? You're not alone. In today's digital age, e-commerce websites are essential for businesses of all sizes.
*Updated 8/18/2024
They're your 24/7 sales team, reaching customers beyond your local area. But before you dive into e-commerce, there’s an important question you need to answer – how much does it cost to build one?
Shortcuts:
The truth is, there's no one-size-fits-all answer. The price tag can vary wildly depending on design complexity, features, and your chosen platform.
Let’s break down all the costs of creating an e-commerce website – from the bare essentials to the bells and whistles – to help you make informed decisions and plan your investment wisely.
Your domain name is your digital address, like "yourbusiness.com.” Think of it as your store's virtual street name.
Domain names typically cost between $9 to $20 per year, depending on the domain extension (.com, .net, .org, etc.) and where you purchase it.
Popular domains might cost more (sometimes up to thousands of dollars), but remember, a good domain is an investment in your brand.
On the other hand, hosting is like renting space where your website’s files are stored and made accessible to your site visitors.
There are several types of hosting to consider, each with different cost implications:
While choosing the cheapest option is tempting, the e-commerce hosting provider you choose can impact your site's speed and reliability.
A good shared hosting or VPS plan is a solid starting point for most small—to medium-sized e-commerce sites.
Design is where your vision comes to life, but it's also where costs can vary dramatically. Your choices here will significantly impact both your budget and your final product. Here are the key considerations:
When it comes to design, you have two main options – using pre-made templates or opting for a custom design.
Pre-made templates or themes are the budget-friendly choice. They typically range from $0 (for basic free themes) to around $200 for premium options.
Many e-commerce platforms offer a selection of templates designed specifically for online stores.
On the other hand, custom design gives you a unique look tailored to your brand. Prices can vary widely based on design complexity and the designer's experience.
For instance, you might pay anywhere from $1,500 to $10,000+ for a custom WordPress theme for your e-commerce site.
This phase is where your design becomes a functioning website. It is also one of the most costly aspects of starting an e-commerce site. You can choose between doing it yourself or hiring a professional developer.
If you're tech-savvy and have the time, you can build the site using platforms like WordPress, Shopify, or WooCommerce.
It can save you money, but it's time-intensive and has a learning curve if you’re new to it. Hiring a professional developer is advisable if you lack the technical skills or prefer a more polished outcome.
Hourly rates for developers typically range from $25 to $200+, depending on their experience and location.
With a professional developer, here are some ballpark figures of what you can expect to pay, depending on your site requirements:
Given the potentially significant costs of custom design and development, it's important to consider how to finance your e-commerce project.
While discussing budgets with your developer, remember to explore various financing options—whether invoice factoring for small businesses, a loan, or redirecting funds from other sources.
These options can help you achieve the custom design you want without compromising on quality due to immediate budget constraints.
E-commerce platforms are the engine that powers your site, handling everything from inventory management to checkout. The costs will depend on the type of platform you opt for:
Open-source platforms like WooCommerce (for WordPress) and Magento are free to download and use. However, "free" doesn't mean there are no costs involved.
For instance, while the core WooCommerce plugin is free, you'll likely need additional plugins for features like payment gateways or shipping calculators. These can range from $0 to $300+ each.
The associated costs for open-source platforms might include:
SaaS platforms like Wix, Shopify, and BigCommerce offer all-in-one solutions with hosting included. They're easier to set up but come with ongoing subscription costs.
For instance, Shopify plans range from $9 to $299 per month, while BigCommerce pricing plans range from $29 to $399 monthly.
For a bit more context:
Besides the subscription costs, there are additional costs to consider:
Fortunately, POWR offers completely free apps and extensions on all of three platforms:
Remember, while open-source platforms might seem cheaper at first glance, they often require more technical know-how and can have higher development costs.
SaaS platforms are typically more user-friendly and include technical support, which can be invaluable if you’re new to e-commerce.
In addition to the core expenses of setting up an e-commerce site, other often-overlooked expenses can significantly impact your budget but are crucial to maximizing the success of your online store.
Payment processing is an ongoing expense that varies between platforms, as do the costs! The two most common processors are PayPal and Stripe.
Wix Payments uses the standard 2.9% plus $0.30 per transaction for all credit cards and popular payment methods in the US, but may vary by country and payment type.
Shopify Payments charges can also vary between 2.4% - 2.9% plus $0.30 transactional cost. Avada has a helpful Shopify Fee Calculator you can use to determine your costs.
BigCommerce doesn't charge commission fees for using its pre-integrated payment gateways, including PayPal and Stripe, with the exception of PayPal powered by Braintree.
BigCommerce's PayPal transaction fees are the same standard as the others but decrease as you upgrade your service plan.
And if you plan to offer buy now pay later (BNPL) options those pee are considerably higher and start at 5.99% plus $0.30.
High-quality content, including product descriptions, blog posts, and visual content, attracts and converts customers. If you don't create this content yourself, you must budget for professional help.
Content writers typically charge $0.10 to $1 per word, depending on their experience and the complexity of the topic.
This cost also depends on your chosen digital asset management strategy. For instance, you can use stock images and cheaper product photos as a cost-effective solution, but they might also look cheap and lazy to potential customers.
If possible, pay for professional product photography. You might have to fork out $25 to $150 per product, but you’ll get high-quality product images that can potentially boost conversions for your e-commerce site.
Your e-commerce site isn't a "set it and forget it" project. Ongoing maintenance is crucial for security and performance. It includes regular software updates, bug fixes, and technical support.
If you need to handle this yourself, you might pay a developer or agency $20 to $200 per hour for these services.
Some providers offer maintenance packages ranging from $50 to $500+ per month, depending on the level of support.
Finally, remember that building a site is just the beginning – you need to attract customers. Marketing costs can vary widely depending on your strategy.
Social media advertising might cost $200 to $1000+ per month. Google Ads can run from $500 to $10,000+ per month, depending on your industry and competition, while email marketing tools can range from $10 to $1000+ per month.
Consider content marketing, influencer partnerships, and other promotional strategies that might be relevant to your business.
Beyond the standard expenses like design, development, and payment processing, these additional fees can impact your bottom line if not properly accounted for.
The cost of an e-commerce website isn’t a one-size-fits-all answer. The costs can add up quickly, from domain names and hosting to design development and other expenses. But don't let that scare you off!
Building an online store is an investment in your business's future. The key is smart budgeting and planning. Start by assessing your specific needs and goals.
Are you a small boutique looking for a simple, elegant solution? Or a large retailer needing robust features and scalability? Your answers will guide your budget decisions.
Ultimately, whether you're working with a shoestring budget or ready to invest heavily, there's an e-commerce solution for you. Start with the essentials, plan for growth, and don't be afraid to start small and scale up.
Shanice Jones is a techy nerd and copywriter from Chicago. For the last five years, she has helped over twenty startups build B2C and B2B content strategies that have allowed them to scale their businesses and help users around the world.