The eCommerce industry is vast and complex and the variety of businesses makes the costs fluctuate. It is important to know that starting an eCommerce business is a similar process to starting any other type of business. It requires a lot of planning, capital, a good team, and plenty of patience. So, the question “How Much Should an eCommerce Website Cost to Run?” is not easy to answer. However, throughout this article, we will provide some estimates that might help you understand the potential costs and how they can differ depending on several factors such as business type, complexity, design, platform, functionalities, etc.
Let’s take a look at some of the most notable aspects of eCommerce website costs and break down a few key components that all online stores have in common.
Domain Name & Website Hosting
Probably the cheapest and most exciting things that you will purchase when launching an eCommerce website is the domain name. Prices for domain names vary as each domain provider can have different prices based on factors such as promotional offers, included features, reputation, etc. If you’re lucky, your domain name will cost between $10-$50 per year. Certain domain names that are more common and seem to have potential can be more expensive.
To launch your website, you will also need web hosting which provides you with server space where your website will become available online. You can find basic web hosting for just $3 per month, but if you need more premium services such as cloud hosting solutions, you can expect to pay a few hundred dollars a month. Successful online stores that have a lot of will require a more costly hosting plan/
Ecommerce Platform Fees
The most affordable solution for eCommerce business owners is creating a website by using an eCommerce platform such as WooCommerce, Shopify, or WIX. These platforms charge different fees based on the services and features that they offer, but also on the monthly plan that you select. As a general idea, the costs associated with creating a website with an eCommerce platform can start from a few hundred dollars, for a simple website. A custom-built website will usually cost between $5,000 to $250,000.
Website Design
The design and aesthetics of your online store are very important and can attract potential customers. The cheapest option when it comes to eCommerce design is choosing a pre-made template (this is an option when you build a website by using an eCommerce platform). The costs of a pre-made template can range from free to a few hundred dollars. Custom website design is quite expensive and you can expect to pay between $1,000 and $50,000, depending on the designer’s fees.
Payment Processing Fees
Processing payments is an integral part of an eCommerce website and it requires the integration of a payment gateway. There are many platforms that offer payment processing services and, in some cases, the costs are included in the monthly fee. You can expect to pay a percentage fee ranging between 2 to 3% for each transaction and a fixed fee.
Security and SSL Certificates
Security is extremely important when it comes to eCommerce as your customers expect you to handle their financial and personal data safely. Therefore, you will have to invest in encryption-based Internet security protocols, also known as Secure Sockets Layers or SSL certificates. The costs for SSL certificates range between $50-$200 per year. You should also expect to incur additional costs from other security features or services such as PCI compliance audits, which are examinations of the Payment Card Industry Data Security Standard.
Marketing and Advertising
When launching an eCommerce website, it is recommended to include marketing and advertising to your list of costs as these will be ongoing expenses. Link building, keyword research, site audits, content creation, digital marketing – these are all examples of search engine optimization elements that will boost your visibility and put you on the first page in search engine results. Your budget should also include email marketing and paid advertising.
Estimating the costs of marketing and advertising services is quite difficult as it all depends on your preference, the experts or companies that you hire, and their services. As a rough estimate, SEO service pricing for small businesses can be between $1500 to $5000 per month, but the costs incurred by large eCommerce websites are much higher.
Customer Service and Technical Support
Another expense that should not be ignored is associated with customer service and technical support. Once your website is up and running, you will require ongoing support with website maintenance, updates, and fixes. The cost for this type of service can range from $50 to $300 per hour, depending on your specific needs and your service provider.
Accounting and Legal Fees
Often considered a hidden cost of online ventures, the taxes and fees associated with launching and running a business will often come as a surprise for many business owners. It is important to be prepared to incur different types of taxes that can vary on location, business type, products and services sold, etc. You might also have to pay for permits and licenses. If you are not sure what your legal obligations are in terms of fees and taxes, you can consult an eCommerce accountant who can help you navigate these difficult tasks. The accounting fees will depend on different factors but they generally range between $600 to $6,000 per month.
In Conclusion
It can be quite difficult to give an exact number when it comes to the costs associated with launching and running an eCommerce website. There are certain things like an eCommerce audit that can help you reduce costs when running an eCommerce platform. If your budget is tight, you should be prepared to put in a lot of time and effort into your venture. If time is not on your side, it is wise to have a more generous budget.
