The recurring question that every entrepreneur asks when considering creating an online store is: How much does it cost to set up?
Similar to the meticulousness required when opening a brick-and-mortar store in a commercial setting, it's common to conduct a thorough financial assessment before making decisions. Not knowing the true cost of an online store can lead to an investment that doesn't translate into success.
However, we present the ideal solution: "all roads lead to Imagine Business and Shopify" when starting online. We offer various pricing plans, thus ensuring that cost is not a factor. But don't worry, the great thing about online businesses is that they don't require massive investments to get started.
In fact, the cost of setting up an online store is considerably more affordable than that of a physical store. By eliminating the need for a storefront with a window display, warehouse, and furnishings, you also avoid expenses such as electricity bills or salaries for multiple salespeople serving customers.
In this article, we'll reveal that many basic elements of a conventional store aren't essential for an e-commerce business. This means the associated costs will be much more reasonable.
Pay close attention to the details we share, as we begin to address these aspects immediately after watching this video.
How much does it cost to create an online store in 2024?
Answering the question of how to set up an online store isn't simple, as there's no single right answer. The price will largely depend on variables that vary from entrepreneur to entrepreneur. Calculating a reliable budget also involves considering each business's specific goals.
For these reasons, the price of an online store fluctuates depending on various factors, which we'll break down in this article. It's crucial to consider geographic location, as costs can differ significantly from country to country.
To make this article more useful, we'll focus exclusively on the basic, essential elements of a viable e-commerce business. This article will serve as a reference for both those on a limited budget and those looking to establish large businesses with significant turnover and employees.
Keep in mind that we'll focus only on the essential factors to keep your budget from exploding.
Expense breakdown for setting up an online store:
Ecommerce platform:
Choosing an e-commerce platform is essential for online transactions. Platforms like Shopify, PrestaShop, WooCommerce, Magento, and Wix offer a variety of options, but choosing the right one is crucial.
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Ease of use:
- It's essential to opt for intuitive and easy-to-configure platforms, like Shopify.
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Customization capacity:
The platform must allow customization at the design and functionality level. -
SEO Potential:
The ability to rank your store on Google is crucial to success. -
Price:
There are free and paid platforms; however, it's important to consider that free ones may not include hosting or templates. Shopify, for 29 euros per month, offers a comprehensive solution.
Domain:
Although Shopify provides a free domain, purchasing a custom domain (for example, €14 per year) is essential for a strong brand image.
Sample products:
Managing inventory is crucial when calculating the cost of setting up an online store. Managing your products yourself requires a warehouse and ecommerce expertise, but to reduce risk, you can opt for dropshipping, selling products without first purchasing them.
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Investment in sample products (example):
Purchasing 5 units at 15 euros each represents an investment of 75 euros.
Applications:
Apps are essential for improving the user experience. The Shopify App Store offers a variety of free and paid apps, with the option of recurring subscriptions.-
Budget for applications (example):
Allocate 19 euros to improve the store's functionality.
Administrative management:
The bureaucracy and paperwork associated with starting and running a business must be considered. Company registration, tax advice, and accounting services are key aspects.
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Legal costs (example):
- Creating a company: 500 euros.
- Tax advice: 50 euros per month.
- Accounting services: 30 euros per year.
Marketing:
The main investment in e-commerce is focused on marketing strategies. Facebook Ads is a common channel for generating traffic.- Marketing budget (example): Invest 250 euros in Facebook Ads.
In summary, considering these factors, the estimated cost of creating an online store in 2024 would be 967 euros. This investment could result in order generation and profits when starting out in the e-commerce world.