The Costs of Selling Products Online –A Rough Estimate

The Costs of Selling Products Online –A Rough Estimate

Having an e-commerce website is great in more ways than one, as you can operate your entire store from anywhere you want, and you can have your store open round the clock! And if these weren’t all, probably one of the best advantages of selling products online is that it drastically cuts down on expenses. The most evident reason for this is that e-stores do not need a physical shop that you need to maintain, which will add expenses such as rent, power bills, interiors, etc.


You can have the hub of your e-commerce operations at very cheap premises, which can be your unused garage to a shed that you rent at a very nominal fee. Also, you need less staff to help you run your establishment, as there is no physical shop and customers to assist and engage.

Other than this, you can expand your store as and when you want, and keep on adding separate wings and subsidiary sites and as many products as you want, without much expenditure. However, that does not excuse you from assessing the one time and maintenance costs that you need to incur to make your web store any good.

A rough estimate of what it would cost to create online business

Approximate Overall Costs:

Some expenses need to be taken care of when selling products online, but then again, there is no need to worry, as these expenses are way less and meager compared to the expense of running an actual shop. If you are planning to market products online, then there will be domain costs and cost to keep registered business emails. But all these expenses will not even come to more than $200 a year if you are calculating on the basis of a 100 products.

The most expensive event while starting an e-commerce site is the time when you hire developers to design a site for you, and this can be anything close to $600. But this is a one-time expense, and one design will be good to go for a long time. This again is the cost if you are calculating on the basis of a 100 products.

Other than these expenses, Search Engine Optimization (SEO) and Search Engine Marketing (SEM) are two domains that can cost you a bit, but not too much, and these are optional, and you only have to pay if you wish to make use of these facilities. The website, on the other hand, will cost you a monthly fee, which will be quite small, and will depend on the number of products that are there.

The Annual Expenditure:

So to sum it up, we can see that if it’s a tiny business, then a yearly cost of keeping it afloat is something around $2000, while if you are aiming a little higher with up to 2000 products, then the cost will be something around $6000. And lastly, if you have a shopping website with over 10,000 products, then the total annual cost will come to an approx $33,000, which is still really low, compared to what you would have had to pay if you were to run an actual physical outlet with these many products.

The figures listed in this article are merely estimates. If your friend or relative decides to set up the website for you or offers to SEO your site, then you’ve saved something. There is also the option of using cheap but effective services. Whatever you do, just make sure you don’t penny-pinch too much as it can affect the quality of your business.