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E-Commerce Website Costs: How to Budget for Your Online Business

Starting an online store can be exciting, but it’s important to know the E-Commerce Website costs so you can budget properly.

In this blog post, we will explain the costs of starting and running an online store. This will help you budget and make smart choices. The guide will be about:

  • Initial set-up ecommerce website costs
  • Ongoing operational ecommerce expenses
  • Marketing investments
  • Additional value adding expenses

Let’s dive into it!

men doing orders

Initial set-up ecommerce website costs

Setting up your e-commerce website involves several initial costs, including:

1

Domain: If your hosting package doesn't include it, buying a standard domain name
typically costs $10 to $20 per year.
2

Web design: Customising your website with a unique design and extra features can be
expensive. The cost can range from $500 to thousands of dollars. You may need to
hire a web designer or developer for this task.
3

SSL certificates: Sometimes included in packages while standalone certificates
usually cost between $50 and $200 per year.
4

Payment Gateway Setup: Integrating payment gateways like PayPal, Stripe, or
Braintree can involve setup fees and transaction fees.

Luckily, Little Big Shop offers various pricing options including tools for creating a website, with secure hosting.

Ongoing ecommerce costs

Running an e-commerce business incurs ongoing costs, such as:

1

Subscription Fees: Monthly or annual fees for your e-commerce platform.
2

Transaction Fees: Payment gateways often charge a percentage of each transaction.
3

Maintenance and Support: Regular website maintenance, updates, and support to
keep your site running smoothly. This can cost between $50 to $200 per month if
outsourced.

Depending on your business model, you might benefit from using inventory management software or outsourcing storage and fulfilment services. With Little Big Shop, you get an all-in-one solution for seamless inventory and order management, helping you save time and streamline your operations.

Marketing

Effective marketing is vital for driving traffic to your site and converting visitors into customers. Marketing costs can include:

  • SEO (Search Engine Optimisation): Investing in SEO helps improve your site’s visibility on search engines. This might involve hiring an SEO expert or using tools and services that range from $100 to $500 per month.
  • Social Media Advertising: Running ads on platforms like Facebook, Instagram, and Google can help reach a broader audience. Budget anywhere from $100 to $1000 or more per month, depending on your campaign size.
  • Email Marketing: Using email marketing services to engage with customers and promote your products. Services like Mailchimp or Constant Contact often charge based on the number of subscribers, ranging from $20 to $100 per month.
  • Content Marketing: Creating valuable content to attract and retain customers. This might involve hiring writers, graphic designers, or video producers, costing between $200 to $2000 per month.

Little Big Shop makes it easy to connect with social media platforms such as Facebook, Twitter, LinkedIn, and Instagram. It also allows for integration with Google Tag Manager to enhance analytics.

Other Beneficial Costs to Consider

Several other costs can add value to your e-commerce business:

Customer service

Investing in customer service tools and personnel to provide excellent support. This can range from $50 to $500 per month.

Analytics

Analytics tools like Google Analytics track performance and help make data-driven decisions for businesses. Costs can vary based on the tool and level of service.

Legal and Accounting

Ensuring your business complies with laws and managing finances accurately. Legal and accounting services can range from $100 to $500 per month.

Little Big Shop provides powerful customer management tools in every plan, including features like customer registration, individual profit tracking, and invoicing.

Overall, Little Big Shop can help you manage your e-commerce budget more effectively by minimising initial setup costs, ongoing expenses, marketing costs, and customer management overhead. Ready to streamline your business? Start your journey today with a free 14-day trial!

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