How much does it cost to create and operate a successful online store?

How much does it cost to create and operate a successful online store?

Doing business online is becoming the new norm. Its ease of use, cost-effectiveness and its ability to save on time makes it the best option for most buyers. However, how much will it cost to run a successful online store?

In all honesty, the amount you spend to start and run an online store depends on what your end goal is.

Do you want to create something that looks like Google or Amazon? Well, you will need to invest a sizeable amount of money to make that happen. You would need enough money to hire web developers and software engineers.

If all you need is to make enough money to support a decent lifestyle, however, then you do not need much money at all. With as low as about $6 a month for web hosting, you will be good to go.

When it comes to starting your online store, the startup costs would vary depending on some factors. Here is a list of items to consider.

  • The revenue velocity
  • The barriers to entry
  • Portability and scalability.
  • The Revenue Velocity

Here, we ask, how long will your store take to start earning significant money?

If it takes so much time to make your earnings, then the costs are likely to be higher.

It would require you to advertise your products more often and even utilize storage spaces to keep your goods. All these add up to the total costs you incur.

Where you are uncertain of the market, you may try to drop shipping investment option. Here, you don’t hold any property in your stores. Instead, you wait for customers to place their order, then you place yours at the vendor. In this way, you reduce some of the costs you incur.

Where the turnover rate is high, the business takes minimal time to sell its products minimizing on all costs.

The Barriers to Entry

Check the regulations that have the potential of affecting your business. Are your vendors and source of goods secure? Or you need to purchase in bulk to secure your products?

If the market you’re venturing into is faced with severe competition especially from much bigger players, it is important to rethink your approach in that market.

You will need to compete for the vendors and customers. The higher the competition rate, the higher the costs you incur. Take your time to think about your market before venturing into the business.


How portable is your online store? Well, your buyers will most probably place their orders online. As a sign of goodwill, most traders are willing to pay for shipping costs to their customers. Whereas it improves the relationship with your clients, it also eats into your earnings.

Also, you need to assess the costs you incur when storing goods at your premises. You will need to implement the best system that stores your products at a favorable price.


The costs you incur to start and run an online business are dependent on your end goals. However, despite the expenses you suffer, you need to ensure you get the right profit margins.

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