If you’ve come up with a promising business idea and are eager to turn it into reality, there are high chances that you have considered developing and launching an online eCommerce store. In today’s digital world, eCommerce has become one of the fastest and most scalable ways to sell your products or services to the mass audience. It’s not just the need of the hour; it’s convenient as well.
Whether you have an existing business and want to take the digital road, are starting a new business, or a cutting-edge brand, setting up an online eCommerce store allows you to reach a global audience, have more flexibility and convenience, and helps you grow at a faster pace than the traditional brick-and-mortar store.
Since starting an eCommerce store is gaining great traction currently, understanding the whole process to build an online store will give you clarity to take the next big step. In this blog, we majorly aim to focus on the cost involved in setting up an online store and all the factors associated with it.
Importance of eCommerce Store
The past few years have seen remarkable growth in eCommerce stores globally. If we talk about the United States, eCommerce sales grew from $1 trillion in 2022 to $1.1 trillion in 2023. And trust us when we say this is just the beginning. The eCommerce sales is forecasted to reach $1.7 trillion by 2028. Since eCommerce stores have been reshaping the global retail landscape right, left and center, it is considered the most sensible course of action for all entrepreneurs and startups, as well as existing businesses.
According to statista Revenue in the eCommerce Market is projected to reach US$4.32tn in 2025. Revenue is expected to show an annual growth rate of 8.02%, projected market volume of US$5.89tn by 2029.
However, before we proceed with the cost of developing an eCommerce store, we will understand the other factors of an eCommerce store well. So, let’s begin, shall we?
Let’s begin with unveiling the Driving Forces Behind the eCommerce Boom in the U.S.
The factors that have contributed to the massive spike in eCommerce store development in the past few decades
1. Widespread internet access
The establishment of reliable and widespread internet access has always been the hinge of eCommerce development. In fact, as of 2023, more than 90% of Americans will access the internet-and subsequently be enabled to shop online.
Mobile Commerce (mCommerce)
Mobile eCommerce has taken the world by storm in the past few decades. The widespread use of smartphones has made online shopping even more accessible. Again, mobile devices have become the granite of eCommerce, attracting significant traffic and sales.
2. Advances in Technology & AI
Over the years, technology has completely changed the landscape of online shopping. The introduction of AI-enabled chatbots, personalized recommendations, and seamless payment integrations has improved the online shopping experience. In addition to all these Items, Augment Reality (AR) features provide a virtual product try out to consumers before the actual purchase, ultimately adding to incrementation of online shopping.
3. Changing Consumer Behaviors
Consumers would curl a toe at the thought of price comparisons and home delivery rather than a traditional retail experience. But, of course, the pandemic has accelerated the movement of many people toward online shopping and made most of them consider this to be their new normal.
4. Improved Logistics : Even Faster Shipping
This is the level of convenience that eCommerce stores offer to their buyers. Same-day and next-day delivery has sped up online shopping. The expansion of fulfillment networks and third-party logistics (3PL) service has made shipping faster and cheaper.
5. Flexible in Payments
The introduction of digital wallets like Apple Pay, Google Pay, or even PayPal has simplified online transactions over the years. Afterpay have been another push for increased spending and greater accessibility. These payment options are not only said to be simple but also secure for that matter.
Also Read : How Much Does it Cost to Build a Shopify Website?
Why Start an eCommerce Business?
In the past few decades, businessmen, entrepreneurs, and startups are opting for an eCommerce business for its flexibility, scalability, and global reach. Along with the traditional brick-and-mortar stores, creating an online store allows you to sell products or services to customers worldwide without any geographical limitations.
Starting an online eCommerce store in the USA sounds like an exciting venture, but it requires careful planning and budgeting. Whether you’re a budding entrepreneur or an established business owner looking to take your business to the eCommerce road and expand online, understanding the costs involved in starting an online store is the most crucial part of the whole process.
Now, let’s come to the crux of the blog and have a look at the breakdown of the expenses associated with setting up an eCommerce business or store in the US.
Key Costs to consider when starting an eCommerce Store
The costs may differ depending on your location, eCommerce store development agency, and other factors. Given below is an estimated average that will help you understand and evaluate the associate costs to define an estimated budget.
So, here’s a breakdown of the main costs associated with creating an online eCommerce shop.
1. Domain Name
Your domain name is your store’s digital address. Prices for the domain vary depending on the domain provider and the popularity of the domain name.
The average cost involved in the domain name is somewhere between $10-$30 annually.
2. Web Hosting
Web hosting is another crucial factor in creating an online store. It ensures your website is easily accessible online. Hosting costs depend on the provider and plan you choose. The average cost required for the hosting ranges between $5 and $250 per month.
3. SSL Certificate
An SSL certificate secures your website and builds customer trust by encrypting sensitive data. The SSL certificates are offered free of cost by some hosting providers and some charge upto $200 annually.
4. eCommerce Platform
Choosing the right platform is critical for your store’s functionality and user experience. Since there are several eCommerce platforms available, it’s crucial to choose the right platform. Different platforms also have different monthly costs, and therefore, the cost may differ based on the platform you choose. An experienced eCommerce development company like Krishang Technolab can help you in choosing the platform that suits your store requirements the best.
Also Read : Shopify vs Shopify Plus: Which One is Best for Your Business?
5. Website Design
A well-designed website attracts customers and enhances their shopping experience to the next level.
- Prebuilt themes: $0-$200
- Custom design: $2,000-$20,000+, depending on the complexity of the design.
6. Payment Gateway Fees
Payment gateways process transactions securely. Fees vary according the provider you choose such as PayPal, Stripe or any other payment gateway provider. On an average, the payment gateway fee ranges from 2%-3% per transaction.
7. Inventory Costs
If you’re selling physical products, inventory costs can vary significantly based on your niche and sourcing strategy.
- Dropshipping: Minimal upfront inventory cost
- Stocking products: Costs depend on volume and supplier agreements.
8. Marketing & Advertising
Promoting your store is essential for driving traffic and sales. Investing in marketing and advertising will give your business the edge digitally and offer great visibility. Here’s a breakdown of estimated cost of digital marketing and SEO optimization.
- Digital marketing (Google Ads, social media): $500-$5,000+ monthly.
- SEO optimization: Costs vary based on whether you hire professionals or DIY.
9. Post-development website maintenance
Website or store maintenance is crucial for the smooth running of the store after development. On average, the maintenance costs range between $500-$1,000 annually for small stores and higher for larger ones.
Estimated online eCommerce store setup cost breakdown based on the store size
Another major factor that leads to varying costs of eCommerce stores is the size of the store. We’ve broken down the costs into estimated initial setup and ongoing maintenance expenses based on the size of your eCommerce store. Have a look below.
| Store size | Initial cost | Maintenance cost |
| Small Store (1-99 products) | $1,000-$5,000 | $500-$1,000 annually |
| Medium Store (100-499 products) | $5,000-$10,000 | $1,000+ annually |
| Large Store (500+ products) | $10,000+ | Varies significantly |
Here are some of the tips to save money when setting up an online eCommerce store
Here are some of the strategies you can adapt to minimize costs while building your eCommerce store. These tips can further help you save costs and invest your money smartly.
- There are free and affordable platforms like Wix and WooCommerce available out there. You can use these platforms for small-scale projects. These are also among the best eCommerce platforms for startups like shopify.
- Another smart option is to opt for prebuilt themes instead of custom designs to save you some bucks.
- You can also leverage dropshipping to avoid upfront inventory costs.
- Furthermore, you can start with basic marketing strategies like organic SEO before investing in paid ads.
Finally, let’s know how long it takes to build an online eCommerce store
We know that setting up an online store is an exciting journey, but it can become overwhelming when unexpected delays and time-consuming tasks start piling up. On an average, building an eCommerce store can take anywhere from a few days to several weeks based on the features, add-ons, and complexity of the project. To get an estimated time of building an online store, you can always rely on professional eCommerce store development agencies who will take you throughout the project, its cost of development, time required and all the other necessary information that you might be thinking of. If you are wondering which is the right
Conclusion
Starting an online eCommerce business in the USA comes with varying costs depending on your goals, unique requirements, pre-set budget, and resources. On average, you can set up a basic eCommerce for $50 using basic free tools. However, the overall cost of eCommerce website development depends on many other factors like integrated features, investments in design, marketing, advertising, inventory management, and other platform upgrades and customized
Whether you’re looking to build an online store for an existing business or a startup, understanding these cost factors will help you make informed decisions as you embark on your journey of creating an online store. If understanding the factors leading to the overall costs is becoming confusing for you, you can always rely on an eCommerce agency to help you sail through the various factors in the simplest way.
Let’s build a unique online eCommerce store for you
If you are new to the whole eCommerce world, don’t worry; we can help you with everything from choosing the right platform and breaking down the cost of hiring a web developer for an eCommerce site to setting up an online store with the right features and other requirements. Krishang Technolab is your right B2B eCommerce solutions provider and store development partner in the USA. Our eCommerce agency is committed to understanding your requirements and turning a vision into a full-fledged eCommerce store. Share your online store vision with us, and let’s elevate your brand to the next level! So why wait? Take the first step toward setting up an online eCommerce business and store and witness your business’s highest potential.