AED 600 to AED 5000
That’s how much you need to start an ecommerce store.
Nevertheless, that should be a bare minimum, and that would apply if you were dropshipping. Which is more important, a nice-to-have or a must-have?
In this post, I’ll break down realistic ecommerce startup costs. The cost of starting an online store, plus a few tips on how to save money when you do it, will be revealed in this article. Take a look!
Startup costs for ecommerce you cannot ignore: The bare essentials
- Domain Name
- Payment Processing
Frequently Used Costs That Aren’t Required, but Are Still Beneficial
- G Suite Account
- Website Designer
- Logo Design
- Product Photos
- Email Marketing Software
- Apps & Plugins
Let’s start with the essentials and what’s really beneficial for your e-commerce business. Only a reference will be provided for the costs. They can vary depending on your inventory selection and other factors. However, this article can help you to give a broad overview of how you can spend and save on your business.
THE BARE NECESSITIES: ECOMMERCE STARTUP COSTS YOU CAN’T AVOID
There are only four required costs when starting an online store. Let’s break down the necessary startup costs!
- Domain Name : AED 3.69 – AED 55.35 /YEAR
- Hosting : AED 12.91 – AED 922.50 /MONTH (AED 109 /MONTH AVERAGE)
- Inventory : AED 0 – AED 3690 TO START
- Payment Processing : 2-3% OF REVENUE
You won’t need a domain name or hosting if you sell your goods on Etsy, eBay, Amazon, or any other third-party marketplace. Nevertheless, you will have to pay other costs, such as their share of your sales.
THE NICE-TO-HAVES: COSTS THAT AREN’T REQUIRED, BUT HELP
Once you’ve got your basics covered, it’s time to dive into the fun stuff to give you that “slight edge” over your competition. Let’s break it all down!
Specifically, I’ll cover:
- Using a G Suite account for email management : AED 18.45 /MONTH
- Website designer : AED 1107 – AED 11070+
- Premium Themes : AED 184.5 – AED 738
- Incorporating your business : AED 738 – AED 2952
- Designing a logo : AED 738 – AED 2952
- Developing a marketing budget : The Sky’s the limit
- Warehouse storage costs : AED 14.76 TO AED 28.59 / MONTH / SQUARE FOOT
- High-quality product photos or studio area : AED 7.38 – AED 3690
- Website apps and plugins : AED 0 – AED 738+/MONTH
- Lots and lots of coffee (and tacos)
WHAT HAVE WE LEARNED?
You now know how much it costs to start an online store.
To recap, here are the rough numbers:
- Bare-bones dropshipping store: ~ AED 600 to AED 5000
- Bare-bones inventory: ~ AED 7000 (depending on how much inventory you buy)
- All the bells and whistles: ~ AED 12,070+ (depending on inventory, if you hired a website designer, etc.)
As you can tell, it’s hard to give you that perfect number. But at least you now have a rough idea of your ecommerce startup costs.
Want to calculate your specific costs? Click the button below to get our startup cost calculator!