How Much Does It Cost To Start An Ecommerce Retailing Business? (In 2023)

Pat Walls

•

Updated: January 18th, 2023

Start An Ecommerce Retailing Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

The cost of opening a an ecommerce retailing business can vary based on several factors. However for a an ecommerce retailing business you can expect to spend $62 to $55,061 with an average cost of $30,848.

The minimum startup costs for an ecommerce retailing business: $62
The maximum startup costs for an ecommerce retailing business: $55,061
The average startup costs for an ecommerce retailing business: $30,848

Here's a detailed list of an ecommerce retailing business startup costs:

Learn more about starting an ecommerce retailing business:

Where to start?

-> Pros and cons of an ecommerce retailing business

Need inspiration?

-> Other ecommerce retailing business success stories
-> Examples of established ecommerce retailing business
-> Marketing ideas for an ecommerce retailing business

Other resources

-> Ecommerce retailing business tips
-> Blog post ideas for an ecommerce retailing business

Business Formation Fees

There are a few key costs associated with forming your business entity, such as setting up an LLC and getting trademarks, copyrights, and patents sorted.

Cost	Required?	Min Cost	Max Cost
Set up business: LLC & Corporations	Required	$50	$500
Small Business Insurance	Recommended	$500	$2,000
Permit and License Fees	Optional	$50	$700
Trademark	Optional	$0	$700
Lawyer Fees	Optional	$0	$1,500
A Patent ➜	Optional	$5,000	$15,000

Software Expenses

Your ecommerce retailing business needs software to run efficiently!

Why spend money on software? Because it can help you save time and automate certain parts of the business, so you can focus on the most important matters. Software and technology can help you grow your business, and save you from expensive personnel costs.

Cost	Required?	Min Cost	Max Cost
File Hosting Service	Recommended	$0	$299
Email marketing tool	Recommended	$0	$100
Accounting & Invoicing Software	Recommended	$0	$50
CRM Software ➜	Recommended	$12	$300
Project Management Software	Recommended	$0	$25
Internal Communication Tool	Recommended	$0	$20
IT Support ➜	Optional	$150	$2,000
Design Programs & Software	Optional	$0	$50
Social Media Management Tools	Optional	$0	$50
Payroll Software	Optional	$0	$200

Office Space Expenses

It will be your call to determine if you need office space. It is not a requirement but may be necessary as your ecommerce retailing business grows.

Cost	Required?	Min Cost	Max Cost
Rent ➜	Optional	$0	$5,750
Utility Costs For Office Space ➜	Optional	$0	$1,150
WiFi & Internet ➜	Optional	$0	$100

Employee & Freelancer Expenses

Cost	Required?	Min Cost	Max Cost
Payroll Costs & Fees ➜	Optional	$150	$250
Employee Hiring Expenses	Optional	$1	$2
Employee Rewards ➜	Optional	$0	$100

Website Costs

Every business should have a website, and it's worth spending a bit of money to set it up right.

Cost	Required?	Min Cost	Max Cost
Domain Name ➜	Required	$12	$200
Website Hosting Costs ➜	Required	$0	$300
Website Builder ➜	Recommended	$10	$500
Business Email Hosting Service ➜	Recommended	$1	$15
Website & Live Chat Tool	Recommended	$0	$200
Web Designer ➜	Optional	$200	$6,000

Inventory Expenses

If you sell a physical good, you'll likely have to start with some inventory.

Cost	Required?	Min Cost	Max Cost
Upfront Costs For Inventory	Optional	$300	$5,000
Inventory Storage	Optional	$0	$5,000
Package Design ➜	Optional	$50	$3,000
Shrinkage	Optional	$0	$1,000
Distribution costs	Optional	$0	$750

Advertising & Marketing Costs

Cost	Required?	Min Cost	Max Cost
Customer Research & Surveys	Optional	$0	$300
Direct Campaigns, Printing and Mailing	Optional	$0	$300
Affiliate Marketing Commission & Fees	Optional	$0	$250
Influencer Marketing	Optional	$0	$750
Google Ads	Optional	$0	$300
Facebook & Instagram Ads	Optional	$0	$350

Part of

Starting An Ecommerce Retailing Business: Everything You Need To Know

‹

›

Pat Walls, Founder of Starter Story

Want to find more ideas that make money?

Hey! 👋 I'm Pat Walls, the founder of Starter Story.

Get our 5-minute email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.