How much does it cost to start an ecommerce store? I'm going to break down all the costs and show you how you can do it for cheap. Let's go.
Today we're talking about the costs for starting an ecommerce store. Okay, let's be clear. Ecommerce can be started for very cheap. I'm talking under 8000 INR cheap.
If you don't have 8000 INR to start this business, then really you should just not even look at this article. You should go and get a job, save up some more money because it won't be worth it.
Let me break down the minimum costs for starting an ecommerce store.
One website, two product and shipping, and three payment processor fees.
Website’s Cost:
Okay, the first one is the website. You need a website to sell your products. As an ecommerce store, it's incredibly easy to set up, so don't stress about this. I recommend Shopify 100%, especially if you're a beginner and it's your first store.
It's really easy to set up and it comes with a ton of great templates that look great on your store straight away.
It has everything you need to start selling your products. It's also very cheap for what you get. It's 2,219 INR per month and honestly, you're going to have to pay something for your website in one way or another.
If you start a different website, you're going to have to pay for hosting in Shopify. It's all packaged under one payment and includes a ton of other incredibly useful features.
Product and Shipping Cost:
Okay guys, the next one product and shipping. You're going to need to pay for your product and to ship it to customers.
There are many ways to get a product and to ship it to your customers. I won't go through all the ways in this article, but basically you can make your own product and sell it.
You can import a product and sell it from a warehouse or even from your own house. You can also sell someone else's product that they have in their own warehouse or store and they'll ship it off to you. This is called drop shipping.
Whatever your product is, it's going to cost money and this really depends on what you sell. Generally, the product usually costs anywhere from 20% to 50% of what you would actually sell it for. But really, this does vary depending on the product and the niche.
Processing Fee:
The next big cost is your payment processing fee. If you use Shopify, then they're going to charge you a percentage of each sale.
When they charge a customer's credit card, this is a fee that you're going to have to pay in one way or another to someone if you're going to process credit cards and be able to accept credit cards on your website.
So the fee does vary depending on what country you're in, but Shopify generally does charge you 2.9% plus 22.96 INR on each sale. It's really important that you take this into account when you're doing your profit calculations.
2.9% doesn't sound like that much but when you look at your profit say your profit margin is 30%, then two 9% is almost 10% of your profit margin.
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