Starting an Online Store: What It Really Costs and How to Budget for It

Opening an online store is one of the lower-cost ways to start a business, but “low-cost” is not the same as “free.” The monthly platform fee is only one line in the budget. Here’s how to think through the full cost before you commit.

Many first-time sellers pick a platform based on the headline price, then are surprised by what comes on top. A little planning up front keeps the numbers honest.

The costs to plan for

• Platform or plan fee. The recurring charge for the store software and hosting. Hosted builders usually bundle the store, security certificate and hosting into one price.
• Domain name. Your web address. Some plans include one for the first year; check what it costs to renew.
• Payment processing. Card and wallet providers typically take a percentage plus a fixed fee per sale. These terms are set by each provider.
• Inventory. The stock you buy or make before the first order arrives.
• Shipping and packaging. Boxes, labels, carrier charges and returns. Decide whether you absorb these or pass them on.
• Marketing. Ads, email tools, discounts and social media time.
• Taxes and compliance. Sales tax, business registration and any licenses your products require.

Add up each line for the first twelve months, not just the first month. That figure is your real start-up cost.

What a store builder bundles

A hosted builder such as IONOS puts several of these items in one place. According to IONOS, its online store includes a domain, SSL security, payment options such as credit card, PayPal and direct debit, a shipping assistant, a dashboard for managing orders, and tools for vouchers and discounts. It also offers AI-assisted setup and professional design templates.

IONOS sells the store in four tiers: Starter, Plus, Pro and Expert. Starter is aimed at beginners, Plus adds more design freedom, Pro adds extra sales and marketing tools, and Expert adds marketplace and business-to-business features. Which one is worth it depends on how many products you sell and how much customization you need. Confirm current prices and plan limits on the provider’s site, since they change.

Questions to ask before you pick a plan

• How many products can I list? Product limits differ by plan.
• Are there transaction fees? Some platforms charge a cut of each sale on top of payment processing.
• Which payment methods are supported? Match them to how your customers pay.
• What does renewal cost? Introductory pricing may rise after the first term.
• Can I upgrade later? Starting small matters only if you can move up without rebuilding.
• What support is included? Check how you can reach a person when something breaks.

Already have a website?

If you already run a site or blog, you may not need a new one. IONOS also offers an eCommerce plugin that adds a store to an existing website, including WordPress, with a plugin or a short code snippet. It also sells hosting for WooCommerce stores. Those can be a cheaper route if you already have an audience.

A simple way to decide

Write down what you expect to sell in your first six months and the cost of each item above. If the plan fee is a small share of that total, pay for the features you’ll actually use. If it’s a big share, start with the smallest plan and upgrade when sales justify it.