There are increasing numbers of people shopping online, and it will be best to open an online shop than a physical one. People are growing more confident and feel safer shopping online, that opening an online shop is fast becoming a norm for businesses. Now the question usually arises, “what is the minimum cost of starting an online shop”? You can start an online shop today with $0, and the amount spent will depend on the online shop’s functionality.
Check out reviews on laminablog.com to learn about the pros of getting your shop online. Starting your online shop will require capital to set up. You can also consider reliable loans websites from reviews on the blog to sources for the required capital. Setting up an online shop may cost thousands of dollars depending on your budget and the features you want on your online shop. But we are going to consider the required cost as shown below:
1. A domain name
The first thing you will need to start your online shop is a domain name. A domain name is an address where people can locate your online, more like a digital address. Domain names are usually the cheapest of all the required costs ranging from $0.99 to $15 per year. It is advisable to get a .com because it is more like the default prefix users search for online.
You will need a hosting platform to host your domain name so people can view it on the internet. There is lots of cheap hosting, but you must research the host to ensure that your website is readily available. The price for hosting your platform varies from $3 to $30, depending on the quality of the platform. You can use shared hosting for your online shops because they are cheaper and can effectively host your online shop. However, to open your online shop, you should consider hosting your shop on an eCommerce platform like Shopify or woocommerce. These platforms are designed for shopping purposes; thus, it is much easier and cheaper to set up your online shop using these platforms.
3. Setting up inventory
The inventory has to do with what you will sell on the online shop, and you may spend as low as $0 setting up your inventory. With the idea of dropshipping, you may not spend a dime on a stock as you will direct your orders on your platform to those that have the product. The concept of dropshipping helps you save the cost of purchasing, storing, and transporting the products. All you have to do is place the products on your online shops and redirect them to those that own the products when orders are made.
4. Setting up the payment processing system
Another cost of operation you have to consider is the payment processor, which will determine your profit. You have to calculate the cost of payment processing to ensure that you make a profit from your sales. Some platforms charge as much as 2-3% of each deal, and some have a fixed rate for processing the payment. Consider the payment processing when researching the right platform to use, as it will determine the amount of profit you make on the product.
With the above analyses, you can consider the minimal amount needed to start an online shop. As you would have noticed, you can start your online shop with the necessary features as stated above, which are economical. But if you have enough capital, you can opt for additional features which will enhance your online shop.