Are you considering starting an online store? It's a good choice, especially since the e-commerce market is growing at lightning speed, and has been accelerating ever since. However, you might be wondering what your initial expenses will be. How much does it cost to start an online store? See what determines your startup costs.
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How much does it cost to set up an online store?
First, an important caveat: if you're expecting a very clear and specific answer to the question of how much it costs to start an online store , well... It's impossible to give a very precise figure. And this isn't due to trade secrets or a reluctance to share e-commerce secrets. The reason is much more prosaic – startup costs for an online store depend on many factors . Ultimately, the cost of an online store will depend on your expectations and the business model you want to operate under.
After this initial caveat, it's time for specifics. See what you can afford to spend on running an online store, and how much. Remember: if your online store is merely an extension of your brick-and-mortar business, you'll already be incurring some of the costs listed below—those related to the "operational" aspect of running your business.
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Running a business and the cost of setting up an online store
Starting your own business is necessary for almost all online sales. The exception is if your monthly income doesn't exceed 50% of the minimum wage (PLN 3490 in 2023). However, this isn't a significant amount, so company registration will usually be necessary.
As a result, you will be obliged to bear the costs of running your business, and more specifically – to pay social security contributions.
Running a business also means paying taxes and incurring costs related to accounting services . An accounting firm costs a minimum of around 150-200 PLN per month.
Costs of storing goods
If your online store will sell physical products, you'll need a place to store them. Depending on your online store idea , a home garage might be sufficient, but in most cases, you'll need to rent warehouse space. The cost depends on how much space you need, the location of the warehouse, and its finishing standard.
Remember: you can't afford to run out of storage space. This could mean you won't have the goods you need in stock, and as a result, you won't be able to deliver them to customers quickly. And that's the biggest sin, one that can cost you a bad reputation and, with it, a drop in orders.
Note: Storage and shipping costs won't be necessary if you choose to run a dropshipping store . In this model, you're responsible for selling the goods, and when a customer places an order, you forward it to the distributor, who handles packaging and shipping. This has its advantages, but also its disadvantages, including a lack of control over the products shipped, which sometimes impacts quality.
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Employment costs
If you're opening a small store, you'll likely manage it yourself. However, if you plan to sell a large number of products from the start, you may need the help of an employee. The estimated cost for an employer to hire one person full-time at minimum wage is approximately 3490 PLN gross. There are also additional startup costs, such as the cost of pre-employment medical examinations (approximately 100-160 PLN) and occupational health and safety training (approximately 100-150 PLN). A person helping with running a store doesn't need to have many specialized skills, but they will also be responsible for numerous processes and customer relations – and if so, it definitely makes sense to pay them more than just the minimum wage.
E-commerce platform
The costs described above were related to the "operational" aspect of running a business. Now it's time to move on to the technical side – this is where the costs of running an online store begin to differ.
The first cost-related issue is the platform on which the online store will operate— the system that will display products, enable ordering, and pay for them. How much does this cost? It depends on the platform type you choose. There are three basic options:
Access to e-shop software in the SaaS model
In this model, you set up an online store on a ready-made platform available in the internet cloud, and you pay a specific monthly or annual subscription fee for its operation.
This is a great solution for absolute beginners who only need access to the most basic e-commerce functionalities and expect a comfortable and intuitive user experience. Subscription packages include a diverse range of services, depending on your preferences and budget.
How much does it cost? Starting at a few dozen złoty per month, this means the annual cost of using such a platform can be as low as less than 1000 złoty . But be warned! If for any reason you don't pay for the online store subscription, you'll permanently lose access. You should also remember that subscription plans mean you have very limited options for personalizing your online store. You won't be able to tailor it precisely to your business model, and its search engine positioning may be challenging.
"Not all SaaS solutions work the same way, however. Some platforms understand that providing a friendly shopping environment is crucial for new online retailers . The lack of certain e-commerce features or solutions that consumers are accustomed to can alienate them from the brand and hinder growth. Therefore, it's crucial to choose a platform that allows for the efficient creation of a fully functional store , without limiting its functionality due to a subscription fee. Particular attention should be paid to its speed, responsiveness, and the availability of features such as integrations with courier companies, secure payments, and review aggregates, as well as ready-made tools for efficient order processing. SEO support and marketing modules are also important. Such a platform not only facilitates e-commerce startups but also enables the creation of a scalable business that can be steadily expanded," explains Rafał Słoma, CEO of the Selesto e-commerce platform.
Open Source e-commerce platforms
These are systems like WooCommerce – usually available for free (in its basic version), which need to be implemented on the server hosting your website. For example, WooCommerce works as a plugin for WordPress, allowing you to quickly transform your website into a sales platform.
This open-source software is still easy to use, yet significantly more flexible than that available in the SaaS model. Experts can modify it to precisely tailor the resulting online store to a specific business model. Furthermore, by choosing an open-source e-commerce platform, you own your store 100% . There's no risk of losing all your data if, for example, you stop paying your subscription.
And what's the cost? The basic version of an e-store based on, for example, WooCommerce is free, as are numerous plugins available in official distribution. However, this doesn't mean that setting up such a store is completely free. You'll need to spend money on:
- additional, useful plugins, e.g. integrating your e-shop with Allegro, Facebook store or popular payment systems and courier platforms – the cost of purchasing each of them will range from several dozen to several hundred PLN,
- graphic layout of the e-shop, if free templates do not meet your expectations – it may cost several hundred zlotys or more if you order the entire visual identification system of the website from a graphic designer,
- service configuration – if you entrust it to professionals (it is worth it – to save time and be sure that everything is set up correctly), you will have to spend from several hundred to several thousand zlotys.
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Dedicated platform
This is a tailor-made technological solution – created by web developers specifically for your needs. The resulting online store is most precisely tailored to the specifics of your business, the most secure, and potentially the most technologically advanced. However, due to the long development time and very high costs (which can reach dozens or more!), only the largest online stores with vast reach can afford this solution. If you're starting a small or medium-scale operation, this solution is completely unnecessary.
Domain and hosting
An e-commerce platform alone isn't enough. For your store to function, it must be hosted on a server (unless you're choosing a SaaS platform) and have a domain, i.e., an address. This means additional costs.
When it comes to domains, the most expensive are the most desirable ones, those ending in .pl. However, it's still not a huge expense – it usually costs a few dozen złoty per year, and if you're buying an address for the first time, you can count on a promotional price.
A good solution is to purchase several related domains simultaneously , for example, with .pl, .eu, and .com extensions – they can redirect to the same online store. The total annual cost of maintaining them will not exceed 150 PLN per year.
When it comes to hosting, you also have a choice – most often between space on a shared SSD server (lower cost, but also limitations in terms of configuration and guaranteed data transfer – a good solution for small stores) and a dedicated server (higher cost, but also greater configuration options and better transfer – a better option for medium and large stores).
This may require purchasing SSL certificates, but they are currently available for free. Therefore, it's worth checking if you need to pay for them.
Content, i.e. text and photos
The store's "template" itself is only one side of the coin. The other is the content you fill it with. Its substantive content and quality are two-fold.
Above all, online store content must provide customers with all the necessary information about products . It should be attractive, complete, and accurate – remember that as a seller, you are responsible for ensuring that the product description accurately reflects its properties , and any shortcomings or distortions may result in legal and financial consequences.
Secondly, the content on an online store's website is important from an SEO perspective . It should be properly organized (with headings, bullet points, and other elements that enhance readability) and be adequately saturated with keywords. Therefore, it's worth entrusting its preparation to professionals.
Warning! Using content on the manufacturer's website is a bad decision – it will have a very negative impact on your online store's SEO . Duplicate content is very poorly received by Google algorithms and negatively impacts your website's rating.
How much does it cost to order product descriptions? It depends on their length, complexity, and quantity. If you have a large number of products to describe, it's worth considering investing in synonymous or shorter descriptions. However, the more unique they are, the better. Costs start at around several dozen złoty for every 1000 characters.
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Content for an online store doesn't have to end with product descriptions . In the long run, it's worth considering a blog, which will strengthen the website's positioning and serve as a branding tool. Content is crucial to building any strong brand.
You'll also need product photos . If you're solely a distributor, you'll likely receive them in the manufacturer's materials. However, if you offer products you create yourself, professional product photos will be necessary – an investment of several hundred or several thousand złoty, depending on the number of photos to be taken. However, this is a one-time expense.
When thinking about the costs of running an online store, it is worth mentioning the commissions for using payment gateways.
So how much do you need to start an online store? With a small dropshipping e-commerce store and a SaaS e-commerce platform, startup costs can be around 1000-1500 PLN. And what's the maximum outlay? In this case, the sky's the limit.
So what can you do to optimize your online store budget? It's best to work with experts – they'll help you create a sales page that meets your expectations within your budget.
Setting up an online store is one thing, but what about advertising?
There are entrepreneurs who build online stores for several or even several dozen thousand zlotys and forget that... advertising is necessary.
No store, even the best one, will sell and collect traffic from day zero just because… it exists. 🙂
Building traffic, testing, optimization, analyzing customer flow – all of this requires attention and basic online advertising skills. You can position your store in search engines, advertise with sponsored links, on social media, on Pinterest, through influencers, or emails – there are so many mechanisms and options, each relevant to a different industry. You need to plan this and be prepared for the costs involved. However, remember that it's an investment. You need to know how much it might cost to acquire a customer – or rather, how much you can afford. Does the average customer spend 100 złoty in your store? So, should it cost you 5 złoty or 10 złoty to acquire one? You need to factor all of this into your fixed costs or margin.
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And that's just the tip of the iceberg. However, remember – setting up a store isn't an end in itself. Sales are the goal, and they take priority, along with all the activities that facilitate/enable them. Therefore, the cost of setting up an online store isn't as important as the cost of advertising it.
Frequently asked questions about the costs of setting up an online store
The final price varies greatly and depends mainly on the chosen technological model (subscription platforms vs. proprietary software), the size of the store (number of products), the complexity of the graphic design and the necessary integrations (e.g. with wholesalers, courier systems or ERP accounting software).
The SaaS model (e.g., Shoper, Shopify) is a cloud-based solution with the lowest entry threshold. Subscription fees typically range from around 50 PLN to several hundred PLN per month. This option is ready to go almost immediately, with the provider taking care of the servers and security, but it also limits modifications to the platform's code.
Open source software is free by design, but its implementation and customization require advanced programming knowledge. Outsourcing this task to an agency or freelancer costs from a few thousand złoty to as much as 10-15 złoty for more advanced stores. The advantages of this solution include complete control, no commission-based subscription fees, and vast expansion potential.
When deciding on your own store (Open Source), you need to remember about infrastructure fees:
- Internet domain: renewal cost is usually around PLN 100-150 per year.
- Hosting (Server): from about PLN 100-300 per year for small shops on shared hosting, up to several hundred PLN per month for VPS servers with higher traffic.
- SSL certificate: necessary for data encryption and payments (free versions such as Let's Encrypt are available, commercial versions cost several dozen to several hundred zlotys).
- Paid plugins: payment modules or advanced shipping options may require annual license renewal.
If you have a limited startup budget, no technical experience, and want to quickly test your business idea, choose a SaaS platform. However, if you're planning to build a large e-commerce site right away, have an investment budget of several thousand zlotys, and want complete independence, flexibility, and advanced SEO, choose open source solutions.
Yes, and these are often the most crucial ones. Simply creating a store doesn't guarantee sales. The largest fixed cost will be the budget for traffic acquisition, meaning online marketing – SEO, Google Ads campaigns, social media advertising, and content creation (Content Marketing).
Summary
The above article covers the following topics:
- How much will you spend on an online store?
- Open Source e-commerce platforms,
- Promotion of the new e-shop.
