Ecommerce Website Cost: Complete Pricing Guide

If you are looking for ways to expand your retail business, an online store is a great option. Starting an online store often requires less investment than opening a retail shop, but surprise costs do pop up. You can spend anywhere from a few hundred to thousands of dollars starting an ecommerce website, depending on the software you use, the design of your website, and any additional services you may want like search engine optimization (SEO).

Let’s look at the main ecommerce website costs and how much you can expect to invest.

Primary Costs Overview

Domain Name

$5–$20/year

One of the first steps is choosing a place for your website to “live”—essentially securing a domain name. Your domain name is the URL people visit when they go to your ecommerce website. Usually, you’ll simply use your business name as the domain (YourBusiness.com), but this may not be available. In that case, you’ll need to choose a different domain name. You could use a variant (YourBusinessShop.com) or a different extension (YourBusiness.co or YourBusiness.info).

Related:

• .net vs .com: What’s the Difference & Which Should You Choose
• .Org vs .Com: What’s the Difference & Which Domain Type To Use
• The 7 Best Domain Registrars for Small Business
• 11 Insightful Domain Name Ideas for Business Websites
• How to Set Up Business Domain Name Registration in 3 Steps

While it’s possible to get a free domain name, domain names typically cost $5–$20 per year. More popular domain name choices might cost more—for example, if you want the domain to be something like Food.com or ShopNow.com.

Web Hosting

Often included with your ecommerce site builder; shared hosting services range $5–$50/month; dedicated or virtual private hosting services typically $20–$100/month

Your web host stores your website files (such as your product images, descriptions, and more) and content management system (CMS). Typically this is on a server at a dedicated web hosting company like Bluehost or HostGator, or on the servers of an all-in-one website builder like Shopify or Wix. Many ecommerce website builders include shared web hosting in their paid packages, so you don’t have to worry about the added cost for website hosting.

Most small businesses can operate using shared hosting services. But if you want upgraded web hosting, look into virtual private servers (VPS) or dedicated hosting, which will cost more.

One thing to note, though, is that if you decide to go with a web hosting provider instead of an ecommerce platform’s shared hosting services, choose a host that can support ecommerce features such as secured payment processing (we will discuss this feature in detail below).

Related:

• What Web Hosting Is & How to Choose a Provider (+ Free Checklist)
• 8 Best GoDaddy Alternatives for Small Business Web Hosting

Ecommerce Software

Free to $500+/month

Your ecommerce software is the most important tool and would take up a significant portion of your ecommerce website costs. Most ecommerce website builders come with a price tag, though you can get started for free on many platforms—bearing in mind this will significantly limit features and functionality.

You’ll likely find pricing tiers with ecommerce site builders. Shopify pricing, for example, ranges from $39/month for its Basic plan to $399/month for its Advanced plan. You can also get started selling on social media without a standalone store for $5/month (Starter).

It’s important to look out for hidden costs. Features may be limited depending on your location, number of products, or other parameters. Also, be on the lookout for required monthly minimums, monthly service or access fees, and installation costs.

Here’s a breakdown of some of our recommended platforms’ ecommerce website pricing:

Related: 6 Best Ecommerce Platforms for Small Businesses

Add-ons, Apps & Plug-ins

Free to $50+/month, but can vary greatly

You might need to add functionality or integrations to your ecommerce site via add-ons, apps, or plug-ins. Sometimes these platforms have associated costs, either as one-time purchases or recurring fees. Evaluate the functionalities you truly need to avoid unnecessary expenses.

Our top pick for ecommerce platforms, Shopify, has an extensive app store where you connect almost every imaginable software to your online store. For example, you can connect to different social media platforms, marketplaces, and dropshipping companies via apps to be able to buy or sell on these platforms seamlessly.

Website Design

Templates free–$500; freelance design services $500–$5,000+ depending on functionality and site size

Three-quarters of your business’s perceived credibility is based on your website design (see some of our other web design stats). So, it’s an important consideration, though it ranges in cost.

There are many ways to approach your ecommerce site design. You can do it yourself (DIY) using ready-to-go templates available for free or for sale through your site builder’s theme library. All you have to do is update the look and feel for your branding and add the content.

But if you need more specific design and functionality or simply don’t want a DIY ecommerce store, you can enlist the help of freelance web design and development services.

These prices have a huge range, largely depending on the experience of the designer/developer, the functionality you require, and the overall size of the project. Expect to pay no less than $500 for a basic site. Complex sites can cost thousands, even tens of thousands, of dollars. Don’t be afraid to start small.

Here’s a rough breakdown of what it looks like to outsource this part of the site build:

Related:

• 5 Ecommerce Website Design Principles + Free Checklist
• How to Pick a Website Color Scheme in 4 Steps (+ Examples)
• 25 Best Color Palettes for Websites in 2023 (+ Examples)
• 32 Essential Web Design Statistics

Payment Processing

2%–4% per transaction; some platforms charge additional monthly fee

Facilitating secure and convenient payment options is essential for any ecommerce business. Popular payment processors like Authorize.net, Stripe, and PayPal offer different fee structures.

• Authorize.net: 2.9% + 30 cents per transaction + $25 monthly fee
• Stripe: 2.9% + 30 cents per transaction.
• PayPal: 2.9% + 30 cents for transactions over $10

Related:

• How Does Payment Processing Work?
• What Is a Merchant Account? A Guide for Small Businesses
• How to Accept Credit Card Payments Online for Free
• 6 Best Retail Payment Processors
• 10 Best Merchant Services
• Ecommerce Payment Security: 10 Small Business Best Practices
• 13 Payment Trends Shaping the Future of Retail & Ecommerce
• 40+ Payment Trends & Statistics to Know (2023 Edition)

Other Factors to Consider

Business Type & Size

The scale and type of your ecommerce business play a significant role in determining costs. A small boutique store with a limited inventory may have lower expenses compared to a large enterprise with an extensive product catalog. Additionally, businesses that handle international transactions may incur higher costs due to currency conversion and additional compliance requirements.

Functionality

Functionality refers to the capabilities you want for your site—including things like one-click checkout, user behavior tracking, appointment booking tools, personalization, and subscription options. Some ecommerce site builders include functionality in their plans. Others, like WordPress, require some type of integration or plugin. If you need several plugins, this could drive up your ecommerce website price.

SEO & Content

To drive organic traffic from search engines, you’ll want to invest in search engine optimization (SEO). Hiring an SEO expert or agency typically costs anywhere from $500 to $5,000 per month, depending on the scope of services and niche.

High-quality content, including product descriptions, blog posts, and marketing materials, is essential for SEO, engaging customers, and building brand credibility. Content creation costs vary depending on the complexity and volume of content required. Freelance writers may charge 5 cents to $2 per word, while professional agencies might offer fixed packages or retainer-based services.

Related:

• 15 Best Places to Get Free Images for Website Design
• SEO for Ecommerce Websites: The Ultimate Beginner’s Guide

Ecommerce Website Cost FAQs

How much does it cost to start an ecommerce website?

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How much does it cost to build a Shopify website?

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What are the best ecommerce website builders?

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Bottom Line

Starting an ecommerce site in 2023 can be a low-cost venture, but the expenses add up quickly if you’re not on top of it. From domain registration and web hosting to ecommerce software fees, website design, payment processing, and more, there’s so much that goes into creating a successful online store. Evaluating your business needs and comparing different options will help you make informed decisions and set a realistic budget.