What are the costs of starting an online store or dropshipping business?

E-commerce has drastically changed consumer shopping habits. Online shopping offers convenience and savings which brick-and-mortar stores simply cannot match. It’s no surprise that consumers have begun shifting their shopping to online retailers like Amazon.

In the next three years, online shopping sales will continue to grow and will double by the end of 2023. In fact, over 16% of all retail sales are expected to happen online in 2020. Retail competitors will need to adapt their operations to meet these evolving consumer needs. Building an online shop for their business will be a requirement in order to stay competitive. However, developing an online store requires a minimum investment for acquiring a domain name, hosting, an SSL certificate, a theme, payment processing fees, plugins, and extensions.

Domain name

Once you have established a business model for your online shop and determined your product line, the next step is picking out a domain name. Ideally, you want to choose a name that tells a story about your company. Make it unique and memorable to ensure that anyone visiting your online shop is likely to want to do business with you. Procuring a domain name for your website can range from €18 to €30 per year. However, highly coveted domain names can demand a large premium. Ensure that the domain you’re seeking is available for purchase.

Hosting

An essential requirement for building a website or online store is having an internet hosting service. It allows your online store to be viewed on the internet. A web host will grant you FTP access to upload files from your local computer to your web server. Having a domain name and a web host gives you the ability to create domain email accounts. WooCommerce has partnered with a number of hosting companies which offer services ranging from $3.95 to $499 per month.

SSL Certificate

Depending on your website hosting provider, your online shop might need a SSL certificate. It employs cryptographic principles to provide an added level of security to your online shop. When installed on a web server, the application protocol changes from HTTP to HTTPS. The certificate protects sensitive information in your online shop. It prevents individuals from accessing your data, increases your google rankings, builds consumer trust, and could potentially improve conversion rates. Prices for SSL certificates range from $56 to $150 per year depending on your security needs.

Theme

Building an online store using WooCommerce requires a theme. A theme will determine how your online store will appear to customers.  A theme is a completely separate software system that comes with thousands of components that you will need to use to help complete the custom code necessary to construct an online store. Free themes are available at the WooCommerce store. However, free themes offer limited features and no extra functionality. They are not unique, rarely updated, no technical support, and often they are poorly coded. Paid WooCommerce themes can be bought on the WordPress theme store from $39 to $79.

Payment processing

One of the most important aspects of an online store is the payment processing. It’s important for business to be able to accept all common forms of payment. However, this service does not come for free. Payment processors charge roughly 2-3% plus €0.10 per transaction.

Plugins and extensions

WordPress supports a multitude of different plugins and extensions which allow for the customization of an online shop. Plugins can help you create a powerful website by adding extra features and improved functions. Although these are not required, they can help you increase sales, get email subscribers, and more. Short of hiring a web developer, this is the best way to build a powerful online store. Costs for plugins vary greatly depending on the developer. Woosa has premium plugins that will help you have a successful WooCommerce online shop.

Do you need to develop a WooCommerce plugin?

Licensing a Woosa plugin means having a plugin that works seamlessly with your website regardless of updates. Install it and leave the rest to us! Looking for a specific plugin tailored to your needs? We can help you develop and maintain a plugin, reach out to us for more information or check out one of our existing plugins.