Online Store Budget Guide: How Much Does an eCommerce Site Really Cost?

Thinking about launching an online store? It’s exciting, but the budgets can get confusing. Before you pick a platform or sign up for a host, you need a clear picture of every cost that will hit your wallet. Below we break down the major expenses, from the first dollars you spend to the monthly bills that keep your shop alive.

Setup Costs: What You Need to Pay First

First up is the initial outlay. Most new owners spend on a domain name (about £10‑£15 per year) and a hosting plan. Shared hosting can start at £3‑£5 a month, while a managed WordPress or eCommerce host may be £20‑£30. If you need a custom design, a professional web designer typically charges between £500 and £3,000, depending on complexity. Some choose a DIY builder like Wix or Squarespace; those plans range from £10 to £25 a month and include templates, but they may limit flexibility.

Don’t forget the eCommerce platform fees. Shopify’s basic plan is around £25 a month, while WooCommerce itself is free but you might need paid extensions for payments, shipping, or SEO, adding another £5‑£30 each. If you opt for a bespoke solution, budgeting for a developer’s time is crucial – expect £30‑£70 per hour for a freelancer.

Ongoing Expenses: Keeping the Store Running

After launch, the bills keep coming. Hosting renewals, domain renewals, and platform subscriptions are the basics. Expect to spend at least £20‑£50 each month for a reliable host that can handle traffic spikes. Payment gateway fees usually charge 2‑3% per transaction plus a small fixed fee, so factor that into product pricing.

Marketing is another big slice of the budget. Running ads on Google or social media can start at £100 a month, but many shops spend £300‑£1,000 once they scale. Email marketing tools like Mailchimp or Klaviyo have free tiers up to a few hundred contacts, then charge around £10‑£30 per month.

Don’t overlook the cost of apps and plugins. A SEO plugin, inventory manager, or review system might be a one‑time £50‑£150 purchase or a recurring £5‑£20 subscription. Keeping your site secure also means SSL certificates (often free with hosts) and occasional security audits, which can run £100‑£300 a year if you hire a professional.

Finally, there’s the hidden cost of time. If you’re handling updates, product uploads, and customer service yourself, count those hours as part of the budget. Outsourcing support or hiring a part‑time admin could add £200‑£400 per month.

Putting it all together, a lean startup can launch for under £1,000 in the first year, while a more polished store with professional design and a solid marketing push may need £5,000‑£10,000. The key is to track every expense, compare alternatives, and adjust as your sales grow.

Now that you know where the money goes, you can set a realistic budget and avoid nasty surprises. Keep an eye on recurring costs, and always test new tools on a small scale before committing. With a clear financial plan, your online store can thrive without breaking the bank.