- How much does it cost
to start an e-commerce store?
I'm going to break down all the costs
and show how you can do it for cheap in this video.
Let's go.
(upbeat music)
Hey, guys, Sam here from keycommerce.com
and today we're talking about the costs
for starting an e-commerce store.
Okay, let's be clear,
e-commerce can be started for very cheap.
I'm talking under $100 cheap.
If you don't have $100 to start this business,
then really, you should just not even look at this.
You should go and get a job,
save up some more money
'cause it won't be worth it.
Let me break down the minimum costs
for starting an e-commerce store.
One, website, two, product and shipping
and three, payment processor fees.
Okay, the first one.
The website.
You need a website to sell your products
as an e-commerce store.
It's incredibly easy to set up,
so don't stress about this.
I recommend Shopify 100%,
especially if you're a beginner
and it's your first store.
I'll leave a link in the description
to Shopify where you can get a free trial
to start your store.
It's really easy to set up
and it comes with a tone of great templates
that look great on your store straightaway.
It has everything you need to start selling your products.
It's also very cheap for what you get.
It's $29 per month and honestly,
you're going to have to pay something
for your website in one way or another.
If you start a different website,
you're going to have to pay for hosting.
In Shopify, it's all packaged under one payment
and includes a ton of other incredibly useful features.
I have a ton of other videos,
showing you how to build your Shopify store
on this channel, so please go to my playlist.
I'll leave a link in the description.
Okay, guys, the next one, product and shipping.
You're going to need to pay for your product
and to ship it to customers.
There are many ways to get a product
and to ship it to your customers.
I won't go through all the ways in this video
but basically, you can make your own product and sell it.
You can import a product and sell it
from a warehouse or even from your own house.
You can also sell someone else's product
that they have in their own warehouse or store
and they'll ship it off for you.
This is called drop shipping.
Whatever your product is,
it's going to cost money
and this really depends on what you sell.
Generally, the product usually costs anywhere
from 20 to 50% of what you would actually sell it for.
But really, this does vary depending on the products,
the niche and what have you.
The next big cost is your payment processing fee.
If you use Shopify, link in the description below,
then they're going to charge you a percentage
of each sale when they charge a customer's credit card.
This is a fee that you're going to have to pay
in one way or another to someone
if you're going to process credit cards
and be able to accept credit cards on your website.
So the fee does vary,
depending on what country you're in
but Shopify generally does charge you 2.9%
plus 30 cents on each sales.
It's really important that you take this into account
when you're doing your profit calculations.
2.9% doesn't sound like that much
but when you look at your profit,
say your profit margin is 30%,
then 2.9% is almost 10% of your profit margin.
Okay, guys, we're now talking
about the profits and finances for your e-com store.
I have a whole playlist
on the finances for your e-com store
where I've made a ton of videos
on how to calculate the profit for your e-com store,
your average order value,
your customer lifetime value
and a bunch of other videos
because this stuff is so important.
Why's it important?
It's important because any business
is built on the numbers.
If you can get into the numbers
and make it profitable, make sure your cash flow is good,
then your e-com store is going
to grow and be successful.
The reason I love this stuff
and I love teaching it to you guys
is because I have a background in accounting and finance.
I've worked with many different businesses
with their financial statements
and seen what makes them successful
and really, it's the numbers, guys.
It's those financial statements
and seeing and tracking your profitability and cash flow.
There's a lot to get into here
but really, check out those videos.
Most e-com store owners don't even think about it,
they focus traffic
but trust me, if you can get your profit lined up properly
and make sure you have cash flow,
your business is gonna be successful.
Anyway, guys, if you have any questions about costs
for your e-commerce store, leave a comment below.
I'll try my best to answer them as best I can.
If this video was helpful for you,
please give it a thumbs up.
That tells YouTube that I'm making good stuff
for you guys out there on YouTube
and if you wanna learn more about growing an e-com store,
like I said, I've got a lot of videos on this channel
where I'm trying to teach you guys the best way I can
how to grow that store into something awesome.
All right, guys, thanks so much for watching
and I'll see you in the next video.
Bye for now.
(upbeat music)