How Much Should You Pay For an Ecommerce Website?
In today’s digital economy, you can get groceries delivered to your doorstep and even start a business from the comfort of your home, all thanks to the power of ecommerce. And with ecommerce services expanding to almost every sector and country in the world, the possibilities are endless. So naturally, the idea of starting your own online business might have even crossed your mind. But like any enterprising individual, you’ll have probably asked yourself “How much does it cost?”
If you ask us, it doesn’t take a lot (and we’ll go into details on that later). But it really depends on your business needs. In this article, we explore the different costs attached to starting an online business, including how to choose an ecommerce software that is right for you, and the additional costs of web hosting, payment providers, and web design.
Just started your business? Check out the articles below for more tips and guides on how to start your online business.
Evaluating your business needs
Consider your business idea. Are you going into retailing or perhaps starting a food and beverage business? Maybe you want to sell automotive parts to a niche market? Whatever your business, you’ll need to consider several factors that will determine the type of features you’ll need on your store.
Decide whether your products are targeted towards individual consumers or other businesses. You may even require certain tools or features that can only be found on specific platforms (so compare all the available options as it may save you on hefty fees). Revisit your business goals and plans — how do they align with the options available? And of course, check your budget and determine the absolute necessities of your online store.
As there will be necessary expenses attached to creating an online store, businesses with a tight budget should cut down on costs (where possible) to increase profitability. While web hosting can get costly, choosing an ecommerce platform shouldn’t. Consider a platform where there are no monthly fees or upfront costs to pay. And be careful of platforms with free trial periods — they may automatically charge you for the month when the free trial is over. Hidden fees can hit business owners hard, and some don’t even realize until much later.
Which ecommerce software should you choose?
There are several types of ecommerce software to choose from, the most popular being open-source platforms and Software as a Service (SaaS) platforms. An open-source platform allows you to edit the software’s code, making it the best option for stores that need maximum customization. With an open-source platform, you can build your own website however you want with few restrictions. There are no licensing fees, and with the ability to edit plugins, you can alter your website’s design and make it completely unique from other stores that rely on templates. One thing to consider, however, is the complexity of open-source platforms — they’re not beginner-friendly. You may need to have some advanced coding skills or even hire a developer to build your website. Upfront costs can range from $0 to $10,000 depending on whether you need to pay for development costs and additional features.
“With an open-source platform, you can build your own website however you want with few restrictions…. One thing to consider, however, is the complexity of open-source platforms — they’re not beginner-friendly.”
On the other hand, a SaaS platform uses a cloud-based system where service providers license their software to users. It’s easily accessible to anyone with an internet connection and user websites are hosted on the platform’s servers. SaaS platforms are generally more affordable and run on a monthly subscription model with prices ranging from $0 to as much as $299 for larger businesses. They’re also much easier to set up. Benefits can range from free storage and in-platform security features to dedicated customer support and even marketplace integration. Additionally, professionally-made theme templates, apps, and extensions can also be installed to add more functionality to your website.
If the SaaS option sounds enticing, then consider launching your business with Cafe24. As the premier SaaS ecommerce platform in South Korea, every business tool you could ever need has been expertly crafted and maintained by our team of ecommerce specialists. And with our new Smart Mode feature, managing your customers and inventory has never been easier. You can also use the analytics feature to view detailed sales and customer statistics to improve your business strategies for the future.
Factors that determine your business costs
There are a few basic costs to consider when setting up an online store. For one, you may need to pay for web hosting and you’ll need to buy a domain if you want a custom web address. There are also additional transaction fees (and possible month fees) attached to third-party payment providers which may affect your bottom line.
Here are some of the costs and fees that can affect your online business:
Domain names, hosting services, and SSL certificates
Earlier on, we talked about how you can host your online store on either an open-source and SaaS platform. While open-source platforms will require you to buy a domain to get started, most SaaS platforms will provide you with a default domain as well as any additional domains for a price. Most SaaS platforms will even allow you to connect your own custom domain. Domains can cost around $3 to $30.
Secure Socket Layer (SSL) certificates, on the other hand, have become a necessary addition for almost any online store as they’ll encrypt data sent between a user’s browser and host servers. This means extra security for all transactions made on your store. SSL certificates typically cost between $6 to $330. At Cafe24, SSL certificates are provided for free on pages that deal with sensitive information such as your login, sign-up, and checkout pages.
Payment service providers
Debit cards, credit cards, and e-wallets are some of the most commonly used payment methods that customers tend to use. These days, digital currencies and cash-on-delivery are also popular in certain regions. To process these transactions, payment service providers (like PayPal) and payment processors (like Visa or Mastercard) work together to verify and send funds to your merchant account. Depending on the service provider, monthly fees can cost between $0 to $149, with additional transaction fees that can range from 2.9% to 5.4% per transaction depending on your location. It’s also important to note that your bank may also charge their own fees, so factor in all these costs when setting your prices. At Cafe24, you can choose from payment providers which offer low transaction fees and allow for multiple payment options such as e-wallets, debit and credit cards, and over-the-counter transactions.
Website design and store themes
For a custom-designed website, agencies may charge you anywhere between $100 to $50,000 for work ranging from web development and UI/UX design to marketing and search engine optimization (SEO). Larger businesses will generally prefer custom-built websites due to the sheer volume of products they have and the increased flexibility it gives. For smaller businesses, we recommend using free and paid themes that are available through most SaaS platforms. Not only do they come in different styles for different businesses, but the majority of themes will come with features that are essential for your store. Paid themes can cost around $20 to $300. Compare all the different options available and see what works best for your brand. Have a look at some of the free and responsive store themes on Cafe24 Store to get some ideas.
“… agencies may charge you anywhere between $100 to $50,000 for work ranging from web development and UI/UX design to marketing and search engine optimization (SEO)”
Apps and extensions
Apps and extensions can be some of the most useful and powerful tools in your ecommerce arsenal. Most SaaS platforms will have their own app store that serves as a repository for tools that provide additional features (like social media management or data analysis) for online stores. While basic apps are generally provided for free, apps that have unique features may incur a one-time fee or require a subscription plan with prices starting as low as $4 each month.
At Cafe24, most of our essential ecommerce apps are free to use. From the all-important Instagram Widget to the Smart Recommendations Basic app for product recommendations, you can make simple improvements to your store and adjust according to your budget and operation style.
Set up your store for free on Cafe24
Starting an online business doesn’t have to cost a fortune. At Cafe24, we believe that every entrepreneur should have the tools to succeed in the growing ecommerce industry. With no hosting fees or registration fees to weigh you down, you can build your own online store for free and create a successful online business. The only additional fees you’ll have to pay are processing fees for payment services. As an ecommerce platform, we’ve created tools and solutions that are maintained and optimized with business owners in mind. There are also paid apps and themes, but these are completely optional. You can also choose from many free options available. For businesses that want to go global, language solutions are provided for free and stores can support up to 8 languages including English, Korean, Chinese, and Spanish. You can easily edit your store’s theme using the Smart Themes feature, and if you want to customize all the nitty-gritty details, you can also edit your website’s HTML and CSS.
When your competition is tough, your prices have to stay competitive too. With Cafe24, you can create your online business without the stress of high fees holding you back. If a SaaS platform with no startup costs or monthly hosting fees sounds like something you want, then give Cafe24 a try and register for a free account today.
