Move your business online – Costs & Pricing

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Move your business online – Costs & Pricing

Every year, more and more companies take the step to create an online store. The Covid-19 crisis has affected many businesses reaching out to consumers online and start or improve their e-shop. This step increasingly seems inevitable, but some costs come with e-commerce that everyone needs to prepare for. In this article, we will look at them and answer the question, “What every start-up businessperson should keep in mind before making any decisions?”.

Cost planning:

  • Costs for an online store

One of the main costs is to create the online store itself. When you start the planning, you need to decide what your expectations are and what features you want to have to prevent paying for additional refinement.

In addition to the initial cost, the website needs monthly maintenance, which means you need to include it in the planning.

  • Domain

The domain is usually paid on an annual basis or for several years ahead. The price depends mainly on its extension (.com, .net, .bg, etc.). You can read our article on How to choose a domain name here –

  • Hosting

Hosting costs depend on the traffic to the site. If you choose a SaaS solution for building an online store, the hosting costs are covered by the platform. However, most retailers choose open-source store development solutions. That is where you need to find the right hosting company.

  • SSL certificate

The SSL certificate payment is on an annual basis. It provides security for users while visiting and shopping on your website and is a valuable factor for search engine rankings.

  • Design and theme

Part of developing an e-shop is creating a unique user experience. Apart from the ease of use, this is achievable through the design of the website. The main costs you will make here are to purchase a theme, in case you choose a paid one.

  • Add-ons, plugins, extensions

No matter how much time you spend researching a platform to create your online store, no platform offers 100% of what you want to have on it. Here comes the aid of the so-called add-ons, plugins, extensions. The prices are different for different platforms, but they remain an essential factor for the result.

  • Storage costs

Another valuable and often underestimated cost is the storage of goods. If you already own physical stores or develop a drop-shipping store, you do not need to pay attention to storage costs. But if you are an e-commerce start-up, you need to carefully consider how many goods you can sell every month, and provide the necessary storage space, and include the accompanying costs in the price of the products.

  • Delivery costs

Here is where you need to plan whether you will use your transport or a shipping company. If you choose to work with a company, you must answer the question, “Who will pay the delivery price – you or the end-user?”.

Expenses are an essential part of the homework you need to do before you start an online business. Why are they important? Because when selling online, you should estimate the price for your products by the costs arising from online trading. Planning them prevents unpleasant surprises and future losses.