There has never been a better opportunity to launch an online business, and e-commerce retail sales are expected to exceed $6.8 trillion globally by 2023.
But how much does it cost to start a profitable e-commerce business? This is what we will explore in the next section.
How much does it cost to start an e-commerce business?
An eCommerce business can be started with a minimum budget of $100, which includes a subscription to an eCommerce platform like Shopify or BigCommerce and a theme to start building your online presence.
E-commerce businesses are less expensive than brick-and-mortar stores because they don't need as many licenses and permits and don't have to pay rent for a storefront. For example, starting a dropshipping business will likely be less expensive since you won't need to invest in inventory, raw materials, or other costs. This gives you more time to spend on marketing and optimizing the pick-and-pack retail process .
In the first year, new e-commerce store owners can expect business costs of up to $40,000, which are recouped through profit margins and returned to the owner. This doesn't mean, however, that you have to spend $40,000 on launching your online store.
Depending on the industry, the e-commerce business model, and whether the business is a full-time job, this cost can change significantly. The following chart illustrates the sections where e-commerce businesses spend their budget during the first year:
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We can see that there are several sections where a business cmo email lists needs to invest money at the beginning, but it all depends on the business goals and the long-term business plan that he has in place.
Many business owners prefer to start small and expand the business as it produces more and more revenue.
Seven ways to create an e-commerce brand
The success of any e-commerce business depends on focusing on the right target market and producing the most value possible. Even if your product is perfect, you will struggle if it doesn’t reach the intended market. Additionally, your product team needs a results-based roadmap focused on the overall goals of product development to ensure alignment with market needs and effective utilization of resources.
Potential buyers instinctively connect with audience-centric marketing, so they are willing to pay for your product because they already want it. Therefore, creating a buyer persona and having a deep understanding of where your potential customer spends time and money can dramatically increase your chances of success.
Some of the features to consider are: