With the ongoing competition in e-commerce, the costs involved for setting up a whole new e-commerce business are pretty high. There are several factors that need to be considered while you start your business online . Here is a detailed description of all the costs involved in launching your own startup:
1. Website Building and Development: This is the basic need while starting your business. If you hire freelancers for developing they’ll cost you an average of $35 an hour. But website building also include various cost factors apart from website building. That’ll include:
a) Domain Name: It’ll cost you around $10 per year
b) Hosting: Web Hosting totally depends on the traffic and hosting services. It may cost you as low as $10 and as high as $100 per year.
c) Website Maintenance: Even if you hire a freelancer or a full-time web developer to develop a website for designing your website, you need to regularly update it and maintain it. Website maintenance providers charges as high as $600 per year but it depends on the number of products and frequency of updates.
2. Payment Gateway Integration: Since you want to start your business online, integration of payment gateways is a requisite. You might want to include all the payment accepting facilities like credit cards, debit cards, net banking etc. The details of various payment gateways along with their cost of integration is given below:
Image source (P.S. : Payzippy has already been launched)
3. Marketing: Even if your product is built, it is very essential to make it reach the potential customers. Marketing your product needs to be perfect while running your e-commerce business. Internet Marketing involves various methods like SEO, SEM, Email campaigning, Social Media Marketing, Inbound Marketing etc. There are various paid tools for these marketing methods but that’ll be very costly way to promote your business since your business has just started and you’ll be having limited funds. Even if you spend money buying some of the marketing tools, you need to hire people specializing in the marketing tools and that will double your money spent on marketing.(Read here : How to draft a marketing strategy for an online business.)
4. Customer Service: Your business is of online, the added expenses include shipping and logistics. For a better customer service, these things must be handled very carefully. This is the time of customer acquisition as well as customer retention. Thus, you need to be perfect for the internet audience to trust your newly launched brand.
Starting your online business is very irksome and costly process. But, not anymore. What if you can start your business in few minutes just by few clicks? Yes! There are many e-commerce software platforms today where you can get all these facilities just by paying once. All you need to do is to register and leave the rest to them. Website building, development, Payment gateway integration, marketing, SEO, CRM, sales tracking and analytics, every thing is managed in one place without you worrying about anything.
To all the future entrepreneurs remember these lines by Tony Hsieh, Zappos CEO “Chase the vision, not the money; the money will end up following you”