February 15, 2025
Ramin Popal
Starting an eCommerce business is an exciting endeavor but comes with its fair share of challenges. One of the first questions prospective online business owners ask is, "How much does it cost to start an eCommerce business?"
The answer can be tricky; several variables can affect the starting costs for an online store. In this guide, we'll unpack what goes into the total cost of starting an eCommerce business so you can get a better idea of how much money you'll need to launch your store and the question of "How to Find a Supplier for Your Product".
Starting an eCommerce business requires financial planning, but the good news is that you don’t need a massive budget to get started. The cost of launching an online store varies depending on the business model, platform, marketing strategy, and product sourcing method.
For entrepreneurs using dropshipping, the upfront costs are significantly lower compared to traditional retail businesses that require bulk inventory purchases and warehouse management. Using platforms like Shopify, AliExpress, and Facebook Ads, you can launch an eCommerce store with minimal investment and scale as you generate sales.
Instead of spending weeks researching suppliers, testing products, and setting up a store, AI Store Builder provides a fully built Shopify store in under 10 minutes, complete with 20 trending products, trusted suppliers, and an entire dropshipping course. This saves time, reduces costs, and ensures you start with a high-converting store ready to make sales.
The first step in launching an online business is choosing an eCommerce platform. Shopify is the most popular choice for beginners and experienced sellers because it provides an all-in-one solution for managing an online store, processing payments, and tracking orders. Shopify offers three pricing plans:
$24/month (Best for new store owners) includes essential eCommerce tools for setting up and managing a store. Allows unlimited product listings and secure checkout.
$69/month (For growing businesses). This plan includes lower transaction fees and advanced reporting. Recommended for stores scaling past $5,000/month in sales.
$299/month (For high-volume sellers). This includes real-time carrier shipping rates and lower processing fees. Designed for established businesses processing thousands of orders per month.
AI Store Builder users don’t need to spend hours setting up Shopify manually—they receive a fully built store, allowing them to start selling immediately without dealing with technical configurations.
A domain name (e.g., www.yourstore.com) makes your store look professional and helps with branding. Most domains cost between $10–$20 per year (from providers like GoDaddy or Namecheap). A custom logo and branding package can range from $30–$100, though many free tools like Canva allow you to design a logo yourself. If you want a professional-looking store, investing in a custom domain instead of using Shopify’s free subdomain (yourstore.myshopify.com) is worth investing in.
AI Store Builder preloads your Shopify store with high-quality branding and product images, ensuring that your store looks polished from day one.
The cost of inventory depends on whether you choose:
You only pay for a product when a customer places an order. This eliminates inventory risk and upfront stocking fees.
Each product is custom-made after a customer purchases it. While there’s no inventory to manage, POD items typically have lower profit margins due to production costs.
Buying products in bulk can increase profit margins but will need storage space and capital.
For new eCommerce entrepreneurs, dropshipping is the most cost-effective way to start because No inventory purchases are required. Orders are fulfilled directly by suppliers, reducing overhead costs. You can test different products without financial risk.
Instead of searching for suppliers and testing products yourself, AI Store Builder provides 20 high-demand products from reliable suppliers, ensuring that store owners start selling immediately without sourcing inventory.
No matter how great your store looks, you won’t make sales unless people see your products. That’s why marketing is one of the most important investments for an eCommerce business. There are two primary ways to drive traffic to your store:
These strategies take time to generate sales but cost little to nothing if done correctly.
The quickest way to make consistent sales is through paid ads, especially on platforms like Facebook, Instagram, and TikTok.
AI Store Builder users can access a dropshipping course, which teaches them how to market their stores effectively without wasting money on lousy ad campaigns.
Every time a customer purchases, payment gateways (Shopify Payments, PayPal, Stripe) charge a processing fee.
These fees vary:
If you process $10,000 in monthly sales, you can expect to pay $290 – $390 in processing fees. Some store owners increase product prices slightly to offset transaction costs.
Many store owners use apps to streamline order fulfillment, email marketing, and product management. Some popular ones include:
Since managing these tools can be overwhelming for beginners, AI Store Builder preloads essential apps into your Shopify store, reducing setup time and unnecessary costs.
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One of the most significant cost differences comes from your chosen eCommerce business. Each model has different startup costs, inventory requirements, and risk levels.
Dropshipping is the most affordable way to start an eCommerce business because:
Typical Costs for Dropshipping
Since AI Store Builder provides a pre-built Shopify store with 20 trending products, dropshipping store owners avoid the high costs of product research, supplier vetting, and inventory management.
Private labeling means creating a branded product with your logo and packaging. This model offers higher profit margins but requires a more significant upfront investment because you must buy bulk inventory.
Typical Costs for Private Labeling
Private labeling is ideal for scaling long-term brands, but dropshipping through AI Store Builder is the most cost-effective choice for beginners since there’s no need to buy inventory upfront.
Print-on-demand (POD) is a business model where products are customized and printed only after a customer orders them. POD is great for custom T-shirts, mugs, phone cases, and hoodies, but production costs are higher per unit than traditional bulk orders.
Typical Costs for Print-on-Demand
Since AI Store Builder focuses on dropshipping, store owners can start without upfront costs and later add POD products to expand their offerings.
Marketing is the most significant ongoing cost in an e-commerce business. Consistent traffic is needed to generate sales; how customers are attracted determines how much you spend.
If you don’t have a big budget, you can still get sales using free marketing strategies:
These methods take longer to see results but cost little to nothing and help build long-term brand visibility.
The fastest way to drive traffic and sales is through paid advertising, but it requires careful budgeting to prevent overspending without returns.
Since AI Store Builder includes an entire dropshipping course, new store owners learn how to run profitable ads without wasting money on bad campaigns.
Lower product costs but longer shipping times (10–30 days). Best for testing new products before committing to bulk orders.
Higher product costs but faster shipping (3–7 days in the US/EU). It is ideal for premium products and for educating refund rates. AI Store Builder pre-selects trusted suppliers to ensure store owners don’t deal with unreliable vendors or long shipping delays.
Many eCommerce store owners use additional apps and tools for automation, which can increase costs.
While some apps are essential, AI Store Builder preloads necessary tools into your Shopify store, reducing the need for extra purchases.
At AI Store Builder, we create a complete Shopify store for you in under 10 minutes. We include 20 trending products, trusted suppliers, and a dropshipping course that others charge thousands for. Plus, you get live support calls and community access. Skip the headaches of store setup, product research, and supplier hunting - we handle it all so you can focus on growing your business. Get your store built for you in less than 10 minutes today!
One of eCommerce's most significant cost-saving strategies is starting with dropshipping instead of buying inventory upfront.
Unlike traditional retail, where businesses spend $500 to $5,000 upfront on inventory, dropshipping requires no inventory purchases. You only pay for a product after a customer orders it.
With AI Store Builder, your store comes preloaded with 20 trending products, eliminating the need for costly product research and allowing you to start selling immediately.
Many new store owners immediately jump into paid ads without testing free marketing strategies—this can lead to wasted ad spending with little return. Instead, use low-cost or free marketing tactics to drive traffic to your store before committing to a large advertising budget. Free Traffic Strategies to Lower Marketing Costs Leverage Organic Social Media Marketing Post daily content on TikTok, Instagram, and Pinterest.
Use viral product videos to increase engagement. Join Facebook groups related to your niche and share value-driven posts. Optimize Your Store for SEO (Search Engine Optimization). Write keyword-rich product descriptions to rank on Google. Use SEO-friendly blog content to attract organic visitors.
Collaborate with influencers for free or low-cost Promotions. Instead of paying for ads, offer free products to micro-influencers (those with 10K-50K followers) in exchange for promotions. Use affiliate marketing to encourage influencers to promote your store only if they generate sales (low-risk investment). Email Marketing Campaigns (Low Cost, High ROI) Use free email marketing tools like Klaviyo or Omnisend to send automated emails. Set up an abandoned cart email sequence to recover lost sales.
Many new eCommerce store owners spend too much money on Facebook Ads too soon, losing money before they find a profitable product-market fit. AI Store Builder includes a complete dropshipping course that teaches users how to run cost-effective ad campaigns while using free marketing strategies to reduce advertising expenses.
Many first-time eCommerce entrepreneurs overspend on unnecessary apps and subscriptions. Instead of adding every Shopify app and signing up for premium services, start with the essentials and scale as you grow. Ways to Keep Monthly Costs Low Use Shopify’s Basic Plan ($24/month) Until You Scale Many new store owners overpay for Shopify’s higher-tier plans before generating sales.
The Basic Shopify plan ($24/month) includes everything you need to launch and sell. Avoid Unnecessary Paid Apps Many Shopify apps offer free versions that provide basic functionality. Use free tools like DSers for dropshipping automation before upgrading to paid versions. Start with free email marketing plans (Klaviyo, Omnisend) before paying for premium features.
Use AI Store Builder to Eliminate Setup Costs Instead of hiring a web designer ($500+), AI Store Builder provides a fully designed Shopify store. Instead of spending money testing suppliers, AI Store Builder includes pre-vetted suppliers with reliable shipping and quality products.
Many new store owners assume supplier prices are fixed, but most suppliers are willing to offer discounts if you negotiate correctly. Lowering product costs increases profit margins, allowing you to reinvest in marketing and growth.
How to Get Lower Supplier Prices Compare multiple suppliers before choosing one – Some vendors offer the same product at lower prices. Ask for bulk order discounts – Even if you’re starting small, tell suppliers you plan to scale and order more. Negotiate better shipping options – Some suppliers offer discounted shipping for higher order volumes.
With AI Store Builder, store owners don’t need to waste time negotiating because their store comes with pre-selected suppliers already offering competitive pricing.
Many store owners spend hours manually fulfilling orders, answering customer emails, and tracking shipments—wasting time and reducing profitability. Instead, use automation tools to streamline operations. Cost-Saving Automation Tools for eCommerce Use DSers for Automated Dropshipping – Free for basic users, automates order fulfillment.
Install a Chatbot for Customer Support – Reduces time spent answering repetitive inquiries. Use AI-Powered Pricing & Inventory Tools – Tracks supplier stock levels and adjusts pricing automatically. AI Store Builder pre-loads essential automation tools into your Shopify store, ensuring new store owners save time and reduce manual work without spending extra on apps.
Many beginners overspend on ads too quickly, wasting money before they know which products will sell best. Instead of spending $500+ on Facebook ads immediately, start small and scale based on profitable data. How to Run Ads on a Budget: Start with $10/day Facebook Ads. Small test campaigns help you find winning products before scaling up.
Use TikTok Ads for Lower CPC (Cost Per Click) – TikTok Ads are cheaper than Facebook and can go viral fast—Retarget Website Visitors with Abandoned Cart Ads – Higher conversion rates with lower ad spend. Many eCommerce businesses waste thousands of dollars on bad ads because they lack marketing experience.
AI Store Builder includes a dropshipping course that teaches users how to run profitable ad campaigns while minimizing wasted ad spend.
Once you decide on a product to sell, you need a supplier to provide it. Whether you go with dropshipping or traditional retail, you must find a reliable supplier. The right supplier will get you the products you need to fulfill customer orders. In a dropshipping business, they’ll also handle inventory and shipping. In short, a good supplier will help you deliver a great customer experience.
On the other hand, a lousy supplier can cause many headaches for your business. You want to avoid suppliers with poor communication and those that take forever to ship orders. If you do business with these suppliers, your customers will be unhappy, and your business will suffer.
At AI Store Builder, we create a complete Shopify store for you in under 10 minutes. We include 20 trending products, trusted suppliers, and a dropshipping course that others charge thousands for. Plus, you get live support calls and community access. Skip the headaches of store setup, product research, and supplier hunting - we handle it all so you can focus on growing your business. Get your store built for you in less than 10 minutes today!
Get your free store in less than 10 minutes today
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