There are two ways to create an online store: use a website builder or hire a web development company. Which method you choose has an impact on the cost of building your ecommerce website.
Ecommerce website builders are typically the least expensive way to start an online store. Using a free, open-source builder is one way to minimize initial costs. However, subscription ecommerce platforms like Shopify include a full range of necessary features, such as website hosting, page templates, and a checkout.
Below, find the full breakdown of costs associated with building an online store using an ecommerce platform.
Total costs of an ecommerce website
The average cost of building and running a new ecommerce website is approximately $29 per month. Pricing can differ depending on factors like additional customization, premium design, and platform fees.
Here’s the breakdown of costs for creating an ecommerce website. Costs vary depending on plans and providers:
- Domain registration: $10–$30 annually for a store domain
- Web hosting*: $5–$250 monthly for website hosting
- SSL certificate*: $0–$200 to secure your customer data
-
Ecommerce platform*:
- Hosted platforms: $5–$300 monthly depending on features
- Open-source platforms: Free to download with additional costs for features
-
Website design and development*:
- Prebuilt themes: $0–$200
- Custom website development: $2,000–$20,000+ depending on complexity and functionality
- Payment processing fees: 1%–3% + a flat fee of ¢0–¢50
-
Additional costs:
- Digital marketing and advertising: Varies depending on the budget and strategy
- Website maintenance and support: Varies based on the degree of support required
*Cost included with a Shopify subscription.
6 common ecommerce website costs
- Hosting
- Payment processing
- Ecommerce web design costs
- Custom development
- Add-ons and extensions
- Business costs
1. Hosting
Every website needs hosting to store its files. You’ll also need a domain name, the digital address for your store.
Website hosting costs vary, with some ecommerce platforms like Shopify including hosting with all plans. Hosting prices starting as low as $2.49 per month, and climbing up to $1,000 or higher. Costs depend on how much traffic your store recieves, as well as extra services such as automated backups.
There are two types of web hosting commonly used by ecommerce brands: hosting via a SaaS platform and self-hosting.
SaaS ecommerce platform hosting
Ecommerce platforms like Shopify do not require you to install, manage, or host a domain on your own. Everything you need is included in your monthly subscription fee.
Secure hosting comes with every Shopify plan, which includes:
- Unlimited bandwidth, so you don’t have to worry about paying more if you get more traffic
- Level 1 PCI compliance, which keeps customer data secure
- Blazing fast servers and instant updates, so you never miss out on the latest features
- An SSL certificate to prevent fraud and build customer trust
- A reliable content management system to handle site content
- Unlimited email forwarding
You’ll need to buy and register a domain name separately. You can find available domains through Shopify’s domain name generator.
Domain pricing starts at around $15 per year, but can increase depending on the top-level domain you choose.
Self-hosted ecommerce website
Other ecommerce website builders require users to manage an account with a hosting provider. Some of the costs you’re likely to incur when self-hosting your website include:
- An ecommerce hosting account: around $7.99 per month
- A domain name: around $15 per year
- An SSL certificate: around $69 per year
As your ecommerce store grows, you may need to upgrade your hosting plan to manage additional traffic. For high-volume websites, self-hosting can cost upward of $1,000 per month.
2. Payment processing
Every ecommerce store needs a checkout to take payments from credit cards, debit cards, and other payment options. A payment processor manages transactions so shoppers can buy your products.
Payment processing costs depend on the payment gateway you select. For example, Shopify Payments processing fees range from 2.4%–3.5% depending on the payment method and location, as well as plan tier.
Every Shopify plan comes with Shopify Payments, allowing stores to accept credit cards and other popular payment gateways like Apple Pay, G Pay, and Shop Pay accelerated checkout.
3. Ecommerce web design costs
Did you know that it takes about 50 milliseconds (0.05 seconds) for someone to form an opinion about your website? Not only that, but shoppers buy based on trust, and your branding can help build that trust right away.
Ecommerce platforms like Shopify have templates you can apply to your site easily. They are a fast and affordable way to get up and running. Shopify Themes offer built-in tools to customize layout, colors, style, and other settings.
These templates come set with everything you need to start your store:
Shopify Themes offers free and paid themes to help you find the right look and feel for your store. You can find themes based on categories like clothing, beauty, or 3D products.

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4. Custom development
From full design overhauls to customized back ends, sometimes you may need help to get your store looking the way you want.
Custom ecommerce website development costs are related to designing, deploying, and maintaining your store for specific business needs. Store owners can work with developers to create custom storefronts or tweak Shopify themes.
The ability to customize with Shopify really allows us to push it to the limit and create a custom checkout experience customers can trust and be confident in keeping their personal and payment information safe. It really makes customers feel like the site is going to take care of them.
Prices vary depending on what services you need. Some development agencies like OuterBox charge upward of $100,000 for a customization job. Other established Shopify agencies can cost between $5,000 and $20,000, depending on the scope of the work.
You can find freelancers and agencies offering custom theme development on the Shopify’s Partners marketplace, often for a lower cost than in-house development.
5. Add-ons and extensions
It’s nearly impossible for one ecommerce software to satisfy the needs of every ecommerce business. Chances are, you’ll want to add a few features to your website.
The best ecommerce software lets you add applications to your store to extend its ecommerce functionality and improve the user experience. Some are free and some are paid, which can increase the cost of creating your online store.
The Shopify App Store has thousands of apps for you to choose from, and there are many free Shopify apps. Whether you want to add email marketing, sell on social media, add social proof to your store, or improve your site's search engine optimization (SEO), there’s an app for that.
The price for paid apps varies. Most are available on a monthly subscription basis. You can also add private apps made specifically for your store. These apps are stored and run on another server, but you can generate Shopify API keys to give the app access permissions.
6. Business costs
Wider business budgeting is another consideration. While it's possible to launch an ecommerce website for free, there will likely be costs required to get your business moving.
The cost of running an ecommerce business depends on your business model. Inventory-less models like dropshipping and print on demand let sellers to operate without buying stock, reducing the cost of launching.
Craft sellers may need to invest in raw materials and associated labour, while traditional retailers need to budget for inventory storage and fulfillment.
On Shopify, sellers can try different ecommerce business models, with features to help find product suppliers, monitor inventory, and reduce the cost of shipping.
Building a ecommerce website on Shopify
Running an ecommerce website doesn't need to be expensive. The Shopify Basic plan is available for $29 per month when billed annually, and is the most popular plan for entrepreneurs. It contains all the features you need to start your online store and run a business.
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Ecommerce website cost FAQ
How much does an ecommerce website cost?
The cost of an ecommerce website can be between $20 and $10,000 or more. The cost depends on various factors such as the platform used, the complexity of the design, the number of products, custom features, and more.
How much does a website cost per month?
The cost of a website per month depends on the type of website, the complexity of the site, and the services you require. Generally, a basic website with hosting, security, and some additional services can range from a $5 to $50 monthly fee. More complex websites with custom design and development can range from $500 to $5,000 per month.
What is the cheapest ecommerce website?
The cheapest ecommerce website option is Shopify, which costs as little as $39 per month. You get a free SSL certificate and pre-built theme. Costs can increase when considering apps and marketing efforts.
How much does it take to develop an ecommerce website?
To develop an ecommerce website, the cost can range from a few hundred dollars for a basic pre-built solution to tens of thousands of dollars for a custom-designed, feature-rich site.