Starting an online store involves navigating a maze of platforms, pricing tiers, and hidden costs. The difference between a $500 Shopify setup and a $50,000 custom build isn't always obvious—but choosing the right option for your business can make or break your profitability.
This guide breaks down e-commerce costs across three main approaches: hosted platforms like Shopify, open-source solutions like WooCommerce, and fully custom builds. We'll cover both upfront costs and ongoing expenses so you can plan your budget accurately.
E-commerce Cost Overview
Here's a quick summary before we dive deep:
| Solution | Setup Cost | Monthly Cost | Transaction Fees |
|---|---|---|---|
| Shopify | $0 - $5,000 | $39 - $399 | 0.5% - 2% |
| WooCommerce | $500 - $10,000 | $20 - $200 | Varies by gateway |
| Custom Build | $15,000 - $100,000+ | $200 - $2,000+ | Varies |
Now let's explore each option in detail.
Shopify: The Hosted Solution
Shopify dominates the e-commerce market for good reason—it handles the technical complexity while you focus on selling. But simplicity comes at a cost.
Shopify Pricing Tiers
Basic Shopify: $39/month
- 2 staff accounts
- Basic reports
- 2.9% + 30¢ credit card rates (or 2% if using third-party payment)
- Good for: Starting stores with under $50K annual revenue
Shopify: $105/month
- 5 staff accounts
- Professional reports
- 2.6% + 30¢ credit card rates (or 1% third-party)
- Good for: Growing stores with $50K-$500K annual revenue
Advanced Shopify: $399/month
- 15 staff accounts
- Advanced report builder
- 2.4% + 30¢ credit card rates (or 0.5% third-party)
- Good for: Established stores over $500K annual revenue
Shopify Plus: $2,000+/month
- Enterprise features and support
- Customizable checkout
- Dedicated account management
- Good for: High-volume merchants over $1M annual revenue
Shopify Setup Costs
DIY Setup: $0 - $500
- Free themes available
- Self-configuration
- Time investment: 20-40 hours
- Works if you're tech-comfortable and have clear requirements
Premium Theme: $250 - $400
- Better design out of the box
- More customization options
- Usually includes theme support
Professional Setup: $1,000 - $5,000
- Theme customization
- Product migration
- App configuration
- Store optimization
- Training for your team
Shopify Ongoing Costs
Beyond the base subscription, budget for:
Apps: $50 - $500/month
- Email marketing (Klaviyo): $20-100+/month
- Reviews: $10-50/month
- Upsells/Cross-sells: $20-50/month
- Subscriptions: $50-200/month
- Advanced search: $20-100/month
Most Shopify stores use 5-15 apps, and costs add up quickly.
Transaction Fees: 0.5% - 2.9%
If you use Shopify Payments, you avoid the extra transaction fee. Third-party gateways incur additional percentage charges.
On $100,000 in annual sales:
- With Shopify Payments: $2,600 - $2,900 in fees
- With third-party gateway: $3,500 - $4,900 in fees
Shopify Total Cost of Ownership
Year 1 for a small store:
- Setup: $500 - $2,000
- Subscription: $468 - $1,260
- Apps: $600 - $3,000
- Transaction fees (on $50K sales): $1,500 - $2,500
- Total: $3,068 - $8,760
Year 1 for a growing store:
- Setup: $2,000 - $5,000
- Subscription: $1,260 - $4,788
- Apps: $1,200 - $6,000
- Transaction fees (on $200K sales): $5,000 - $8,000
- Total: $9,460 - $23,788
WooCommerce: The Open-Source Path
WooCommerce runs on WordPress and gives you more control—but that control requires more hands-on management.
WooCommerce Core Costs
WooCommerce itself: Free
The plugin is free, but you'll pay for everything around it:
Hosting: $20 - $200/month
- Shared hosting: $20-50/month (not recommended for serious stores)
- Managed WordPress: $50-100/month (good for most stores)
- VPS/Cloud: $100-200/month (for high-traffic stores)
Domain: $12 - $50/year
SSL Certificate: Free - $200/year
- Free with most modern hosts (Let's Encrypt)
- Premium certificates for extended validation: $100-200/year
WooCommerce Theme Costs
Free themes: $0
- Limited customization
- May lack professional polish
- Adequate for testing
Premium themes: $50 - $200
- Better design and features
- Regular updates and support
- Recommended for serious stores
Custom theme: $2,000 - $10,000
- Fully unique design
- Built for your specific needs
- Requires development expertise
WooCommerce Extension Costs
WooCommerce's power comes from extensions, but they add up:
Essential extensions:
- Payment gateways: Free - $79
- Shipping calculators: Free - $99
- Tax automation: $99/year
- Subscriptions: $199/year
- Bookings: $249/year
Marketing extensions:
- Email integration: $0 - $49
- SEO tools: $0 - $99/year
- Analytics: $0 - $199/year
Operations extensions:
- Inventory management: $0 - $129
- Multi-currency: $79 - $129
- Product bundles: $49 - $99
Budget $500 - $2,000 for extensions depending on your needs.
WooCommerce Development Costs
Unless you're technical, expect development costs:
Basic setup: $500 - $2,000
- Theme installation and configuration
- Essential plugin setup
- Payment gateway integration
- Basic customization
Professional setup: $2,000 - $5,000
- Custom theme modifications
- Advanced functionality
- Migration from other platforms
- Performance optimization
Custom development: $5,000 - $10,000+
- Unique features and integrations
- Custom checkout flows
- API development
- Complex business logic
WooCommerce Ongoing Costs
Maintenance and updates: $50 - $200/month
- Plugin updates and compatibility testing
- Security monitoring
- Backups
- Performance optimization
Many store owners underestimate this—WooCommerce requires regular attention.
Security: $100 - $300/year
- Security plugins
- Firewall services
- Malware scanning
WooCommerce Total Cost of Ownership
Year 1 for a small store:
- Hosting: $240 - $600
- Theme: $0 - $200
- Extensions: $300 - $800
- Setup/Development: $500 - $2,000
- Maintenance: $600 - $1,200
- Total: $1,640 - $4,800
Year 1 for a growing store:
- Hosting: $600 - $2,400
- Theme: $100 - $5,000
- Extensions: $800 - $2,000
- Setup/Development: $2,000 - $10,000
- Maintenance: $1,200 - $2,400
- Total: $4,700 - $21,800
Custom E-commerce: Full Control
A custom e-commerce build gives you complete control over every aspect of your store. This approach makes sense for businesses with unique requirements that platforms can't accommodate.
When Custom Makes Sense
- Unique business models that don't fit standard e-commerce patterns
- Complex product configurations or pricing rules
- Integration with legacy systems or specific ERPs
- Performance requirements beyond platform capabilities
- Need for complete ownership and control
Custom Build Cost Breakdown
Basic custom store: $15,000 - $30,000
- Product catalog and management
- Shopping cart and checkout
- Payment integration
- Order management
- Basic reporting
- Mobile-responsive design
Mid-range custom store: $30,000 - $60,000
- All basic features plus:
- Customer accounts and personalization
- Advanced search and filtering
- Inventory management
- Marketing tool integrations
- Analytics dashboard
- Multi-language/currency support
Enterprise custom store: $60,000 - $150,000+
- All mid-range features plus:
- Complex business logic
- ERP/CRM integration
- Advanced personalization
- Headless commerce architecture
- Microservices infrastructure
- High-availability setup
Custom Ongoing Costs
Hosting and infrastructure: $200 - $2,000/month
- Depends heavily on traffic and architecture
- Cloud costs scale with usage
Maintenance and updates: $1,000 - $5,000/month
- Bug fixes and security patches
- Feature enhancements
- Server management
- Monitoring and support
Development team or agency retainer: $2,000 - $10,000+/month
- For ongoing improvements
- Many businesses underestimate this need
Making the Right Choice
Choose Shopify if:
- You want to launch quickly without technical hassles
- Your business model is straightforward (sell products, ship them)
- You prefer predictable costs over optimization
- You don't have technical resources in-house
- You value app ecosystem and integrations
Choose WooCommerce if:
- You want more control without building from scratch
- You have WordPress experience or access to developers
- You want to own your platform and data
- You're cost-sensitive and willing to manage complexity
- You have specific customization needs
Choose Custom if:
- Your business model doesn't fit standard platforms
- You have significant budget and long-term vision
- You need deep integrations with existing systems
- Performance and scalability are critical
- You have or can hire technical talent
Hidden Costs to Consider
Regardless of platform, budget for:
Photography: $500 - $5,000+
- Product photos are crucial for conversion
- Professional photography pays for itself
Copywriting: $500 - $3,000
- Product descriptions matter
- Category and landing page copy
Marketing setup: $500 - $2,000
- Email marketing configuration
- Social media integration
- Analytics and tracking
Launch marketing: Variable
- Advertising budget
- PR and outreach
- Influencer partnerships
Final Thoughts
The "right" e-commerce solution depends on your specific situation:
- Testing a business idea? Start with Shopify Basic—you can always migrate later
- Know exactly what you need? Match your requirements to the platform that best fits
- Unique requirements? Custom might be necessary, but get expert advice first
Remember: the platform cost is often a small fraction of your total e-commerce investment. Inventory, marketing, operations, and customer service typically dwarf your technology expenses. Choose a platform that lets you focus on those business fundamentals rather than fighting technical limitations.