Are you creative? Are you an entrepreneur? Are you interested in the fashion space? Are you interested in lifestyle business? Are you tech-savvy? Are you looking for a remote means of making money? Then this video is for you. This video reveals exactly how much it costs to start an online boutique (also known as an ecommerce store), and how you can save money while setting it up.
What are the costs to consider when opening an online boutique?
The following cost should be considered when establishing an online boutique:
- Domain Name: To start an online boutique, you will need to have a website or URL and this is usually called a domain name. A domain name usually costs between $0.99 to $15 annually, and the price depends on the type of extension it has. Examples of some extensions you can pick from that suits your business type includes: .com, .net, .biz, .shop, etc. It is safer to buy various types of domain name extensions to secure your brand.
- Hosting: This is the fee you pay to host your website on the server of a hosting provider. Typically, this costs between $4 to $200 monthly. It is required for your website to be connected to the internet for it to be accessed by your customer. Firstly, you are to select a hosting plan and there are 2 types: a private hosting plan (which is also called a dedicated server) and a shared hosting plan.
The most affordable and cheapest hosting plan that meets your type of business need, at the onset of your business is the shared hosting plan. In shared hosting, only one computer will run many websites (i.e., you are sharing your server with other people in the plan). It is secure, dependable, scalable, and affordable. The cost ranges from $3.50/month to around $40/month. The setup fee is of negligible price and may also be waived.
- Inventory: This has to do with what you intend to sell, because you can’t have an empty online store. In order to maximize control and profits, it is best that you buy the products from a retailer and store it yourself, or you can do drop-shipping. Drop-shipping is when a producer or supplier sends the bought goods to your customers directly (after purchasing it through your website). It is the cheapest type of ecommerce business model. You should budget at least $1,000 for your initial inventory which includes the cost of acquiring goods to sell.
- Website Design: You need to hire a good website designer to set up a quality and welcoming website for your online boutique. The cost of hiring a website designer ranges from $100 to $5,000.
Getting licensing, permits and insurance cost: Costs for these can vary from state to state. Your store needs adequate licensing, and the type of license that you should get depends on the type of products you intend to sell on your online boutique, and your location.