How much does an online store cost and is it really that little?

You don't even need to start a company to become a seller on the Internet. To start selling, it is enough to cooperate with Academic Business Incubators, which take on the formal and legal issues and, contrary to their name, are available not only to students and young people. Low barriers to entry are the main driver of online commerce growth. A fledgling e-entrepreneur does not need funds for renting premises or salaries for employees behind the counter. Thus, it is unlikely to be a professional leap into deep water.

- The report Shoper "Multi Challenges", which we prepared at the beginning of the year, shows that 92 percent of sellers who have been running an online store for less than a year are engaged in it alone or with a close friend, and for 71 percent the profits from it are an additional source of income. This shows that an online store is an activity that is easy to start with little effort and treat as an additional occupation. The commitment can be increased gradually, as the business grows ," says Oliwia Tomalik, Marketing Manager of Shoper.

A survey by the Bisnode Poland agency shows that in the second half of 2018 and the first half of 2019, about 2,800 online stores were added in Poland. In turn, Shoper, the largest e-commerce platform, saw an increase of more than 20 percent in the number of registered stores from August 2018 to August 2019. The company's experts prepared a breakdown of the costs of starting an online store and estimated what expenses are needed to really get started with sales.

Salesman on the Internet: a starter package

Assuming that the formal and legal framework for the store (registered business) already exists, the primary challenge is to put the offering online. The simplest solution for beginners is the SaaS (Software as a Service) model, in which the store is remote and the responsibility for its maintenance lies with the e-commerce software provider, such as the company Shoper. It provides the owner with a convenient administration panel and ready-made graphic templates to use. The basic template is free of charge, and prices for advanced ones start at PLN 399 in September 2019.

The use of the store in the SaaS model is based on a subscription system. In the first year of operation, its amount starts from 300 PLN / year.

In order to inspire confidence in buyers and better positioning in Google search, a store should have a web domain, i.e. its own web address. Stores using Shoper software for the first year of operation can launch a domain under special conditions.

An equally important part of a web address is the very beginning of it. If it starts with "https", it means that the site has an SSL certificate installed, an overlay that ensures secure data transmission. Certificates must be renewed annually, at a cost of about PLN 89-99 / year.

It remains "only" to make sure that the store operates in compliance with the law, This means, among other things, posting its regulations on the site. And since legal regulations change from time to time, this document should also be supplemented with new provisions. The service of drawing up and updating the regulations for a store costs about 150-180 PLN / year. Copying the regulations from another store can prove disastrous for business.

The store is up and running and what's next?

If a new store does not offer an outstandingly attractive product that is in such high demand in the market that customers pass on information about it on their own, it will probably find itself among up to several hundred similar competitors at first. How to convince customers to buy from this particular store? As data shows Shoper, the most important traffic sources for stores are Google search and social media. However, positioning the site and building organic channels to reach buyers takes time. Thus, paid Google Ads and Facebook Ads campaigns are essential to gain the first customers. The "Multi Challenges" report shows that 60 percent of retailers promote on Facebook, while 40 percent use Google Ads. In 2019, stores' spending on advertising doubled compared to the previous year, as can be seen in the budgets allocated to these activities in the Shoper Campaigns service.

- Summing up the expenses of a start-up e-tailer, we see that he will manage to close in the amount of PLN 1000. However, if the store is more than a "trial" business for him and the owner would like to really start selling, he should invest more in its development and promotion. This is not just about financial outlay, but no less valuable currency, which is the time spent working in the store and building good relationships with customers ," explains Oliwia Tomalik.