How Much Money is Needed to Start an E-Commerce Business?
In India, the initial startup expenses for an e-commerce firm usually vary from ₹85,000 to ₹1,00,000, depending on the firm’s size, the product or service type, and the selected business plan. Here’s a thorough explanation of typical costs:
- Domain Name: Allocation between ₹500 to ₹1,500 annually.
- Hosting: Monthly hosting expenses can range from ₹5,000 to ₹50,000 .
- Shopping Cart Software: Between ₹500 and ₹5,000 per month for the necessary software.
- Payment Gateways: Set aside ₹6,000 to ₹40,000 along with setup fees and commissions.
- Legal Formalities: Allocation between ₹10,000 and ₹1,00,000 for legal requirements.
- IT Infrastructure: Keep between ₹0 and ₹2,00,000 for foundational technology.
- Office Space: Monthly office space costs might vary from ₹0 to ₹60,000 .
- Marketing: Dedicate 7% to 12% of total revenue to promotional efforts.
- Operating Capital: Reserve ₹20,000 to ₹25,000, covering three months’ fixed operating costs and 15 days’ variable operating costs.
It’s mandatory to take into account that these numbers are estimates and might change depending on unique company requirements and regional differences. Furthermore, these charges just cover the startup fees; they shall not include continuing costs for shipping, inventory management, or ongoing marketing campaigns.
How to Start an E-commerce Business in 2024 ?
Electronic commerce or e-commerce, is the term for representing the purchasing and selling of products and services online through websites, mobile applications, and social media. It enables firms to trade with each other or with customers. Business-to-Business (B2B), Consumer-to-Consumer (C2C), Business-to-Consumer (B2C), and Consumer-to-Business (C2B) are the most standard transaction kinds.
Table of Content
- How to Start an E-Commerce Business in Steps
- How Much Money is Needed to Start an E-Commerce Business?
- How to know if E-Commerce is Ideal for you?
- Tips for Starting an E-Commerce Store
- Conclusion
- Frequently Asked Questions (FAQs)