What does it cost to start an eCommerce website in 2024?
Starting an eCommerce website can be an exciting way to sell products or services online and reach a wider audience. It’s no secret that my favorite platform for building an eCommerce website is Squarespace, which offers a range of templates and features to create a professional-looking website and super powerful online shop. But what does it cost to start an eCommerce website on Squarespace in 2024? In this post, I’ll break down the various costs associated with building and maintaining an eCommerce website on Squarespace, including template and plan pricing, payment processing fees, and other potential expenses.
Before we jump into the details, I have a few helpful tips to keep in mind about pricing in general:
Tip #1: Choose the right tool (or suite of tools) for the job
There are still a lot of people out there who seem to think that eCommerce is a costly undertaking, completely out of their reach. While this can definitely be the case if you’re using the wrong tools, I think it’s why it’s so important to make sure you know about all the options out there and what exactly each tool does. It’s also important to have a clear idea of exactly how each piece of software or app you plan on using specifically fits into your business ecosystem. I’ve seen too many business owners paying for redundant systems because they didn’t realize that Software A had the same features or capabilities as App B. (For some of my favorite tech combos for small businesses check out this post.)
Tip #2: Don’t be afraid of monthly subscription costs - just be smart about them
Look, I hate being nickel-and-dimed as much as the next person and I know it’s super annoying that everything these days seems to come with a monthly or annual subscription cost. However, paying monthly subscription costs for apps or software is definitely no more expensive than developing something custom. In fact, custom development is often much, more more expensive. I’ve had more than a few potential clients come to me over the years and inquire about building a custom solution for them because they either “can’t afford” or “don’t like” the monthly costs associated with various apps or tools to do the job. TL;DR things didn’t work out.
Think of it like this: if a company like Squarespace spends a lot of money on R&D to build a powerful eCommerce platform they can either charge a small number of big companies a ton for it (because those companies can afford it) -- or they can charge a large number of small businesses a little for it. Monthly subscription costs offer smaller players the opportunity to use the same tools that used to only be available to the big guys and so I say this is a huge win for small businesses! Love it or hate it, that SaaS model is what has helped put the cost of eCommerce website development into the realm of possibility for many small business owners that may not otherwise be able to afford it.
Tip #3: Don’t forget about tangential costs
It would be impossible for me to estimate all of these things because there are so many variables but there can be quite a few “non-website” costs that can impact the overall success of a website. Upfront costs are things like investing in great branding, strong product photography and compelling copywriting. You might also have ongoing expenses for things like paid ads, promoted posts, social media marketing, social media strategy and SEO. All of this is just to say that while the costs I’m going to outline below are a good place to start for the actual website part of things that you should expect to budget for these other upfront and ongoing costs to get the most out of your investment in a website.
What does it cost to start an eCommerce website in 2024?
Upfront Costs
The bulk of the expenses of an eCommerce website project come in the setup / getting started stage. There are three main factors to consider: the cost of a custom website template (if you choose to go that route), the cost of working with a web design professional to design/build/develop your site, and whether you need to add any third party plugins to customize your site.
Squarespace Template
All modern websites are built off a starting theme or template. This is just a framework that’s used as a jumping-off point so that you don’t have to reinvent the wheel with every new website.
One of my favorite things about Squarespace is that even the free templates are all modern and beautiful. Even better, sites built on the Squarespace 7.1 platform don’t even really need to choose between templates like before because all templates have the exact same features. This means that you’ll never be locked into anything by choosing the “wrong” template.
You also have the option on Squarespace from buying a template design from a third-party designer which is kind of like a compromise between using one of the free templates and going all-in with a web designer (like below). Paid templates are a really affordable way to get a “custom” look without the custom price tag and allow you to get started really quickly so IMHO they are well worth their very affordable price tags!
For more on templates, check out these posts:
Total template cost: $0-$399
Web Designer
I mean, not to be too biased or anything but this is where your investment can really make the difference 😉 especially when it comes to making your chosen template stand out from the crowd. An experienced web designer can use custom CSS, HTML, and javascript to tweak templates so they don’t look so generic and will have an excellent understanding of UX/UI best practices so that your finished site looks professional and converts visitors into customers!
The cost of a web designer is going to vary based on their years of experience but also just the going rate for the type of projects they specialize in and the clients they work for. For example, a designer that works mostly for local businesses in a small, rural town is probably going to have a lower hourly rate than someone who works for brand name companies in NY or LA. This doesn’t mean that one’s work is necessarily more valuable than the other, just that they cater to different markets and meet different needs. For an average small-to-medium business looking to either build their first eCommerce site or revamp an existing one, I have seen designers charge as little as $1000 and as much as $7000 or more.
When comparing web designers, it’s important to not just compare the bottom line cost but also the deliverables. What are you getting exactly? How many pages? How many products? Will you be getting help with SEO or copywriting in addition to the web design setup? What’s not included or is going to cost extra? Take a look at all of these things so you know exactly what you’re paying for.
Last note on this subject: if you feel like you’re somewhat technically inclined and interested in learning some of the basics you could always forgo hiring a designer and go the DIY route. As with most things of this nature, you have to understand that what you save in money doing it yourself will probably cost you in time. An expert can work a zillion times faster and knows what pitfalls and roadblocks to look out for. In most cases, I think that optimizing your time to market is a super relevant factor to consider; after all, you can’t start making money until you launch so spending too long in the development phase has a cost all its own.
Total web designer cost: $0-$7000+
Squarespace Plugins
These are code snippets that extend the functionality of your site and unlike other third party apps below, most of these you only have to pay for once when you first set them up. Check out my favorite plugins for Squarespace eCommerce in this post.
Total Squarespace plugin costs: $0-$160
Recurring Costs
Beyond the initial setup, there are some website expenses that you’re going to get billed regularly for, either monthly or annually. Paying annually almost always comes with a discount over paying monthly so save yourself some $$ and always sign up for subscriptions annually!
Squarespace Costs
Here are the main expenses for a Squarespace eCommerce website:
Website Subscription $276 - 588 / year - I break down the difference in all the plans in this post but this cost is for either the Basic or Advanced Commerce plans
Domain $9-12 / year - Unless you’re new to Squarespace and pay for an annual subscription in which case you get your first year FREE!
Email (G Suite)* $6 / user / month - Same as with the domain/hosting, above - Squarespace offers this FREE for one year for new accounts.
Third Party Tools
Alright, this is where things get VARIABLE because the apps you choose to use are going to probably different than the apps someone else uses making this super unique to each business. That being said, here are the rough costs for the things that I recommend for ALL business:
Email Marketing Subscription $60 - $420 / year - Compare my top three picks in this post
LiveChat $492 / year - more on my favorite tool for this and why I think it’s so important here
Legal Policies $99 / year - make sure you protect your business with an ironclad privacy policy and terms of service
Aftership $108 - $1188 / year - a custom order tracking page can make your small business look totally awesome
Automatic Returns Platform $0 - $1188 / year - worth every penny even if no one returns a thing. Find out why in this post.
Bottom Line
Modern eCommerce software has made it so much more affordable for small businesses to enter the market and even those pesky monthly costs should be considered manageable versus the high custom development costs of yesteryear. When it comes to total expenses, there are some ways to make sure you get the best bang for your buck by carefully selecting a platform and template that meets your business needs. Armed with the right tools and people on your team, you can keep monthly expenses in check and focus on growing your business.
