Welcome to WebmasterWorld Guest from

Forum Moderators: buckworks

Message Too Old, No Replies

Want to start own Ecommerce

New Guy wanting to start own E-biz



4:42 am on Jul 16, 2007 (gmt 0)

5+ Year Member

Hi All, I am new here. I have a few questions for a few of you all. I am seriously thinking about starting my own e-commerce store. I really want to quit my job because I can not stand working for someone. I am not how much would it cost for me to start my own company. How much would a lawyer be, an accountant, web designer and marketing cost, voice mail system, 1800 numbers , and etc cost? Would 10k be good enough for starting up? How bout marketing at least for the first year?

Ok, now let me tell you a little bit more about myself? I actually working in a medium size company doing mostly online marketing with a little bit of off line marketing. I am no expert at PPC or SEO but I think my knowledge of them is pretty decent. I've done affiliate, email marketing, some seo and some ppc before. I know starting out I might have to do my own ebiz part time.

Right now I don't have enough capital to start any business.
Any advice?

Matt Probert

5:33 pm on Jul 16, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member

Perhaps look into a franchise. Failing (sic) that, work out what you want to sell, how you want to sell it and draw up a business plan with cost and income projections for the first year. Then take that to a bank manager and see if they would, in pronciple, lend you the money. If they wont, then your plan sucks. If they will, you may be on to a winner, and you know how much capital you need.



11:16 pm on Jul 16, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member

Don't quit your day job just yet.

You can probably figure that it will take 1-2 years just to break even, and 2-4 years to make enough to live on unless you happen to be very lucky and find a product that sells but does not have 93 million other websites selling the same thing.


11:45 pm on Jul 16, 2007 (gmt 0)

WebmasterWorld Administrator lifeinasia is a WebmasterWorld Top Contributor of All Time 5+ Year Member Top Contributors Of The Month

And expect that sometime after you start turning a profit, other people will notice and start copying you, which will tend to create more competition and lower your profit.


11:54 pm on Jul 16, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member

Perhaps look into a franchise

Keeping in mind that many, many small franchisors are scams.

Who says so? The Wall Street Journal and Fortune Magazine.


11:58 pm on Jul 16, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member

Jerk, Boy.
Start by ditching that name. Business, especially on the web, is all about trust.


12:51 am on Jul 17, 2007 (gmt 0)

5+ Year Member

hi all, thanks for all your replies so far =)


8:28 am on Jul 17, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member

Jerk, Boy.
Start by ditching that name. Business, especially on the web, is all about trust.

trust . . . trust it is all about. If I see an image is not loading properly on an ecom site, I am less likely to buy anything from the site. If they don't care about that image of their produt, how are they going to care much about me or my personal details. You get the picture

hi all, thanks for all your replies so far =)

Now that JB sounds fine :)


8:29 am on Jul 17, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member

. . . and btw, welcome to WebmasterWorld


8:56 am on Jul 17, 2007 (gmt 0)

5+ Year Member

The nice thing about online marketing is you can do it on the cheap.
No sense talking about accountants, voice mail, etc, until you get things
rolling and off the ground.
Pick your niche and start to build your web site. Learn all you can from forums like this and others. Keep your day job until you have a sense that
your site will be successful. Its not extremely hard or extremely easy its perhaps
just right down the middle. You have a leg up, as you have been around the business and know more than most beginners. Good Luck! KF


4:57 pm on Jul 17, 2007 (gmt 0)

5+ Year Member

I want to be on the safe side. I don't want to get sued or not keeping track for accounting purposes. I would think that would be a concern right?


8:14 am on Jul 18, 2007 (gmt 0)

10+ Year Member

I don't have enough capital to start any business

step 1 - work out a proper business plan and find the capital
don't bother doing anything else until you've got that sorted


12:07 am on Jul 23, 2007 (gmt 0)

5+ Year Member

i work with hundreds of e commerce shops, including some of my own, so I have a little insight here:

most importantly, you need:

1. a solid product
2. a solid plan, and likely cash, to market it,
3. and the devotion to execute it.
everything else is secondary

I see lots of ecommerce sites come and go, but the above formula is always key. When I say "solid product" I mean, a product people want, and ideally, you are the only provider, its protectable (e.g. patent), its marketable online, etc... A lot goes into this alone, but most people don't realize what people want, and are buying already. This is probably the biggest problem I see. For example, I know someone who wants to sell baby bedding, because it's easy to drop-ship. However, there are thousands of these stores online, and few are very profitable from what I have seen for just that reason--too many competitors as a result of no barrier to entry--ultimately they all pretty much compete on price until margins are sometimes next to nothing. If this store had some uniqueness, such as how they sold the product, or perhaps their own brand, then maybe this would be a diff story. I am confident of this info because I know other people who sell baby bedding and no matter how much they make, they just are not taking much home at the end of the day.

So actual standard (fixed) costs on a small business that you run yourself:

Commercial solutions run between $10 - $500 per month, plus a small setup fee. For most people with a new venture, a cart that costs $100 a month should be plenty to get them going very well. Best advantages to commercial hosted solutions often include--plug-and-play, someone else is maintaining it for you, making sure it's up and running, usually free upgrades for life, support, training, easy for newbies, hosting.

If you go open-source, expect to do it yourself, or hire some company to setup and customize, which runs $1,000 and up ($2,000 - $5,000 is typical). Then of course, you need to pay for hosting, upgrades, maintenance, etc... free support from community, and commercial support available separately.

To find out if hosted solution iis right for you, there is a good article on howstuffworks.com that goes into more depth about hosted software (asp model) and pros/cons. Personally, I use open-source for about 75% of operating my business, but not for ecommerce.

At least $25 a month for the merchant account; plus the gateway (e.g. Authorize.net is my fav) which runs about $10 -$20 per month -- plus transactions fees (about $0.35 in total). Paypa* is an option, but I wont debate that here.

So your total fixed monthly costs probably be around $50 - $150. this is cheap compared to costs of brick-and-mortar.

Variable costs:

3. shipping - usually you pass these on to customers as they shop.

4. products - are you manufacturing something, reselling something, etc... drop-shipping for example is usually tough because it's so easy for someone to compete against you.

5. web design, product photography, office expenses, computer, and more

In my case, I design my own website, since I do this all day long at my day job; do my own product photography since I am an experienced photographer (incl. serious retouching in photoshop); hire inexperienced models for around $10 per hour; have a computer of course; and dont have office expenses except occasionally buying equipment, business cards, etc..


The big grey area. I personally depend on SEO a lot, which drives hordes of people to my site. I do my own, but you can hire a good company for around 5k, and 1k per month. PPC marketing, email marketing, viral marketing, affiliate marketing, etc... are also extremely popular.

I know people for example that do ALL their marketing off of their email lists that have built over the years, others that depend completely on affiliates, and others that depend on PPC--and these people can do really well. Off-line and traditional advertising can be really powerful as well.

These are all generic tactics, and quite often it's the company's that have the most unique/targeted marketing along the most unique/targeted products, that do the best; but point is, be prepared to set aside a lot of money for marketing (10% - 75% in the beginning).

in summary, find something you are good at, then query the real world out there as to potential demand. Sell it out of your car trunk if needed (it's happened before). Even that one of my online stores makes several thousands per month (and half is profit), I have not given up my day job yet. Maybe if I break 300 - 500k per year, then i will. basically, I just am reinvesting most everything back into growth of the business instead of taking out a salary. My wife runs the business by day, which is very little work actually. I figure I will need to hire help when I reach a few hundred K annually.

Until then, I recommend reading everything on WebmasterWorld, and all the best free info you can find on marketing, business, etc... Find some great (highly rated) books on Amazon, then check them out from your local library. I have not paid for very much in my desire tot learn how to run an online business. for example, Aaron Wall's site taught me most everything about SEO.


12:54 am on Jul 23, 2007 (gmt 0)

5+ Year Member

forgot to address a couple things in your question:

A lawyer is nice, but in a small start-up, why?
Accountant, again why?

i set up a sole proprietorship for $20 (business license)--if my biz get much bigger, I will shell out the couple hundred to become a LLC, or S-Corp that gives me personal legal protection.

Accountant--I use some simple accounting software, but in my first year, I just used a spreadsheet. I pay a little for someone to do my taxes, but even that I could do myself. Until I get big, not needed.

800 number? a luxury. it's really nice to have, but expect a lot more calls, and bigger phone bills. Again, I hear a lot of people say it's a requirement for any site, but i disagree if you have a great product, and great marketing, until you are making decent money. I even hide my non-toll-free number on my site. How much will sales increase if I put an 800 number on my site, and at what additional expense? Maybe if you had a contact page that said "Hi, my name is so-and-so, and I have a day job, which is why it's very difficult for me to take calls. If you l.eave a message, I will call you back..." some shoppers prefer sites with a small feel.

Web-design: expect to pay between n $500 and $5,000 for a site; prob around $1,000 - $3,000 average for something decent, unless you just find some free template on the web and can hack it up with FrontPage (until you can afford to hire someone if you need a professional looking site).


7:57 pm on Jul 25, 2007 (gmt 0)

5+ Year Member


Even that one of my online stores makes several thousands per month ... I just am reinvesting most everything back into growth of the business instead of taking out a salary. ... 1-800 number? Luxery ... How much will sales increase if I put an 1-800 number on my site, and at

hmmmmmm. since you understand the importaince of investing in growth and development, i am suprised you wouldnt add the 1-800 number, if it is just to increase trust / professionalism. If we just ignore good conventions, then were always gonna be in the dark, unable to quit that "day job"


10:12 pm on Jul 27, 2007 (gmt 0)

5+ Year Member

If start up costs are a concern, you should definitely look into . . .

You might also want to look into FREE solutions such as JOOMLA CMS + VIRTUEMART

There are literally hundreds of extensions (modules, plugins, components) that can get your Joomla/VirtueMart eCommerce site to perform just as well as any of the more costly solutions.

[edited by: lorax at 3:55 pm (utc) on July 28, 2007]
[edit reason] delinked [/edit]


9:21 am on Jul 28, 2007 (gmt 0)

10+ Year Member

To keep the risk small, start up small on Ebay, reinvest all your profits and move to your own commerce web site when you feel you have identified your market. Keep all your records from Ebay and do your own tax return.


12:39 pm on Jul 28, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member

You can easily start up for around $500-1000. There are very cheap or free shopping carts. I wouldn't bother too much with web design because sometimes, it may even hurt your sales. You don't really need a lawyer or accountant yet. I would concentrate on SEO at first and go slow on PPC.

Where you may really need to spend money is in buying stock. I would make sure that you find the product(s) you want to sell first before proceeding further. You need to know things like MOQ and lead time, because it may really stretch your budget. You may need to make sure that you have a line of credit just in case.

If you do not want to risk taking in a lot of stock, I would suggest that you try out dropshipping first. I am not that sure about eBay though. Many products will sell well in an webshop but not on eBay. If you can find something that sells well on eBay, it will probably do spectecularly well in a webshop.


5:03 pm on Jul 30, 2007 (gmt 0)

5+ Year Member

Hi what is a MOQ?

[edited by: Jerkboy at 5:04 pm (utc) on July 30, 2007]


Featured Threads

Hot Threads This Week

Hot Threads This Month