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When it comes to building an online store, there are two options available: using an ecommerce website builder or hiring a web development company to do the job for you. The selection you make will play a significant role in determining the cost of setting up your online store.

For instance, while adding visual content like photos and videos is often included in an online store builder’s package at no extra cost, opting for a web development company to handle the same tasks could incur additional expenses, and usually in thousands of dollars.

So if you’re looking for a cost-effective option to build your ecommerce website, online store builders is the obvious choice. 

However, using an online store builder to create your ecommerce store is not totally free. There are costs associated with hosting, plugins and themes, which will add up to your overall expenses.

So if you are planning to launch your ecommerce store using an online store builder, be sure to read till the end of this article to find out the true cost of running an ecommerce website.

Website Hosting

What is website hosting

Web hosting servers provide a space for your website to exist and be stored, making it accessible on the internet. If you want your website to be visible to others, a website hosting package is an essential component of the process. 

Simply put, website hosting is necessary if you want anyone other than yourself to access your website online.

What are the different types of website hosting

Ecommerce websites generally use either of the following two types of hosting:

SaaS ecommerce platform hosting

SaaS ecommerce platform hosting is a type of web-based hosting service offered by Software as a Service (SaaS) ecommerce platforms. It enables businesses to host their ecommerce website on a third-party platform’s server instead of managing it on their own server.

By using SaaS ecommerce platform hosting, businesses can efficiently manage their online store’s software, security, and updates, while also taking advantage of benefits such as scalability and accessibility.

With Shopboxo, you are not required to install, manage, or host a domain on your own. Everything you need is included within the platform. But if you need to personalise your store even further such as using a custom domain, you need to pay ₱490/m to access these features on Shopboxo PRO.

Build your online store today with Shopboxo.

Self-hosted ecommerce website

A self-hosted ecommerce website is a type of online store where the website owner has complete control over all aspects of their website’s hosting and maintenance. This entails purchasing their own domain name, establishing their own web hosting service, and installing and configuring ecommerce software to develop and manage their online store.

With a self-hosted ecommerce website, the website owner has complete control over the website’s design, functionality, and security. However, they are also responsible for all aspects of maintenance, including backups, security updates, and software updates.

While you can have complete control over your own website’s design, functionality and security, it comes with a cost too. For instance:

  • A web hosting account cost around which starts at ₱400 per month
  • A domain name cost around ₱800 per year
  • An SSL certificate cost around $3800 per year

While there are some ecommerce website builders like WooCommerce (a plugin for WordPress) and Magento are free, you still require an account with a hosting provider to manage your files and also purchase a domain name.

What is the estimated cost for website hosting

  • SaaS-hosted: As low as ₱490 per month. There are free hosting packages but with limitations.
  • Self-hosted: Between ₱150 and ₱11,000 per month depending on your requirements and if it comes with incremental upgrades.

While there are free hosting platforms available around, it is important to note that if your online store expands and traffic increases, you may need to upgrade your hosting plan to ensure smooth management.

Regardless of which option you choose, website hosting is a must-have for storing your store’s files.

Payment Processors

Payment processors are vital to all ecommerce businesses because without it, shoppers are unable to purchase products from your online store using credit or debit cards, and other payment methods.

Unfortunately, there is a processing fee for every transaction and it can’t be avoided. Different platforms charge a different rate. For instance, Shopboxo Pay charges 2.9% payment processing fee.

E-wallets are another form of payment processors that can be integrated into your online store and there is a processing fee as well. For instance, Shopify charges 4.9% for E-wallet payment transactions.

Design Fees

A well-designed store with an appealing and user-friendly layout can help attract potential customers and keep them engaged. It can also help in creating a professional and trustworthy image for your brand, making customers feel confident about making purchases from your store.

The use of appropriate themes and design elements can significantly impact the overall user experience of your store, making it easier for customers to navigate and find the products they are looking for. It also boosts customer satisfaction and in turn, improves customer retention, which will likely encourage repeated future purchases.

Online website builder platforms like Shopboxo have pre-built templates that you can apply to your site easily. Most of these themes are free to use and you get to customise the layout, colours, style, and other settings to suit your branding.

However, if you are seeking for premium themes, that comes with a cost as you require the PRO subscription.

Custom Design

Whether you need a complete design overhaul or a simple button addition to a specific section of your website, you might require assistance to get your ecommerce store looking just the way you want it. 

In such cases, custom ecommerce website development can help you design, deploy, and maintain your store to meet your specific business needs. Store owners can collaborate with developers to create custom storefronts or modify existing themes to achieve their desired look and functionality.

However, such modification requires engaging a third party developer or agency to do it unless you have the expertise. Prices vary depending on what services you need and the scale of it. Agencies are charging between ₱200,000 and ₱700,000, depending on the scope of the work.

Add-ons and extensions

No single software can cater to the diverse needs of every ecommerce business. You might need to add some features to your website to make it more functional and user-friendly. The best ecommerce software allows you to integrate applications to your store, extending its functionality and improving user experience. (That can be one of your deciding factors in choosing an ecommerce platform).

However, keep in mind that some of these apps are available for free, while others come with a cost, which can increase the overall cost of creating your online store.

Start creating your own online store today

In summary, building an online store can be very economical and can be really expensive too. For a start, you can sign up with a Shopboxo account to build your ecommerce store with its standard templates and themes.

But if you are looking for more advanced features such as a custom domain name, you will need to pay a fee and that will bring up your total cost of running an ecommerce website.

Join 70,000+ merchants and build your dream online store with Shopboxo.

– Accept orders on any device
– Drag and drop functionality
– Create your custom menu
– Pre-built themes
– No coding required

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