What does it cost to start an online store business?
An online store can be started for very little if you dropship or print-on-demand, or for several thousand dollars once you hold your own stock. The platform itself is cheap — the real budget goes on inventory, product photography and the advertising needed to get your first sales.
As a guide, plan for around $1,300 – $32,500 in one-off setup costs and $1,150 – $20,000 per month in running costs. Adding a three-month cash buffer puts a realistic launch figure at $4,750 – $92,500.
One-off setup costs
The costs you pay once to get up and running:
| Item | Typical cost |
|---|---|
| Initial inventory | $500 – $20,000 |
| Website/Shopify setup & theme | $0 – $3,000 |
| Product photography | $300 – $3,000 |
| Branding & packaging design | $300 – $3,000 |
| Logo & brand assets | $100 – $1,500 |
| Samples & product testing | $100 – $2,000 |
Totals roughly $1,300 – $32,500. Buying used or starting lean lands you near the lower end.
Monthly running costs
The ongoing costs of operating each month:
| Item | Typical cost |
|---|---|
| E-commerce platform & apps | $30 – $300 |
| Advertising (Meta/Google) | $300 – $5,000 |
| Stock replenishment | $500 – $10,000 |
| Shipping & fulfilment | $200 – $3,000 |
| Email & marketing tools | $20 – $200 |
| Transaction & payment fees | $100 – $1,500 |
Totals roughly $1,150 – $20,000 per month. Work out your break-even point →
Licences & registrations
- ABN registration
- GST registration once turnover hits $75,000
- Australian Consumer Law compliance (refunds, accurate descriptions)
- Product safety standards for regulated goods
- Privacy policy if collecting customer data
Not legal advice — requirements vary by state and council. Check business.gov.au and your local council.
Tips to start lean
- Advertising — not the website — is usually the biggest and most underestimated cost.
- Holding stock ties up cash; dropshipping or pre-orders reduce upfront risk.
- Strong product photos and reviews convert browsers far better than a fancy theme.
Frequently asked questions
How much does it cost to start an online store business in Australia?
A small, owner-operated start typically costs around $4,750 – $92,500. That covers roughly $1,300 – $32,500 in one-off setup costs plus a three-month buffer for running costs of about $1,150 – $20,000 per month. Your actual figure depends heavily on scale, location and whether you buy new or used.
What are the ongoing monthly costs?
Expect ongoing running costs of roughly $1,150 – $20,000 per month, covering items like e-commerce platform & apps, advertising (meta/google), stock replenishment and more. Use the break-even calculator to see how many sales cover these.
What licences or registrations do I need?
Common requirements include: ABN registration; GST registration once turnover hits $75,000; Australian Consumer Law compliance (refunds, accurate descriptions); Product safety standards for regulated goods; Privacy policy if collecting customer data. Always confirm the exact requirements with your state and local council.
Can I start an online store business cheaply?
Yes — the low end of the range (around $4,750) is realistic if you start lean: buy used equipment, start from home or solo where possible, and avoid a fixed lease until demand is proven.
Cost ranges are general estimates for 2025–26 and vary widely by location, scale and choices. Not financial or business advice.