How Much Does It Cost to Start a E-Commerce Store?
Last updated: May 2026
National Average
Low
$5,000
Medium
$15,000
High
$50,000
Start an online retail store selling physical products through your own website and third-party marketplaces.
Time to Launch
1-3 months
Profit Margins
10-30%
Break-Even Timeline
6-18 months
Interactive Cost Calculator
Select a state below to see state-adjusted costs.
Startup Cost Calculator
E-Commerce Store in Nationally
Budget:
$400
$800
$5,000
$800
$50
$100
$3,000
$1,000
$1,000
Options
Employees:
Startup Costs
$12,150
Monthly Costs
$4,000
First Year Total
$60,150
Startup Costs by State
| State | Low | Medium | High | LLC Fee | Sales Tax |
|---|---|---|---|---|---|
| Mississippi | $3,850 | $11,550 | $38,500 | $50 | 7.0% |
| West Virginia | $3,850 | $11,550 | $38,500 | $100 | 6.0% |
| Oklahoma | $4,000 | $12,000 | $40,000 | $100 | 4.5% |
| Alabama | $4,050 | $12,150 | $40,500 | $200 | 4.0% |
| Arkansas | $4,050 | $12,150 | $40,500 | $45 | 6.5% |
| North Dakota | $4,100 | $12,300 | $41,000 | $135 | 5.0% |
| Iowa | $4,150 | $12,450 | $41,500 | $50 | 6.0% |
| Kansas | $4,150 | $12,450 | $41,500 | $160 | 6.5% |
| Missouri | $4,150 | $12,450 | $41,500 | $50 | 4.2% |
| South Dakota | $4,150 | $12,450 | $41,500 | $150 | 4.2% |
| Kentucky | $4,200 | $12,600 | $42,000 | $40 | 6.0% |
| Louisiana | $4,200 | $12,600 | $42,000 | $100 | 5.0% |
| Wyoming | $4,200 | $12,600 | $42,000 | $100 | 4.0% |
| Nebraska | $4,250 | $12,750 | $42,500 | $105 | 5.5% |
| Indiana | $4,300 | $12,900 | $43,000 | $95 | 7.0% |
| Michigan | $4,400 | $13,200 | $44,000 | $50 | 6.0% |
| Ohio | $4,400 | $13,200 | $44,000 | $99 | 5.8% |
| New Mexico | $4,500 | $13,500 | $45,000 | $50 | 4.9% |
| South Carolina | $4,500 | $13,500 | $45,000 | $110 | 6.0% |
| Wisconsin | $4,550 | $13,650 | $45,500 | $130 | 5.0% |
| Tennessee | $4,600 | $13,800 | $46,000 | $300 | 7.0% |
| Texas | $4,600 | $13,800 | $46,000 | $300 | 6.3% |
| Georgia | $4,700 | $14,100 | $47,000 | $100 | 4.0% |
| Minnesota | $4,700 | $14,100 | $47,000 | $155 | 6.9% |
| Illinois | $4,750 | $14,250 | $47,500 | $150 | 6.3% |
| Idaho | $4,800 | $14,400 | $48,000 | $100 | 6.0% |
| North Carolina | $4,800 | $14,400 | $48,000 | $125 | 4.8% |
| Pennsylvania | $4,800 | $14,400 | $48,000 | $125 | 6.0% |
| Montana | $4,850 | $14,550 | $48,500 | $35 | 0.0% |
| Utah | $5,000 | $15,000 | $50,000 | $54 | 6.1% |
| Delaware | $5,200 | $15,600 | $52,000 | $110 | 0.0% |
| Nevada | $5,250 | $15,750 | $52,500 | $425 | 6.8% |
| Virginia | $5,350 | $16,050 | $53,500 | $100 | 5.3% |
| Vermont | $5,450 | $16,350 | $54,500 | $125 | 6.0% |
| Arizona | $5,500 | $16,500 | $55,000 | $50 | 5.6% |
| Colorado | $5,500 | $16,500 | $55,000 | $50 | 2.9% |
| Florida | $5,600 | $16,800 | $56,000 | $125 | 6.0% |
| Oregon | $5,600 | $16,800 | $56,000 | $100 | 0.0% |
| Rhode Island | $5,600 | $16,800 | $56,000 | $150 | 7.0% |
| Maine | $5,700 | $17,100 | $57,000 | $175 | 5.5% |
| New Hampshire | $5,850 | $17,550 | $58,500 | $102 | 0.0% |
| Washington | $5,900 | $17,700 | $59,000 | $200 | 6.5% |
| Connecticut | $5,950 | $17,850 | $59,500 | $120 | 6.3% |
| Maryland | $6,050 | $18,150 | $60,500 | $100 | 6.0% |
| New Jersey | $6,250 | $18,750 | $62,500 | $125 | 6.6% |
| Alaska | $6,350 | $19,050 | $63,500 | $250 | 0.0% |
| New York | $6,950 | $20,850 | $69,500 | $200 | 4.0% |
| California | $7,600 | $22,800 | $76,000 | $70 | 7.3% |
| Massachusetts | $7,700 | $23,100 | $77,000 | $500 | 6.3% |
| Hawaii | $9,650 | $28,950 | $96,500 | $50 | 4.0% |
Cheapest & Most Expensive States
5 Cheapest States
- Mississippi$11,550
- West Virginia$11,550
- Oklahoma$12,000
- Alabama$12,150
- Arkansas$12,150
5 Most Expensive States
- Hawaii$28,950
- Massachusetts$23,100
- California$22,800
- New York$20,850
- Alaska$19,050
Frequently Asked Questions
Starting an e-commerce store typically requires a low-to-mid five-figure investment, covering initial inventory, a Shopify (or comparable) monthly subscription, product photography, and an initial marketing budget. Dropshipping models can launch for a fraction of that — often a low-to-mid four-figure outlay — but operate at noticeably lower margins.
Shopify is the easiest path to launching quickly with built-in hosting and payments — its monthly subscription tiers (https://www.shopify.com/pricing) scale with feature depth. WooCommerce is free but requires WordPress hosting and more technical management. BigCommerce scales well for higher-volume stores. Most new stores start on Shopify.
Dropshipping means suppliers ship directly to customers — no inventory required. Startup costs are minimal (often a low four-figure outlay), but margins are noticeably thinner than inventory-based stores, where private-label products with held inventory command meaningfully higher margins and stronger branding. Dropshipping is also extremely competitive.
New stores typically combine paid ads (Facebook/Instagram, Google Shopping) for fast traffic and SEO + content for long-term organic growth. Email capture from day one is essential. Influencer partnerships can drive significant early sales. Organic social media alone rarely generates enough volume.