Have you ever wanted to start an online business but didn’t know exactly where to start or what sort of expenses goes along with opening an online business? This article looks at some of the major expenses you will face when opening an online business.
First of all you will need a website and a web host. Prices will vary depending on design and how much traffic you will have. The average professionally designed website can be anywhere from $200 to $2000 depending on how much the site is customized. You can also find alternatives that are free or very low cost if you’re on a budget. But remember that your site is your store front so it needs to be professional and unique.
It will also need ecommerce capabilities built into the site which will be another expense. You’ll also need a payment processor such as a merchant account for someone to be able to purchase something from you using a credit card. The expenses of processing a payment are usually a percentage of the total sale. You can also use tools that are available online to make your website available to accept payments. One of these tools is the website Paypal. Paypal allows you to create buttons and accept payments very easily.
Even if you had the best looking website in the world with the best products and lowest prices doesn’t mean you will make a sale. You must have visitors to your website in order to make sales. You can bring visitors to your website by advertising or search engine optimization. While search engine optimization is more of a long term form of advertising it will help your website be found by customers searching in search engines like Google. Advertising will give more immediate results but will likely not have the lasting effect that search engine optimization has. Both of these methods will bring traffic to your website and should be used together. Knowing how much you spend on expenses in your online business can help you determine how much of a profit you can make.