Choosing the right ecommerce solution: how much will it cost?

Looking at the costs and the benefits of using licensed and hosted ecommerce solutions

How much will it cost to run your ecommerce Web site? When you are reviewing different ecommerce solutions, it's important to understand how much each option will cost. Use our calculator to estimate the cost of running an online store.

Note that we go beyond the "start up" costs, as running an Internet store is likely something that you will be doing for quite some time. Typically, you are presented with two main options:

1. Hosted ecommerce solutions.
   When you buy or subscribe to this kind of service (e.g. Yahoo! Stores), you are typically charged a combination of a setup fee, a monthly fee, and, in some cases, a commission on sales.
2. Licensed ecommerce software.
   When you purchase shopping cart software like ProductCart, you normally pay for the software license fee, and, in some cases, for a yearly support & updates plan.

Would you like to learn more about the differences in these two approaches? Practical eCommerce recently ran two interviews on this topic. Massimo - Early Impact's CEO - offered his thoughts on why use a licensed solution. Check out the articles:

• Why use a licensed solution
• Why use a hosted solution
• Another quick read on this topic

Calculate the total cost of using different ecommerce solutions

Ecommerce system
Setup Fee or Purchase Price:	$	If this is a hosted solution, enter the setup or activation fee. If not, enter the purchase price.
Monthly Subscription:	$ /month	Typically applies only if this is a hosted solution.
Sales Commission:	%	Some hosted solutions (e.g. Yahoo! Stores) charge a commission on sales on top of the monthly hosting fee. You typically don't pay sales commissions if you purchase licensed software.
Estimated Sales:	$ /month	A rough estimate of your expected, average monthly sales over the next 2 or 3 years.
Web site hosting
If you purchase a Licensed ecommerce solution, it means that you separately pay for your Web site hosting. This is typically included in the cost of a hosted solution. Adjust the numbers below accordingly.
Web Hosting Setup Fee:	$	If the hosting company charges you a setup fee, enter it here. Many hosting companies don't charge a setup fee anymore.
Web Hosting Monthly Fee:	$ /month	The monthly price you pay for your Web site hosting account, if it's not already included in the monthly subscription fee entered above under Ecommerce System.
SSL Certificate:	$	This is typically a yearly charge. Prices vary depending on the type of SSL certificate you purchase. If it's included in your ecommerce hosting plan or in your Web site hosting account, then change it to 0.
Other Expenses
For example, many ecommerce providers charge for technical support, either through a plan or on a per-ticket basis.
Other One-Time Fee:	$	E.g. a lifetime technical support plan.
Other Monthly Fees:	$ /month	E.g. a monthly technical support plan.
Timeframe
An online store is always a medium-term investment. Enter the number of years you plan to use this ecommerce solution (e.g. before you might consider a major upgrade or a switch to a different system).
Estimate my cost for...	Next 12 months Next 2 years Next 3 years Next 4 years Next 5 years