Cost To Set Up And Operate An Online Store
Because there are so many different ways one can approach setting up an online business or online store, it is not practical to provide cost estimates for every one of them. But in an attempt to give you a base line for comparison, in this page we discuss the cost to build an online store using the Yahoo Small Business system.
We choose Yahoo stores because they have very many advantages for those who want to sell something on the Internet. Before you read on through this page, you might want to review those advantages that are discussed at this link. Online Stores
Using this system the costs to set up your own online store are minimal.
As you start your online store you have to get a domain name. You can avoid the costs of doing that because as part of the setup process with a Yahoo store you get a free domain name.
And as part of using Yahoo store system you get complete e-mail services over your domain name. So immediately have a professional communications image.
For the use of the Yahoo store system, the domain name and e-mail services plus everything else, you pay a monthly fee of about $40. ( You can see the exact fees when you go here. Yahoo Merchant Solutions)
When you sign up for the store you get a complete system that allows you to use there templates to design and make your store ready for operation.
Sometimes they have discount offers. But generally the cost is about $40 per month. So the first cost that you can expect in running your business is about a $40 per month.
Considering all the features of the store and the benefits of working with Yahoo this monthly rental payment is extremely low. Compare that to what it would cost you to rent an offline store in your local shopping mall.
Once you have that store online the only other costs that you will incur that are directly related to your store are the advertising costs.
But when you get down to it, advertising costs are not really money out of pocket - if you are doing your advertising correctly. That is because for every dollar that you put out an advertising you should get more than a dollar back in sales. Advertisement is an investment in profits so realistically speaking, a successful business person does not measure advertising in terms of the cost but instead how much income is returned for every dollar spent on advertising.
And with the Yahoo Store, they give you discounts and credits to get your advertising started.
The other costs of running your business are associated with you maintaining your own home office, with your equipment and its maintenance, your bookkeeping, your accounting fees, your legal fees and anything else that would be associated with running any business. It is not possible for us to give you an estimate of these costs because each of them will vary based on whom you choose to do you services and how you run your own office.
So let me say that are simply it will cost you about $50 per month to have a store.
And you can expect that it will probably take you about two months before your full advertising and promotion program is in place and before you start returning a significant income. So you may be out of pocket a couple months rental fee to Yahoo before you start recovering that by making daily sales.
How do you pay your initial monthly costs? You just put it on a credit card. That is a financing medium that you can use to start your business and that is all that you need. You do not need a lot of cash. Just use a credit card. Once your store starts selling for you, you use the income to pay your credit card down. That is simple and straightforward business financing.
There are optional costs that you can choose or not choose to incur.
When you get into the Yahoo system, you will find that there is so much material presented to you concerning almost everything possible that it can be very confusing when you set up your first store. That is why we wrote the Drop Ship Guide which will take you through the process.
You are going to need product. So you may also find it good to subscribe to a drop shipping directory to give you information about factories that can provide you a large selection of product. You can read about that at Drop Ship Directory
And instead of spending a lot of time in doing marketing research, we also recommend that you should consider the Market Research Wizard. You can find that at this link. Market Research Wizard
If you have any questions about this, please contact me by going here. Contact Us