What Do You Need to Start an Online Store?
You need a storefront platform, initial inventory of $2,000 to $25,000, a first-year marketing budget of $20,000 to $120,000, and $5,000 to $50,000 in total startup capital. Revenue Map's e-commerce presets model a $50,000 starting investment for a store that funds inventory at 50% cost of goods on an $85 average order value, a hosted storefront, and paid acquisition at $1.20 per click from day one.
An online store needs four things before it can generate revenue: a storefront that accepts payments, products to sell or a fulfillment path, a traffic source, and enough cash to cover the gap between the first advertising dollar spent and the first repeat purchase received. Platform costs are a rounding error next to the two lines that dominate: your first inventory purchase and your first-year ad budget. Dropshipping removes inventory entirely but compresses margins, and digital products eliminate both inventory and shipping.
Revenue Map's presets frame the funded version: a $50,000 starting investment, $85 average order value with 50% cost of goods, ad budgets ramping from $5,000 per month at launch toward $12,000 in the growth phase, and a 2.5% click-to-purchase rate at $1.20 per click. The checklist below covers what every format needs, anchored to those defaults, so you can see which requirements you can compress and which you cannot skip.
Cost Breakdown
What you need to start an online store and what it costs
| Item | Typical range | Notes | Source |
|---|---|---|---|
| Storefront platform | $500 to $10,000 per year | Hosted platform subscription at the low end, custom-built storefront at the top | Industry range |
| Initial inventory | $2,000 to $25,000 | Presets model cost of goods near 50% of an $85 average order; dropshipping removes this line | Revenue Map model presets |
| First-year marketing budget | $20,000 to $120,000 | Presets ramp ad spend from $5,000 per month at launch toward $12,000 in the growth phase | Revenue Map model presets |
| Operations and early team | $10,000 to $60,000 per year | Presets carry $5,000 per month of early salaries plus $2,000 miscellaneous costs | Revenue Map model presets |
| Returns and discount buffer | 10% to 20% of revenue | Presets model an 18% return rate and 15% average discount at launch | Revenue Map model presets |
| Modeled total (funded launch) | About $50,000 | Default starting investment in Revenue Map's e-commerce model | Revenue Map model presets |
Sources: Revenue Map model presets (default investment, pricing and funnel assumptions in our industry templates), Revenue Map model templates (vertical research in each financial model), Revenue Map benchmark tables (the thresholds behind our free calculators), and honest industry ranges where our own data is thin. Ranges are planning bands, not guarantees.
What Moves the Number
Inventory model decides the up-front cash
Holding stock ties up thousands of dollars before the first sale but protects margin at the preset 50% cost of goods. Dropshipping starts near zero inventory cash but gives away 20 to 30 points of margin and control over fulfillment. Print-on-demand sits in between. This single choice moves the up-front number more than any other decision.
Traffic source sets the marketing budget
At the preset $1.20 cost per click and a 2.5% click-to-purchase rate, each new customer costs roughly $48 of ad spend before any organic traffic arrives. Stores that launch with an existing audience or build content channels early can cut the largest line in the budget. Presets move organic traffic share from 15% at launch to 30% at scale.
Product category changes every number
Revenue Map's industry presets show fashion at a $65 average order with 55% cost of goods and a 15% return rate, while digital products start near $25 with almost no cost of goods and zero returns. High-return categories need a bigger cash buffer, and lower average orders need more volume to cover fixed costs.
Repeat purchases determine how far the budget stretches
The presets move repeat purchase rates from 15% at launch to 30% at scale. A first order rarely pays back its acquisition cost alone, so profitability depends on second and third purchases. The faster you build that repeat behavior, the less total marketing cash you burn reaching positive contribution.
Frequently Asked Questions
Can you start an online store with no money?
Which storefront platform should you use?
How much inventory should a new store carry?
When should you start spending on ads?
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