Starting an online store can be financially draining especially for a person working on a strict budget.
Having a limited amount of money to start your business should not deter you from getting started.
There are proven ways to work through a strict budget and still get everything in check.
As much as we need to keep everything on the lower end, we must not sacrifice the value.
Therefore, this article shall give you guidelines on how to start an online store at an affordable price.
Table of Contents
1. Marketplace vs online stores
You have the option of running your business as a sole trader or choose to sell your goods through a marketplace.
Starting as a small business may be challenging in terms of running and managing your store. That is why the marketplace is there to help cut the cost and broaden your customer acquisition.
There are several successful online marketplaces in the UK. If this is the best option for you, may want to consider reading reviews from Luminablog.co.uk to get insights on some of the best there.
However, if you want to go on as an independent e-commerce website, you may want to take some cost-saving tips from me.
There are three main things to consider when building your e-commerce website;
· Web host
The best way to save money through web hosting is to be on the lookout for discounts and coupons. You notice I don’t refer to free web hosts because they are not recommended to run a business.
Using free web hosting will look very unprofessional for your business and customers aren’t less likely to trust such websites.
· Domain name
Getting a domain name is normally not very expensive however if your hunger to cut the cost is unsatisfied, I will recommend finding discounts and coupons. Again do not go for the free stuff.
· Website design
Web design may be a little costly than you think. It is not just about the web layout, web design also involves maintaining the webserver. An independent e-commerce store must have a well-maintained server.
To cut the cost of web design you may find free or cheap templates and adjust them to however much you like.
With maintaining your server you may seek affordable services from freelancers.
2. Suppliers and Couriers
Suppliers and couriers are a big drain on financial resources.
They are also unavoidable costs because all online businesses do depend on them to run. You will need your suppliers to bring in the supplies and your couriers to deliver them.
The only way you can reduce their costs is by finding the right type of provider with reasonable rates.
Read some reviews about UK business supplies to find out more about where you can find affordable services.
3. Payment gateway
Next up on your list of services you have to pay for is a payment gateway for your online business.
They should not be compromising when choosing the type of payment gateway. You want a payment gateway that is reliable and secure for all your customers.
The most common ways businesses get charged for a payment gateway service can either be;
- One-time fee – these meetings between £0 to £250.
- Per transaction – £0- £025
- Monthly fee – £10 – £50.
Between the three what will help you determine the cost-saving option is the number of customers you have.
If we expect to have many transactions then a one-time fee is the best option. If your business is still young then we go with the lower rates.
The good thing is that there are so many payment gateway providers in the UK and most of their services are within affordable ranges.
4. Labour outsource
Your business is probably going to need other people’s input.
Normally, hiring someone for a full-time job is very expensive, especially in the UK. To cut the cost on this one, consider outsourcing labor.
Outsourcing has been relied on by many companies to cut costs and get the best services from it.
- Legal services
- Administration tasks
- Customer service
- Accounting and financial services
Some tasks you may have to do yourself to save extra money for example human resource management.
You don’t have to have someone full-time or even outsource such services. Only do so when you feel the task has become overwhelming.
5. Sales and marketing
Lastly, you can save money on how you conduct your sales and marketing.
Sales and marketing can be seen as the backbone of a business. You depend on your marketing strategies to drive in customers.
It often costs a lot more to conduct marketing campaigns. However, with the right digital marketing agency or freelancers, you may save some money and cut the cost.