From Zero to Sold: Etsy/eBay Startup Fee

  • 12 Essential Steps to Open and Launch an Etsy or eBay Store
  • Start your e-commerce store on Etsy or eBay
  • Etsy / Ebay Store Business Model Canvas
  • Boost Your Online Sales: Proven Strategies for Etsy and eBay Stores!


Starting your own virtual store by leveraging well-known marketplaces like Etsy and eBay is a great way to tap into the potential of the e-commerce world. Over the past few years, we have seen an explosive expansion of the e-commerce market globally. According to Statista, global B2C e-commerce sales are expected to reach .54 trillion by 2022, double the amount in 2017. Etsy and eBay are two prominent marketplaces that allow businesses to create their own virtual stores, d ‘list items and manage their own sales. They provide a series of tools and services that help store owners make their products more engaging and manageable. Setting up an online store is a process that should require great attention to detail and some upfront costs. To help you make an informed decision about the costs of starting a virtual store in any of these marketplaces, we’ve put together a simple guide outlining typical expenses to consider when launching an Etsy or eBay store. .

start-up costs

Launching an online business requires a certain amount of start-up capital to get your store up and running. It’s important to familiarize yourself with common start-up costs when launching an Etsy or eBay store. Typical start-up costs include: website design and development, domain name registration, merchant services, marketing and promotion, packing and shipping supplies, shipping services and logistics, third-party software and tools, licenses and certifications, and virtual store platform subscription.

Below is a breakdown of the typical startup cost of launching an Etsy/eBay store business:

startup cost Average amount (USD)
Website design and development ,000 – ,000
Domain name registration – / year
Merchant Services Varied
Marketing Promotion Varied
Packing and shipping supplies Varied
Shipping and logistics services Varied
Third Party Software and Tools Varied
Licenses and certifications Varied
Virtual Store Platform Subscription Varied
Total Varied

The cost of starting an Etsy/eBay store business can vary widely and it is important to research thoroughly to ensure you are investing your money wisely. When trying to calculate start-up costs and the quantity you need to launch your store, remember to keep in mind the costs of starting a business and the cost of running your business on an ongoing basis. .

Website design and development

When it comes to starting an Etsy or eBay Store business, website design and development is integral to your success. The cost can vary depending on the size of your store and the complexity of the features you need. In general, however, the average cost of website design and development for small and medium businesses is approximately ,250 to ,000 USD . This cost may include website setup and content writing, programming, and design services to create a website that can showcase your products effectively. Additionally, you will need a domain name and hosting fees, which can cost 0-200 per year .

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The cost of maintaining the website will also consider your long-term expenses. Once your website is set up, you may need to pay for software updates, security patches, and other stuff to keep your site running smoothly. Prices for these services can range from to 0 per month . Also, depending on the volume of your store or the number of products you sell, you may need to pay a service fee or checkout when customers make a purchase through your website.

For stores that require customization, you may need to hire a website developer to create additional features tailored to your business needs. Professional website developers typically charge 0 to 5 per hour , so it’s important to take the time to create a detailed budget for your project. Additionally, you may have to pay for web design templates or outsource certain tasks to other professionals.

Ultimately, the cost of opening or launching an Etsy or eBay store business can vary greatly depending on the features you need. However, budgeting for the design and development of the website is a necessary step in the process. Being aware of potential expenses will help you make the right decisions when setting up your store.

Domain name registration

When you launch an Etsy or eBay store, the first step is to register a domain name. A domain name is the website address or URL of a business, such as “”. Domains are usually registered for one to ten years, with prices depending on the length of registration. The average cost to register a domain name is .99 per year. Adding domain name privacy protection to registration can range from .99 to .99 USD per month.

Some additional services may be offered by the domain name registrar, such as website hosting services and website builders. Be sure to check the details before buying, as some domain name services may have an additional cost.

Here are the estimated average costs for domain name registration:

  • Domain name registration (1 year): .99 USD
  • Domain name registration (5 years): .99 x 5 = .95 USD
  • Domain name registration (10 years): .99 x 10 = 9.90 USD
  • Domain Name Privacy Protection: .99 – US.99 per month

Merchant services

When starting an Etsy or eBay store, entrepreneurs will need to invest in a Merchant Services Account . Merchant Services allow you to accept payment from customers using credit cards, debit cards, and other forms of electronic payment. The typical cost of starting a merchant services account is to . There may also be additional fees for setting up the account and additional fees for transactions. Typical fees per transaction range from 2.4% to 3.5%, plus additional fees for international transactions.

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In addition to the cost to start a merchant services account, there may also be additional monthly or annual costs associated with merchant services. Examples of these costs are monthly maintenance fees or subscription fees. Certain merchant services may also require a minimum monthly fee and funds above the threshold are subject to a percentage fee. Verizon Merchant Services, for example, charges a monthly maintenance fee of .95 and transaction fees of 1.95-2.20%. The fee percentage is based on whether the processing is done through a mobile app or a credit card terminal.

According to the Federal Reserve’s 2018 Non-Cash Payments Report , total US payments for credit cards and debit cards, excluding prepaid cards and ATM transactions, accounted for .3 trillion in 2018 . This was a 10.1% increase from 2017. The average size of each credit card transaction was 2. The percentage change from 2017 to 2018 was an increase of 8.6%.

Additionally, according to the National Retail Federation, credit cards remain the most popular form of payment, with 33.3% of sales handled by credit cards . This was followed by debit cards at 25%, cash at 20.6%, prepaid cards at 7.8% and checks at 7.1%. Total credit and debit card sales volume in 2018 was .2 trillion, which included a 5.3% increase in credit card sales.

When choosing a merchant service provider, it is important to compare costs and fees between different providers. This will ensure that you are getting the best deal for your store’s needs. Different providers may offer discounts for small businesses or for larger transactions. Additionally, some providers may offer payment processing options that allow you to accept payments from multiple sources, such as mobile wallets. Be sure to research your options thoroughly before choosing a merchant service provider.

Marketing Promotion

When it comes to opening an Etsy or eBay store, you can get away with investing very little money. Depending on how you set up your store and the type of items you choose to list, you can even get started with no upfront investment. However, if you’re serious about starting an online store, it’s important to understand that there’s more to the cost of starting and running a business than just setting up the shop and selling it. list inventory. You also need to factor in marketing and promotion costs.

To get started, Etsy or eBay Store businesses typically make an upfront investment to purchase inventory and make necessary store improvements before launch. Once the store is up and running, some advertising to reach customers is always recommended. According to Statista , the US online retail industry was expected to reach 5.4 billion in sales in 2020. This means that e-commerce businesses must undertake effective marketing and advertising strategies to stand out from their competitors. and reach more customers.

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The exact setup fees and ongoing costs to advertise and promote your store can range from a few hundred to a few thousand dollars, depending on the size and nature of your business.

The fees you pay to advertise your business will vary depending on where and how often you advertise, as well as the types of services you use. For example, pay-per-click advertising services such as Google Ads or Facebook Ads typically charge based on the number of clicks an advertisement receives. It is also important to consider other SEO services such as keyword research, web design costs, and content creation.

There are various other promotional methods to consider, such as influencer marketing, email marketing, and content marketing. Generally, the most cost-effective approach is to identify the channels that match your target audience and provide the best return on investment for the budget you have.

As mentioned, the cost implications of marketing and promotion can range greatly depending on the strategy used and the desired reach. Here is a rough estimate of what you can expect to invest in marketing and promotion :

  • Social media advertising: from /month to 0+/month.
  • Google Ads (Pay-Per-Click): From to 00+/month depending on the size of your campaigns.
  • Content Marketing: from 0 to ,000+/month
  • Influencer Marketing: from to ,000+/influencer depending on their reach and engagement.
  • List of online directories: from around 0/month.

Regardless of how you choose to allocate your marketing and promotion budget, it’s important to set realistic expectations for the performance of any given campaign.

Packing and shipping supplies

Starting a store on Etsy or eBay requires some upfront investments, including investing in the right packaging and shipping feeds.

Branding a store starts with attractive packaging that stands out and also protects the item along the way. To make products look professional, sellers need the right supplies, such as boxes, envelopes, tapes, and packing inserts.

The cost of packaging and shipping supplies depends on the type of products you sell and the volume of packages you ship. Here are some of the supplies you need to consider for your Etsy or Ebay Store business.

  • Shipping boxes: to 0 per package
  • Shipping labels: -5 per label
  • Bubble Mailers: to per 50
  • Spool: to per spool
  • Packaging inserts: to 5 per box of 500 pieces
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Additionally, there are shipping costs associated with sending a package to a customer. Depending on weight and size, shipping costs can vary greatly, typically ranging between -.

The amount you spend on packing and shipping supplies is an important factor to consider when setting up and running a successful business. You need to make sure you invest enough in these supplies, but also be aware of the cost.

Shipping and logistics services

When starting an e-commerce business, you need to consider the costs associated with shipping and logistics. This includes costs for packaging materials, postage, insurance and tracking. In addition to these expenses, there are often additional costs associated depending on the size and weight of your products.

Packaging materials

Packaging materials vary depending on the type of product being shipped and typically include boxes, envelopes, packing peanuts, bubble wrap, and tape. These materials usually add .15 to .00 per item.

Shipping and insurance costs

Depending on the size and weight of your items, shipping costs can vary from to per item. Insurance usually adds .50 to .00. Additionally, you may want to consider added insurance for particularly high items.

Tracking services

Most couriers and postal services provide tracking services that allow you to monitor the delivery of your shipments. These fees vary by carrier, sometimes as low as .60 per package and as high as .00.

Advanced services

Advanced services like same-day delivery and international shipping can add significantly to your shipping and logistics costs. International shipping charges can be – higher per item depending on size and weight.

Estimated average shipping and logistics costs

  • Packing Material: .15 – .00 per item
  • Afranges and insurance: .00 – .00 per item
  • Tracking Services: .60 – .00 per item
  • Advanced Services: up to .00 per item

Third Party Software and Tools

Before launching your own Etsy or eBay store, there are costs associated with third-party software and tools. Depending on your budget, you can opt for a one-time purchase or opt for a monthly/annual subscription for your software/tools.

If you are looking for payment processing solutions to accept payments, there are several options available such as PayPal, Stripe, and The processing fee for PayPal is there 2.9% +.30 per transaction, and for Strip the fee is 2.9% +.30 of the total transaction amount. If you opt for, the fees could be entered 2.9% +.30 for each transaction.

To help customers find the products they are most likely looking for, you can use software such as Wowgo, quick search, and algolies. These software allow customers to quickly filter and sort products, as well as search for items using keywords. Generally, the cost range varies depending on the features selected, but on average, it can vary from /month – /month .

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If you want to quickly create your own website with an intuitive and user-friendly interface in minutes, you can opt for website builder solutions like Squarespace and Wix. Squarespace plans start from per month. For the basic plan, and for the e-commerce plan, it’s per month . For Wix, plans start from per month .

Shipping solutions such as ShipStation and Shipwire can be used to print shipping labels, track orders, and manage inventory. ShipStation charges a monthly fee of -9 per month , while Shipwire charges a fee of per month for up to 999 orders and 0 per month for more than 1000 orders.

These are just a few of the many software and tools you might need when setting up your own Etsy/eBay store. Make sure to compare the features and functionality of different solutions before selecting software, as this will help you make an informed decision.

License and certifications

Opening a business on eBay or Etsy requires a few key steps, including obtaining the appropriate licenses and certifications for the area where your business operates. Licenses and certifications are often required to be eligible to open a business and can cost anywhere from several hundred to a few thousand dollars. The exact cost of licenses and certifications will depend on the specific type of license needed for the service you provide as well as the jurisdiction in which your business operates.

It’s important to consider licensing and certification fees when starting your business on eBay or Etsy. Generally, sellers on eBay and Etsy would have to pay for the licenses and certifications required in their jurisdiction. The total cost of licenses and certifications will vary depending on the type of business you run and the number of licenses and certifications that may be required by the state, province or other regulatory agency.

Average costs of licenses and certifications:

  • Federal unemployment tax: 0.6% of ,000 in wages paid to an employee; paid every year.
  • State Sales Tax License: to 0 depending on which state you are in.
  • Federal Employer Identification Number (EIN): Free.
  • Local business license: to 0 depending on the city you are in.
  • State Business License: to 0 depending on the state you are in.

Other fees may also be applicable to your business depending on your particular service or product. For example, you may need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) to legally open a business in the United States. Additionally, businesses that operate in certain industries such as food service or manufacturing may have to obtain additional licenses or permits.

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It’s important to understand the legal requirements in your jurisdiction before opening a business on eBay or Etsy. Be sure to research any licenses and certifications you might need and calculate the cost ahead of time. This way, you can be prepared for any potential fees you may have to pay before you start operating your business.

Virtual Store Platform Subscription

One of the biggest costs of starting an e-commerce business from scratch is the cost of a virtual store platform subscription. As a start-up business, it can be difficult to commit to spending a certain amount of money on such a service every month, especially when you’re just getting started.

If you plan to create an Etsy or eBay store, you will have to pay subscription fees to these platforms. Etsy offers two plans, the Basic Plan and More. The basic plan costs .20 per signup plus a 5% transaction fee while the plus plan costs per month plus a 3.5% transaction fee. For eBay stores, plans start at .95 per month and increase based on the number of listings you have. Additionally, eBay charges a 10% Final Sale Value Fee .

The cost of a virtual store platform subscription can be offset if you make enough sales. However, if your business isn’t generating consistent sales, you may want to find alternatives. There are a variety of platforms that offer services comparable to Etsy and eBay, but at more reasonable costs. Some of them include WooCommerce, Shopify, BigCommerce, and Squarespace.

Before selecting a particular platform, consider assessing your customer base and the type of products you sell. You should also consider the cost of services, such as shipping and payment processing options. Ultimately, the right platform for you will depend on your business needs, so it’s important to take the time to research what’s available.


Launching an Etsy or eBay store can be a great way to get your products online and tap into a larger market of buyers. Depending on the nature of your business, you may want to factor in some additional costs beyond basic setup expenses such as website design and development, domain name registration, and internet subscription. the virtual store platform. It’s also important to be aware of additional costs to keep your store running, such as marketing and promotions, shipping and logistics, and merchant services. On average, you should expect to invest anywhere0 to ,000, depending on the complexity and scale of your store. Making a well-informed decision about the expenses associated with launching your store is key to long-term success. By investing time and money into building a great store, you’ll have everything you need to start growing your business.