How much does it cost to run an online store? Monthly fixed and per-order costs, with a worked example

Short answer: Running an online store costs two kinds of money. Fixed costs, such as your platform plan, domain, apps and bookkeeping, are the same every month; in our example below they come to about $200. Variable costs come with every order: the product itself, packaging, shipping, payment processing, returns and the marketing it took to win the sale. For most stores the variable side is far bigger, so the honest answer to "how much per month" depends on how many orders you ship. Add both sides up per order, compare the total with your price, and you know what each sale really leaves you. It's easier when you use a store platform that shows your profit after shipping and payment costs on every order.

Fixed vs. variable: the two halves of your monthly bill

The U.S. Small Business Administration separates business costs the same way. Fixed costs don't change with how much you sell; variable costs rise with every unit sold. Some costs are mixed, with a fixed base plus a usage charge, and the SBA suggests splitting those into their fixed and variable parts where you can. It also suggests turning anything you pay quarterly or yearly into a monthly amount, so nothing hides.

• Platform plan — Type: Fixed; What drives it: The plan you choose
• Domain name — Type: Fixed (paid yearly); What drives it: Extension and registrar
• Apps, email and design tools — Type: Fixed or mixed; What drives it: How many you add
• Bookkeeping software or accountant — Type: Fixed or mixed; What drives it: Number of transactions
• Business license and permit renewals — Type: Fixed (paid yearly or less often); What drives it: Your city, county and state
• Product cost (cost of goods sold) — Type: Variable; What drives it: Supplier, order size, materials
• Packaging — Type: Variable; What drives it: Box size, protection needed
• Shipping — Type: Variable; What drives it: Carrier, weight, size, distance
• Payment processing — Type: Variable; What drives it: Provider, card type, country
• Returns and chargebacks — Type: Variable; What drives it: Product type, return policy
• Marketing — Type: Variable (mostly); What drives it: Channel, season, competition

A quick test: if you got zero orders this month, would you still pay it? If yes, it's fixed.

The fixed costs of running an online store

These are the bills you can predict:

• Platform: your store software, hosting and checkout. When you compare plans, check whether the platform also takes a transaction fee on each sale, because that turns part of a "fixed" cost into a variable one.
• Domain: usually paid once a year. Divide the renewal price by 12.
• Apps and tools: each one looks cheap; ten of them don't. List every subscription and cancel what you don't use.
• Bookkeeping: software, an accountant, or both. Costs often rise with the number of transactions.
• Licenses and permits: some local licenses must be renewed. Put the yearly amount into your monthly budget.

The per-order costs most sellers underestimate

Product and packaging

Your cost of goods sold is the landed cost of each item: the supplier price plus inbound freight and any duties. Add the box, filler, tape and label you use for each order.

Shipping

If you offer free shipping, you still pay the carrier; the cost just moves from the customer to you. Weigh and measure a packed order and price it with your carrier, because larger, light boxes can be charged by size. We walk through setting rates, free shipping thresholds and flat versus calculated rates in how much to charge for shipping.

Payment processing

Every card payment costs a percentage plus a fixed fee. Here's what two providers' US fee pages listed when we checked (26 October 2026):

• Card payments online — PayPal: Standard card payments 2.99% + $0.49; PayPal Checkout 3.49% + $0.49; Square: Free plan 3.3% + 30¢; Plus and Premium 2.9% + 30¢
• Cards from other countries — PayPal: +1.50% on international commercial transactions; Square: +1.5% for cards issued in a different country
• Chargebacks and disputes — PayPal: $20.00 per chargeback; $15.00 standard dispute fee; Square: No fee for chargebacks and dispute management

The fixed part matters most on small orders: $0.49 is about 1% of a $50 order but about 5% of a $10 one. How gateways, processors and merchant accounts fit together is covered in how to accept payments on your website.

Returns and chargebacks

A returned order can cost you twice the shipping, plus repacking, plus any item you can no longer sell. Turn that into a per-order allowance: cost per return multiplied by your return rate. Do the same for chargebacks if your provider charges for them.

Marketing

Divide what you spent on ads in a month by the orders those ads brought in. That's your marketing cost per order, and in a young store it can be one of the largest costs after the product itself.

Sales tax isn't your money

If you collect sales tax at checkout, that money belongs to the state. Keep it out of your revenue figures, or your margins will look better than they are.

Worked example: one month of a small store

Example (assumption): a store selling 150 orders a month at an average order value of $60. All amounts below are assumptions to show the method, not market averages. Replace them with your own quotes and invoices.

Fixed costs per month

• Platform plan — $70
• Domain ($24 a year ÷ 12) — $2
• Apps and email tools — $30
• Bookkeeping — $100
• Total fixed — $202

Variable costs per order

• Product (landed cost) — $20.00
• Packaging — $1.50
• Shipping (free to the customer) — $8.00
• Payment processing (2.99% of $60 + $0.49) — $2.28
• Returns allowance (5% of orders × $12 per return) — $0.60
• Marketing per order — $8.00
• Total variable per order — $40.38

Each order leaves $60.00 − $40.38 = $19.62 to cover fixed costs and then become profit. Over 150 orders that's $2,943, minus $202 in fixed costs: $2,741 profit for the month, or about 30% of $9,000 in sales.

The month's total running cost is about $6,259, and the fixed costs, including the platform, are only about 3% of it. Product cost, shipping and marketing make up most of the rest. That's why trimming $10 off your software bill matters less than cutting $1 from your shipping cost per order.

Break-even: how many orders cover your costs?

The SBA's break-even formula is fixed costs ÷ (price − variable costs). It also suggests adding about 10% for costs you didn't predict. In the example: $202 plus 10% is $222.20; divided by $19.62 per order, that's about 11.3, so roughly 12 orders a month before the store makes any money. If your break-even is close to what you actually sell, a carrier price increase or a pricier ad month can tip you into a loss.

Startup costs: what you pay before the first order

Running costs aren't the only budget line. Before you launch, you'll pay one-time costs such as first inventory, product photos, a logo, samples, licenses and permits, and some marketing to get your first visitors. The SBA recommends listing these separately from ongoing costs and estimating your ongoing expenses for at least a year, so you know how long your cash will last before sales catch up.

How to keep your running costs under control

1. Review costs per order monthly, not just total spend. Rising shipping or marketing cost per order is the early warning.
2. Re-quote shipping as volume grows. Carriers price by volume, and boxes that fit your products save money on every parcel.
3. Watch small orders. Fixed payment fees and minimum shipping costs eat a bigger share; a free shipping threshold can raise the average order.
4. Track profit per product, not just revenue. A best seller with heavy returns can earn less than a quieter product.

How Favenda helps

Favenda shows the numbers this article asks you to calculate. Each order shows real profit after shipping and payment costs, so you can see which products and orders pay their way. You set shipping rates by weight or by size, add a free shipping threshold, and give each sales region its own currency, payment methods and shipping rates. For international orders, DHL Express, UPS and FedEx are built in: labels print from the order screen, a commercial invoice is created with the shipment, and tracking updates automatically. There are no transaction fees on your sales. The Store plan is $69 a month excluding tax, with two months free when you pay annually.

See Favenda →

FAQ

How much does it cost to run an online store per month?
Fixed costs for a small store, such as the platform, domain, apps and bookkeeping, depend on the plans you choose; in our worked example they come to about $200 a month. The bigger share is variable: product, shipping, payment fees, returns and marketing, which grow with every order. Add both to get your real monthly cost.

What is the biggest cost of running an online store?
For most product stores it's the cost of the products themselves, followed by shipping and marketing. Platform fees are usually a small share of the total, unless the platform also takes a cut of every sale.

How do I know if my online store is profitable?
Subtract all variable costs per order from your average order value (excluding sales tax), multiply by the number of orders, and subtract your fixed costs. If the result is positive after a full month of real numbers, the store is profitable. Track it monthly, not just once.

Sources: U.S. Small Business Administration, "Calculate your startup costs"; PayPal, "PayPal Business Fees" (US, last updated 1 October 2026); Square Support Center, "What are Square's fees?". All read on 26 October 2026. Example figures are assumptions; fees change, so check your providers' current pricing and talk to an accountant about your own numbers.