How Much Money Do You Need to Start a Shopify Store? (2026)

It’s the first question every aspiring ecommerce entrepreneur asks: “How much money do I really need to start a Shopify store?” The internet is full of conflicting answers, from “start for free” gurus to tales of founders spending tens of thousands before their first sale. The truth is, the cost to launch a Shopify store isn’t a single number—it’s a range that depends entirely on your business model, goals, and risk appetite.

This article provides a data-backed, transparent breakdown of the real costs involved in starting a Shopify store in 2026. We’ll separate the mandatory expenses from the optional ones, explore different launch scenarios, and highlight capital-efficient strategies to help you start smart. By the end, you won’t just have a number; you’ll have a framework for building a budget that aligns with your vision and maximizes your chances of success.

Most new businesses fail not because of a lack of money, but because of how they spend it [1]. This guide is designed to give you the clarity needed to invest your capital wisely, focusing on survivability and sustainable growth from day one.

[Launch a high margin jewelry business with zero inventory or risk using Branvas]

The Mandatory Costs to Start a Shopify Store

Every Shopify store, regardless of its size or model, has a few non-negotiable baseline costs. These are the foundational expenses required to get your store online and ready to accept payments. While you can be frugal in other areas, these are the table stakes.

1. Shopify Plan Fees

Your Shopify subscription is the engine of your online store. It provides the software, hosting, security, and core features you need to operate. Shopify offers several tiers, with the main plans being:

• Basic Shopify: Typically around $39/month (Shopify is running a promotion of $1/month subscription for the first 3 months), this is the most popular starting point for new entrepreneurs. It includes everything you need to build a fully functional online store, manage unlimited products, and access 24/7 support [2].
• Shopify (Grow): At around $105/month, this plan is for growing businesses that need more staff accounts and deeper reporting [2].
• Advanced Shopify: Costing $399/month, this plan offers the lowest transaction fees and advanced features for scaling businesses [2].

For those just starting, the Basic Shopify plan is almost always the right choice. You can always upgrade as your revenue grows. Shopify also offers a free trial and often runs promotions, such as paying $1/month for the first three months, which significantly lowers the initial barrier to entry [2].

2. Domain Name

While you can start with a free myshopify.com domain, a custom domain name (e.g., www.yourstore.com) is essential for building a credible brand. A custom domain inspires trust and is easier for customers to remember.

Registering a standard .com domain typically costs between $10 and $20 per year through Shopify or third-party registrars like Namecheap or GoDaddy [3]. This is a small but critical investment in your brand's identity.

3. Payment Processing Fees

To accept credit card payments, you’ll incur processing fees. If you use the built-in Shopify Payments, you won't be charged additional third-party transaction fees. The rates are tied to your Shopify plan:

• Advanced Shopify: 2.5% + 30¢ per online transaction
• Shopify (Grow): 2.7% + 30¢ per online transaction
• Basic Plan: 2.9% + 30¢ per online transaction [2]

If you choose to use an external payment gateway like PayPal or Stripe, Shopify charges a separate third-party transaction fee on top of what the payment provider charges. This fee is 2% on the Basic plan, 1% on the Shopify plan, and 0.6% on the Advanced plan [4]. For this reason, the vast majority of merchants use Shopify Payments.

These three components - the Shopify plan, a domain name, and payment processing fees - are the only truly mandatory costs to get your store live. Anything beyond this is an optional investment.

Optional (But Common) Startup Costs

Beyond the essentials, several other costs are common for new stores aiming for a more professional and competitive launch. While you can technically start without these, investing in them can significantly impact your brand perception and efficiency.

1. Shopify Themes

Your Shopify theme is the visual foundation of your store. While Shopify offers a selection of excellent free themes that are perfect for getting started, many founders opt for a premium theme to access more advanced features, unique designs, and greater customization options.

• Free Themes: Shopify's free themes are professionally designed, mobile-responsive, and sufficient for many new businesses. There is no shame in starting with a free theme and upgrading later.
• Premium Themes: Paid themes on the Shopify Theme Store typically cost between $250 and $400 as a one-time purchase [5]. These themes often include more sophisticated design elements, built-in features (like mega menus or advanced filtering), and dedicated developer support.

Recommendation: Start with a free theme to validate your business idea. Once you have revenue and a clearer understanding of your needs, you can confidently invest in a premium theme.

2. Shopify Apps

Shopify apps are third-party extensions that add specific functionality to your store, from marketing automation to advanced analytics. It’s easy to get carried away with apps, a phenomenon known as “app creep,” which can quickly inflate your monthly costs.

Common app categories include:

• Email Marketing: (e.g., Klaviyo, Shopify Email) - Essential for customer retention.
• Reviews: (e.g., Judge.me, Loox) - Build social proof.
• SEO: (e.g., Plug in SEO) - Improve search engine visibility.
• Dropshipping/Sourcing: (e.g., Branvas, DropCommerce) - Automate product imports and fulfillment.

A modest budget of $20 to $50 per month is a realistic starting point for a few essential apps [6]. Prioritize apps that solve a clear problem or provide a strong return on investment.

3. Branding (Logo & Visuals)

A strong brand identity helps you stand out. While you can create a simple logo for free using tools like Canva or Shopify's own logo maker, a professional design can make a significant difference. Costs can vary dramatically:

• DIY: Free, using online tools.
• Freelancer: $50 - $500 for a logo package on platforms like Fiverr or Upwork.
• Agency: $1,000+ for a comprehensive brand identity.

For a lean start, a clean, simple, self-designed logo is perfectly acceptable. The key is to be consistent with your colors and fonts across your site.

4. Photography & Content

High-quality product photography is arguably one of the most critical elements of an ecommerce store. If you are creating your own products, you cannot skimp on this. If you are dropshipping, you are reliant on your supplier's images, which can be a mixed bag.

• DIY Photography: With a modern smartphone and good lighting, you can take excellent product photos yourself.
• Professional Photographer: Costs can range from a few hundred to several thousand dollars, depending on the number of products and complexity of the shoot.

Similarly, well-written product descriptions and website copy are crucial for converting visitors into customers. You can write this yourself or hire a freelance copywriter for a few hundred dollars.

Platforms like Branvas provide high-quality product images and descriptions ready to use, plus tools to easily create custom visuals - giving your customers a premium brand experience.

Inventory: The Biggest Variable Cost

For most ecommerce businesses, inventory is the single largest upfront investment and the biggest source of financial risk. Your approach to inventory will have a greater impact on your startup costs than any other factor. There are three primary models to consider.

1. Traditional Inventory Model

In this model, you purchase products in bulk from a manufacturer or wholesaler, store them, and then ship them to customers yourself. This approach generally offers the highest profit margins because buying in bulk reduces your cost per unit. However, it also requires the most significant upfront capital.

• Capital Risk: High. You are investing cash into physical products before you have any sales. If the products don’t sell, you are left with dead stock and a financial loss.
• Margins: Highest. Gross margins can often be in the 50-70% range or even higher, depending on the product category [7].
• Flexibility: High. You have full control over branding, packaging, and the customer experience.

2. Dropshipping & Inventory-Light Models

Dropshipping allows you to sell products without ever holding inventory yourself. When a customer places an order, you forward it to a third-party supplier who then ships the product directly to the customer. This model dramatically reduces upfront capital risk.

• Capital Risk: Very Low. You don’t purchase a product until after you’ve made a sale. The primary upfront costs are your Shopify plan and marketing expenses. A realistic starting budget for a dropshipping business can be as low as $200 to $300 for the first month [6].
• Margins: Lower. Because you are buying products one at a time, your cost per unit is higher. Net profit margins for dropshipping businesses typically fall in the 15-20% range [8].
• Flexibility: Low to Medium. You have limited control over product quality, packaging, and shipping times, which can impact your brand.

3. Pre-Orders & Demand-First Approaches

A hybrid approach is to validate demand before investing in inventory. This can be done through pre-orders, where customers pay upfront for a product that will be manufactured and shipped later. This model is popular for new product launches and creative projects.

• Capital Risk: Low to Medium. You use customer funds to finance your initial inventory purchase, significantly reducing your own financial risk.
• Margins: High. Similar to the traditional inventory model, as you are still buying in bulk.
• Flexibility: High. You maintain full control over the product and branding.

Comparing the Inventory Models

Your choice of inventory model is a strategic decision. For founders focused on capital efficiency and minimizing risk, dropshipping is the undisputed leanest path to starting a Shopify store. It allows you to test product ideas and learn the ropes of ecommerce marketing with minimal financial exposure.

Read this article to find the real cost of holding inventory, uncover hidden carrying costs (up to 41%), calculate your true expenses, and learn ten strategies to prevent dead stock.

Marketing & Traffic: How Much Should You Budget?

Your Shopify store is a destination, but you need to build roads to get people there. Marketing is the work of building those roads, and it’s an area where spending can vary wildly. Simply launching a store is not enough; you must proactively drive traffic to it.

Organic vs. Paid Traffic

• Organic Traffic: This comes from unpaid sources, primarily Search Engine Optimization (SEO). It involves creating content, building backlinks, and optimizing your site to rank in search engine results. Organic traffic is “free” in that you don’t pay per click, but it requires a significant investment of time and effort. Results are slow and can take months to materialize.
• Paid Traffic: This involves paying for exposure on platforms like Google, Facebook, Instagram, and TikTok. Paid ads deliver immediate traffic and data, allowing you to test products and messaging quickly. However, it requires a dedicated budget and can be expensive.

Early-Stage Ad Testing Budgets

For a new store, it is a catastrophic mistake to spend heavily on ads before you have validated your product and optimized your store for conversions. The vast majority of early ecommerce failures are due to premature ad spending [1].

A common starting budget for paid ad testing is $5 to $10 per day [6]. This is not intended to generate a profit but to gather data: Who is clicking? What messaging resonates? Are people adding products to their cart?

A realistic minimum monthly budget for initial ad testing is $100 to $200 [6]. This allows you to run small experiments and learn about your audience without breaking the bank.

Why Spending on Ads Too Early Often Fails

Many new founders fall into the trap of thinking that if they just spend enough on ads, sales will follow. However, if your store has a low conversion rate (the percentage of visitors who make a purchase), you are simply paying to send traffic to a “leaky bucket.” The average ecommerce conversion rate is only around 1% [9]. This means for every 100 visitors you pay to bring to your site, only one makes a purchase.

Consider the Customer Acquisition Cost (CAC)—the total amount you spend to acquire a new customer. CAC varies dramatically by industry:

• Fashion & Accessories: $129
• Health & Beauty: $127
• Electronics: $377 [10]

If your product’s profit margin is less than your CAC, you lose money on every sale. This is why it is critical to focus on optimizing your store’s conversion rate and maximizing your Average Order Value (AOV) before scaling your ad spend.

Realistic Startup Budget Scenarios

Now, let’s put it all together into three realistic startup budget scenarios. These are designed to give you a tangible sense of what it costs to launch under different strategies. All numbers are estimates and can vary based on your specific choices.

Scenario 1: The Ultra-Lean Starter (Dropshipping)

This is the quintessential bootstrapped, low-risk approach. The goal is to get to market as cheaply as possible to validate a product idea and learn the fundamentals of ecommerce.

Scenario 2: The Lean but Branded Launch (Dropshipping)

This founder is also using a dropshipping model but is willing to invest a bit more upfront to create a stronger, more professional brand presence from day one.

[Launch a high margin jewelry business with zero inventory or risk using Branvas]

Scenario 3: The Inventory-Backed Launch (Traditional Retail)

This scenario is for a founder who is confident in their product and is choosing to hold inventory to achieve higher profit margins and have more control over the customer experience.

Common Mistakes That Inflate Costs

• Overspending on Apps: Installing too many apps too soon is a common way to bloat your monthly expenses. Be ruthless about only using apps that provide clear value.
• Buying Too Much Inventory: This is the number one killer of ecommerce businesses. Start with a small test order (Minimum Order Quantity or MOQ) before making a large purchase.
• Scaling Ads Prematurely: Spending hundreds or thousands on ads before your store is optimized for conversions is like setting money on fire. Focus on getting your first few sales and refining your store experience before you scale.
• Hiring Expensive Agencies: As a new founder, you should be learning and doing most of the work yourself. Avoid hiring expensive marketing or design agencies until you have consistent revenue.

Hidden & Ongoing Costs Founders Often Miss

Beyond the initial startup phase, several ongoing costs can catch new founders by surprise. Budgeting for these from the start is crucial for long-term financial health.

• Refunds and Returns: Not every sale will be final. You need to account for the cost of returned products, return shipping, and the potential for lost revenue from refunds. This is a direct hit to your bottom line.
• App Creep: As mentioned earlier, the monthly cost of Shopify apps can accumulate. A single app at $15/month seems trivial, but ten such apps will add $150 to your monthly bill. Regularly audit your apps and remove any that aren't providing a clear return on investment.
• Transaction Fees: While Shopify Payments simplifies things, the small percentage taken from every sale adds up. It’s a cost of doing business, but it needs to be factored into your pricing strategy to protect your profit margins [4].
• Customer Support Time: Time is money. Responding to customer emails, handling inquiries, and managing support issues is a significant operational cost, even if you’re not paying a salary for it initially. As you grow, you may need to invest in helpdesk software or a virtual assistant.
• Shipping Supplies: If you are shipping your own products, the cost of boxes, tape, labels, and packing materials can be a notable expense.

[Launch a high margin jewelry business with zero inventory or risk using Branvas]

How to Start with Less Money (Without Hurting Your Chances)

Launching on a tight budget doesn’t mean you have to compromise your chances of success. In fact, it often forces a level of discipline and focus that well-funded startups lack. Capital efficiency is a skill, and here are some best practices for mastering it.

1. Validate Demand Before Investing in Inventory

The single most effective way to reduce startup costs is to avoid buying inventory that nobody wants. Use dropshipping or pre-order models to test your product ideas with real customers. A few sales are a much stronger signal of demand than any market research report. Let the market pull the product from you, rather than pushing a product onto the market.

2. Focus on Average Order Value (AOV) Before Traffic

Instead of pouring money into ads to get more traffic, first focus on maximizing the value of the traffic you already have. A 1% conversion rate is average, but what if you could increase it to 2%? You’ve just doubled your business without spending a dollar more on ads. Work on improving your product pages, streamlining your checkout process, and using tactics like product bundling and post-purchase offers to increase your AOV. A higher AOV gives you more margin to work with when you do start investing in paid acquisition.

3. Choose Categories with Margin and Simplicity

Your product category has a huge impact on your potential profitability. Categories like beauty and accessories often have high gross margins (50-70%), giving you more room to spend on marketing and still make a profit [7]. In contrast, electronics have razor-thin margins (15-25%) and are intensely competitive [7]. Also, consider logistical simplicity. Selling a simple, lightweight product is far easier and cheaper to ship than something large, heavy, or fragile.

4. Leverage Modern Fulfillment Infrastructure

You don’t need a warehouse to compete with the big brands. Services like Shopify Fulfillment Network and other third-party logistics (3PL) providers can store and ship your products for you. This allows you to benefit from the economies of scale of a large logistics network without the massive upfront investment, turning a large fixed cost into a variable, per-order expense.

Conclusion: Clarity Is More Valuable Than Capital

You don’t need a fortune to start a successful Shopify store, but you do need clarity. The most common reason for failure isn’t a lack of funds, but a misallocation of them. By understanding the difference between mandatory and optional costs, choosing a capital-efficient model like dropshipping to start, and focusing on profitability before scaling, you can build a resilient business from the ground up.

The smartest Shopify founders don’t try to do everything at once. They optimize for survival first. They test, they learn, and they invest their profits back into the business to fuel sustainable growth. The question is not “how much money do you need?” but “how wisely can you spend the money you have?”

[Launch a high margin jewelry business with zero inventory or risk using Branvas]

Frequently Asked Questions

1. Can I start a Shopify store with no money?

While you can't start with literally zero dollars, you can get very close. By using Shopify's free trial, a free theme, and a dropshipping model (which requires no upfront inventory investment), your primary initial costs are the Shopify plan itself after the trial (around $29/month) and a domain name (around $15/year). A realistic "ultra-lean" budget to get started is about $50-100 for the first month.

2. How much does Shopify cost per month?

The core cost is the Shopify subscription plan. The most common plan for new businesses is the Basic Shopify plan, which costs around $29 per month (plus taxes) when billed annually. Other plans include the Shopify (Grow) plan at ~$79/month and the Advanced plan at ~$299/month. Additional monthly costs can come from third-party apps, which can range from free to over $100/month depending on your needs.

3. What is the most profitable thing to sell on Shopify?

There is no single "most profitable" product, but the most profitable categories generally have high gross margins and low shipping costs. Categories like health and beauty, fashion accessories, and jewelry often have gross margins between 50% and 70%, which provides more profit to reinvest in marketing. In contrast, electronics tend to have very low margins (15-25%) and are highly competitive.

4. Is it worth paying for a Shopify theme?

For new stores, it is often not worth paying for a premium theme immediately. Shopify's free themes are professionally designed, fast, and more than capable of generating sales. It is a smarter strategy to launch with a free theme to validate your business idea first. Once your store is generating consistent revenue, you can reinvest in a premium theme (typically $250-$400 one-time) for more advanced features and a more unique design.

5. Why do most Shopify stores fail?

The high failure rate for new Shopify stores (estimated at 80-95%) is rarely due to the platform itself. The most common reasons for failure are business-related, not technical. These include:

• Poor Marketing: Lack of a clear marketing strategy and not enough visibility.
• Premature Ad Spending: Spending heavily on paid ads before the store is optimized for conversions.
• Weak Product-Market Fit: Selling products that nobody wants to buy.
• Poor Financial Management: Running out of cash by over-investing in inventory or non-essential apps.

Successful stores focus on validating their product, optimizing their conversion rate, and managing cash flow carefully before scaling.

Read this article to uncover why 95% of new Shopify stores fail and avoid the top 7 fatal mistakes.

Related Articles

• How Shopify Stores Test New Product Categories Without Inventory
• Why Most New Shopify Stores Fail (And How to Avoid It)
• Shopify Beginner Checklist: From Setup to First Sale
• How to Increase AOV on Your Shopify Store (Proven, Scalable Strategies)
• How to Price Jewelry for Profit (Simple Formula for Beginners)

References

[1] Comma Consulting. "The top 10 reasons why 90% of all eCommerce startups fail within the first 120 days." https://www.commaconsulting.com.au/articles/the-top-10-reasons-why-90-of-all-ecommerce-startups-fail-within-the-first-120-days

[2] Shopify. "Shopify Pricing - Setup and Open Your Online Store Today." https://www.shopify.com/pricing

[3] Shopify. "Domain Name Cost: Pricing Breakdown & Guide (2026)." https://www.shopify.com/blog/domain-price

[4] Shopify Help Center. "Pricing plans and billing overview." https://help.shopify.com/en/manual/intro-to-shopify/pricing-plans/pricing-overview

[5] Shopify Theme Store. https://themes.shopify.com/

[6] Shopify. "How Much Does It Cost To Start Dropshipping? (2026)." https://www.shopify.com/blog/how-much-does-it-cost-to-start-dropshipping

[7] OnRamp Funds. "10 Profit Margin Benchmarks for eCommerce 2025." https://www.onrampfunds.com/resources/10-profit-margin-benchmarks-for-ecommerce-2025

[8] SellersCommerce. "Detailed Dropshipping Statistics In 2025." https://www.sellerscommerce.com/blog/dropshipping-statistics/

[9] Funnel Science. "Top 5 Reasons Why Ecommerce Businesses Fail." https://www.funnelscience.com/ecommerce/top-5-reasons-why-ecommerce-businesses-fail/

[10] Shopify. "Customer Acquisition Costs by Industry (2025)." https://www.shopify.com/blog/customer-acquisition-cost-by-industry