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    Cost To Start An E-commerce Marketplace

    If you are planning to start your own e-commerce marketplace but have no idea how much the budget you will require? Then, this article will sort all your queries and help you to mark an estimated budget for your e-commerce marketplace.

    However, there are so many marketplace solutions available for various platforms which you can opt as per the choice.

    Note: You can even go-through Webkul’s case study on various platforms – 

    Moreover, one can build an Online marketplace in 3 ways: How To Setup A Marketplace?

    1. Saas based model (for a small company)
    2. Self-hosting model (for a medium/large company)
    3. Develop from scratch

    But that’s not it, E-commerce Marketplace Solution cost is not the only investment you have to make. In addition, there is certain other core consideration which you must need to consider which starting one. Let’s discuss each one of them.

    Domain Name

    For starting a website you will be needing a domain which is the name of your website URL. Certainly, you can get domains at really cheap prices. Most of the times, hosting providers provide you the domains GoDaddy.

    SSL: Secure Socket Layer

    SSL stands for Secure Socket Layer. It is a transport layer protocol which is used to establish a secure connection between server and client. In an SSL integrated website, the connection between your browser and the website is secure. The transmitted data are all in encrypted form. However, most of the times, hosting providers provide you the SSL integration at variable pricing like GoDaddy.

    Note: Webkul also offers SSL Integration services.


    Hosting is the internet hosting service which enables your website to be accessed via the internet. For, this you need to pay a fee to host your website on a hosting server of the provider. Shared and Dedicated are the two types of hosting available.

    In dedicated/private hosting you need to manage your own servers which means you have the full control of the server settings. There is a variety of cloud options also available-

    Note: Webkul also offers hosting services.

    It is always adviced that large and big websites like Magento should be hosted on a strong and dedicated server. Because running large websites on shared hosting will result in slow and frustrating user experience.

    Whereas in shared hosting you share the single server and resources with other user websites hosted together on one server. However, shared hosting is the cheapest hosting means suitable for small business types.


    Managing the inventory of your e-commerce website is very important. And will let you cost some amount if you are holding the product inventory of your own. For instance, you need to buy products and store them somewhere. Also, you will be handling the packing and shipping also which again require investment.

    But there is another way out to eliminate these costs ie; dropship model. In this business model, the store owner sells items on his website without holding the inventory that means someone else manufactures and ships the product to the customer. Therefore, this frees the store owner from the hassle of managing inventorywarehousing stock, delivery or dealing with packaging.

    Payment Processing

    The online payment system in your online store provides a unified and seamless payment experience for your customers. But payment gateways will also let you incur some payment processing fee which varies as per different payment providers.

    Therefore, for every transaction or made on your website, you need to pay some transaction fees which vary greatly depending on the payment service provider.

    Mail/SMS Provider

    Notifying the customers about the order invoice, order shipment and other sales event is very important. Therefore, you can opt for various Mail/SMS provides and you will be charged accordingly as per their pricing structures.


    Running an e-commerce website is a business where you will be generating revenue and earning profits. Therefore, you will be paying taxes as per the country you are operating in.

    E-commerce marketplace cost estimation as per the different geo-locations:


    UAE: Cost to start an e-commerce marketplace


    Note: You can even visit the link to know the best UAE payment options –

    USA: Cost to start an e-commerce marketplace


    UK: Cost to start an e-commerce marketplace


    ASIA: Cost to start an e-commerce marketplace


    Note: This is the rough estimation of the budget. This budget is variable if you add your country taxes, mail/sms providers or inventory management.

    In case of any query or more details, kindly contact us at

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