What starting an online store actually costs
Most articles about starting an online store are written by people who want to sell you something. This one isn't. Here's the honest picture.
The cost of starting to sell online ranges from literally zero dollars to several thousand, depending on what you're selling, which platform you choose, and whether you have inventory upfront. Let's break it down.
The zero-cost path
You can list items for sale on Facebook Marketplace, eBay (for your first 250 listings per month), Craigslist, and Nextdoor with no upfront cost. You pay only when you sell. If you're clearing out things you already own, your cost to start is $0.
The low-cost path ($0-$50)
Etsy charges $0.20 per listing and takes 6.5% of each sale plus payment processing. If you list 10 items, your upfront cost is $2.00. You don't pay the rest until you sell. This is as close to free as a legitimate marketplace gets for handmade or vintage sellers.
The moderate path ($50-$300)
Shopify starts at $29/month (currently $1/month for the first three months as of early 2025 during promotional periods). You'll also need a domain ($10-$15/year) and potentially some paid themes or apps. This is the entry point for a real branded store.
The full investment path ($300+)
Amazon requires a Professional seller account at $39.99/month to list in most categories. You'll also need UPC codes and often professional photos. This isn't cheap to start.
The truly free platforms
Facebook Marketplace
Zero fees for local sales. For shipped items sold through Facebook, you pay 5% or $0.40 minimum. The buyer base is enormous. No subscription, no listing fees, no monthly charges.
eBay (free tier)
250 free listings per month, then $0.35 per listing. Final value fee of 13.25% on most categories. No monthly subscription required to start. The Individual plan is genuinely free to begin.
Depop
Free to list. Depop charges a 10% fee on sales plus payment processing. Good for fashion, streetwear, vintage clothing. No upfront costs.
Poshmark
Free to list. Poshmark takes a flat $2.95 fee for sales under $15, and 20% for sales $15 and over. No subscription required. Strong community for clothing and accessories.
Low-cost platforms worth considering
| Platform | Monthly Cost | Listing Fee | Transaction Fee |
|---|---|---|---|
| Etsy | $0 (optional $10/mo Plus) | $0.20/listing | 6.5% + payment processing |
| eBay Individual | $0 | $0 (first 250/mo) | ~13.25% final value |
| Amazon Individual | $0 | $0.99/item sold | 8-15% referral fee |
| Shopify Basic | $29/mo | $0 | 2.9% + $0.30 (Shopify Payments) |
| WooCommerce | Hosting only (~$5-15/mo) | $0 | Payment processor only |
For most people starting with no money, Etsy or eBay is the right first choice. Etsy is better if you're selling handmade goods, vintage, or craft supplies. eBay is better if you're selling used items from around the house or buying items to resell.
See our detailed guides: how to start an Etsy shop, how to start selling on eBay, and Etsy fees explained.
What to sell, what it actually costs, and what nobody tells you
The cheapest way to start is to sell things you already have. Most first-time sellers underestimate how much inventory is sitting in their home. Books, clothes, electronics, collectibles, games, furniture, sports equipment. List 10 items on eBay or Facebook Marketplace today. Your only cost is the time it takes to photograph and list them. When they sell, you have capital to reinvest.
If you want to source inventory, thrift-to-resell (retail arbitrage) works with as little as $20-$50. Buy items at thrift stores or garage sales and resell them online. The key is knowing what sells: electronics, branded clothing, collectibles, books in specific categories. Apps like the eBay app let you scan a barcode in the thrift store to see what the item is selling for online before you buy it.
Handmade sellers on Etsy can start with materials they already own plus $0.20 per listing. Print-on-demand services like Printful and Printify let you sell custom merchandise with zero upfront inventory. And if you have a skill, digital products (templates, printables, photography presets, patterns) have zero fulfillment cost and can sell indefinitely.
But here is where the picture gets more honest. You can start free, but as you grow, costs appear that most beginners don't anticipate.
Shipping materials add up. Boxes, mailers, tape, labels. Budget $30-$50 to get started. USPS offers free Priority Mail boxes, which helps. Payment processing fees exist on top of every platform's transaction fee, typically 2.9% + $0.30 per sale. On a $20 item, that's about $0.88 just for processing. Photography equipment matters because product photos directly affect conversion rates. Your phone camera is fine at first, but a $20-$50 light box makes a real difference as you scale. Returns will happen, especially on platforms with generous return policies like Amazon. And perhaps the biggest hidden cost is your time. Listing, photographing, packing, shipping, answering messages, managing inventory. When calculating whether your business is profitable, include the value of your hours.
How to grow from cheap to sustainable
Starting cheap is smart. Staying cheap forever limits your growth. Here's the natural progression most successful online sellers follow.
Start with one free platform
eBay or Etsy, depending on what you're selling. Spend zero on tools. Learn the basics: listing, photographing, shipping, customer service. Do this until you have 20-30 sales under your belt.
Add a second channel
Once your first channel is working, add another. If you started on Etsy, add eBay or Shopify. If you started on eBay, add Etsy or Amazon. This diversifies your income and exposes your products to new audiences. See our guide on whether it's worth selling on multiple platforms.
Add inventory sync
When you're on two or more platforms, real-time inventory sync becomes critical. Without it, you'll oversell, cancel orders, and damage your ratings. Commerce Kitty's free plan covers this up to 50 orders per month.
Invest where it pays back
Reinvest a percentage of each sale back into the business. Better photos, smarter packaging, more inventory. Keep your cost structure lean. Grow on profit, not on debt. Read our guide on scaling from hobby to full-time seller.
The bottom line: you can start selling online for $0. The cheapest platform depends on what you sell. As you grow and add channels, the right tools (like inventory sync) save you more money than they cost. For the full walkthrough from day one, read our complete guide on how to start selling online.