If you have ever dreamed of running your own online shop, the first question is always the same: how much money do I actually need to get started? The honest answer is that it costs far less than most people expect – but it can also cost far more than it needs to, if you spend in the wrong places.
The short answer: you can launch a basic online store in the UK for roughly £100 to £300 if you keep things lean – a domain name, a low-cost platform, and a small amount of stock. A more comfortable launch with better tools and more inventory typically runs £300 to £800, while a serious, fully stocked store can easily pass £1,000. Below is the full breakdown, cost by cost, so you can plan a budget that fits your situation.
The Short Answer: One-Off Costs vs Ongoing Costs
It helps to split your spending into two buckets. One-off costs are things you pay once to get set up. Ongoing costs are the monthly or per-sale fees that keep the store running. Here is what a typical lean launch looks like:
| Cost | Type | Typical price |
|---|---|---|
| Domain name | Yearly | £5 – £15 |
| Selling platform | Monthly | £0 – £40 |
| Business registration | One-off | £0 – £50 |
| Initial stock | One-off | £0 – £500+ |
| Payment processing | Per sale | ~1.5% of each order |
| Packaging and postage | Per order | A few pounds per parcel |
Now let us walk through each cost in detail, so nothing catches you by surprise.
Cost 1: Your Domain Name (£5 – £15 a Year)
Your domain name is your shop’s address on the internet – something like yourshop.co.uk. A .co.uk domain typically costs £5 to £15 per year. It is a small cost, but do not skip it: a proper domain looks far more trustworthy than a free subdomain, and it protects your brand name.
Cost 2: Your Selling Platform (£0 – £40 a Month)
This is your biggest decision, and where beginners most often overspend. The two most popular options for UK sellers are Shopify and WooCommerce, and they price very differently.
Shopify is an all-in-one hosted platform: you pay a monthly subscription and everything – hosting, security, updates, support – is included. At the time of writing, the Basic plan starts from $39 per month on monthly billing (around £30 at typical exchange rates, though Shopify uses localised pricing, so always check the current UK price on Shopify’s official pricing page). Higher plans cost more but reduce your card processing fees.
WooCommerce is a free plugin that turns a WordPress website into an online shop. The plugin itself costs nothing, but you pay separately for hosting (£5 – £30 per month for decent UK hosting) and your domain. For a simple store, this usually works out cheaper than Shopify – often under £20 per month all in.
If you are torn between the two, read our detailed Shopify vs WooCommerce comparison for UK sellers before you commit – choosing the right platform now saves you an expensive migration later.
Cost 3: Setting Up Legally (£0 – £50)
- Sole trader: registering with HMRC is completely free and is the simplest way to start – you just declare your profits through Self Assessment each year.
- Limited company: incorporating online with Companies House costs £50 at the time of writing. It gives you limited liability but also brings extra admin and filing duties.
- Business bank account: many UK banks and fintechs (such as Starling, Monzo and Tide) offer free business accounts.
Most beginners start as sole traders and incorporate later once the shop is earning.
Cost 4: Stock and Inventory (£0 – £500+)
Stock is the most variable cost of all, because it depends entirely on what you sell and how you sell it.
- Dropshipping: £0 upfront. Your supplier ships directly to customers when orders come in – you never touch the stock, but margins are thinner.
- Print on demand: £0 upfront. T-shirts, mugs and posters are printed only when someone buys.
- Buying wholesale: £200 – £500+ for a sensible first order from a UK wholesaler. Best margins, but your money is tied up in stock until it sells.
- Handmade: just the cost of your materials plus your time – often the cheapest start if you already have a craft or skill.
A common beginner mistake is ordering far too much stock before proving anyone wants the product. Start small, test demand, then reorder.
Cost 5: Taking Payments (Around 1.5% of Every Sale)
Every time a customer pays by card, the payment processor takes a small cut. For UK sellers, Stripe and PayPal typically charge around 1.4% + 20p per domestic transaction at the time of writing, with no monthly fee – and Shopify’s built-in payments work on a similar model. This comes out of each sale automatically, so factor it into your pricing: on thin margins, fees alone take a meaningful slice.
Cost 6: Shipping and Packaging (A Few Pounds per Parcel)
Getting products to customers costs real money: the postage itself, plus boxes, tape and packing materials. A small UK parcel typically costs a few pounds with Royal Mail or a courier depending on size, weight and speed – always check current Royal Mail prices when you plan, as they change regularly. Buy packaging in bulk once you know your parcel sizes (unit costs drop sharply), and remember that “free shipping” still comes out of your margin, so build it into your prices.
Cost 7: Marketing (£0 to Start)
Here is the good news: marketing can cost nothing at first. Social media accounts are free, Google Business Profile is free, and helpful content that brings in search traffic costs only your time – many UK stores made their first sales through Instagram, TikTok or local Facebook groups without spending a penny on ads. Hold off on paid advertising until your shop looks professional and you have made a few organic sales; ads are the fastest way to burn money before your store is ready to convert visitors.
Three Realistic Budgets for 2026
Putting it all together, here are three launch budgets based on how most UK beginners actually start:
| Lean launch | Standard launch | Serious launch | |
|---|---|---|---|
| Total budget | £100 – £250 | £300 – £800 | £1,000+ |
| Platform | WooCommerce + budget hosting | WooCommerce + good hosting, or Shopify Basic | Shopify Basic/Grow + apps |
| Stock model | Dropshipping or print on demand | Small wholesale order | Proper wholesale inventory |
| Business setup | Sole trader (free) | Sole trader or limited company | Limited company |
| Marketing | Free channels only | Free channels + small ad test budget | Planned ad spend |
| Best for | Testing an idea with minimal risk | A real shop built to grow | Going all in from day one |
The lean launch is genuinely enough to prove whether your idea works. You can always invest more once the orders start coming in – and that is a far safer order than spending big before you have a single customer.
5 Ways to Keep Your Startup Costs Down
- Start with the cheapest workable platform. WooCommerce with budget UK hosting gets you selling for under £15 a month – upgrade when revenue justifies it, not before.
- Do not buy stock before you have demand. Dropshipping or print on demand lets you test products with zero inventory risk.
- Use a free theme rather than an expensive premium one you never finish customising.
- Take your own product photos – a smartphone, a white background and daylight are plenty for a new store.
- Stay a sole trader until incorporating makes sense – the extra admin is the real cost, not the £50 fee.
FAQs About the Cost of Starting an Online Store
Can I start an online store in the UK with £100?
Yes, if you go lean: WooCommerce with budget hosting, a cheap domain, dropshipping or print-on-demand products, free sole trader registration, and free marketing channels. Your first-month outlay can genuinely stay near £100.
Do I need to register a business to sell online in the UK?
If you sell regularly with the intention of making a profit, HMRC considers you to be trading – register as a sole trader (free) or form a limited company. Occasional selling of unwanted personal items does not count.
Is Shopify or WooCommerce cheaper for a new store?
WooCommerce is usually cheaper – often under £20 per month including hosting – because the plugin is free and you only pay for hosting and payment processing. Shopify starts from $39 per month on monthly billing but includes hosting, security and support. Shopify buys you convenience; WooCommerce buys you lower costs and more control.
What are the ongoing monthly costs of an online store?
Expect platform/hosting fees (£5 – £40 per month), payment processing (~1.5% of each sale), postage per order, and optionally marketing spend. A lean store can run on £15 – £30 per month before stock and postage.
Conclusion
Starting an online store in the UK does not require thousands of pounds – a lean launch costs roughly £100 to £300, and even a well-equipped standard launch stays under £800. The costs that matter most are your platform choice, your stock model, and your payment and shipping fees; everything else can start free and scale with your revenue. Spend where it directly helps you make sales, keep the rest cheap until the orders prove the investment worthwhile, then reinvest early profits into growth.
Ready to keep building? Explore our E-Commerce category for more guides on starting and growing an online store in the UK.
