An e-commerce website cost breakdown should include three numbers: the build cost, the monthly operating cost, and the per-transaction cost. Most articles only give you the first one. That's how store owners end up surprised by $2,000/month in platform fees they didn't budget for.
I've built online stores across Shopify, WooCommerce, and custom Next.js stacks. The right platform depends entirely on your revenue, product catalog complexity, and growth plans. A $10,000/month store has different needs than a $100,000/month store — and the cost-effective choice at one revenue level becomes the expensive choice at another.
Below is a complete cost breakdown for every major approach to e-commerce in 2026, including the platform fees and hidden costs that nobody talks about until you're already locked in.
E-commerce Website Cost by Platform
These ranges cover the initial build cost only — platform fees and ongoing costs are broken down separately below. Each tier assumes professional setup, not a DIY weekend project.
| Type | Cost | Timeline | Best For |
|---|---|---|---|
| Shopify store (template) | $500–$3,000 | 1–3 weeks | Starters, testing product-market fit |
| Custom Shopify (theme + apps) | $3,000–$8,000 | 3–6 weeks | Growing brands |
| Custom e-commerce (Next.js) | $8,000–$25,000 | 6–12 weeks | Brands at scale, complex catalogs |
| Enterprise platform | $25,000–$100,000+ | 3–6 months | High-volume, multi-market |
The build cost matters, but it's a one-time expense. What kills e-commerce profitability is the monthly bleed of platform fees, app subscriptions, and transaction percentages. A $500 Shopify template that costs $3,000/month to operate is more expensive over two years than a $15,000 custom build that costs $200/month to run.
Platform Fees: The Cost Nobody Shows You
This is where e-commerce cost comparisons get interesting — and where most platform marketing is deliberately misleading. “Start for just $39/month” doesn't mention the transaction fees, the app fees, or the premium theme you'll need to not look like a template store. Here's the real breakdown.
- •Shopify: $39–$399/month subscription + 2.4–2.9% per transaction (on top of Stripe/PayPal fees unless you use Shopify Payments) + app fees averaging $50–$500/month for essentials like reviews, email marketing, upsells, and advanced analytics. A typical Shopify store running 5-8 apps pays $150-$400/month in app fees alone — before selling a single product.
- •WooCommerce: $0 for the plugin + hosting at $30–$200/month (you need decent hosting for e-commerce performance) + extensions at $0–$500/year for payment gateways, shipping calculators, and inventory management. Lower recurring costs than Shopify, but higher maintenance burden — WooCommerce sites require regular updates, security patches, and performance optimisation that Shopify handles automatically.
- •Custom (Next.js + Stripe): Hosting at $20–$100/month on Vercel or AWS + payment processing only — Stripe charges 2.9% + $0.30 per transaction with no additional platform cut. No app fees. No subscription tiers. No transaction surcharges on top of payment processing. You own the code, the data, and the customer relationships with no intermediary taking a percentage.
To make this concrete, here's what each platform actually costs at different monthly revenue levels over 24 months, including build cost plus all fees.
| Monthly Revenue | Shopify (24-mo total) | WooCommerce (24-mo total) | Custom Next.js (24-mo total) |
|---|---|---|---|
| $10,000/mo | $15,000–$22,000 | $10,000–$16,000 | $15,000–$28,000 |
| $50,000/mo | $42,000–$65,000 | $22,000–$35,000 | $18,000–$32,000 |
| $100,000/mo | $75,000–$110,000 | $35,000–$55,000 | $22,000–$38,000 |
At $10,000/month revenue, Shopify is cost-competitive because the build is cheap and fees are manageable. At $50,000/month, Shopify costs $20,000-$30,000 more than custom over 24 months. At $100,000/month, the gap becomes $50,000-$70,000. The crossover point where custom becomes cheaper is typically around $30,000-$50,000 in monthly revenue.
What Your E-commerce Site Actually Needs
Regardless of platform, every e-commerce site needs these core features to operate. The difference is whether they come built-in, require paid plugins, or need custom development. Understanding this list helps you evaluate quotes and avoid paying for features you don't need — or missing features you do.
- •Product catalog with search and filter. Customers need to find products quickly. This means category navigation, search with typo tolerance, and filters by price, size, colour, brand, or any attribute relevant to your products. For catalogs over 100 products, search quality becomes a conversion factor — poor search means lost sales.
- •Cart and checkout. The checkout flow is where most revenue is lost. A clean, fast, distraction-free checkout with guest checkout option, saved payment methods, and clear shipping costs shown early reduces cart abandonment. The industry average cart abandonment rate is 70% — a well-optimised checkout can bring that below 50%.
- •Payment processing. Stripe and PayPal are the baseline. Depending on your market, you may also need Apple Pay, Google Pay, Klarna (buy now, pay later), or regional payment methods. Each additional payment method increases conversion rates by 5-15% for the customer segment that prefers it.
- •Inventory management. Real-time stock tracking, low-stock alerts, variant management (size/colour combinations), and ideally integration with your warehouse or fulfilment system. Overselling — accepting orders for out-of-stock products — destroys customer trust and creates operational headaches.
- •Shipping calculation. Real-time shipping rates from carriers (Royal Mail, USPS, UPS, FedEx, DHL), free shipping thresholds, flat-rate options, and international shipping with customs/duties estimation. Unexpected shipping costs at checkout are the number-one reason for cart abandonment.
- •Customer accounts. Order history, saved addresses, wishlists, and reorder functionality. Returning customers spend 67% more than first-time buyers on average. Making repeat purchases frictionless directly increases lifetime customer value.
- •Order management. Order processing workflows, status updates, shipping notifications, return/refund handling, and integration with accounting software. As order volume grows, manual order management becomes a bottleneck — automation here saves hours per week.
- •Mobile responsiveness. Over 70% of e-commerce traffic comes from mobile devices. Your store must be designed mobile-first with touch-friendly navigation, fast load times on cellular connections, and a checkout flow optimised for thumbs, not mouse cursors.
- •SEO — product schema, category pages. Every product should have structured data (Product schema with price, availability, reviews). Category pages need unique content, not just product grids. Proper canonical tags prevent duplicate content issues across product variants. E-commerce SEO done right drives free traffic that compounds over time.
When to Go Custom vs Stay on Shopify
This isn't a “custom is always better” argument. Shopify is excellent for certain businesses and a terrible fit for others. The decision comes down to revenue, complexity, and growth trajectory.
Stay on Shopify When:
- •Monthly revenue is under $50,000. At this level, Shopify's fees are manageable and the speed-to-market advantage of Shopify outweighs the cost savings of custom. You're better off spending your budget on marketing and product development than on custom engineering.
- •Your products are standard. Physical goods with simple variants (size, colour), standard shipping, and no complex pricing rules. Shopify handles this beautifully out of the box. You don't need custom software for a straightforward product catalog.
- •No complex integrations required. If your tech stack is Shopify + email marketing + basic analytics, stay on Shopify. The app ecosystem covers these use cases well and the setup is fast.
- •You're testing product-market fit. If you're not sure the business will work, spending $15,000+ on a custom build is premature. Get to market fast with Shopify, validate demand, then invest in custom when revenue justifies it.
Go Custom When:
- •Monthly revenue exceeds $50,000. Above this threshold, platform fees compound rapidly. At $100,000/month, Shopify transaction fees and app costs can exceed $3,000-$5,000/month. A custom site eliminates the platform cut entirely — you only pay Stripe's standard processing fee. The savings fund the custom build within 6-12 months.
- •You need a custom checkout experience. Shopify's checkout is locked down on all plans below Shopify Plus ($2,300/month). If you need custom upsells, subscription logic, dynamic pricing, or a branded checkout flow, you either pay $2,300/month for Plus or go custom. The economics of custom are better for most brands.
- •Your catalog is complex. Products with custom configurations, build-your-own options, complex pricing tiers (wholesale + retail + trade), or extensive product relationships. Shopify's product model is designed for simple goods. Complex catalogs require workarounds or expensive apps that add latency and fragility.
- •You need multiple integrations. ERP, warehouse management, CRM, custom analytics, loyalty programmes, multi-currency with dynamic pricing — when your tech stack is complex, app-based integrations on Shopify become brittle and expensive. Custom integrations are more reliable and more cost-effective at scale.
- •Brand differentiation matters. If your brand competes on experience — not just price — a custom storefront lets you build interactions, animations, and shopping experiences that no Shopify theme can replicate. Luxury, fashion, and lifestyle brands in particular benefit from custom builds that reflect their brand identity without template constraints.
Frequently Asked Questions
Is Shopify cheaper than a custom website?
Upfront, yes — a Shopify store costs $500 to $8,000 to set up versus $8,000 to $25,000 for a custom e-commerce site. But total cost depends on your revenue level. Shopify charges $39 to $399 per month in subscription fees, plus 2.4-2.9% per transaction on top of payment processing, plus app fees that average $50 to $500 per month. At $50,000/month revenue, Shopify's fees alone cost $15,000 to $20,000 per year. A custom site with Stripe processing costs a fraction of that. For businesses under $20,000 per month in revenue, Shopify is usually the cheaper option. Above that threshold, custom becomes more cost-effective within 12-18 months.
How much do e-commerce platform fees cost per year?
Annual platform fees vary dramatically by platform. Shopify costs $468 to $4,788 per year in subscription fees, plus 2.4-2.9% per transaction, plus app fees of $600 to $6,000 per year. WooCommerce costs $0 for the plugin itself, plus $360 to $2,400 per year in hosting, plus $0 to $500 per year in extensions. Custom builds on Next.js with Stripe cost $0 to $240 per year in hosting plus Stripe's flat 2.9% plus $0.30 per transaction with no additional platform percentage. At $100,000 per month in revenue, the difference between Shopify and custom can exceed $30,000 per year.
Can I migrate from Shopify to a custom site?
Yes. Shopify-to-custom migration typically takes 8 to 12 weeks and costs $10,000 to $25,000 depending on catalog size, custom functionality, and integration requirements. Products, customer data, and order history can all be exported from Shopify. The most critical step is maintaining URL structure and implementing proper 301 redirects to preserve your SEO rankings. Most businesses that migrate see lower monthly operating costs within 3-6 months, along with significantly better performance and customisation flexibility.
How long does it take to build an online store?
A Shopify template store takes 1-3 weeks. A custom Shopify build with a tailored theme and apps takes 3-6 weeks. A fully custom e-commerce site built on Next.js takes 6-12 weeks. Enterprise platforms take 3-6 months. The biggest timeline variables are catalog complexity (100 products versus 10,000), the number of integrations required (payment, shipping, inventory, CRM), and content readiness. Having product photography, descriptions, and pricing finalised before development begins can cut the timeline by 30-40%.
Related Resources
Web Development Pricing
Full pricing breakdown for all web development services — from landing pages to enterprise applications.
Website Cost Calculator
Get an instant estimate for your e-commerce project based on features, catalog size, and integrations.
Shopify Fee Calculator
Calculate your true Shopify costs including subscription, transaction fees, and app expenses.
E-commerce Development
Custom e-commerce development services — from Shopify customisation to fully bespoke Next.js stores.