Types of Costs Incurred for an E-Commerce Business

Due to the skyrocketing cost of rent, many business owners are opting to sell online and e-commerce is increasingly becoming a favourite way to trade. If you are thinking of entering the industry, check to see what your competitors are doing. Do not just copy what exists, add value and improve your market offering.

Just like any other businesses, you will have different operating needs, but the costs are mostly similar. You will require reliable internet access, regular computer usage and maintenance, website creation as well as a proper workspace. If you are dealing with a physical commodity, you may require some storage space as well. These requirements come at a cost that you need to factor in your budget. To understand more about what you should expect, here’s more information on the types of costs that may be incurred for an e-commerce business.

Website Design, Hosting and Security


A considerable part of your initial capital will be spent on the design, hosting, maintenance and security of your website. Your website is your most important tool when it comes to e-commerce as it is your shopfront and the platform that your customers get to interact with you. You need to ensure that you put in place necessary security measures to protect your customers’ private information and ensure that your web host will not go down even when there is high traffic. Make sure you capture these parameters in your service level agreement.

The Cost of Transactions

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With the rise in e-commerce, financial institutions and other innovators developed a myriad of transaction gateways that facilitate online financial transactions securely and remotely. These are great solutions, but they do not come free of costs. Transactional fees can eat up between one to five percent of your sales. Be sure to account for these fees as you reconcile your monthly, quarterly and annual expenses.

The Cost of a Workspace

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While transactions are made online, the operations of your e-commerce business are still conducted physically. Whether you are alone or you have a team with you, an ambient workspace is a prerequisite for productive work. Get a workspace that is well lit and well organised to enhance your productivity. If your business involves physical goods as well, you will need to consider having a storage space to contain all your goods as well. Ideally, your goods and workspace should be located within the same area to facilitate smoother business operations.

At Work+Store, you can find workspaces that allow you to store your good and carry out order fulfilment duties at the same time in the same place. The sizes of these workspaces go from 85 sqft onwards and come equipped with air condition, lights and a powerpoint. Work+Store Space provides an innovative work and storage solution across Singapore in seven locations, namely Bartley, Tampines, Upper Thomson, Eunos, Ang Mo Kio, Kallang and Bukit Merah, offering you great options to accommodate your needs.

Here, we also provide high flexibilities in switching between sizes and locations for businesses who may face the need to upsize, downsize or change their working location in the future to minimize any unpredictable trouble or costs in the long run.

If you simply need a place to store your good or equipment, Work+Store offers self-storage spaces that come in a range of sizes from 6 sqft 625 sqft as well. These spaces are equipped with a 24 hours access card security system and CCTV surveillance as well. At your preference, you can also install your own CCTV in your storage unit.

It is important to find yourself a conducive working space or the cheapest self-storage solution to run your e-commerce operations. Finding the right work space can benefit your costs and work delivery significantly in the long run!

Marketing and Customer Relationship Management Costs

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Successful e-commerce businesses depend strongly on high traffic which you must generate through deliberate marketing efforts. You will have the use a section of your funds for implementing digital marketing efforts like social media marketing and search engine optimisation.

Also, you should take to account the cost of reaching out to customers via phone, email or through online chat. Factor these costs into your budget and make provisions to see them grow as the business grows.

If you wish to find out more about Work + Store and our other storage options, feel free to contact us at 6578 9966 or email us at space@workstore.com.sg for more information!