Online businesses still are profitable if started and operated properly

The intention for shopping online has been growing since two decades ago. There are still opportunities across the market that make online business quite interesting for entrepreneurs. 

On top of that, the Australian market is growing fast and demand for all types of services and products are on the rise. As such, the horizon looks bright for people who are planning to start an online business in Australia. 

However, before stepping forward, you must become fully aware of firstly the cost of web design in Australia and secondly all the legally required licenses and allowances to start an online shop in Australia. 

Minimum budget required for designing a simple ecommerce website

Before starting to design a website, you must have a full and deep understanding of your business model and plan and your products and services as well as your targeted market and audiences. With such information in hand, it is easier to figure out the essential features for ecommerce, so you can start  the website design process. As an example, if you are planning to start an online business to sell bottled water in Australia, there is no need to add a “Wishlist” feature to your website. That’s why it is crucial to define your business plan first.

Now it’s time to find an experienced web design company to design your ecommerce website.

You must put aside at least AUD 5 ‘000 to design an ecommerce website. This includes the design with main focus on how to improve user experience as much as possible as well as domain and hosting for one year.

Budget split for other essentials to start an ecommerce

  • License fees

You must register a company and get a license for doing online business in Australia. The minimum required for the licence and other fees, is AUD about 1 ‘000. Office space rental cost differs depending on the type, size and location.

  • Inventory and storage space

Again, depending on your business type, you might need to pay for your inventory and storage space. If you are planning for a service type business, this is not applicable though. Hence, you must have a clear estimate of how much you need for inventory and storage space if needed.

  • Online presenceOnline presence is the most important part of setting up an online business

The most important part of your journey to start an online business is to make it well-presented online. Online presence refers to the steps that must be taken in order to improve a website rank on major search engines like Google. Online presence includes SEO enhancement that is needed to be done by professional SEO agencies as well as other tasks such as presenting your business on popular social media. You must allocate at least AUD 1’000 per month for the first 6 months for your online business SEO. In order to save some money you can make yourself familiar with how to use social media to grow your ecommerce, as you can take care of it, if you know the ropes!

The whole budget needed

Like outlined above, you need to have at least AUD 12’000 in hand, in order to set up your online shop in Australia. You must carefully consider that some major costs are not included in our list as they are subject to the type and size of the business, so they are not applicable to all businesses. Also, the calculation is based on the minimum requirements, so if your specific business needs some other elements, you must count them in. 

We would also like to strongly emphasize that never try to save on your initial cost by working with offshore companies or freelancers, as in most cases, you will end up with a worthless website that doesn’t work for you.  


Online shopping has been popular and seems to be increasing in popularity in the future. It is crucial to understand your targeted audiences, how they act when in need of your products or services and how they make decisions to take action. More importantly, you must make sure that you have enough financial resources in hand that are required to make your website up and running properly. As outlined above, the minimum fund you must have in pocket to start an online shop in Australia is AUD 12’000.

Lastly, make sure to work with registered and reputable online service providers to make the most out of your investment. Websima, as one of the leading digital service providers with a proven track record of success, is always here to help. If you are in need, do not hesitate to contact us and book for your free consultation meeting with our talented team.

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