Smart Ways to Start an Online Store Cheaply

4 min read

Last updated November 15, 2026

You can start an online store for a few dollars. Compare Etsy and Shopify costs, see what you really need, and learn the free steps most new sellers miss.

Key Takeaways

Etsy lets you start with $0.20 per listing and no monthly fee.
Shopify’s Basic plan costs $39 a month, or $29 a month billed yearly, after a cheap trial.
An Employer Identification Number from the Internal Revenue Service (IRS) is always free.
Many sole owners selling under their own name do not need to register a business.

What You Really Need to Start

Most people overspend on day one. You only need a product, a place to sell it and a way to ship it.

A small batch of products, not a warehouse full
Clear photos taken with your phone
A selling platform such as Etsy or Shopify
Basic packing supplies
A simple spreadsheet to track sales and costs

Good to know. Start small. Sell a few items first and learn what buyers want before you spend on stock or ads.

Etsy or Shopify? The Cost Difference

Both are popular, but they charge in very different ways. We put the starting costs side by side.

Cost	Etsy	Shopify Basic
Monthly fee	None for a standard shop	$39 monthly, or $29 billed yearly
Starting offer	Pay per listing	3-day trial, then $1 a month for 3 months
Per listing	$0.20, renews every 4 months	No listing fee
Per sale	6.5% transaction fee plus processing	Card fee from 2.9% plus 30 cents online

Etsy costs come from Etsy’s fee policy. Shopify costs come from the Shopify pricing page.

Etsy brings shoppers to you, which helps beginners. Shopify gives you your own website, but you must find your own visitors.

$0.20The cost of one Etsy listing, which lasts four months, according to Etsy’s fee policy.

Etsy yearly listing fee calculator

Number of listings you keep live

Step by Step. Start Your Store This Week

Pick one product you can make or buy at a steady cost.
Work out your price, including fees and shipping.
Take clean photos near a window with a white background.
Open your shop on the platform that fits your budget.
Write honest titles and descriptions with the details buyers ask about.
Make your first five listings, then improve them as you learn.

Our guide to product photos that sell walks you through step 3. If you choose Etsy, check our full breakdown of Etsy fees.

Where would you start your online store?

Etsy
Shopify
Social media first
Not sure

Free updates

Join the Digieh list

Be the first to know when our weekly brief launches.

No spam. Unsubscribe anytime. Read our Privacy Policy.

The Free Legal Steps

Do You Need to Register a Business?

It depends on how you sell. The Small Business Administration (SBA) explains the rules. Sole owners who sell under their own legal name generally do not need to register.

If you use a shop name instead, most states require a “doing business as” (DBA) registration. Rules vary by state and city.

Get a Free Employer Identification Number

An Employer Identification Number (EIN) helps you open a business bank account. The IRS says “You never have to pay a fee for an EIN,” on its EIN page.

Watch out for websites that charge for one. Apply directly on the IRS site instead.

Money Mistakes New Sellers Make

Forgetting fees when setting prices
Buying too much stock at the start
Paying for an EIN that is free
Mixing business and personal money
Skipping a simple record of every sale

Selling during the holidays brings extra orders and extra stress. Our tips for the small business holiday rush can help you plan.

This article is for information only and is not legal, tax or financial advice.

Try this today. List three products you could sell and write down the full cost of each. Use that list to set your first prices.

Test Yourself

How much does the IRS charge for an Employer Identification Number?

Nothing, it is free
$50
$300

The IRS says you never have to pay a fee for an EIN.

Frequently Asked Questions

How much does it cost to start an online store?

On Etsy, you can start with $0.20 per listing. Shopify’s Basic plan costs $39 a month after an intro offer of $1 a month for 3 months.

Is Etsy or Shopify better for beginners?

Etsy often feels easier, since it already has shoppers. Shopify suits sellers who want their own brand and can bring their own traffic.

Do I need a business license to sell online?

It depends on your state and city. Check with your local government, since rules vary by location and business type.

Found this useful?

Editor’s Note

This guide is accurate as of November 15, 2026. Platform prices and offers can change and may vary by location. Confirm costs on each official site before you sign up.

Spot an error in this article? Please contact us at support@digieh.com or read our Corrections Policy.

Keep exploring

Your next read is waiting