Starutp Q&A: What cost factors should be considered while starting an E-commerce business?


Our Editor responds to a recent online question

The cost of an eCommerce business is going to be under two main buckets:

  1. Technical – Design, support and operation of the eCommerce portal. Much of the discussions in eCommerce forums are on the technical aspects that have to design for typical eCommerce operations as shown in the diagram

2. Functional and Non-Technical design and operations – Managing supply-chain, inventory control, supplier relationships, order processing, pricing, packing, shipping and handling and returns

Both technical and functional aspects are expensive to design and support.

(Ping me offline if you have specific questions)

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