The quick version
You don't need tens of thousands to start. A lot of people do it for under a thousand bucks plus stock.
But here's the thing. The setup isn't what catches people out. It's the small monthly bills and the cost of each sale that add up over time.
Let's break it all down in plain dollars.
What do I need to pay for before I launch?
These are the one-off costs. Rough estimates in AUD:
| Item | Low end | Typical |
|---|---|---|
| ABN (Australian Business Number) | Free | Free |
| Business name with ASIC (1 year) | ~A$45 | ~A$45 |
| Domain name (.com.au) | ~A$20 | ~A$30 |
| Store platform, first month | ~A$15 | ~A$56 |
| Logo and branding | A$0 (DIY) | A$300 |
| Product photos | A$0 (phone) | A$300 |
| Packaging and samples | A$50 | A$200 |
| Total, before stock | ~A$130 | ~A$930 |
An ABN is your business ID number. It's free to get on the government's ABR website. You only need to register a business name if you trade under a name that isn't your own.
How much should I spend on stock?
This is the biggest number for most people, and it really depends on what you sell.
My advice? Start small. Order enough to test if people actually buy, then reorder. Sitting on boxes of stock that won't move is one of the fastest ways to lose money. I learned that one the hard way.
If you're not sure yet, dropshipping or print-on-demand lets you start with almost no stock. The trade-off is lower profit per sale.
What are the monthly running costs?
Once you're live, these are the bills that keep coming:
- Store platform or hosting. About A$15–A$60 a month. See Shopify vs WooCommerce costs for a proper comparison.
- Accounting software. About A$35 a month and up.
- Email marketing. Often free to start, then A$15–A$50 a month.
- Apps or plugins. A$0–A$100 a month, depending on what you add.
- SEO tools. Optional. These can be A$200+ a month, so most people wait.
What does each sale cost me?
This is the bit people forget. Every order costs you money, even before you make any profit:
- Payment fees, roughly 1.75% + 30c per card sale
- Shipping, often A$10–A$15 for a small parcel
- Packaging, maybe A$1–A$3
- Ads, if that's how the customer found you
Want to see your real numbers? Pop them into the profit calculator. There's also a Startup costs tab where you can tick the tools you need and get a first-year estimate.
Do I need accounting software from day one?
You don't have to. But it makes life a lot easier.
Once your turnover hits A$75,000 a year, you must register for GST. Then you'll lodge a BAS. BAS is the form you send the ATO, usually every quarter, to report the GST you've collected and paid.
Setting up software early means your records are already sorted when that day comes.
For a side-by-side look, check out the best accounting software for small Aussie online stores.
Can I start an online store for under A$500?
Yes, it's possible. Here's what a bare-bones start can look like:
- Free ABN
- Your own name, so no business name fee
- A cheap WooCommerce host or a Shopify starter plan
- DIY logo and phone photos
- A small test batch of stock
It won't be fancy. But it's enough to find out if people want what you're selling, and that's the main thing.
Frequently asked questions
How much does it cost to start an online store in Australia?
Usually A$500–A$3,000 before stock. You can go lower if you DIY most things.
Do I need an ABN to sell online?
If you're running a business, yes, you should get one. It's free and only takes a few minutes online.
Do I need to register for GST?
Only once your turnover reaches A$75,000 a year. You can choose to register earlier. Ask your accountant or check the ATO website.
What's the biggest hidden cost?
Usually shipping and ads. They're paid on every order and can quietly eat your profit.
Should I buy a lot of stock to start?
No. Start small, test what sells, then reorder. It keeps your cash free and your risk low.
All costs are rough estimates and change over time. Always check with the provider. This is general info, not financial advice.