How much does it cost to set up an online store?

A basic online store using Shopify costs $39-105/month plus transaction fees. A custom-built e-commerce site starts at around $3,500-5,000 for the initial build. You will also need to budget for a payment processor (1.75-2.9% per transaction with Stripe) and hosting.

What payment processor should I use in Australia?

Stripe and PayPal are the two most popular options in Australia. Stripe charges 1.75% + 30c per domestic transaction and integrates cleanly into custom websites. PayPal charges 2.6% + 30c but offers buyer protection that some customers prefer. Square is another option if you also need in-person payments.

Do I need a separate business for selling online?

No, you can sell online under your existing business structure. You do need an ABN, and if your turnover exceeds $75,000 you must register for GST. You should also check if your business insurance covers online sales and consider your consumer guarantee obligations under Australian Consumer Law.

How do I handle shipping for an online store?

Most Australian small businesses use Australia Post, Sendle, or a combination. You can offer flat-rate shipping ($10-15 nationally), free shipping over a threshold (e.g., free over $100), or real-time calculated rates. Sendle often has cheaper rates than Australia Post for small parcels.

Setting Up an Online Store for Your Small Business

To sell products online, you need a product catalogue, a payment processor (like Stripe or PayPal), and a way for customers to browse, add to cart, and check out. It sounds like a lot, but the core setup is more straightforward than most people think.

Whether you're a Murray Bridge retailer wanting to reach customers beyond the Murraylands or a maker selling handcrafted goods across Australia, here's everything you need to know about getting your online store off the ground.

What You Need to Sell Online

Strip away all the noise and an online store comes down to four things:

Product pages: Photos, descriptions, prices, and variants (sizes, colours, etc.) for each product.
Shopping cart: Lets customers select multiple products before checking out.
Checkout and payment: A secure form where customers enter their shipping info and pay with a card or PayPal.
Order management: A way for you to see incoming orders, mark them as shipped, and track inventory.

Everything else — wishlists, discount codes, reviews, email notifications — is nice to have but not essential for day one.

Payment Processing in Australia

You need a payment processor to accept credit cards online. Here are the main options for Australian businesses:

Stripe

My go-to recommendation. 1.75% + 30c per domestic transaction. Clean API, fast payouts (2 business days), and it integrates with pretty much everything. No monthly fees — you only pay when you make a sale.

PayPal

2.6% + 30c per domestic transaction. Higher fees than Stripe, but some customers specifically want to pay via PayPal because of buyer protection. Offering both Stripe and PayPal as options is the smart move.

Square

1.6% per online transaction. Great if you also have a physical shop or market stall because it handles both online and in-person payments with the same system. Inventory syncs across both.

All three are simple to set up with an ABN. You'll be processing payments within a day or two of applying.

Shipping — The Part Everyone Underestimates

Shipping is where online stores get complicated. Here's how to keep it simple:

Flat-rate shipping: Charge a fixed amount (e.g., $10 standard, $15 express) regardless of order size. Easy to understand, easy to implement. You'll lose a little on heavy orders and make a bit on light ones — it averages out.
Free shipping over a threshold: "Free shipping on orders over $100" is the most effective conversion booster in e-commerce. Build the shipping cost into your product prices slightly to cover it.
Calculated rates: Integrate with Australia Post or Sendle to show real-time shipping costs based on weight and destination. Most accurate, but adds complexity.

For carriers, Australia Post is the default. Sendle often beats them on price for small parcels and offers carbon-neutral delivery. Both have APIs that integrate with online stores.

Product Pages That Actually Sell

Most small business product pages are terrible. Here's what a good one includes:

Multiple photos: At least 3-5 photos per product from different angles. White background for the main image, lifestyle shots showing the product in use.
Clear description: What it is, what it's made of, dimensions, weight, and why someone should buy it. Don't just list specs — sell the benefit.
Price (including GST): Australians expect to see the total price upfront. If you're registered for GST, make sure prices include it.
Shipping info: How long delivery takes and how much it costs. Don't make people go to checkout to find out.
Reviews: Social proof sells. Even 3-4 genuine reviews make a massive difference in conversion rates.

What Does It Cost?

Let's break down the real costs of running an online store:

Platform Option: Shopify

Basic plan: $39/month ($468/year)
Transaction fees: 1.75-2.9% per sale
Premium themes: $0-350 one-off
Apps: $0-100/month depending on what you need
Year 1 total: Roughly $600-1,500 plus transaction fees

Custom E-Commerce Build

Development: $3,500-5,000+ (one-off)
Hosting: $149/month ($1,788/year)
Transaction fees: 1.75% with Stripe
Year 1 total: Roughly $5,300-6,800 plus transaction fees

Shopify is cheaper upfront, but you're paying monthly forever and you're locked into their platform. A custom build costs more initially but gives you complete ownership and lower ongoing costs after year one (no Shopify subscription, lower transaction fees, no app costs).

Platform Comparison

Here's my honest take on the main options:

Shopify: Best all-rounder for getting started fast. Easy to use, handles most of the complexity. But you're locked in and the costs add up with apps and transaction fees.
WooCommerce (WordPress): Free plugin, but you need hosting and a lot of setup. The "free" quickly becomes expensive with premium plugins, themes, and maintenance time. Security is a constant concern.
Custom-built: Best performance, full ownership, no platform fees. Higher upfront cost, but you get exactly what you need and nothing you don't. This is what I build at Babayagas.
Etsy/eBay: Good for testing demand, but high fees (6.5-13%) and you're competing with everyone else on the platform. Use these alongside your own store, not instead of one.

Thinking about selling online? Let's have a chat about what makes sense for your products and your budget.