An online store has no rent, no build-out, no NNN load — but it has a cost that behaves exactly like rent: customer acquisition. If you cannot acquire a customer profitably, the store is a leaky bucket no matter how good the product is.
Startup ranges by model (2026)
| Model | First-year cost |
|---|---|
| Dropshipping | $2K-$8K |
| Shopify, owned inventory | $15K-$50K |
| Amazon FBA | $5K-$20K |
| Custom DTC brand (paid ads) | $30K-$100K |
CAC by channel
| Channel | Typical CAC | New brand (pre-optimization) |
|---|---|---|
| Meta (Instagram/Facebook) | $25-$80 | $60-$120 |
| Google Shopping | $20-$60 | $40-$90 (non-branded) |
| TikTok Shop / ads | $15-$50 | highly variable; viral $5-$15 |
| Amazon PPC (FBA) | $8-$30 | ACOS 20-35% |
| Organic SEO | near-zero marginal | 12-24 months to rank |
The metrics that decide survival
- LTV:CAC ≈ 3x. At $40 CAC and $60 LTV you are not growing — you are subsidizing acquisition. Never scale paid ads below 3x at target scale.
- Gross margin after fees. A 35% product margin can turn thin after 1.5-3% payment fees, 8-15% marketplace referral, and returns up to 30% in fashion.
- Conversion 1.5-3%. Global e-commerce average. Mobile-first checkout in 3 steps protects it.
- Net margin. A healthy micro-store nets about 15-25%; below 10% the model is unsustainable.
Reserve at least 30-50% of budget for marketing in the first six months. A beautiful store with no traffic makes zero sales. Most first-time founders under-budget CAC and over-budget the build.
Sources (retrieved 2026-08-13): StartupCostHub e-commerce 2026 cost and CAC benchmarks (Shopify, Jungle Scout, Klaviyo, Triple Whale data); Sell-Flow and EarningLivingOnline e-commerce margin/CAC guidance; NRF 2026 returns report.