Question 1

How much does it cost to start an online store?

Accepted Answer

You can launch a basic online store for as little as $2,000 using a platform like Shopify ($39/month), a small initial inventory, and organic social media marketing. Most serious e-commerce businesses invest between $5,000 and $15,000 to launch with enough inventory, professional product photography, and an initial advertising budget. Dropshipping models require less upfront capital since you do not purchase inventory in advance, but margins are typically lower.

Question 2

Do I need to collect sales tax for my online store?

Accepted Answer

Yes, in most cases. Since the 2018 Supreme Court South Dakota v. Wayfair decision, states can require online sellers to collect sales tax even without a physical presence. Each state has its own economic nexus thresholds, typically $100,000 in sales or 200 transactions. You will need a seller's permit from each state where you have nexus. Services like TaxJar or Avalara can automate multi-state sales tax collection and filing for $20-$50 per month.

Question 3

Should I use Shopify, WooCommerce, or Amazon to sell online?

Accepted Answer

Each platform serves different needs. Shopify ($39-$399/month) is the easiest to set up and manage with no technical skills required. WooCommerce is free but requires WordPress hosting ($10-$50/month) and more technical knowledge. Amazon gives you instant access to millions of shoppers but takes 15% referral fees and you compete directly with other sellers. Many successful online stores use a combination, selling on their own Shopify site and listing popular products on Amazon for additional exposure.

Expense	Bend, OR	Chicago, IL	Difference
Business Registration & Permits	$2,000 - $7,800	$5,600 - $10,900	-41%
E-Commerce Platform & Website	$300 - $5,000	$300 - $5,000	Same
Initial Inventory	$500 - $15,000	$500 - $15,000	Same
Product Photography	$200 - $3,000	$200 - $3,000	Same
Shipping Supplies & Packaging	$200 - $2,000	$200 - $2,000	Same
Digital Marketing & Advertising	$500 - $10,000	$500 - $10,000	Same
Business Software & Tools	$200 - $2,000	$200 - $2,000	Same
Business Insurance	$400 - $2,000	$400 - $2,000	Same
Total Estimated Cost	$4,000 - $47,000	$8,000 - $50,000	-12%

Factor	Bend	Chicago
Cost of Living Index	122.5	107.8
Commercial Rent ($/sqft/yr)	$18 - $40	$25 - $65
Labor Rate Index	1.08	1.15
Sales Tax	0%	10.25%
Minimum Wage	$14.70/hr	$15.80/hr
LLC Filing Fee	$100	$150

Bend, OR vs Chicago, IL

Bend, OR

Chicago, IL

Detailed Cost Comparison

Local Market Factors

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