Cost of Creating an Online Store and How to Create a Free Online Store

In today’s world, e-commerce has gained significant attention due to the ease it brings to buying and selling globally. With fierce competition among online stores to offer the best user experience, creating an online store has become essential for merchants. Like any business, there are several aspects to consider, most importantly the cost of creating an online store, the possibility of creating a free online store, and how to do that. It’s also important to understand the requirements for a commercial registration for an online store.

Cost of Creating an Online Store

The cost of creating an online store varies depending on several factors, including the store size, type and category of products, budget, and the platform used. Below is an approximate breakdown of the costs of creating an online store in Saudi Arabia:

Basic Costs

There are several essential costs to consider when calculating the cost of creating an online store, including:

• Web Hosting: Ranges between SAR 50 – 200 per month.
• Domain Name: Approximately SAR 50 – 150 annually.
• Store Design: Basic designs may start from SAR 1,000, while more professional designs may cost up to SAR 10,000 or more.
• E-commerce Platform Subscription:

1. Local platforms: Free plans are available, and advanced plans can cost up to SAR 1,000 per month.
2. Global platforms: The average cost is around $29 per month.

Additional Costs

These are related to the store’s functionality:

• Payment Gateway Fees: Vary depending on the provider, such as Paytabs or HyperPay.
• Marketing Costs: Variable, starting from around SAR 500 per month for ads on social media or Google Ads.

Creating a Free Online Store in Saudi Arabia

If you’re just starting and want a low-cost option, you can create a free online store using the following method:

Choose a Free Platform

Several platforms offer free packages for online stores, including:

• Zid: Offers free plans for beginners.
• Salla: Provides limited-feature free plans.
• WooCommerce: A free plugin that works with WordPress.

Create an Account and Customize the Store

The next step is to create an account on the chosen platform:

• Sign up on the platform.
• Choose a design template that fits your brand from the available free options.
• Upload your brand logo.
• Upload product images.

Add Products

• Add product images with accurate and appropriate descriptions.
• Set prices and indicate the available quantity for each product.

Activate Payment and Shipping Gateways

• Link your store to a free or no-monthly-fee payment gateway.
• Look for shipping companies with competitive rates.

Promote the Store

You can promote your free online store through:

1- Social Media Marketing:

• Highlight your competitive edge.
• Showcase your top-selling or unique products.
• Create visually appealing and engaging content.
• Organize contests and interactive posts to attract a wider audience for free.

2- Start a Blog and improve your store’s SEO to increase visibility.

Registering a Commercial License for an Online Store

It’s essential to register a commercial license for your online store to make your business legal and protect both yourself and your customers. A commercial license is an official document proving that you are a licensed business owner, even if your operations are fully online.

Steps to Obtain a Commercial License for an Online Store

According to the Saudi Ministry of Commerce, follow these steps:

1. Log in to the Ministry of Commerce Platform

• Visit the Saudi Ministry of Commerce website.
• Log in using your Absher account through the National Single Sign-On Portal.

2. Apply for a Commercial License

• Choose "Electronic Commercial License".
• Click "Issue New Commercial License".

3. Enter Business Activity Information

• Activity Type: Choose the appropriate activity (e.g., e-commerce or online retail).
• Business Name: Choose a distinctive trade name.
• Business Address: You can use your personal address or workplace if you have a warehouse or office.

4. Select the Online Activity

• Indicate that the business will operate as an online store.
• Add the website or platform you will use (e.g., Salla or Zid).

5. Pay the Fees

Annual fees for the commercial license start at SAR 200 for the main license, plus Chamber of Commerce fees (depending on business type).

6. Issue the Commercial License

Once you complete the application and payment, the commercial license will be issued instantly in electronic format.

Requirements for Issuing a Commercial License for an Online Store

Several conditions must be met to issue a commercial license for an online store in Saudi Arabia, including:

• Having an Absher account for identity verification.
• The activity must be among the allowed business activities.
• No restrictions or violations should exist that prevent obtaining the license.

Benefits of Registering a Commercial License for an Online Store

There are many advantages to registering a commercial license for your online store in Saudi Arabia, such as:

• Legal Compliance: Avoid fines and penalties.
• Customer Trust: Enhances credibility and customer assurance.
• Access to Payment Gateways: Enables you to contract with various electronic payment services like Mada and STC Pay.
• Registration on "Maarouf": A platform that increases store credibility, and a commercial license is required for registration.

Frequently Asked Questions

How can I create a free online store in Saudi Arabia?

You can create a free online store using e-commerce platforms like Zid and Salla. These platforms offer all-in-one tools to help you create your store without any technical skills. All you need to do is:

• Sign up.
• Choose a template that suits your brand.
• Add your products.

This method makes starting a free online store very easy.

What is the best platform to create a free online store in Saudi Arabia?

Several platforms let you create a free online store in Saudi Arabia, such as Zid and Salla. Both provide easy setup, flexible design tools, and multiple payment and shipping options.

How much does it cost to create an online store in Saudi Arabia?

The cost varies depending on the store size and platform. Some platforms like Zid and Salla offer free plans, while paid plans range from SAR 100 to 1,000 per month. Costs include hosting, domain, and fees for payment and shipping services. If you're looking for budget options, start with a free plan and upgrade later.

Do I need a commercial license to run an online store in Saudi Arabia?

Yes, you need a commercial license to operate your e-commerce business legally in Saudi Arabia. You can easily apply for it via the Ministry of Commerce platform by registering your store and paying the required fees.

Can I create a free online store without paying any fees?

Yes, you can use e-commerce platforms that offer free plans to create a free online store. It’s a great way to start an online business with no initial investment. However, you might need to pay for extras later, such as payment gateways or premium features to expand your store.