I’ve had it happen again and again. A friend or acquaintance is thinking about starting a little Internet business (whether for fun or profit) and they ask what kind of investment they might expect. The same question comes up over and over, “what kind of ecommerce software should I use?” My answer often shocks them. “Do you really want to–or really need to–buy ecommerce software to get going?” The intent is to get them thinking …

If you’re considering a little business on the Internet, you may be able to avoid buying any ecommerce software to start out. Of course, it all depends on what you’re planning to sell.

I really like the idea of testing markets before jumping in with both feet (and an open wallet).

For instance … there are scores upon scores of little operations that rely only on the mechanisms built into eBay. Small fish can start swimming instantly with the tools that eBay provides. As you move up the food chain, of course, your ecommerce software needs will increase.

PayPal’s Shopping Cart is great for folks who want to sell off their own websites without buying into an expensive ecommerce software solution and merchant account. There are no up-front costs or extra costs with the PayPal route — the fees are identical to your other PayPal transactions.

If your venture grows, you’ll inevitably start looking at more robust ecommerce software packages.

Yahoo’s Small Business Merchant Solutions is a popular way for folks to get things rolling without a huge investment. Yahoo’s Starter ecommerce solution starts at just $40 per month, with a 1.5% transaction fee. Step up to Yahoo’s Standard ecommerce package and you’ll pay $100 per month with a 1.0% transaction fee. The Standard package adds gift certificates, along with a coupon manager, cross-selling engine, and trackable affiliate links. It also provides advanced statistics like click trails and search topics.