While I have no idea if the prices you have seen are industrial norms. I would not be surprised to see such prices.
Going back a bit. I had a Café with a Tea business on the side. When I considered going on-line, the cost of updating product prices and descriptions on the Website would, very likely, have made it unviable, considering the turnover I was expecting.
You were right finding out the potential Costs, before committing yourself. Sad that you lost your deposit. Good luck in the future