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I think a cheap Dedicated server is the best option that you can get for your Ecommerce website. A Dedicated server will provide you with more data transfer to access your visitor flow. It will also help you with good security to provide protection to your website data.
I second that opinion.
Unless you plan to do a big-bang start with a huge marketing campaign and you expect a lot of traffic / sales in the first months you will be fine with shared / cloud hosting.
Upgrade later as your traffic and sales increase.
Start small and scale up so you can always be within budget.
It is very important for an ecommerce website to choose a good ecommerce server for hosting. Before starting any ecommerce company one has to know that where to host the company and how to host the company. There are having two most popular web hosting in that each hosting is offering a different level of independence, shared hosting and VPS hosting are two hosting which are best for ecommerce website.