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Do I need a dedicated server to run a serious sized shop?


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I am new to web development and am not sure about the capabilities of web hosts. What I do see are various options to purchase virtual and physical hosting for more serious web sites offered by my host. Being a little cynical on the way that the world operates i am fully expecting that the 'normal' hosting package is actually just a hook to get me to purchase more appropriate sevices.

As it stands I am not blessed with anything other than a dream and a site in development however if the dream turns into a reality and I end up with a serious e-commerce site of say 500 products is it likely that i will need to spend the serious cash on a dedicated server or is it the general experience that a 'normal' hosting service is adequate for a shop of substantial size?

Any opinions or previous experience appreciated.

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Kinda difficult to say really - i am trying to plan ahead and have no real idea whether a VPS is needed to run a real shop, I'm not in trouble yet - potentially I will get between no and many many hits - sounds too vague I don;t know if this is a fair question. I am just trying to work out what the thresholds are for when I will have to move from $5 per month to $99.

Thanks for taking the time to answer though

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