An overview of building Magento website costs is necessary for those who intend to build a Magento webstore or are in the progress of building one. Good preparation for it will take you closer to the journey of e-commerce and avoid unnecessary risks.
Most store owners have trouble estimating the costs to build a Magento website. Some even do not know exactly what components will cost them some money. Don’t worry! This post provides beginners with details of core Magento costs for a basic Magento website and additional costs for a custom one.
Here are groups of associated Magento costs that the post mentions:
- Core costs to build a Magento website with basic features
- Important integrations
- Maintenance costs
Before you read, don’t wait to see a fixed number of the total Magento website cost. For detailed cost estimation, you need to share your ideas and requirements with Magento developers.
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A – Core Magento Website Costs To Build A Basic Webpage
1. Magento Edition
Magento is a widely used eCommerce platform, with more than 250,000 merchants using it. Small, medium and large businesses use the platform, including well-known brands like Helly Hansen, Timberland, Land Rover, Seat, Jack Daniel’s, Jaguar, and others.
Because the eCommerce platform you choose will have a direct impact on your organization, you must make a data-driven selection. Before we go into how to design a Magento website, let’s have a look at the options Magento has to offer.
The very first step to entering the e-commerce world with the Magento platform is to select a Magento edition according to your business needs. As mentioned in our previous posts, Magento offers two editions: Magento Community Edition at a free charge and Magento Enterprise Editions with an annual Magento license cost.
Each Magento edition is suitable for a specific type of business, from small to giant scale. To choose the right match for your business, you need to have in mind the expected business size very soon and the budget that you are willing to invest in your online store.
# Magento Community Edition (Magento Open Source)
Magento Community Edition (Magento CE) is an open-source platform with zero charges. Everyone can get a program code for free, which can be edited by third-party developers. This edition is a perfect choice for small to medium businesses.
As soon as you download the program, you can immediately adjust and configure it according to your business requirements.
# Magento Enterprise Edition (Magento Commerce)
Magento Enterprise Edition (Magento EE) is an exclusive paid version with premium features. For this reason, it can satisfy store owners of medium to enterprise-level businesses who need scalability, advanced features and added customizable options. Once you have a license and attached code, you can start working with Magento EE.
Magento EE pricing (Magento Commerce pricing) is based on your revenue model. The more annual gross revenue you earn, the higher you have to pay. The cost starts from $22,000.000 and can be calculated for each range of gross sales revenue.
Though Magento EE is not available for free like Magento CE, this feature-rich edition is worth the cost with a wider scale of support. This doesn’t mean you should worry when using Magento CE, as you can flexibly customize this edition to get as many functionalities as you want. This flexibility should be considered when choosing a Magento edition.
# Magento Commerce Cloud
In addition to the two editions above, Magento now offers a cloud hosting option called Magento Commerce Cloud (Enterprise Solutions Cloud Edition – ECE).
Magento Commerce Cloud combines both an Enterprise Solutions license and hosting in a single fee structure. This offering of Magento comes with a diversity of additional features that differentiate it from Magento CE and Magento EE.
Magento Commerce Cloud pricing starts from $40,000 annually for stores generating less than $1 million. For new merchants using Magento Commerce Cloud, Magento offers monthly payments to distribute the ongoing annual expenses of the system over the course of the year.
Know the difference among 3 Magento Editions below:
Magento Community Edition
Magento Enterprise Edition
Magento Commerce Cloud
Cost per year
$22000 ~ $125000
$40000 ~ $190000
Size of business
Small to medium
Medium to enterprise-level
Really need to outsource developers and designers to custom websites.
Its support for running various databases to handle checkout, order management, and product data allows for functional areas to be scaled independently, resulting in a higher return on investment.
It allows for the rapid deployment of completely customized, secure, and scalable web storefronts on an AWS-based hosting and managed services architecture that is fully optimized for performance and reliability.
Not PCI compliant
2. Domain Establishment
Besides the cost for a Magento edition, domain cost is also associated with the Magento website cost as the domain is an indispensable component of every website, which provides customers with the only way to access your store. A domain name must be unique and make enough impression on customers, but its price also needs to fit your budget.
You have to purchase a domain name through a domain name registrar that manages the reservation of domain names. Top-level domains (TLDs) and country-code top-level domains (ccTLDs) are the two most common types of domains.
- Top-level domains: …net; …com; …edu; etc.
- Country-code top-level domain: …as; …uk; …fr; etc.
There are two ways to acquire a domain: using a brand new domain or using the one that has already been registered (also called an aged domain).
# Brand new domain
Registering for a new domain generally costs between $10 to $20 a year and depends on which registrar you use and what kind of domain you want to register. In comparison, TLDs often cost more than ccTLDs.
The following information about some domain name registrars might be helpful for you.
# Aged domain
An aged domain is a domain that has been registered by an individual, business, or organization but isn’t renewed after the contract ends, so now available for registration.
The price of a pre-registered domain will cost you more and vary depending on the popularity and other associated data of the corresponding website. It generally varies between $20 to $500.
A noticeable benefit of purchasing an aged domain is that you can inherit a lot of good site data of that domain like Domain Authority (DA) and Page Authority (PA), which especially do wonders for SEO. However, these SEO efficiencies from an aged domain have still been a secret, and there is not any obvious proof about this issue. Therefore, as a store owner, you’d better carefully examine to select the most suitable domain for your Magento website.
3. Hosting Service
The website files are allocated on a remote server, and that computer server is called the host. Hosting service plays an important role in making a website active on the Internet, allowing customers to access and read its content.
Like choosing a Magento edition, Magento hosting cost depends on the size or even traffic of your business. There are three options of hosting servers for you to choose from: shared server, virtual private server, and dedicated server.
Virtual private server
Multiple users with separate Internet domains can share and use a single web server with shared web hosting.
The maintenance and administration of the website will be taken care of by the hosting provider.
Virtual private servers (VPS) use virtualization technology to divide a single powerful server into several virtual servers. It is a single piece of physical hardware that performs the operations of numerous different servers. VPS simulates the experience of having a dedicated server while yet allowing you to share the physical server with other users.
The service provider provides a single server (or machine) to handle the website’s or application’s burden. Managed servers and dedicated servers provide you with access to your own private cloud as well as the freedom of cloud hosting. They do, however, add to the security and speed of your own resource center.
4. Web Design & Theme
In most cases, the easiest, time-saving, and cost-effective way every new store owner should consider is installing a Magento 2 theme instead of having it designed entirely by web designers. Though using a theme may limit you from expressing your ideas of the product or content display, it is a safe solution to get the complete site with a beautiful interface in the shortest time.
If you check out some of Magento 2 theme marketplaces or theme providers, you will see most of the prices vary between $0 to approximately $200.
If you are in need of using customized themes, the costs become higher and more unpredictable due to various requirements. Usually, the customization price may range from $1000 to $2500 if your requirements are not too complex.
The homepage is one of the most important pages that create the first impression on customers’ minds about your business. So, it should be designed carefully with a special concept and branding factors.
GET NOTES & TIPS with Magento Web Design Ideas of Homepage for The Love at First Sight.
For store owners who want to hire a web design agency or web designer to sketch and shape a new online store for you, the prices for these services are also flexible, possibly reaching over $10,000 for a custom design.
5. Web Development
This stage usually costs the most through the whole process of building a Magento website and can be implemented by a Magento development agency, Magento web developer, or your in-house developers.
# Hire a Magento development agency
If you are looking for the most professional Magento development, a Magento agency is firstly recommended, especially certified Magento partners. By hiring a Magento agency, you can take advantage of their professionals with huge experience, tight processes, and cutting-edge technologies. For those reasons, this option requires more expensive costs than those of the remaining ones.
Obviously, the complete website will not disappoint you disappointed as a reliable agency will do what they promise you to do. High-quality is the most important thing making the choice of Magento development agency a cost-effective decision.
For websites based on Magento CE, the total cost to build a website may start from $10,000, while a website using Magento EE may require up to $250,000 (including both design and development costs). The pricing may vary from different agencies, requirements, and complexity, but they can show you proof to persuade you with deserving investments to create a complete website with a satisfying Magento experience.
FIND MATCHING AGENCY for your Magento Web Development project now!
# Hire a Magento developer
The standard costs to pay for a Magento developer may fluctuate between $15 and $100 per hour, depending on their certificates, experience, and portfolios. This doesn’t mean that there’s no exception which can cost hundreds of dollars.
When working with a freelancing Magento developer, you must consider their qualification more carefully and do not ignore their previous works before passing your job to them. Also, make sure that they have the ability to handle it from A to Z in high-quality, including design, development, customization, etc., or have a complete team to do those.
CHECK OUT our Offshore Development Services now!
# Use in-house developers
In the last case, it’s great if you have enough human resources within your organization to take over the entire Magento development for you, and now you can make use of your employees. In this way, you can take full control of the process and freely contribute to it with your ideas.
The payment has already been agreed on in the contract between you and those employees. Besides, additional costs may arise throughout the process.
6. Data Entry/Migration
When you have a plan to build an online store using Magento, you might have had another one based on another ecommerce platform or an amount of data from other sources like offline activities or social channels. Now, you need to move all the data to your Magento system for wiser and easier management, but manual upload can cause inaccuracies and waste you hours to days. In this situation, a data entry or migration service is a must-have solution.
The data entry service pricing may be different from one agency to another one. Commonly, the pricing is based on a fixed hourly rate in each agency.
7. SSL Certificate
What is an SSL Certificate?
SSL stands for Secure Socket Layer, a technology that allows browsers and servers to transmit and receive in a secure way with an encrypted connection called HTTPS. By having an SSL Certificate, you can enhance security on your website, prevent cyberattacks, and keep customers’ data safe. More importantly, all search engines now highly evaluate websites with an SSL certificate, giving them more priority rankings.
As SSL certificate has gradually become a standard to be marked as a trusted website, your Magento website should not be out of this trend. You can easily get one from a trusted Certificate Authority (CA). Your web host may even offer it under multiple options.
The cost for an SSL certificate is so different between providers and varies in a wide price range. Here we summarize standard SSL prices of the most reliable providers. For more details of different types and pricing, please access the providers’ website.
8. Magento Extensions
We all agree that Magento is a feature-rich ecommerce platform giving users multiple customization options. However, Magento extensions still always are the fastest and most effective solution without complex code whenever you need to add extra functionalities to your store.
Each Magento extension provider may offer hundreds of practical modules, so you have thousands of choices from different providers. In the range of this post, we mention the on-top and trendy extensions working well for any kind of industry.
- The most comprehensive extension for B2B businesses: B2B Extension Magento 2 – only $600 as we write this.
- The best seller of checkout improvement which cuts down checkout time dramatically with only one step: Magento 2 One Page Checkout – $149 (the on-sale price is $99)
- The all-in-one sales motivation solution: Magento 2 Sales Motivation Package – $969 (the special price is $680)
- The extension that supports SEO from A-to-Z to improve SEO score: Ultimate Magento 2 SEO Extension – only $119
- Supportive extensions to enhance order management: Checkout Custom Field ($119), Order Delivery Date ($59)
Magento customization relates to various areas of development on a Magento website. Its purpose is to add more functionalities to improve performance, which sometimes cannot be acquired by Magento extensions. In business practice, every Magento store needs more customization than default features to satisfy a wide range of store owners’ requirements.
Customization tasks can be effortlessly implemented thanks to third-party agencies that offer end-to-end services to your Magento store. Customization service pricing of each agency is different and depends on your requirements, so you need to contact them for a quote and deal with them to reach an agreement on the most proper cost plan.
Another option is to hire outside developers to customize your Magento 2 website at an hourly-rate price. The higher qualification the developers have (junior, mid-senior, senior), the higher the hourly rate you have to pay.
GET a better understanding of How To Add Custom Fields To Checkout Page Of Magento 2? to enhance your store’s performance!
B – How much Magento Website Costs For Getting Important Integrations
10. Analytics Tools
An exact website analysis is used to create a successful content strategy for Magento stores that draws potential clients to your website and promotes sales. When it comes to this activity (website analysis), Google Analytics is a tool that no one should overlook due to its extensive functionality.
Analytics tools are really necessary to analyze customer behaviors on your site and orient your content to adapt to those behaviors. Traffic, time on page, conversion rate, etc., are trusted indicators to know how your content works and measuring them requires tools.
Google Analytics is one of the best digital analytics tools powered by Google, which is used for that demand. Fortunately, it is totally FREE to use.
FOLLOW 5+ Steps to Set Up Magento Google Analytics with detailed configurations.
Default Magento 2 supports only three basic shipping methods, including Flat Rate, Free Shipping, and Table Rate. If you want to integrate your data with a third-party application for a fully automated shipping process or customize shipping methods with out-of-the-box features, you need Magento shipping integration services and additional extensions.
12. Payment methods
As an e-commerce business can reach a diversity of online customers, payment methods are required to be flexible to fit multiple payment habits. Hence, payment methods/gateways integration becomes necessary for online stores that target a wide range of customers.
According to your business requirements, you might have to prepare the budget for the integration of the most popular payment gateways like PayPal, Stripe, ANZ eGate, SagePay, etc.
There are ways to implement payment methods/gateways integration. You can opt for a payment gateways integration service or use Magento payment gateways integration extensions.
CRM (Customer Relationship Management) integration allows businesses to organize customer data for segmentation, deliver personalized customer experience, and use it to drive sales. Along with the expansion of your Magento store, CRM becomes a must-have when you have a large, stable, and loyal customer base.
Hubspot is one of the most popular CRM systems optimized for the management and execution of online campaigns with smart data organization and synchronization among channels in real-time. Hubspot CRM includes three core functional packages, including Marketing Hub, Sales Hub, and Service Hub.
You can see Hubspot CRM pricing here for reference.
Other popular CRM solutions for Magento: Agile CRM, Zoho CRM, Metrilo.
Integration of ERP (Enterprise Resource Planning) provides complete visibility of pivotal business processes from one place via tracking and reporting. A well-integrated ERP Magento store can optimize and automate frequent manual tasks to speed up data exchange and enhance customer service efficiency.
Like many integrations, ERP can be integrated into your Magento store using Magento ERP integration services or extensions.
For detailed prices of each solution, we found this very useful post from Simicart.
15. Content Management System Integration
You might want your Magento website to be not only an online store but a place providing useful information also. A blog page is such an awesome thing where you can entertain customers with high-quality posts to support your products or services or even nourish their loyalty.
When this demand arises, a specialized third-party content management system (CMS) is the best solution, and you need to integrate it into your Magento system. The integration contributes to an increase in the Magento cost plan, which depends on what CMS you use and the way you do it.
The incremental cost covers :
- The fee to use the CMS (unless you have already had an existing one)
- The cost to integrate it into your existing website: use Magento Integration services, extensions, or find help from developers.
The most popular CMS commonly integrated into Magento websites is WordPress- the best blogging platform. If you are considering using WordPress, the following pricing information can help.
16. Marketing Tools
To stand out among competitors and have a spot on customers’ minds, your store needs more than the required components. As soon as you are aware of the importance of marketing tools, let’s include an extra budget on their Magento cost plan and consider using these powerful tools.
# Email marketing tools
When the role of email marketing becomes more and more important to support promotion campaigns, email marketing tool integration is considered to be a must-have in a lot of online businesses.
MailChimp, Hubspot, ConvertKit, etc. are well known for being the most robust marketing automation tools helping deliver your emails and newsletters to the right audience at the right time. Integrating Magento with those tools allows you to leverage your customer data to personalize your marketing campaigns and finally optimize sales.
# Social sharing tools
Social sharing has become the lifeblood of the Internet in recent years, which drives a fair amount of referral traffic and triggers “buzz” among social networks. Furthermore, social sharing benefits online merchants like free advertising and gains the belief of potential customers via their acquaintances. Because of those features, most online businesses nowadays provide customers with the ability to share useful content via their social accounts using friendly buttons.
There are a number of available Magento extensions (both free and paid) that can give your store this feature.
C – Maintenance Costs To Build A Magento Website
Magento maintenance should be implemented periodically, which includes activities to keep your website running well over time, such as troubleshooting, bug fixes, security update, performance optimization, and so on. Hence, every store owner should not miss this task on their Magento cost plan and should have a budget reserved in Magento website cost to take maintenance in the future.
Again, the costs to build a Magento website for maintenance depend on whether you choose to maintain the store on your own or get help from Magento agencies or professional developers.
BOOK A CONSULTATION for Magento Website Maintenance service.
When it comes to coming up with a business plan for an online store, e-commerce operators must consider a number of factors. Defining the target audience, providing the company’s unique value proposition, developing the product line, selecting partners and establishing a supply chain, deciding on delivery methods, and more are all part of this process. All of these factors combine to produce the first budget, which is crucial for the start-up of an e-commerce business.
The term “costs to build a Magento website” is related to a lot of components and does not stay the same over industries, so it’s difficult to cover all the details in this post. But we hope this piece of content will take you to a good beginning with essential costs.
If you want to create a new Import/Export Product Reviews Extension, READ NOW >> Must-Have Import/Export Product Reviews Extension For Magento 2 Site
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