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August 9, 2022 • by Victoria Koval

Magento Website Cost

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E-commerce development
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Magento (Adobe Commerce) is the leading eCommerce platform, and the question “How much a website on Magento will cost?” is always relevant for those who want to start their online business. In this article, we would like to discuss the Magento pricing process, look at the factors affecting the cost, and get a general idea of the website development cost using this platform.

 

 

 

What is the use of Magento for your business?

 

Magento is a content management system in PHP with the following features, benefits, and characteristics:

 

  • the ability to set various properties for the product;
  • administration panel allows you to manage a trading network of online stores on different domains, languages, with different product ranges;
  • work with tax rates at the level of the region, country or postal code, depending on the type of sale and product;
  • reports on sales, shopping carts, lists of marked goods, reviews, tags, and search;
  • support for various payment and delivery methods, including delivery to multiple addresses;

 

Magento currently offers two versions: Magento Open Source and Magento Commerce. Both versions have the same basic functionality, but Magento Commerce has a few extra features. In addition, Magento Commerce provides an automated version of Magento Commerce Cloud hosting designed for enterprise-level stores with high sales volumes.

 

 

Magento Website Cost: License

 

 

Magento Open Source

 

This version of Magento is available to install for free. However, you will have to pay for hosting and a domain name, as well as for any additional help in developing the site. After you install Magento Open Source, you get access to the following platform features:

 

  • the ability for your customers to set filters when searching for a product in accordance with their preferences; 
  • email templates optimized for mobile devices; 
  • Google Universal Analytics – a tool for analyzing consumer behavior.

 

 

Magento Commerce

 

The Magento Commerce (Magento Enterprise) version provides more functionality and is suitable for large commercial enterprises. The price is formed based on the gross income of the enterprise and is the base part of your Magento website cost.

 

Average Gross Sales Revenue    Magento Commerce Cost
less $1 000 000 $22 000/year
$1 000 000 – 5 000 000   $32 000/year 
$5 000 000 000–10 000 000 $49 000/year
$10 000 000–25 000 000 $75 000/year
$25 000 000  $125 000/year

 

Magento Commerce provides advanced functionality with tools to scale your business:

 

  • creating personalized promotions to increase website conversions;
  • built-in content management system (CMS) with drag and drop functionality;
  • the ability to create tools to increase customer loyalty, discount programs and other bonuses;
  • visual merchandising, systematization of goods in the catalog.

 

 

Magento Commerce Cloud

 

Like Magento Commerce, Magento Commerce Cloud is more suitable for large companies with high sales volume. The peculiarity of this version is that all data is stored in the cloud, not on the hard drive.

 

The license cost is calculated the same way as for Magento Commerce, but due to some additional features, Magento Commerce Cloud will be more expensive.

 

Average Gross Sales Revenue Magento Commerce Cloud Cost
less $1 000 000 $40 000/year
$1 000 000 – 5 000 000  $55 000/year
$5 000 000 000 – 10 000 000  $80 000/year
$10 000 000 – 25 000 000 $120 000/year
$25 000 000   $190 000/year  

 

The Magento Commerce Cloud edition provides the following additional features:

 

  • fast page loading;
  • performance monitoring, the ability to modify the site in real-time;
  • automatic updates.

 

 

Magento Website: Developments Cost

 

IT outsourcing company hourly rates vary depending on the level and experience of the developers who will be working on your project. A junior developer will cost  $25-35 per hour. The services of experienced website builders will cost from $65 to $150 per hour. 

 

Project preparation tasks take an average of 40 hours. This process includes installing and configuring local, staging, and production environments; setting up repositories, monitoring tools, localization, currency, etc., and initial eComm configuration. 

 

An important point in budgeting a Magento eCommerce site is the number of pages you need. It is important to consider that without a landing page, catalog pages, shopping cart, and checkout pages, your store will be almost ineffective. That is, the size of your Magento site will play a decisive role in the cost. 

 

 

  • Landing page creation includes page design, implementation of modules and templates, and cookie manager development and takes about 60 hours.

 

  • Implementation of the About Us page template and its design development takes about 25 hours.

 

  • Development of the Catalog page includes the implementation of the template and design, product details page, tags, and categories, and takes about 75 hours.

 

  • Approximately 13 hours will be required to implement a template for a Static page.

 

  • Designing, implementing a template for Shopping Cart pages, and configuring discount code options take about 23 hours.

 

  • To create a Checkout page, you will need to develop a design, implement a template, configure shipping and payment method options, implement a success page and email templates. Page development requires in general 55 hours.

 

  • Development of the User Profile page with the design implementation and templates for login and registration will take about 40 hours.

 

  • Approximately 55 hours will take the process of checking the code, optimizing performance and images, technical SEO optimization, integration of analytics with services, and marketing integration.

 

  • Quality assurance with manual testing, user acceptance testing, and load testing will take an average of 113 hours to complete.

 

  • The project management process – project planning, task definition and decomposition, coordination, communication with the team – requires about 100 hours.

 

 

Thus, the process of developing an eCommerce site will require an average of about 600 hours; the services of a junior website developer will cost $15,000 – $21,000, and a more experienced one $39,000 – $90,000.  

 

 

Magento Website: Additional Costs

 

In addition to license costs, there are several other aspects that you should definitely take into account when budgeting for the development of an eCommerce site on Magento.

 

 

Hosting

 

The hosting service includes the provision of resources for hosting site files on a server that has permanent access to the Internet. 

 

The cost of the service may vary depending on various factors, such as 

 

  • site size; 
  • the number of daily visits;
  • the amount of traffic at the time of the site’s peak load; 
  • the hosting functions necessary for the site owner. 

 

When choosing a hosting provider, it is important to check whether their features are compatible with Magento. To date, many providers provide services that are fully compatible with Magento. 

 

For example, web hosting company SiteGround offers several plans that integrate well with Magento.

 

SiteGround offers the following rates:

 

  • StartUp – $14.99 per month;
  • GrowBig – $24.99 per month;
  • GoGeek – $39.99 per month. 

 

SiteGround also supports WordPress command line management on all plans. In addition,  they are one of the few hosting providers that offer automatic Magento installation.

 

There are a number of basic hosting features that are most commonly encountered: disk space for storing emails, web files, images and databases, bandwidth and data transfer, email accounts, etc. 

 

For Magento, the cost of hosting will be $100 – $500 per year.

 

In the Magento Commerce Cloud version, the service is included in the license package.

 

 

Domain name

 

Domain is the URL of your site. The domain name should be memorable and unique. The cost of renting a domain name is based on its popularity, as well as the policy of the registrar. 

 

The cost of a domain for a Magento e-commerce site varies from $10 to $400 per year.

 

Plus, when you sign up with SiteGround, you can get a free SSL certificate for every SiteGround plan.

 

 

SSL Certificate

 

An SSL certificate is an electronic document placed on the site server for secure data exchange. If you have a certificate, all site visitors will be notified they are dealing with a secure data transmission channel. The security certificate prevents third parties from intercepting the personal data of site users: logins, passwords, phone numbers, and bank cards. The presence of an SSL certificate implies data encryption by converting them into a random character set, which can only be decrypted using a key stored on the server. 

 

The average cost of a certificate for a Magento eCommerce site ranges from $50 to $300 per year.

 

 

Magento extensions

 

Magento is the leading eCommerce platform and provides several vital features for the website owner to run an online business. However, in addition to the basic features, Magento offers a choice of over 3 000 additional extensions, both paid and free. The cost of paid extensions that can be included on your Magento website varies from $25 to $15 000.

 

 

Payment services commission

 

To accept payments from customers, you will have to use payment systems. 75.6% of global payment transactions come from systems such as Stripe, Authorize.net, and PayPal. The commission for one successful transaction varies from 2% to 4% of the transaction amount.

 

 

 

Magento website cost: technical support

Even when your Magento online store is completely ready, that’s not all. At this stage, it will need active support in case of updates, fixes, bugs, and in any case, when something goes wrong. 

 

Support service specialists will support your site and server, advising on Magento, updating the Magento license, installing and configuring modules, monitoring the server environment, and 24/7 support in case of emergency. The services of this type of specialist will cost about $40,000 per year.

 

 

Magento website cost: SEO & marketing

 

If you want the investment to pay off and your online business to start generating more and more income, it is essential to withstand the highest competition. 

 

eCommerce marketing accumulates methods and tools for finding and attracting new customers and subsequently increasing the conversion rate of your Magento website. 

 

As a rule, eCommerce marketing tools are applied on the Internet and include social media marketing and email marketing. Search engine optimization is worth highlighting. SEO is a set of tools for improving a site’s ranking in search engines. We highly recommend that you include marketing expenses when calculating your Magento website cost.

 

The main task of SEO is to ensure that your store is as high as possible in the search results for the necessary search queries. When working on store promotion, it is crucial to understand that high ranking is essential to achieve maximum user convenience: high download speed on any device; the minimum number of errors interfering with purchases, and convenience in choosing and ordering goods. 

 

Attracting customers will require significant investments in the marketing promotion of your store and its SEO optimization. High-quality SEO tools to track your positions and the quality of the website will cost from $5,000 to $10,000 per year.

 

 

The Magento project from scratch: IntexSoft case study 

 

Now we want to look at the example of developing a site on Magento. How many specialists will be needed to develop a real site and what difficulties may arise for them? 

 

IntexSoft took part in the development of a B2B online store from scratch based on the Magento platform for the sale of goods and services in the construction industry.

 

The task was to create an eCommerce platform that could be accessed only by partners and employees of the client company. 

 

A team of six IT specialists was assembled to work on this Magento project: 

 

  • project manager; 
  • business analyst; 
  • 2 backend developers; 
  • front-end developer; 
  • QA specialist.

 

Despite Magento website development, this project required service synchronization with two SAP systems. There is an exchange of information on goods, pricing, product balances, user addresses, orders, and delivery tracking numbers between the systems.

 

It was also vital to develop a flexible system for ordering goods and services for this type of business, since different users from different organizations had to use the store. 

 

When developing the Magento website, IntexSoft specialists set up access to the system for several types of users: 

 

  • Internal users: employees have access to the application with a single sign-on technology.
  • External users: the partners provide the company with direct customers. Such users are not company employees, although they can access the system using a single sign-on technology.
  • Bank users: employees of banks that give loans for real estate construction to direct customers. These users do not have access rights via a single sign-on technology, but are registered directly by entering an identification number (Steuer-ID). After validation, the system provides users with access.

 

As a result of the project, our team developed a system that determines which organization the user works for and issues an invoice to the corresponding company. In addition, when placing an order, the user can specify any delivery address. 

 

To ensure the safety of the project, specialists take the following measures: 

 

  • obfuscation method for GDPR compliance: if user data is to be removed from the system, it will be masked;
  • enabled user authentication using a single sign-on, ID number, or email verification; 
  • organization of the process of periodic updating of the Magento development environment;
  • support for accessing servers via SSH in accordance with the IP added to the white list. 

 

The development was based on Magento, JavaScript, PHP, CSS, and Docker technologies.

 

As a result, the IntexSoft team developed a B2B online store site on the Magento eCommerce platform for the sale of goods and services with a flexible user management system to ensure appropriate access to the system and determine the organization of a particular user.

 

 

Magento Website Cost: Frequently Asked Questions 

 

 

  • Free or paid?

 

Magento offers several versions. The Magento Open Source license is available for free. The cost of the Magento Commerce and Magento Commerce Cloud licenses will depend on the amount of your company’s average gross revenue.

 

 

  • How much does a site on Magento cost?

 

The cost depends on the type of Magento license, the experience of the website developers, the size of the website, and the number of pages. The additional services and extensions you need, and the ongoing maintenance of the site, should also be taken into account. The minimum cost of a Magento eCommerce site starts at $15,000 and up.

 

 

  • How does Magento pricing work?

 

The price of Magento includes the following costs: 

 

  • development costs; 
  • cost of design; 
  • the cost of extensions; 
  • the cost of hosting; 
  • the cost of support and maintenance.

 

 

  • How much does a Magento developer cost?

 

Depending on the experience, you can pay from $25 to $150 per hour. 

 

 

  • How long will it take to develop?

 

Online Magento store development can take 300 to 1000 hours. On average, this process takes 600 hours.

 

 

  • Are there alternatives to Magento?

 

Magento is one of the more popular e-commerce platforms when it comes to complex websites for large businesses. However, it is not the only platform for managing online stores. Widely used software, Shopify is known for its ease of use and will suit even newcomers to online business. 

 

 

Features of using Shopify: 

 

  • simple user interface; 
  • the presence of its own payment processing module: when using Shopify Payments, there is no transaction fee; 
  • the absence of any free version of the Shopify license; 
  • Shopify does not require you to provide your hosting, additional settings, or web development skills. At the same time, your store will be hosted on servers owned and controlled by Shopify; 
  • like Magento, Shopify has a variety of themes and templates to style your website, but Shopify has a much smaller selection of free ones.

 

 

Summarizing

 

Magento is a complete solution for both medium and large enterprises to manage and grow their business. There is no exact figure for determining the cost of creating an e-commerce website based on Magento. If your business is starting to develop, and it is enough for you to have a store with a basic set of functions, then you can turn to mid-level specialists and spend about $20,000 on website development. But if your business requires a complex and integrated approach of high-level specialists, the online store development will cost $40,000 and up. Also, keep in mind that there are many extra costs besides store development that you will most likely have to spend.

 

The main items of expenditure that you should consider: 

 

  • Magento license version: Magento Open Source, Magento Commerce, or Magento Commerce Cloud; 
  • the cost of development, the experience of website builders, and the time, they need to craft your site; 
  • additional expenses you need (hosting, domain name, SSL certificate, extensions, and payment fees); 
  • website technical support services; marketing and SEO promotion services. 

 

The cost of services varies with different providers, depending on reputation and experience. Store owners have many options when launching their site, and the final price list will fully reflect the decisions and goals you want to achieve as an online business owner. 

 

IntexSoft specialists have extensive experience in developing websites on Magento. We can also help your business with migration from Magento 1 to Magento 2, and from other CMS to Magento. Our eCommerce development team is always ready to help you in creating strong tools for growing your online business. Contact us for a free consultation.

Written by

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Victoria Koval

Marketing Manager

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