How to Estimate Magento Ecommerce Site Cost?
Magento is a popular, open-source ecommerce platform with more than 185,679 live websites.
The platform supports SMBs and large-scale businesses like Nike and Ford.
Magento pricing depends on specific business requirements and size.
You have to consider points like Magento edition, development, and hosting.
We will cover how to calculate the Magento ecommerce website cost for your business.
Cost Based on Magento Edition
The Magento platform comes in three main editions.
- Open Source - formerly known as Community edition
- Adobe Commerce - formerly known as Enterprise
- Adobe Commerce Cloud
1. Open Source - Free Magento Edition
Magento Open Source is free to install. You will have to pay for hosting, domain, and security.
You can improve site functions by adding plugins. A highly customized site will add development costs.
2. Adobe Commerce - Paid Magento Edition
The Commerce edition is more suited to enterprise-sized businesses. It offers more advanced functions and a Magento license for the software.
Adobe Commerce's pricing plan is based on a tiered model. It ranges from the store’s GMV (gross merchandise value).
|Gross Sales Revenue||Adobe Commerce Pricing||Adobe Commerce Cloud Pricing*|
|Less than $1 Million||$22,000||$40,000|
|$1 Million to $5 Million||$32,000||$55,000|
|$5 Million - $ 10 Million||$49,000||$80,000|
|$10 Million to $25 Million||$75,000||$120,000|
|More than $25 Million||$125,000||$190,000|
Cost Range Based on Ecommerce Business Size
1. Basic Magento Site
Magento offers a high-quality, stable, and flexible ecommerce platform.
SMBs can use a basic site that has all the essential ecommerce features.
The basic site costs start from $1000 as a small business and increase to $40,000.
It won’t have advanced built-in features when you install the software. Magento is open-source, and you can add any features you’d like using third–party plugins.
A generic Magento website will include the following-
- Basic Magento Community features.
- Simple Design Or Theme
- Payment and checkout Integrations
- SEO features
- Mobile optimized
- Instant purchase
- Site search
2. Custom Magento Site
An established retailer can opt for a custom Magento site. It allows you to create on-brand ecommerce solutions.
A custom site requires more web development. You can create personalized channels for your customers.
The overall cost ranges from $40,000 to $100,000 based on your requirements.
You get advanced features like:
- Custom design and theme
- Integration With Back Office Systems
- Custom Attributes for Products
- Customer Group
- Drag and drop CMS
- Migrations To Host
- More extensions
- Customer loyalty tools
- Promotional tools
3. Enterprise Magento Site
An enterprise Magento site is suitable for large-scale companies. It includes advanced native features to manage the site.
You can handle large sales orders across channels. It lets you customize multiple storefronts globally.
Moving to Magento Enterprise will cost you $100,000+
The platform offers native features like:
- Full Page Caching
- Large SKUs
- Hosted By Adobe Commerce
- Security and compliance
- CDN by Fastly
- Technical support
- Customer Segmentation
- Targeted Promotions
- Custom Coupons
- Business Intelligence
- Added Shipping Providers
Factors Affecting Magento Site Pricing
1. Magento Website Development
You get three options for Magento web development. Hire a web development agency or freelancer. You can also use your in-house dev team.
a) Development Agency -The costs range from $25 – $200/hr.
You’ll get an experienced team of developers for the high price end. Check their portfolio to see if the projects match your requirements.
Learn how to find the best Magento agency in this guide.
b) Freelance - Cost ranges from $10 – $200/hr.
A freelancer is less expensive than established agencies.
You can directly communicate with the developer.
The costs for freelance developers vary based on location -
- South-East Asia: $10 – $20/hr
- Eastern Europe: $20 – $60/hr
- US, UK, and Western Europe: $150 – $200/hr
c) In-house Development Team -$60, 000 – $120,000 per year.
Mid-sized and large ecommerce stores prefer in-house teams. It lets you keep up with the rapid store-level changes.
If you hire a junior developer, the price ranges from $60,000 – $80,000 per year.
An experienced developer would cost $120,000 a year.
An in-house team offers a permanent staff focused on your ecommerce stores.
2. Themes and Web Design
You can get pre-built Magento themes that cost $10 - $399. The average cost is around $100 for a suitable theme.
Many companies start with a simple base theme. Later, they might hire a frontend developer to modify the theme.
For a highly customized theme, the web designer costs range from $600 - $15,000. It depends on which designer and web developer you hire.
A custom theme would typically cost $3000 for a mid-size store.
3. Magento Extensions
Magento plugins help enhance store functions and boost sales.
The cost ranges from $10 to $500, and you can get them from Magento Marketplace. There are also thousands of free plugins available.
The popular extensions include:
- SEO Toolkit for Magento 2 -$ 299
- Instant Search -Free to use
- Advanced Reports -$ 499
- Google reCaptcha -Free
- Special Promotions Pro -$ 319
Ensure that the plugin is compatible with your Magento system. You can also build extensions from scratch.
The plugin cost will depend on the Magento development agency.
4. Site Domain
You have to consider the cost of your domain. It is the URL for your online store and is essential for brand identity.
A new domain will cost between $10 and $20 per year.
It depends on the domain name’s popularity and the registrar you use.
The price of expired domains varies between $20 – $500.
5. SSL Certificate
You will require an SSL (Secure Sockets Layer) certificate. It is used to verify your site and keep customer data secure.
The average annual cost varies from $0– $300, depending on the certificate levels.
You can also get free SSL certificates from third-party providers.
6. Magento Hosting
The Adobe Commerce Cloud edition will offer built-in cloud hosting.
The Open Source and Commerce editions require hosting services.
It is recommended to opt for Managed Magento hosting. That way, all server-related tasks are managed by Magento experts.
Along with the server, you get services like:
- Managed Migration.
- Server-side security patches.
- Performance and uptime.
- Cache management.
- Continuous monitoring.
- Database management.
- Technical support.
- SSL certificates.
There are many hosting types available like cloud, dedicated, or shared.
The Magento hosting price will depend on different hosting providers.
Average costs range from $15 - $300/month. It can go higher if you opt for multi-servers for a large online business.
7. Magento Store Maintenance
Magento stores require fixes and routine maintenance. It ensures your site is running optimally and is secure.
It includes tasks such as:
- Optimizing the site
- Troubleshoot issues
- Add new features.
- Manage custom fields.
- Application updates
- Security patches
You can hire site admins, and the price ranges from $80 – $125/hr.
8. SEO & Digital Promotion
SEO helps you rank high on Google and get more click-through rates.
Research shows that moving up one spot in SERPs will increase CTR by 30.8%.
You can either hire an agency or a freelance SEO specialist.
Promotion and SEO services often cost between $5,000 - $40,000 per year on average. The experts help get your site ranked in the top ten search engine results.
Magento SEO services include:
- Site Audits
- Page Speed Optimization
- Google Analytics
- Keyword Research
- Competitor Analysis
- Optimizing product pages
9. Payment Provider
The payment providers include transaction fees for the store. It can usually cost between 2% and 4% per transaction.
Popular eCommerce payment solutions are Stripe, Authorize. net, and PayPal. Some gateways also require an installation cost.
Magento Open Source edition does not include support. You have to outsource technical support from third-party Magento experts.
The support costs vary from $5,000 – $30,000/yr based on your store size.
Adobe Commerce and Cloud editions offer native support. You create a ticket for technical issues and get remote support.
The response time is long and limited to the Magento functions.
You may have to get a team to handle plugins, systems, and upgrade issues.
With different pricing options, Magento can fit the budget of any retailer.
For SMBs, going for a basic site and using the Open Source edition is more cost-effective. You can create a well functioning ecommerce site with $ 1000.
To get a rough cost estimate, you have to consider your site’s requirements. It includes development, hosting, plugins, support, and more.
Get more insights on Magento with the MGT-Commerce blog.