Determining the exact cost of running a Magento store is a legitimate question but not an easy task. Therefore, this article will provide a general breakdown of Magento fees by license, theme, hosting, extensions, development, operation, and maintenance. We’ll evaluate the key factors that affect the Magento price so you can budget your technology investment in advance. Please follow the article below of SmartOSC.
Elements that influence Magento prices
Store owners always want to get an accurate estimation of Magento eCommerce website costs. However, many aspects affect the total Magento fees, including:
- The amount of functionality and customization you’d like to have over the original core features and storefront design
- The number of integrations and their types: shipping providers, payment, or third-party solutions like product information management (PIM) and customer relationship management (CRM)
In the following parts, we’ll clarify the main elements of running a Magento website that you should take into consideration.
Magento pricing breakdown for development
| Magento Open Source | Magento Commerce | Magento Commerce Cloud | |
| Magento license cost | 0 | $22,000–125,000/year | $40,000–190,000/year |
| Hosting | $100–500/year | $500–6,500/year | 0 |
| Domain name | $10–400/year | $10–400/year | $10–400/year |
| SSL certificate | $50–300/year | $5–300/year | $50–300/year |
| Design | $0–5,000+ | $0–5,000+ | $0–5,000+ |
| Development | $1,800–10,000+ | $10,000+ | $10,000+ |
| Extensions | $60–600/extension | $60–600/extension | $60–600/extension |
| Payment providers fees | 2.9% + $0.30 per transaction | 2.9% + $0.30 per transaction | 2.9% + $0.30 per transaction |
| SEO & digital promotion | $10,000–40,000/year | $10,000–40,000/year | $10,000–40,000/year |
| Total Magento development fees | $12,000–57,000+ | $43,000–189,000+ | $60,000–247,000+ |
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1. Magento license cost
You probably already know about the 3 editions of the Magento platform. Let’s take a quick overview of Magento pricing model:
- Magento Open Source is free of charge.
- Magento Commerce and Magento Commerce Cloud (renamed to Adobe Commerce and Adobe Commerce Cloud since April 2021) offer exclusive built-in features and their codes are optimized by default. Thus, your annual sales will determine the Magento Commerce and Magento Commerce Cloud pricing policy as follow:
| Annual gross revenue | Annual Magento Commerce Pricing | Annual Magento Commerce Cloud Pricing |
| Less than $1,000,000 | $22,000 | $40,000 |
| $1,000,000–$5,000,000 | $32,000 | $55,000 |
| $5,000,000–$10,000,000 | $49,000 | $80,000 |
| $10,000,000–$25,000,000 | $75,000 | $120,000 |
| More than $25,000,000 | $125,000 | $190,000 |
2. Magento hosting cost ($10–50/month)
With the Magento Commerce Cloud version, you won’t have to bother about this cost as it already offers automated and managed hosting in the license.
However, it’s an important question for Magento Open Source and Magento Commerce users. They require special storage to operate efficiently and stably. There are many hosting types available such as cloud, dedicated, or shared. The Magento hosting price will depend on the performance and functionality required for your eCommerce website, averaging between $10–50/month.
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3. Cost of a domain name ($10–400/year)
You can buy an expired domain name or a brand new domain name or for your eCommerce business. Accordingly, the annual domain name prices will vary:
- For a brand new domain: $10–20 per year
- For expired domains: $20–400 per year
4. SSL certificate ($50–300/year)
You need to purchase and use a Secure Sockets Layer (SSL) certificate to enhance the reliability of a Magento website and ensure your information security. The average annual cost is $50–300.
5. Magento web design cost ($0–5,000+)
You have 2 options to design your Magento website:
- Apply a ready-made Magento theme
- Design a custom-made theme
The average eCommerce website design price for a Magento theme ranges between $0–180.
On the other hand, you’ll need to hire a website designer to create your own design.
- It takes Magento developers 40–160 hours to complete a custom-made theme.
- The minimum hourly rate is $40/hour, accounting for $5,000+ in total.
For the custom design implementations, it’s important to take note of the increasing customers’ mobile usage and revenue. Therefore, you should pay attention to making the website responsive on all kinds of devices, including tablets and smartphones for a mobile-friendly customer experience.
6. Magento 2 development cost ($1,800–10,000+)
On an eCommerce website, there are 5 most important pages that contribute to increasing customer retention and engagement for higher conversion rate:
- Homepage
- Category page
- Product page
- Shopping cart page
- Checkout page
Even if you use a free pre-made Magento theme, Magento developers usually have to spend at least 40 hours to adjust those main pages to suit the whole brand design, such as:
- Create a banner
- Change the color of text, icon, and buttons
- Move blocks
Thus, with the average hourly rate of a Magento developer of $50, the minimum website development cost will start at $1,800.
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7. Extensions ($60–600/extension)
The Magento eCommerce platform provides you with the basic functionality to run an online business. However, many Magento stores still use additional extensions for:
- Customer support features
- Improved layered navigation
- Advanced search
You can easily find and add these extensions from the Magento marketplace to your store.
Aside from some free extensions, most quality and advanced extensions will require a one-time fee. The average price of a Magento extension ranges from $60–600 depending on the type of features and the reputation of the extension provider.
8. Payment providers fees (2.9% + $0.30/transaction)
The most popular eCommerce payment solutions are Stripe, Authorize.net, and PayPal, which share 75.6% of global payment transactions. These payment service providers require no setup cost. However, the fee for a successful transaction starts from 2.9% plus $0.30. To make the most cost-effective choice for your business, you can research more to choose a suitable payment service provider.
9. SEO & digital promotion ($10,000–40,000/year)
Online business is highly competitive, which requires significant investment in website promotion and SEO to attract customers. Unless you are selling niche products and services, you can almost skip this point. Or else, it normally costs you between $10,000 and $40,000 per year on average for SEO and promotion services.
Understanding the scope of Magento support services
Magento is an extremely powerful system that delivers great website performance and expands your sales opportunities. However, to keep the website running well and safe all the time, it’s essential that you add new features, fix bugs, test periodically, and update regularly.
The 2 main purposes of website support services are to fix something or improve something. Basically, you can divide Magento’s website maintenance and support services into 2 categories:
- Extend the website functionalities
- Eliminate the existing errors and issues
Magento support services
As a free edition, Magento Open Source doesn’t provide support services. You can consider outsourcing Magento developers for comprehensive Magento development and support.
With Magento Commerce and Magento Commerce Cloud editions, you can submit a ticket for technical issues and receive remote support. However, their response time and scope are limited within Magento’s functionality. Thus, you may still need to have your own Magento development team to handle other issues related to third-party extensions, integrations, and custom logic for instant support.
The importance of continuous support and maintenance for your Magento site
Provide trouble-free business operation
Website downtime, unpredictable errors, and hacker attacks can happen anytime regardless of what eCommerce platform you’re using. Most software and extensions will require regular updates, while some even have an expiration date. These actions keep your eCommerce site up and running most efficiently. Your eCommerce website can’t stay fresh and modern without regular adjustments and updates.
To protect your website from these problems, you can hire professional Magento experts to provide services for:
- Renewal of domain names, certificates, and licenses
- Protection from potential threats
- Necessary daily and routine backups
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Catch up with the latest technology changes
Customer needs and eCommerce trends are always changing. Your eCommerce website can be modern at the moment, but in the long term, you’ll need frequent updates and adjustments to equip your online store with the latest technology.
You should keep up with the latest trends to predict these updates, and your website should be flexible to adapt to the transformations.
Thus, if the store owner wants to focus only on business strategy, you can hire a professional Magento team for system operation services. They have a deep understanding of the technical aspects of the issue and the industrial expertise to provide you with reliable support.
Maintain high security standards
Adapting the latest security solutions is crucial in providing high standards for your online store. Magento itself has regular version releases, which contain all the updated system requirements and enhanced functionality to adapt to these standards. Updating Magento versions and installing Magento security patches will greatly reduce hacker attacks and data breaches.
Magento pricing breakdown for outsourcing support and maintenance services
*Based on the hourly rate of a Magento specialist starting at $60
| Magento Open Source | Magento Commerce and Magento Commerce Cloud | |
| Website monitoring and audit | $4,500/year | $5,500/year |
| Magento update and security patch installation | $1,000+/year | $1,000+/year |
| Extensions update | $500+/year | $500+/year |
| Migration and replatforming | $8,000+ | $15,000+ |
| Magento performance optimization | $1,500+/year | $1,500+/year |
| New features development | $4,000+/year | $6,500+/year |
| Urgent support for Magento | $1,750+/year | $1,750+/year |
| Bug fixing | $1,000+/year | $1,000+/year |
| Total Magento cost for support and maintenance services | $22,250+/year | $32,750+/year |
Conclusion
There is no exact cost for Magento website development because of the many options that store owners can take when running a Magento store. Therefore, the Magento price list actually reflects how you want to achieve your business goals and your decisions as a store owner. In addition, the cost of developing a Magento website fluctuates greatly depending on different providers, based on reputation, experience, and services.
It’s important to choose reputable Magento product and service providers. In the long run, the growth of your eCommerce store is the common result of you and your trusted partners.
If you’re interested in connecting your Magento site with offline store, you can book a free consultation with us to explore our Magento-native POS solution. Together we can build with a business model and roadmap that fits your requirements.
Article source: https://www.smartosc.com/
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