Magento Pricing: What Will Be the Development Cost for Your Store

Thinking about starting an online store? Magento is a great platform to build up your store. It’s an open-source and extendable platform ideal for setting up and scaling all major forms of ecommerce.

And the numbers speak in its favor, as the platform already has around 151,554 active installations. Some of the big names, such as Nike, Ford, Vizio, BVLGARI, and K-Swiss, use it for their ecommerce activities. Even then, there can be confusion about pricing when it comes to setting up a new Magento store.

Nothing to worry though. In this article, I’ll thoroughly cover everything about setting up a new Magento store from scratch. Once you are done, you’ll have a fair idea of the costs, and your guesswork will go down to almost zero.

Ready? Let’s GO!

Why Choose Magento for Your Ecommerce Store?

With so many ecommerce options available, why choose Magento ecommerce? Well, here are a few reasons why:

• High Performance: Magento is explicitly designed for high-performing ecommerce stores and ensures optimal speed and functionality.
• Open Source Community: As an open-source platform, Magento benefits from a dedicated community of enthusiasts contributing to its development and providing support.
• SEO Friendly: Magento is exceptionally SEO friendly, with numerous third-party tools available to help improve your search engine rankings.
• Abundance of Themes: Choose from a wide range of themes to customize the look and feel of your online store according to your brand and preferences.
• Seamless User Experience: Magento prioritizes user experience, resulting in fast and secure online stores that enhance customer satisfaction.

Additionally, one of the standout features of Magento is its intuitive backend interface. Monitoring and managing your store’s performance is effortless, as everything is laid out. You can easily track your store’s real-time performance without any hassle.

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Estimated Cost Based on Magento Edition

Magento comes in two major variants. When considering Magento for your new store, it’s important to understand the cost implications of each edition. Here’s a breakdown:

• Magento Community Edition (Estimated starting cost $15,000±): Free to download and install, it allows low-cost store creation for those with development skills. Additional expenses include domain, hosting, themes, and extensions. Professional assistance for a fully-fledged business store can increase the cost to around $15,000±. Developer support is recommended for managing a Magento store without technical expertise.
• Magento Enterprise Edition (Estimated starting cost $30,000±): With Adobe support and enhanced features, a developer’s assistance is still necessary for store creation and setup. The edition begins at $22,000, while Magento Commerce Cloud starts at $40,000. In total, the project cost ranges from $30,000 to $50,000.

Understanding the cost structure of Magento editions will help you make an informed decision for your store, whether you choose the community or enterprise edition.

Magento Pricing Plan for Community Edition

Here’s a summarized breakdown of the costs associated with setting up a Magento store. More detailed information on each cost will be discussed later in the article. Please refer to the table below for an overview of Magento pricing.

Note: Estimates provided are conservative, and actual price ranges may vary considerably. The descriptions below will provide more accurate estimates.

Magento Cost for Website Development

The initial process starts with Magento store development. And unless you are a developer, you’ll have 3 options – hire a web development agency, a freelancer, or use your in-house dev team. Each option has its pros and cons.

Let’s see how much each option will cost you.

Magento Fee by Web Development Agency (Starting from $25 – $200/hr)

Hiring a Magento web development agency is the costliest of the three options.

However, you benefit from high-quality work and professionalism. Additionally, agencies often offer ongoing consultation and maintenance services. Before selecting an agency, reviewing their portfolio and inquiring about their developers’ expertise is crucial.

Magento Fee by Freelancer (Starting from $15 – $150/hr)

Hiring a freelancer is a slightly cheaper option.

While you may miss out on some agency luxuries, such as an account manager, freelancers provide direct and faster communication. It’s important to carefully select a freelancer based on their portfolio and reviews. Here’s an estimated Magento pricing plan for freelancers:

• South-East Asia: $10 – $20 per hour
• Eastern Europe: $20 – $60 per hour
• US, UK, and Western Europe: $150 – $200 per hour

Magento Cost for In-house Development Team (Starting from $60, 000 – $120,000/yr)

Many mid-sized and large ecommerce businesses prefer maintaining an in-house development team for greater control and quick turnaround times.

Depending on the experience, you can hire a Magento developer for a budget of about $75,000 – $150,000 per year. This amount equates to an hourly rate of approximately $50-75. While this option may be more cost-effective in the long run, it also provides other advantages.

Now that you have an understanding of development costs let’s explore the pricing of Magento themes.

Magento Themes Pricing (Starting from $0 – $200)

Choosing the right theme is crucial as it defines your store’s frontend visual and user experience. Your developer typically presents you with two options:

• Selecting a pre-built theme
• Building your own theme

Choose Pre-built Magento Themes

If you opt to purchase pre-built Magento themes, expect to spend anywhere from $0 to $200 or more. These prices vary based on factors such as functionality, layouts, and popularity.

Some examples of Magento Themes

When selecting a theme, it is essential to consider your specific requirements and budget. You should also evaluate the theme’s compatibility with your desired features and overall quality.

Build Your Own Theme

This is a classic case of “ You Get What You Pay For.” All you need is a team of front-end developers and a clear idea of what you want from the theme.

The cost of creating a custom-built Magento theme depends upon the requested feature set and the efforts required to translate your vision into a functional Magento theme. Building your own theme can cost you somewhere between $100-1000 depending on the rates of developer you hire and the hours they invest.

Magento Extensions Pricing (Starting from $50 – $500)

Extensions are standalone modules that extend your Magento platform’s functionality. Some extensions are available free of cost, while others could cost thousands of dollars.

Some premium extensions can cost you around $50 to $500. It all depends on your ecommerce business’ needs.

You can also have custom-built extensions for your store. However, that’ll cost you significant money.

Graphics and Brand Collateral Pricing (Starting from $10,000 – $18,000)

Creating a distinct brand image is essential for online stores to stand out from competitors. It involves developing a brand color scheme, logo, visual elements, and high-resolution images/videos to convert visitors into customers effectively.

To accomplish this, you will require the services of graphic experts, who typically charge $23 – $25 per hour (Source: Indeed). The cost will likely fall within the same price range if you need video editing and production.

In addition, a skilled copywriter may be needed to craft compelling landing pages and product descriptions. The cost for copywriting services typically ranges from $25 to $75 per hour, depending on the expertise and experience of the copywriter.

Domain for the Store (Starting from $10 – $500)

The domain name for your store plays a vital role as it represents your online presence and should be attractive and memorable.

You can acquire a domain name in two ways: Buy a brand-new one or get an expired domain. Both choices have their benefits and directly impact the Magento pricing for your online store.

Brand New Domains

Brand-new domains typically cost between $10 and $15 per year.

Benefits:

• You can have your unique brand name.
• You have complete control over the domain.
• There is no risk of inheriting bad backlinks, which can be a concern with expired domains.

Expired Domain

Expired domains can range in price from $20 to $500.

Benefits:

• The potential for quicker search engine rankings compared to a new domain.
• Existing quality backlinks can boost your store’s visibility on search engine result pages (SERPs).
• Faster indexing by search engines.

Consider your specific needs and goals when deciding between a brand-new or expired domain. Both options have advantages, and the choice will impact the overall cost and potential benefits for your Magento online store.

Magento Hosting Pricing (Starting from $40)

Once your store is ready and you have a domain name, it’s time to go live. You’ll need secure and reliable Magento hosting.

I’d recommend Cloudways, as it offers managed Magento hosting solutions with server management and top-notch security. They provide multiple cloud options like DigitalOcean, AWS, and GCE.

With Cloudways, you can focus on running your store without the hassle of hosting management and save on server manager expenses.

Here’s how you set up a Magento application on Cloudways.

Step 1: Launch a New Server

• Sign Up/Log in to Cloudways.
• Go to Servers > Click Launch Now.

Step 2: Select Your Magento Version

• Choose the latest Magento application with Elasticsearch.

Step 3: Name your Server, Application, and Project

• Give recognizable names to your server, application, and project.

Step 4: Select the Cloud Provider

• Here, you can select from the list of top cloud providers. For the purpose of this guide, I am going with DigitalOcean.

Step 5: Select Server Specifications

• Choose slightly higher server specifications than your current requirements. Consult Cloudways support or your Magento developer for assistance.

Step 6: Select Server Location

• Choose your desired server location from the drop-down menu (e.g., “London”).

Step 7: Launch the Server

• Review the estimated monthly and hourly costs.
• Click Launch Now.

That’s how simple it is!

You can also check the detailed Magento hosting price to pick suitable plans for your store.

Request Cloudways Product Demo With One of Our Expert

Magento SSL Cost ($8 – $600/yr)

SSL (Secure Sockets Layer) is a crucial layer of protection for your store, especially for ecommerce activities in Magento. By having SSL protection, your users’ information and passwords remain secure.

An SSL certificate typically costs $8 to $600, depending on the level of security it provides. Pricing may also vary based on the chosen provider. For more specific details, consult your hired developer or agency.

Magento SEO Pricing and Marketing Cost (Starting from $49,000/yr)

In the highly competitive ecommerce landscape, Google serves as the battleground. To excel on Google, elevating your Search Engine Optimization (SEO) strategies is crucial. Engaging the expertise of an SEO agency or freelance specialist typically costs around $49,000 per year (Source: PayScale).

Magento SEO experts offer a range of services, including:

• Website Audit
• Keyword Research
• Competitor Analysis
• Revise and Redo Product Pages
• Page Speed Optimization
• Google Analytics integration and reporting

Paid promotion options such as Google advertisements also play a significant role. Hiring an expert for this aspect can cost between $15-100/hour.

To streamline the process, consider hiring an agency that offers both SEO and SEM services. Alternatively, you can seek a freelancer with expertise in both areas, albeit at a higher hourly rate.

Magento Store Support and Maintenance Pricing (Starting from $80 – $125/hr)

The list of Magento Pricing is not over yet.

Alongside the ongoing operations of your Magento store, regular maintenance and fixes are necessary to ensure optimal performance. Budgeting for scheduled and on-demand maintenance is crucial.

Generally, maintenance includes the application of updates and security patches. The cost of these activities depends upon the scope, frequency, and expertise required for the job.

Usually, you hire an agency or a freelancer to maintain the store. This can cost you anywhere between $20-125/hour.

Wrapping Up

Honestly, we can’t provide an exact estimate to build a Magento store.

There are so many variables to cover. But, with the estimates provided above, you get the idea that it’ll cost you on the upside of $15,000. And the price will fluctuate depending on your functionalities, features, and choice of agency or freelancer.

But one thing is sure, with the right SEO and marketing strategy, you can have a successful Magento store and recover your costs back fast!