Magento is one of the most trusted eCommerce platforms, powering about 3 million websites worldwide. Facing some tough competition from the second-largest eCommerce platform Shopify, it was expected that it would lose its enormous market share. However, Magento statistics for 2021 show it didn’t affect its market value. In fact, it increased to 13% in 2020 from 9% in 2019.
Magento is an open-source technology and is ideal for setting up small to big eCommerce stores. It also gives scalability to the enterprises to bring reforms in their operations and continue to dominate their competition. It is the reason for which brands such as Nike, Ford, Coco-Cola, Olympus, etc., have trust in it.
If you are also looking forward to joining the league, read this blog to know about Magento pricing and what should be your ideal budget for building a Magento-powered eCommerce store.
Magento comes in two major variants:
- Community Edition:
The community edition of Magento is completely free; you just have to download and install it, then you can set up a Magento store. You have options available to customize the store as per your requirements.
- Enterprise Edition:
The paid edition of Magento, the enterprise edition, comes with tools and features needed to run a complex eCommerce store. Businesses with multiple stack-holders and a huge budget for technology go for. It is usually preferred by large enterprises. The starting price of Magento is $22,000.
Magento Pricing: Community Edition
Since the enterprise edition is paid, the Magento Community edition is very popular amongst people with less development budget. Based on the current Magento eCommerce pricing, here are various components that would give you an idea about Magento pricing to run an eCommerce store.
- Website development by Magento development company ($25/hr)
- Website development by freelancer ($10/hr)
- Magento development by the in-house team ($60,000/yr)
- Set up Magento themes ($0 – $200)
- Set up Magento Extensions ($50 – $500)
- Graphics and brand collateral ($10,000 – $18,000)
- Domain ($10 – $500)
- Hosting ($10 / month)
- SEO ($60,000 – $80,000/yr)
- Maintenance ($80 – $125 /hr)
- Support ($30,000 – $40,000/yr)
1. Cost for Magento Website Development
You can choose to hire a web development company or a freelancer and outsource the development work to them. With the advancement of technology, you don’t have to worry about communication. However, you must hire someone with knowledge and experience in Magento web development. Here is a comprehensive guide to hire a Magento development company.
Furthermore, you have an option to hire an in-house web development team. It is a bit expensive and takes a lot of energy to manage the operations. With each option having its pros and cons, here is a brief on all three options.
2. Web development agency Vs. Freelancers Vs. In-house team
Hiring a web development agency is thought to be the costliest of all three options. However, it is just the price tag; high quality and professionalism, and faster turnaround time cannot be ignored.
Then hiring a freelancer is a cheaper option, and there is a good chance that you would not be disappointed. But working with a freelancer has its own cons; you don’t have a clear understanding of their knowledge, reputation, and skillsets. Communication is very seamless.
Freelancers in south-east Asia ($10 – $20/hr) charge is much less than the freelancer in the US, UK, and Western Europe ($150 – $200/hr).
Mid-sized and large eCommerce businesses prefer in-house development teams; it allows them to manage rapidly growing demands of the enterprises and to keep up with the store-level improvements and changes.
If you hire a junior developer with less than a year of experience, you will need a budget of at least $60,000 – $80,000 per year. The cost of developers increases two times per year of experience for an experienced developer.
3. Magento Themes ($0 – $200)
You can go for a customized theme or choose pre-built Magento themes.
- Choose a pre-built Magento theme
You can buy a pre-built Magento themefrom the store
There are free and paid themes available. If you are going for a pre-built theme, stay prepared to pay anywhere from $0 – $200 and more.
As a new company, you can start from a basic theme and then hire a frontend developer for customization. Customizing would help you make the websites as good as any other website; however, you might have to pay up to $50,000 – $60 000 per year.
A custom-built theme’s cost depends on the features, functionalities, and other efforts required to develop a customized Magento theme.
4. Magento Extensions ($50 – $500)
Some extensions are available for free, while others can cost thousands of dollars. Connect with a developer before finalizing and purchasing any extension; they would help you verify version compatibility and the possibility of existing extensions.
There is always a chance that an extension can cause an error and impact the experience on the website. We recommend you choose the extension that is very important for you to stay within the budget. Magento extensions are expensive and can cost you around $50 to $500.
Also, building extensions from scratch are expensive and also would take a lot of time. You might need to hire developers with an expert level of Magento knowledge to pull something off like that. You can also integrate pre-built Magento actions; here are some amazing Magento 2 extensions you can choose for your site.
5. Graphic and Brand Collaterals ($10,000 – $18,000)
Branding helps you differentiate your store from the competition. It includes a brand color scheme, logo, and other visual elements. Similarly, in the age of visual media, you need high-resolution product images and videos to help attract visitors and engage them to make a purchase. For all this, you would require to engage a graphic artist; generally, they charge $23 – $25.
6. Product Images
Ecommerce success depends a lot on the product images. It is crucial that you use images of good quality to allow people to see every detail of the things you sell on the platform. It would help you increase your sales, and as a result, you would see a higher return on investment. Also, make sure you optimize the images to not affect the performance of the site.
7. Domain for the store ($10 – $500)
A domain name is very important for your store. You must make sure it contains your company name. You can buy a brand-new domain name, or you can buy an expired domain name.
A brand-new domain name costs you from $10 – $15 per year, and an expired domain price may vary between $20 – $500.
8. Magento Hosting
Once you have chosen a theme, extension, domain name for your store, you are ready to host your website. It is one of the most critical decisions of all time. You have to focus on scalability and flexibility. You must keep your long-term and short-term goals in mind and the challenges in server management and security. Therefore, you can go for managed Magento hosting solutions and take care of server management and security.
Managed Magento hosting gives you more scalability in the server resources; you can upgrade it anytime you feel the current system is not efficient to handle your growing needs. There are many hosting solutions providers such as AWS, GCE, Cloud, DigitalOcean, Vultr, and Linode to manage the hosting within your budget.
9. Search Engine Optimization ($60,000 – $80,000/yr)
Search Engine Optimization helps you in beating your competition. Optimizing your site for Google and other search engines helps you gain visibility online. You can hire a freelance SEO specialist with a good track record in marketing for Magento sites. It can cost you around $44,000. That includes:
- Website Audit
- Keyword Research
- Competitor Analysis
- Revise and Redo Product Pages
- Page speed optimization
- Google Analytics integration and reporting
Related Reading: Magento 2 SEO Tips To Enhance Visibility Of Your Online Store
10. Maintenance ($80 – $150 / hr)
Your Magento website is built and hosted; as time flies away, you must regularly maintain it and fix the bugs to ensure smooth performance of the site. Maintenance contributes to stabilizing and preventing potential issues from disrupting store operations. Maintenance includes application updates and security patches. The cost depends on the scope, frequency, and expertise of the job.
11. Support ($30,000 – $40,000/yr)
Lastly, the customer support that you require to attend to the customer queries. With the diverse area with mail, call and chat support and activities, a Magento customer support system is going to cost you $40,000 per year.
Magento is one of the most trusted eCommerce platforms, but it all depends on your needs. This blog would give you some idea about the budget required to set up an eCommerce store. You can easily customize your store on the go as your business grows. There are many extensions available on Magento to help you improve the flexibility and scalability of your site.