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    Magento Pricing: How Much Does It Cost To Create An Online Store?

    Last Updated | January 12, 2023

    Magento is one of the most widely used e-commerce platforms today. It is an open-source eCommerce platform with built-in PHP. In 2015, Magento 2.0, a new version of Magento with some significant updates, attracted an even larger number of users to the platform.

    Building and growing an eCommerce business relies on the investments a business owner is willing to make. Therefore, knowing the investment you need to make in Magento development is vital.  For many business owners determining and understanding the exact Magento Development cost can be difficult. Therefore, this article will discuss the cost of running an eCommerce store on Magento and the various Magento Development Pricing determinants.

    Magento development

    What are the best Magento Pricing Plans for Businesses?

    Magento offers three editions for you to choose from. The basic price plan is free, the enterprise edition costs around $22.000 per annum, and the cloud version costs $2000 per annum without the hosting services.

    To explain this further, let us choose the Enterprise edition of Magento. The Magento development cost of this plan starts around $22,000 per annum and can increase depending on the plugins and extensions the owner installs. If you decide to use an open-source eCommerce platform, you should be prepared to invest heavily in plugins and extensions to enhance your store’s functionality.

    Read Also Shopify Singapore Pricing

    Types of the Magento Edition

    Currently, Magento offers three editions. The pricing for each tier is as follows:

    1. Magento Open Source (formerly known as Magento Community)
    2. Magento Commerce (formerly known as Magento Enterprise)
    3. Magento Commerce Cloud

    The names of these editions are changed by Magento yearly. Depending on the edition you choose, the Magento Development Pricing of the final edition may vary. The following section discusses each version based on security, functionality, and performance.

    Magento Community Edition

    The Magento Community Edition is a free-of-cost edition targeting small and medium-sized businesses and developers. Although this version is available for free installation, the user would have to choose and pay for the hosting services for the web store. In addition, the user also has to bear the costs for other features, such as coding, configuration, domain name, web hosting, etc. To further improve the functionality of your web store, the platform offers a Magento extensions marketplace – Magento Connect. The Community Edition also allows you to use web servers API to integrate various databases. A few other significant features of Magento have been discussed below.

    Security

    Being an online business, cyber security is necessary to protect your data and the data of your customers. Having said that, one of the setbacks of choosing Magento Community Edition is that it is not PCI Compliant. Therefore, to improve the security of your ecommerce store, you would need to bear additional costs.

    Magento integration

    Performance

    Performance mostly depends upon the number of extensions and apps you have installed and integrated with your web store. Having numerous extensions does slow down the performance of your store.

    Functionality

    The Magento Community Edition, although free to install, requires you to take support from extensions available on Magento Connect. This lets you leverage the platform’s benefits but increases the Magento development cost of implementing and maintaining your store.

    • Code-level access provided
    • Web service API provided
    • Mobile HTML Theme Pre-Integrated
    • Shipping rules, payment configurations and gateways
    • Flexible Coupling and promotions
    • Order management
    • Extension community
    • Template customization
    • Multiple stores
    • Persistent shopping cart
    • Layered navigation

    Magento Enterprise Edition

    Right after the Magento Community Edition comes the Magento Enterprise Edition. It is a subscription-based model and provides users with more features than the Community Edition.

    Security

    The Magento Enterprise Edition provides its users better and more robust security than the Community Edition. It offers security features in compliance with PA-DSS ( Payment Application Data Security Standard) to protect customers’ sensitive information.

    Performance

    The paid version of Magento tends to be much faster than the free version. The performance of the Magento Enterprise Edition is much faster than the Magento Community Edition.

    Functionality

    The Enterprise Edition offers more advanced features than the Community Edition. These features include:

    • Lower advertising rates
    • Enhanced catalog and content management system
    • Call center software with assisted shopping
    • Merging and rollback of content
    • Audience targeted offerings
    • Price and promotion permission
    • Technical support by the Magento team
    • Large product assortment management
    • Full-page caching to improve the speed
    • Enhanced tax calculation
    • Faster checkout flow
    • Advanced administrator roles, logging, and site access rights
    • Customer attributes management
    • Built-in security
    • Solr Search

    Magento Commerce Cloud Edition

    Magento Commerce Cloud is the highest costing price plan of Magento. Being the most expensive, it offers more features than the other two editions. It offers better security, performance, and functionality than the other two editions. A few features, in addition to the Community and Enterprise Edition features, have been listed below.

    • Page Builder
    • Product recommendations
    • Customer segmentation and personalization
    • Content staging and preview
    • Instant Purchase
    • Merchandising
    • Mobile commerce
    • B2B eCommerce
    • PWA studio
    • Global expansion
    • Sales and ad channels
    • ERP integration
    • Business intelligence
    • Shipping
    • Inventory Management
    • Order Management and Customer service
    • Open and customizable
    • Cloud deployment
    • Security
    • Performance and sale
    • APIs
    • Marketplace

    Magento Migration

    Magento Pricing Plans for the Community Edition

    Although the Magento Community Edition is free to download, users must pay to use other features. A primary Magento web store with standard functions, a free theme, and no integrations with any external system costs around $15,000 per annum. Since you would have to pay for features, such as hosting, themes, etc., these additional costs have been discussed below to give you a rough idea about how much you would be required to spend on this edition.

    Hosting

    Hosting service charges depend upon the service provider and the type o hosting you choose. Costs of unmanned hosting services usually start from about $10 and can go up to $250 per month, whereas managed hosting services can cost around $190 per month.

    Themes

    The platform provides a few free themes with very basic functionalities and performance. If you want to create a unique brand identity and customer experience, It is recommended to use premium or customized themes available on the Magento Market place. Typically, these themes cost between $29 to $499.

    Extensions

    Since the Community Edition offers limited features, you would have to install extensions, to improve the functionality of your store. You can download as many extensions as your business requires. Magento offers more than 5000 extensions, some of which are free to install. The price for these extensions varies based on the features and development agencies. Usually, extension costs start as low as $50.

    Development Costs

    Magento is quite a complex platform to use. A platform like Magento requires advanced programming skills and a thorough understanding of the technicalities of this platform. It would be very challenging for someone with little or no technical knowledge to run Magento independently. Thus, professional help is required for optimally managing your web store, costing around $125 per hour.

    Maintenance and Support

    Launching a web store is not the end of the story. You have to continue to maintain the standard of your web store. This includes regular updates on security, design, etc. You can choose to do this on your own or hire professional help. Hiring professional help would add to he cost of development.

    Magento development

    Magento Pricing Plans for the Enterprise Edition

    The Magento Enterprise Edition is fully supported by the Magento team, unlike the Community Edition. Subscribers receive full customer support via phone and email. The annual subscription fee for the Magento Enterprise edition costs at least $18,000 annually. It is a better option for medium-sized businesses. Features like hosting, themes, and extensions cost the same as the community edition.

    Magento Pricing Plans for Commerce Cloud Edition

    The Magento Commerce Cloud edition provides more advanced functions than the other editions. It is preferred by large businesses that have a more significant turnover. The Magento Development Cost of using the Cloud Edition depends upon the revenue generated by the business. For a business owner who earns over $25,000,000 annually, the license cost starts from $22,000 and can go up to $190,000 annually. Hosting services on the Magento Commerce Cloud Edition start from $500 per month. The hosting services charges are already included in the license as the Commerce Cloud Edition is hosted on the cloud.

    Magento vs Shopify: Pricing

    Shopify is another well-known eCommerce platform that provides you with all the tools you need to grow your business. It is a fully -hosted platform, which means Shopify will provide you with hosting services, unlike Magento. Furthermore, Shopify offers its users three simple, easy-to-understand pricing plans with monthly subscriptions. They are:

    • Basic Shopify at $29 per month
    • Shopify at $79 per month
    • Advanced Shopify at $299 per month

    Comparing these prices to Magento, you can see that these price plans are economical for small and medium-sized business owners. Shopify is a simpler platform than Magento, which does not require professional technical help. Shopify also provides most of the features required in running and maintaining a web store.

    Magento Vs WooCommerce: Pricing

    WooCommerce is a plugin for WordPress that is free to install but you have to pay for the hosting services.  Whereas, the Community Edition of Magento is self-hosted, but the other premium editions include the hosting services. Like Magento, WooCommerce needs plugins installed, some of which have annual subscriptions. The cost of web hosting services depends upon the agency you choose. The pricing for WooCommerce varies with every web store since it depends upon the requirements of each business owner.

    Magento integration

    Final Thoughts:

    A primary web store based on Magento requires around $22,000-$50,000. However, it can be much cheaper than this if you decide to set up a very basic store with very few extensions. Magento development pricing depends upon the following factors:

    • The edition
    • Hosting service
    • The level of customization of your web store
    • Themes and extensions installed
    • Development options

    At the end of the day, It is your business decisions that reflect your Magento Development Cost.

    Next Steps: Getting Started with Magento

    Once you have selected the right edition for yourself, install the Magento plugin, add some customizations, Install extensions from Magento Connect, and voila! Your Magento web store is ready and fully functional.

    FAQs:

    How much does the Magento SSL certificate cost?

    The Secure Sockets Layer (SSL) is a type of security that protects your visitors and your website from hackers. It encrypts all data being transferred. Your host provider provides the SSL certificate. The SSL certificate is included in the Premium and Commerce Cloud Editions, and in the Community Edition, you would have to pay for it yourself. Charges vary with each service provider.

    What are Magento pricing options for Products?

    Setting up custom prices for Magento requires you to install an extension. However, with Magento 2, you can configure your settings and avail this option.

    How does the Magento pricing work for B2B?

    The prices for Magento B2B Development are:
    • Basic Magento B2B: $35,00-$8,500
    • Custom Magento B2B: $10,000-$15,000
    • Custom Magento B2B: $18,000-$150,0000

    How does the Magento pricing work for bulk?

    For bulk pricing on Magento, you would need to install extensions that deal with bulk pricing from Magento Connect.

    How does the Magento pricing work for domains?

    The user pays for the domain name themselves. The Magento pricing for the domain name depends upon the domain name the user decided to purchase. A new domain name can cost around $15 per year, but Top Level Domains (TLD) tend to be much more expensive than other domain names.

    Has Magento pricing changed by Magento?

    Magento does review the price plans every year. Which means they may change their prices yearly.

    What are the Magento pricing templates?

    There are three Magento pricing plans available for development. The Community, Enterprise and Commerce Cloud Editions. The pricing varies with the number of extensions you install to increase your store’s functionality.

    What is the average cost to hire a custom Shopify app developer in the USA?

    The average cost to hire a custom Shopify app developer in the USA may vary greatly depending upon various factors,, including the store’s size and the level of customization required. Generally, a custom Shopify app developer in the USA may cost stores around $5000 to $20,000 for a professionally developed customized store.

    However, for even larger stores with higher customization requirements, the cost may range from $50,000 to $100,000 or more.


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    About

    Folio3, a Software Powerhouse established in 2005, is one of the leading eCommerce solution providers for SMBs and Fortune 500. The Company has expertise in diverse industries such as Animal Care, Retail, Automotive, Food and Agriculture, and Health care. From ecommerce store design and development to full-scale ERP deployment and integration, Folio3 has done it all.