Magento Pricing: How Much Does It Cost To Create An Online Store?
Last Updated | October 30, 2023
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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.ย 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.
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.
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Types of the Magento Edition
Currently, Magento offers three editions. The pricing for each tier is as follows:
- Magento Open Source (formerly known as Magento Community)
- Magento Commerce (formerly known as Magento Enterprise)
- 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.
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
