Last Updated | February 17, 2021
From the numerous ecommerce platforms available on the market, one of the most well-known platforms is Magento. It is an open-source ecommerce platform, written in PHP, released in 2008. In 2015, Magento 2.0 took the world by storm bringing with it some major and some minor updates to the previous version. Starting up an ecommerce business depends upon the investment a business owner is willing to make. However, determining the precise Magento Development Cost can prove challenging. Therefore, in this article we will discuss the cost of running an ecommerce store on Magento and the various Magento Development Pricing determinants.
How much does Magento Development Cost?
Estimating the implementation and maintaining costs of Magento is not that easy, as it depends on a lot of different factors. However, a rough idea can be provided. Magento offers various price plans, from which you can choose the best-suited plan for your business.
The Magneto Development Pricing Plans Explained
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 significantly depending on the plugins and extensions you decide to install. If you decide to use an open-source ecommerce platform, you should be prepared to splurge on plugins and extensions to increase your store’s functionality.
Types of the Magento Edition
Currently, Magento offers three editions. The pricing for each tier are 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. In this section, we discuss each version in terms of 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 installing free of cost, there are other charges to be paid by the user. Being an open-source platform means that the user would have to choose and pay for the hosting services for the web store. In addition to the hosting services, the user also has to bear the costs for other features, such as coding, configuration, domain name, web hosting, etc. To add more functionality to your web store, you can use Magento Connect, the Magento extensions marketplace. In the Community Edition, you can even use web servers API to integrate with various databases. A few other features of Magento have been discussed below.
Since you are running an online store, you would have to ensure the security of your customers, as they would be sharing their details with you, including their credit card details. Thus, security should be a top priority. The problem with the Magento Community Edition is that it is not PCI Compliant. This means that you would have to spend a little extra on the security aspect of your store.
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.
The Magento Community Edition, although free to install, requires you to take support from extensions available through Magento Connect. This lets you be totally in charge of your web store, but it increases the magento development cost in terms of implementing and maintaining your store.
The basic features of the Magento Community Edition are:
- 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 not free to download, and it comes with a subscription fee. It provides its users with more features than the Community Edition.
The Magento Enterprise Edition provides its users with better and powerful security features than the Community Edition. It offers the security feature of PA-DSS, for the security of your customers.
The bitter truth is that the paid version tends to be much faster than the free version. The performance of the Magento Enterprise Edition is much faster than the Magento Community Edition.
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 Magento team
- Manage a large number of products easily
- Full-page caching to improve speed
- Enhanced tax calculation
- Faster checkout flow
- Advanced administrator roles, logging and site access rights
- Manage customer attributes quickly and easily
- Built-in security
- Solr Search
Magento Commerce Cloud
Magento Commerce Cloud is the most expensive price plan for 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 of the 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
- Mobile commerce
- B2B ecommerce
- PWA studio
- Global expansion
- Sales and ad channels
- ERP integration
- Business intelligence
- Inventory Management
- Order Management and Customer service
- Open and customizable
- Cloud deployment
- Security and trust
- Performance and sale
The Pricing Plan for the Magento Community Edition
Although the Magento Community Edition is free to download, the user has to pay for using other features. Having a basic 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 would you be required to spend on this edition.
Hosting service charges depends upon the service provider you choose, and also on the type of 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.
There are a few free theme options available for you to choose from, but these free options tend to be very simple and basic. If you would want to customize your store and create a unique experience for your customers, you must look into premium themes or custom made themes. These types of themes are available on the Magento Market place for you to purchase. Typically, these themes cost between $29 to $499.
Since the Community Edition offers very basic and limited features, you would have to install extensions, to get more functionality for your web store. You can download as many extensions as you want, depending upon the requirements of your business. Magento offers more than 5000 extensions, out of which some are even free to install. The price for these extensions depends upon the developers of the extensions, and also the type of extensions. Usually, extensions cost start as low as $50.
Magento is not a simple platform to use; it is quite sophisticated. A complicated program like Magento requires good programming skills and a thorough understanding of the technicalities of this platform. It would be a very difficult task for somebody with no or little technical knowledge, to run Magento on their own. Thus, professional help is required in optimally running your web store, which comes with a price tag of around $125 per hour.
Maintenance and Support
Launching a web store is just not the end of the story. You have to continue to maintain the standard of your web store. This includes regular updates regarding security, design, etc. You can choose to do this on your own or hire professional help. Hiring professional help would mean that you would have to splurge.
The Pricing Plan for the Magento 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 Magento Enterprise edition costs at least $18,000 per year. It is a good option for medium-sized businesses.
The Enterprise Edition provides the PA-DSS security feature, in addition to being PCI compliant.
The performance of this edition can be improved by installing third-party extensions, but that adds to the Magento price.
The Pricing Plan for Magento Commerce Cloud
The Magneto Commerce Cloud edition provides advanced functions than the Magento Community Edition. It is preferred by large businesses that have a bigger 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 per year.
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.
Since you have already spent so much on your store in general, it would be unfair if you decided to choose a free theme for your store, the free themes tend to be very simple and bland; nothing out of the box. Since aesthetics play an important role in attracting customers to your store, it would be a great idea if you opt for premium themes or custom made themes for your store. These themes are available at the Magento Marketplace, and usually cost between $29 to $499.
Magento offers its users over 5000 extensions to choose from; not to forget to mention, some are even free. Every business has different requirements which cannot be filled just with a basic price plan. For this reason, you would have to rely on extensions to fulfill those requirements. Extensions can cost as low as $50.
Running a web store on a technical platform can be tricky if you are not tech-savvy enough. Instead of struggling with the technicalities of the store, you should spend this time on the marketing of your store. To help look after all the technicalities of your web store on Magento, you can consider the option of hiring a professional Magento development company to look after the technical aspect of your store. The hourly rate of these professionals is around $125, but it varies with the company you choose. A more experienced company would charge more than a company with less experience.
Maintenance and Support
For a smooth and constant running of your web store, you would have to regularly update your store. Running and updating might be a problem for large business owners, hence, they would have to hire professional help. The cost of hiring professional help depends upon the company you choose.
Magento vs. Shopify Pricing
Shopify is another well-known ecommerce platform that provides you with all the tools you need to start, run and grow your business. It is a hosted platform, which means Shopify itself will provide you with hosting services, unlike Magento. These cuts reduce the cost of spending on hosting services. Furthermore, Shopify cost provides its users with simple and easy to understand price plans, with monthly subscriptions. Shopify provides its users with three price plans to choose from. 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 simple to follow and are easily affordable by small and medium-sized business owners. Shopify is not technical as Magento, and does not require you to hire professional help, which helps you to save up on some money. Moreover, Shopify also provides basic security, unlike Magento. Shopify provides most of the features required in running a web store.
Magento vs. WooCommerce Pricing
WooCommerce is a plugin for WordPress, that is free to install. You can increase your functionality by installing the required plugins for your store. The user pays for their web hosting services, whereas the Community Edition of Magento is self-hosted, but the other editions include the hosting services. Just like Magento, WooCommerce needs plugins to be installed, some of which have annual subscriptions. The cost for web hosting services depends upon the company you choose. The pricing for WooCommerce varies with every web store, since it depends upon the requirements of each business owner.
Final Thoughts: Is Magento a Good Commerce Platform in terms of Pricing?
A basic 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 chosen
- Hosting service chosen
- The level of customization of your web store
- Themes and extensions installed
- Development options
At the end of the day, you have to see whether the Magento Development Cost outweighs the numerous benefits of using the platform.
Next Steps: Getting Started with Magento
Once you have chosen the perfect edition for yourself, all you have yo do is install the plugin of Magento, and start customizing your store. Install extensions from Magento Connect, and voila! Your Magento web store is ready and fully functional.
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. The SSL certificate is provided by your host provider. The SSL certificate is included in the Premium and Commerce Cloud Editions, and in the Community Edition, you would have to pay it for it yourself. The SSL certificate is provided by your web hosting service, and the cost for the SSL certificate depends upon your hosting service provider. Charges vary with each service provider.
What is Magento product options prices?
Setting up custom prices for Magento requires you to install an extension. However, with Magento 2, you can configure your settings and avail of this option.
How does the Magento B2B pricing work?
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 bulk pricing work?
For bulk pricing on Magento, you would need to install extensions that deal with bulk pricing, from Magento Connect.
How does the Magento domain pricing work?
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 brand new domain name can cost around $15 per year, but Top Level Domains (TLD) tends to be much more expensive than other types of domain names.
Has Magento changed its prices?
Magento does review the price plans every year. Thus, this means they may change their prices yearly.
What is the Magento Development pricing template?
There are three Magento development pricing plans available- The Community, Enterprise and Commerce Cloud Editions. The pricing varies with the number of extensions you choose to 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 size of the store and the level of customization required. Generally, a custom Shopify app developer in the USA may cost stores around $5000 to upwards of $20,000 for a professionally developed customized store.
However, for even larger stores with a higher level of customization requirements, the cost may even range from $50,000 to $100,000 and more.