Magento Pricing for 2022: The Real Cost of Running a Magento Website

If you are looking to build a multi-channel eCommerce experience for B2C and B2B on a single platform, Magento. From catalog to payment to fulfillment, Magento’s future-proof technology gives endless flexible, extensible, and scalable commerce platforms for the business. The all-new Magento offers extensive integrations, intelligent workflows, the agility to handle spikes in traffic, and a robust base for seamless growth. 

Magento Commerce has moved a step forward in commerce capabilities, security, and performance deliverance. The new and improved Magento enables customers to future-proof their digital business with – 

• Easier and cost-effective maintenance & Upgrades.
• Continuous flexibility and ability to meet unique needs.
• Visibly enhanced performance & scalability.
• Better tooling and experience.
• Deep integration with Adobe Experience Cloud applications.
• Faster and innovative features delivered as SaaS.

In this article, we will read about the major concern for the retail business, which is pricing. The cost-effectiveness of Magento has increased its adoption with 24500 active installations, including some of the most popular brands like BVLGARI, Liverpool FC, Fors, Nike, Coca Cola, Victoria Beckham, and more. 

Magento offers two types of editions – community & Magento basic, both have different prices. The Ecommerce Website Development cost also varies from that of Magento themes, extensions, graphics, and brand collateral. The latest Magento 2 development cost also differs, hence we shall elaborate on them here. But before that, let’s find out the elements that influence the pricing of Magento eCommerce development.

Aspects Influencing Magento Development Prices

Retail owners always look for accurate estimation costs for developing an eCommerce. However, there are several factors that influence the cost, making it difficult to estimate the exact cost. 

• Functionality and customization over the elementary features and storefront designs.
• Count of third-party integrations, such as PIM, CRM, or more. 
• Licensing, domain name, and
•  SSL certification.
• Provider’s fees, SEO & digital promotion.

Building an eCommerce site or app requires an expert & professional service provider. You have a freelancer or a full-time professional Magento Developer. 

Freelance VS Dedicated Magento Provider

Implementing Magento requires an understanding of its architecture, PHP, and other related eCommerce technologies for quick and easy customization and to build a functional ecosystem. 

Hiring a full-time team offers multiple benefits ranging from better communication & collaboration to support and maintenance services. A team would consist of a dedicated project manager, designers, developers, and a QA. The cost incurred for hiring a complete team would be provided hourly between $60-200/hour. 

On the other hand, a freelance Magento developer would only provide you with the development services as they specialize in one or several fields instead of all aspects of Magento. You might have to help with the design and testing part of the project architecture. The cost of hiring a freelancer would be around $10-$20/hour.  

Magento is a platform that leverages businesses to expand themselves into new geographies, sell from anywhere, manage end-to-end shopping & deliver purchasing experiences, and measure performance & optimize them for guaranteed scalability and better ROI. Let’s move further with the Magento editions. 

Magento Open Source & Commerce Editions Cost

Magento’s basic edition with elementary features and themes is free to use. However, free means are limited hence customization or additions are needed for enterprise-level use. Also formerly known as Community Edition, to run an eCommerce store, you would need a domain, hosting, designing, and development, which may cost you around $15,000 or more.

Magento Commerce or the Enterprise Edition consists of plans based on the type of organization you run. Businesses can pick from midsize to enterprise-grade pricing plans. 

The Commerce edition starts at $22,000, and the commerce cloud edition starts at $40,000. Both editions offer expanded feature sets and data volume.  Magento Commerce comes with a lot of features that are listed below – 

Headless Commerce

The most agile, flexible, and API-based commerce that allows businesses to deliver seamless customer experience across different channels & devices.

Integrated B2B functionality

With Magento Commerce, businesses can offer world-class B2B buying experiences with customized catalogs & pricing. Businesses can have controlled and easy account and order management that helps them deliver personalized experiences and self-service customer portals. 

Amazon Sales Channel 

Magento lets you integrate with the world’s largest online marketplace to list, sell and set prices on your products with the Amazon Sales Channel extension.

Page Builder 

This feature of Magento lets you create and launch captivating content to deliver a best-in-class shopping experience without extra support. 

Live Search 

Magento offers an AI-powered search tool to deliver smarter, relevant, and faster results for B2C shoppers. 

Inventory and Order Management

With Magento Commerce as your eCommerce platform, you get real-time visibility of the product inventory that meets your customer expectations across all channels.

PWA Studio 

Along with robust Magento Web Development Services you also get the opportunity to build, deploy and optimize a progressive web app for your store that too at cost-effective rates. 

Customer Account Management

Businesses can always have accurate information that can further help them to centralize order details from all sales and fulfillment channels with account management. 

Shipping Solutions 

Magento lets you quickly integrate leading eCommerce shipping solutions like ShopRunner or similar to better manage their package volume with two-day shipping and seamless checkouts & returns. 

Business Intelligence

Unlike traditional eCommerce, Magento Commerce eliminates the technical obstacles with a centralized solution integrated with BI to analyze the most important things for business.

Reporting & Visualizations

Magento Commerce offers fantastic visual reports of your data to analyze and save for future references to a customized dashboard. Additionally, you also get automated report updates, multiple data export options, and other user roles.

Data Warehousing and Management

One of the important features for a merchant is to manage and control their wide range of products. Magento offers a cloud-based data warehouse to provide multiple ways to bring in data and syncing options.

PCI Compliance

Magento Commerce is a trusted and certified PCI provider to make compliance easier along with secure payment and credit card data transmission.

ERP & Payment Integration

Sync your inventory, orders, customer data, and delivery details with your key business systems. Also securely manage payment and order data of every store from a single system.

Commerce Financing

Magento’s parent Adobe has partnered with Wayflyer to deliver fast and revenue-based funding regarding inventory gaps whenever needed. 

 Breaking Down Magento Website Development Price

License Cost

Beginning with the license to run your online commerce store, picking Magento Open Source is free of cost. Magento Commerce/Adobe Commerce and Commerce Cloud offer exclusively optimized built-in features that range differently.

Magento Commerce’s annual prices can vary from $22,000 to $125,000, depending on gross revenue. Similarly, Commerce cloud pricing begins with $40,000 & goes up to $190,000.

Magento Hosting Prices

The best part about Magento Commerce Cloud is that it offers an automated and managed hosting license. Hence no worries about the hosting cost here.

However, Magento Open Source and Commerce require special storage for efficiency and stability. So, businesses can look at cloud, shared, or dedicated hosting options available that range from $10-50/month, depending on the performance and functionality needed. 

Domain Name Costs

As a brand, you need some identification for the users to share. A domain name gives your eCommerce that identity. You can get a new domain name for $10-$20 per year or opt for an expired domain name for $20-$400 per year.

SSL Certificate

In order to run today’s website safely, SSL or a secure sockets layer has become mandatory. In order to get that certificate for a Magento website and ensure information security, the average annual cost ranges between $50-$300.

Web Designing Costs

Design can be custom-made with the assistance of an Magento Extension Development Services provider or use a ready-made Magento theme.

If you pick a paid Magento theme from its wide range, you might want to pay between $0-$180.

Alternatively, hiring a website designer may cost you differently. However, a minimum hourly rate may cost $40/hour, accounting for $5,000+ in total.

Website designs must be made responsive keeping customer preference in mind. As people are adopting more and more smartphones, they prefer online shopping through their devices.

Developing Site on Magento 2

Magento 2 is a new improved version of Magento, contributing to enhancing customer engagement and retention. Magento 2 requires more adjustments and customization when needed to create a banner, change colors, texts, icons or buttons, move blocks, or more.

Hence hiring a Magento developer, for making these changes, may cost from $50/hour, or the minimum rate for Magento 2 website development may cost around $1,800.

Extensions

Magento Open Source platform comes with elementary features and functionality to launch and run an online store. In order to enhance features, deliver a better customer shopping experience, and better management of the entire store & customers, you would need extensions to help you with that.  

Adding a simple payment extension to advanced search or layered navigation functionality can range from $60 and go up to $600 depending on the number & type of features.  

SEO & Digital Promotions 

In this competitive world where there is a multifold business, you need a robust, effective, and creative method to compete and stand out. Best SEO and marketing practices can help businesses outreach maximum customers generating substantial revenue each day. 

Investing in SEO and promotional services to enhance the visibility of the brand may cost you around $10,000 to $40,000 per year.

Payment Provider Fees

Integrating a payment gateway is a must in an eCommerce store and these payment solutions charge additionally apart from the extension charges. A successful transaction starts from 2.9% plus $0.30. Some of the popular eCommerce payment solutions are Authorize.net, PayPal, and Stripe, which hold 75.6% global payment transaction share. So, instead of investing in all of them, you can research a suitable payment service provider. 

Magento Support Services

One of the powerful functionalities of Magento is maintenance and support services. The feature categorizes into extending website functionality and eliminating the existing errors and issues. 

The feature can help you catch up with the latest technology changes, provide trouble-free business operations, and maintain high-security standards for your business. For Magento Open Source, the support services are free to obtain, while in the Commerce and Commerce Cloud, you can submit the ticket for issues and receive remote support. 

For advanced and technical support, you might want to hire technical personnel for instant support.   

In a Nutshell – 

To summarize, we can say that there is no fixed price associated with the development of a Magento Website. There are multiple factors, such as features, integrations, hosting, extensions, provider’s fees, and much more that can impact your budget. 

However, to get a flexible, scalable, and intuitive Magento website, you must choose an experienced and renowned eCommerce services provider who can be trusted for your basic to advance needs and provide them without fail. 

Author’s Bio:  Scarlett works with the editorial team of A3logics, a leading Magento Development Company offering Magento development services. Exploring the latest technologies, reading about them, and writing her views have always been her passion. She seeks new opportunities to express her opinions, explore technological advancements, and document the details. You can always find her enjoying books or articles about varied topics or jotting down her ideas in a notebook.