MAGENTO

Magento Pricing: How Much Does It Cost To Run a Website on Magento?

Dasha Korsik

Content Team Lead

Magento Pricing Breakdown for Magento Store Development

Magento is in demand among both large corporations and small companies. The creation of an online store on this platform is becoming more popular all over the world. Why? Because this CMS has an incredible number of plugins that will help you realize any business ideas.

Below, we review how much Magento ecommerce development costs are, what influences Magento enterprise pricing and is Magento worth its price.

What Is Magento and Why Choose Magento eCommerce?

Magento is one of the most well-liked platforms for ecommerce website development. It has more than 500,000 users worldwide. As open-source software, Magento allows users to customize their online stores. For those who have no time or lack software development skills, Magento offers many ready-made modules. This technology is definitely a smart choice for different types of ecommerce stores.

Magento is recommended for the development of online stores that will offer potential customers a huge amount of goods. It is also suitable for web services that require significant traffic, update features, and prices on an ongoing basis, and plan a large number of sales. 

Its main advantages include: 

  • The most convenient management due to a user-friendly interface, an intuitive panel, a practical, easy-to-manage directory system;
  • Numerous opportunities for potential buyers (multi-level navigation, quick product finding, convenient functionality for viewing product categories, the presence of a personal multifunctional account, feedback, order history tracking, etc.);
  • An accessible catalogue with multi-level product search filters and other features;
  • Convenient payment methods (the platform works with payment systems such as PayPal, CartaSi, and others);
  • Multilingual;
  • Set of tools for reporting, analysis of the web services functioning;
  • Comfortable delivery system;
  • Flexible pricing system, the ability to offer all kinds of promotions.

Many of our clients are interested in custom Magento development services but they are concerned about Magento costs. The NEKLO team is thrilled with the modern features and beautiful design of Magento websites, but for many clients, the question is simple: how much does Magento cost?

Related: NEKLO DIGEST #3: Custom Magento Development & Magento Migration Collection

What Influences Magento Pricing?

“How much does it cost to run a website on Magento?” is the topic of the our conversation with Jeff Moriarty, Digital Strategist at JMoriarty Marketing.

How Much Does It Cost To Run a Website on Magento?

Jeff: A big client of mine spends about $10k per month to run an online Magento store. The biggest expenses are updates, bug fixes, and any new features they want to add to their store. The best way to save as much as possible is to minimize customization and stick with one trusted development company you like. This will save you potentially tens of thousands of dollars per year.

Additionally, we talked to Shivbhadrasinh Gohil, a Co-founder & CMO at the Meetanshi Magento Development company. Having been optimizing Magento stores for a decade, he knows a lot about Magento pricing factors.

Shivbhadrasinh: The cost of running an eCommerce store on Magento may range from a few hundred dollars to a heap per month, which depends on various factors. Some of the crucial factors that can add to the cost of running a Magento store include Magento Version, Hosting Provider, Number & Type of Extensions, Custom Developments, Third-Party Integrations, Marketing & SEO, Payment Gateways, and Shipping Carriers. The more facilities you add to your Magento store, the more it costs you.

To save costs, you may tie-up with a Magento development company and go for an annual maintenance plan for your Magento store.

How Much Does It Cost To Run a Website on Magento?

The cost of Magento ecommerce development services depends on various factors. The key points affecting the final Magento cost include: 

  • The qualifications of the Magento development company working with this system; 
  • Scope of work;
  • Prices for Magento modules (they are much more expensive than for other CMS); 
  • Magento web design (standard or custom);
  • Terms (accelerated, standard); 
  • Filling content; 
  • Advertising on Google and social networks, including Facebook and Instagram.

NEKLO specialists, in addition to standard Magento features, can expand the functionality, and refine it (integrate Magento with any third party services). In any case, the customer will receive a multifunctional ecommerce product with a high level of security and SEO optimization. 

To find out the Magento 2 pricing in our ecommerce development company, contact us through the form on our website. Ask our certified Magento developers – and together we will find the best solution at a fair price.

How Much Does It Cost To Run a Website Using Magento Open Source?

Again, this is a difficult question. And our clients often ask our managers this question. First of all, as we have mentioned above, you need to understand that there are many factors affecting Magento commerce pricing. 

You need to figure out the complexity of the future solution and the specific features that need to be set up, such as a multilingual Magento store.

There are several plans for Magento including Basic Magento Commerce and Magento Open Source (former Magento Community Edition), and Magento Commerce Cloud (Adobe Commerce). 

Basic Magento edition is perfect for a simple online store. The package includes all the basic functionality without fancy features. This is the ideal solution for smaller companies as this version is easy to run and manage.

When you opt for the basic Magento package, you have access to features such as:

  • The main website functionality;
  • Standard Magento themes for Magento;
  • Access to the Magento community;
  • Simple and effective CMS.

Below, we provide the estimated prices for the Magento Open Source:

Magento Pricing: Costs of Runing a Website Using Magento Open Source

Related: Top 10 Magento Stores: Best Websites Using Magento in 2022

What’s The Cost Of Magento Commerce & Magento Cloud?

Magento Commerce (Magento Enterprise) is the perfect choice for large enterprise-level companies. This version of Magento has a full set of features required for an online store of a large company.

Such an online store is ideal for large companies since many of the functions of Magento Commerce are automated. Magento Commerce controls most of the processes, from orders to shipment of goods to the customer. By automating processes like this, site owners have more time to focus on their business strategy.

This version provides the following features in addition to those mentioned above:

  • An adaptive version of the online store;
  • Lots of built-in modules;
  • Free customer support;
  • Free website hosting on Magento server;
  • Promotion campaigns and discount systems;
  • Integration with social networks, etc.

Magento Commerce Cloud provides 2 features to attract customers:

  1. Access to a Cloud to back up all the data in case of any unexpected event;
  2. Hosting plan, which helps to avoid payments for a server on the Internet.

The estimated Magento Commerce Cloud and Magento Commerce price are presented in the table below:

Magento Pricing: What's The Cost Of Magento Commerce & Magento Cloud

Magento eCommerce Pricing: FAQs

Selecting the right version of Magento is just the first step on the way to creating a customized online store. But the whole Magento ecommerce development process causes many questions and doubts. 

Below, we’ve collected the most frequent questions and asked our Senior Magento Project Manager Nikolai Parkhomenko to comment on them.

Why Magento eCommerce is so expensive?

Nikolai: “Magento is expensive because, as a rule, the functionality that it offers out of the box may not be enough for the client. And since Magento is a rather complex system and requires a good developer’s qualification (be it a back-end, front-end or DevOps engineer), then the development of custom functionality costs a pretty penny because of the high developers’ rates.

Well, of course, each client wishes to have a unique design even if the project is limited to functionality out of the box, it is still necessary to involve a front-end designer.

We shall not forget that Magento is a system consisting of multiple components allowing it to work quickly and stably. The larger the project is in terms of the number of goods and attracted traffic, the more Magento revenue you will get, although you will have to spend more on the server part. The project at the start can be based on one server, where DataBase, PHP, Redis, Elastic Search, Composer and other components of this complex system will be stored. And the more traffic comes, the more complex the schemes become to maintain a stable system functioning. If a project can start from $100-130/month, then with the growth of transactions and traffic, the cost of the server can reach $1000/month or more.”

Magento Open Source or Magento Commerce: what to choose?

Nikolai: “Magento Commerce is selected by major players who want to use Magento cloud servers, who have very large budgets to run their business and are ready to invest into ecommerce services. This version has more useful economic features that are not available in Magento Open Source, from simple gift cards to B2B modules.

However, we shall not forget that Magento Commerce is a paid version. The client pays for the support of the platform by Magento staff. That is, if some standard Magento functionality does not work as described in the documentation, then a person can claim the issue to the support personnel and ask them to fix it. Moreover, there is a lot of additional functionality in the paid version, including cloud hosting.”

Is it hard to use Magento without the help of developers?

Nikolai: “It is impossible to add new features or install modules without certain skills. However, you can work with the finished product in the admin panel, using the existing functionality, even without a developer. 

To be precise, without a certified developer, you can do the following:

  • Add items to the catalogue;
  • Update product descriptions; 
  • Work with orders (create invoices, shipments, refunds);
  • Manage the category tree, subscribers and customers data; 
  • Create coupons, set discounts for products;
  • Generate reports;
  • Create new admin panel users, etc. 

I should also say that there are no impossible tasks for Magento, there is only a developer who cannot cope with a particular task. Its code is open, i.e. you can implement any feature and make integration with any service if this service has an API.”

Is there any good alternative to Magento eCommerce?

Nikolai: “Well, obviously, Magento is not the only ecommerce platform. I would say that Odoo is an ERP system that also has a set of functionality out of the box. What is more, it possesses various features for any area of ​​activity: accounting, administration, customer support, etc.

Shopify/Shopify Plus is a well-paid platform to get your online business up and running quickly. In general, you can choose a theme, buy it, and quickly launch your store on it by simply changing the content. Or hire a designer and a front-end developer and they will quickly create a unique solution. With the basic Shopify version, there is no way to do customization (except for changing the layout), its code is closed to the developer. Shopify Plus allows you to make customizations, not directly into the Shopify code but using a third-party server, where the feature will be developed and send some results to the front of the Shopify store via the API. In addition, it should be said that Shopify provides its own hosting, i.e. you do not need to configure the server and maintain it yourself, for this, the user of the basic Shopify or Shopify Plus must make a monthly payment following the tariff plan

Another option is Shopware. It is a relatively young platform, similar to Magento, aimed at German-speaking countries with a growing European user base. If Magento is very densely used in the American market, then Shopware seems to be aimed at the European market. Along the way, it also has an open code allowing you to make any customization you may wish. 

There are other CMS like Woocommerce (WordPress), Prestashop, and ModX, that can become a base for building an online store. But they are not particularly popular.”

Related: What eCommerce Platform to Use? Guide for Online Stores

Do Magento development services worth their costs?

Nikolai: “Definitely, yes. Every business should set itself the goal of growing fast, making big profits and increasing conversions. With a good Magento development team, you can implement any feature, and do any integration. At NEKLO, we can release up to 5+ new features and integrations in a sprint (2 weeks). Moreover, there are many ready-made modules on the market that significantly speed up the launch of a particular feature or integration. 

Magento may seem expensive at the very beginning when you start a project from scratch. Further, the maintenance is relatively inexpensive and supplemented with new features. In general, everything depends on the business goals of the client, the budget and the team.

Well, I would also like to say that Magento has a large community that moves the product forward, except for Adobe itself. Over the past month only, several updates to the platform were made, which indicates that the product is rapidly developing, and a lot of money is invested in security improvement.”

Related: Starting Online Store Business? Essential Steps to Plan in Advance

Wrapping Up

It is difficult to estimate the cost of developing an online store on Magento without specific requirements and necessary features. The scope of work, the degree of customization and complexity greatly affect the total cost of development.

Cost estimation can remain a grey area for both parties until technical requirements are identified. But if you have an idea, our team is always happy to provide online consultation. Fill in the form on our website and our team will contact you shortly to discuss the details.