Despite being amongst the best e-commerce platforms across the world, there is a huge audience of business owners who are not taking their business online just because they aren’t aware of the Magento pricing. E-commerce is the future of selling and retail owners shouldn’t be afraid of the underlying e-commerce costs. They should know whatever they are paying for e-commerce website development, it is going to yield much more profits in return.
In this article on Magento pricing, we are going to cover all the aspects of associated costs of Magento development. We will go through what are the investment expenses that you have to make while taking your business to Magento. We will also talk about the true cost of running a Magento store on a daily basis. Let’s begin with the basics…
How Does Magento Pricing Work?
Adobe Commerce popularly known as Magento, holds a high reputation and trust amongst all e-commerce platforms. Although it is popular of being a premium e-commerce platform, those who have used it find it highly value-driven. Its agnostic edition i.e. the Magento open-source edition aka Magento Community Edition free of charge. However, if you are looking for an answer to “How much does it cost?”, you have to go through all the different editions and licensing fees.
Magento Editions with Pricing:
1. Magento Open Source:
The Magento open-source edition is free of cost. It is also known as the community edition. It has been developed with the help of the vast Magento community, and that’s why it is the most popular edition in the market. Nearly 83% of the Magento stores run on the Magento community edition.
Price: Free
2. Adobe Commerce or Magento Commerce:
Initially, it was popular as the Magento Enterprise edition, but after the Adobe acquisition, it was rebranded as Adobe Commerce. This edition is the advanced version developed by the Magento team. It offers a lot of cool features like an advanced warehouse, catalogue management, in-depth admin roles, business intelligence tools, and more. You also get prior tech support from the Magento team. It is a great choice for large e-commerce stores with huge workloads and complex business requirements.
Pricing: The pricing of Adobe Commerce depends on the expected annual GSR (Gross Sales Revenue). It starts at $22,000 for $0-$1,000,000 GSR, and the upper cap is $125,000 for $25,000,000-$50,000,000 GSR. It is evident that there is a significant cost margin in the Magento community edition and Adobe Commerce. The more successful your store is, the higher the cost you have to pay. However, it would always be worth it.
3. Magento Commerce Cloud (Adobe Commerce Cloud):
At a basic level, the Adobe Commerce Cloud and Adobe Commerce are the same, however, it is on the cloud. Sometimes, it is better to go for the Magento Commerce Cloud edition if you think you can manage the associated costs.
Pricing: The pricing of Adobe Commerce would be much higher than other options. Because in this case, you will also get web hosting in this edition. We are looking at $40,000-$190,000 values, also tied to annual Gross Sales Revenue.
Total Cost: None. Most online merchants prefer to go with Magento Community Edition as it is open-source and free of cost. It is fully capable of dealing with even high-traffic spikes with no Magento fees for downloading the solution. But if you want more features which are available in Adobe Commerce you can go for it. However, you must remember that although Magento open-source is free to download, you still have to pay for hosting, setup, and customization. That’s the major reason why some businesses prefer to go for Magento Commerce Edition.
Magento Website Development Expenses:
In the Magento community edition, the license itself might be free, but everything else is not. Being a top-notch Magento development company, we have found three big cost factors that influence the Magento development costs:
- Creating a solid user experience and design;
- Buying and debugging extensions;
- Applying various frontend customizations;
Furthermore, the type of your business also decides the cost, for e.g. whether you are a B2B or a B2C brand. Thus, if you are a B2B business, you shouldn’t just consider the above-mentioned costs but also the peculiarities of Magento B2B pricing.
Magento UI and UX Cost:
You will be responsible for the design of your Magento store. Whether you are developing a Magento store from scratch or migrating your existing store to Magento 2, you have to create a captivating solid UI & UX for mobile, tablet, and desktop versions of the e-commerce store.
It involves wireframing, working with UX experts, purchasing Magento 2 development services, and other services. Even if you want something standard, it may be difficult to locate a solution that meets your needs from the outset. And if you do so soon, this version may not be adequate for your expanding firm.
For UX, you have to find what type of design you want. You can also use a ready-to-use theme. It is a good option if you want to save money, but you don’t get any individuality for your store.
Third-Party Extensions Costs:
In the Magento marketplace, there are a lot of free third-party extensions. However, the free ones are mostly basic and you need to pay if you want something high-value. With an average price of $100, installing just 10-15 extensions will cost $1,000-$1,500.
You should also consider the fact, that the extension developers test them on an empty Magento store while your Magento store has a lot of modules. Plus, it would also be a busy store serving thousands of customers. Thus, installing 10-15 unoptimized may adversely affect your store.
What we recommend is to hire a Magento development company and build a custom Magento extension that perfectly fits your requirements. It will make your store more flexible, user-friendly, and memorable by adding customized features.
Most of our clients have a common question “How much does it cost to develop a Magento extension?” Again, there are a lot of factors that will decide the cost such as specific functions, purposes, and use cases of custom modules. Thus, the price range for developing an extension will be around $500-$2,500.
Total Cost: You’ll need to spend between $1,000 and $2,500 to purchase all of the Magento extensions you want. Make sure you have 2x-3x this amount for installation, compatibility testing, and bug patching. The entire budget for this stage should be $2,000 to $10,000.
Frontend and Backend Costs:
The efforts depend on the complexity of the design, the number of extensions, and other unique customizations. It also takes considerable time to implement your layout and make the store work smoothly on phones, tablets, and desktops.
Total Magento Cost: The more expansions and design features you include, the more pricey it becomes. According to our experience, it takes 2-3 months to complete frontend and backend development. Depending on the Magento developer, the cost ranges from $5,000 to $25,000.
Overall Magento Launch Costs:
As every store is unique in its own way, it is difficult to determine the expenses in this regard. Majorly, we provide an estimation after knowing the size of the store and it could be anywhere between $7,000 and $50,000. Remember, it is just a rough estimation that considers startup e-commerce stores to enterprise-level Magento stores.
How much does it cost to run a Magento Store?
After the development expenses of a Magento store, you should be aware of its running costs. The daily expenses will include Magento hosting, Magento maintenance, and support.
Infrastructure Costs:
The hosting of a Magento store is a complex task. Based on how much control you want to have over your server, you can opt for either unmanaged or managed Magento hosting. In unmanaged hosting, you have to manage the server resources all by yourself i.e. it is a greater responsibility. In the managed Magento hosting, the specialists will take care of your website and you have the freedom to focus on your core business.
You can choose either shared hosting, virtual private server, dedicated hosting, or cloud hosting.
Total Cost: The cost of Magento hosting would be around $600.
Third-Party Services:
Generally, Magento requires very little third-party service intervention. You receive both the store and managed Magento hosting. Everything works. However, after a while, you decide to improve your response time to workload spikes, implement faster research, study performance dips, or integrate SEO within the Magento store.
You have to pay for every third-party service. You must be ready to pay for everything including an email server or a business intelligence tool for BI insights. You may have to spend $100-$2,000 per month for these services.
Wrapping Up:
In this article, we have understood all the major components of Magento pricing in 2024. If we give a lump sum figure, then developing a Magento store will cost you around $6,000 to anywhere on the higher side. This is a contractual figure but if you hire developers on an hourly basis it will go on the higher side.
At Ceymox Technologies, the best Magento development company in India, we provide the best Magento development services. Our vast team of Magento developers have expertise in developing Magento stores from scratch. We are skilled in implementing advanced features and functionalities. Let us know your requirements.
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