So, you’ve decided to build a Magento eCommerce store. You are already off to a great start. But, before diving in, you must take the time to understand the associated Magento pricing. Why? Well, how else will you establish a practical budget and optimize your return on investment (ROI)? After all, a well-defined budget is the cornerstone of sustainable success for any eCommerce venture. We, at Wagento, empathize with your concerns regarding the budget and Magento ROI. This is why besides our high-quality eCommerce development services, we offer the Budget-Proof Guarantee. If we go over budget, you get a month’s revenue on us. That’s our commitment!
But before we get to the development bit, let us start by figuring out the factors that affect Magento pricing and your budget. To that end, we put together this comprehensive guide to explain the nuances of Magento pricing. In this blog, I will walk you through the factors that impact Magento development costs.
We’ll examine the different Magento editions available (Open Source, Commerce, and Commerce Cloud). Then, we’ll analyze various hosting options (Shared, Dedicated, and Cloud) and their implications on the overall budget. Additionally, we’ll discuss development and customization expenses to help you make informed decisions. By the end of this blog, you’ll have the knowledge to confidently navigate the financial intricacies of Magento and develop a successful online store that aligns with your goals and budget.
Factors That Influence Magento Pricing
Now, let us discuss in detail the different factors that influence the cost of a Magento store.
Magento License
Magento Open Source:
This version of the software is of course available for free, though extra features and functionalities may necessitate separate purchases. Besides that, there are also costs associated with development and maintenance. Magento Open Source is a budget-friendly choice for businesses just starting their online ventures or those operating with tight budgets.
Magento Commerce:
The paid version of the software is offered with a subscription model and the annual fee is determined by your store’s projected annual sales revenue. Magento Commerce provides extra features and functionalities beyond what’s offered in the Open Source edition.
Magento Pricing Tier Table
Note: These prices are subject to change. Please refer to the official Magento website for the latest pricing information.
Hosting Costs
Now that the Magento website hosting services are out of the way, time to talk about the hosting options.
P.S.: Maintaining multiple environments is a crucial best practice for Magento stores. These environments, which serve distinct purposes, also need their own hosting.
Managed vs. Self-Hosting
When you are considering your Magento hosting solution options, you will also need to pick between managed and self-hosted options.
a. Managed Hosting
Herein service providers are responsible for tasks such as security, backups, and server maintenance. This means you can focus on your primary business operations. Managed services typically come with a greater cost due to the provider’s extensive support.
b. Self-Hosted
As the name suggests, this alternative involves you overseeing the server management on your own. For obvious reasons, this is the more economical option between the two. It must be noted that this type of hosting service also demands expertise to manage server configurations, security, maintenance, etc.
Magento Store Design & Development
Design
- Pre-built Themes: Options vary from free to $180. It is important to prioritize mobile-friendly designs given the increasing mobile usage.
- Custom Designs: Tailoring existing themes or crafting a unique one incurs development expenses. Complexity dictates both time and cost, with development estimates potentially reaching 150 hours based on your specific needs.
Store Development
The cost of developing a Magento store depends on the following factors:
- Page count and their complexity
- Essential pages: It goes without saying that every eCommerce store needs certain core pages, such as:
- Homepage
- Product Page
- Category Page
- Shopping Cart Page
- Checkout Page
- Custom design
- Custom functionality: Adding unique features not readily available in Magento requires custom development, thus increasing the cost.
- Developer and agency: The experience as well as certification level of the developer or agency you choose also affects the overall costs.
It is always advisable to engage professional eCommerce service providers, such as Wagento, to help build your Magento stores.
Magento Extensions
Magento extensions are standalone modules that serve to enhance the platform’s capabilities and bring in extra features and functionalities. While some extensions are available for free, others come with a cost typically ranging between $50 to $600, depending on the complexity, features, etc. The price can even go beyond this range for highly specialized extensions.
Payment Provider Fees
Three payment service providers, Stripe, Authorize.net, and PayPal, dominate the eCommerce payments landscape, together processing 75.6% of global transactions. Interestingly, neither of these payment gateways comes with any upfront setup fees. However, each transaction does incur a processing fee, typically starting at 2.9% + $0.30.
While these providers are popular, one must always conduct further research and compare options to find the most effective solution for your business.
Support Services
- Magento Open Source: Since it is a free edition, Magento Open Source does not include built-in support services. For ongoing maintenance and assistance with this service, you can consider outsourcing the project to Magento developers.
- Magento Commerce and Magento Commerce Cloud: These paid editions offer remote technical support. But please note that the scope and response times might be limited. Also, assistance may not cover issues related to third-party extensions, integrations, custom logic, etc. For immediate help with these specific areas, you may need your own Magento development team.
Peace of Mind Included
At Wagento, we recognize that choosing the right Magento edition for your business is a crucial decision. With our team of seasoned Magento experts, we are committed to assisting you not only in selecting the right edition. But our commitment doesn’t end there — we also help you navigate the entire development process seamlessly. Our objective is to provide advice that helps you understand the features and functionalities of each edition. We also help you evaluate your specific requirements and then make a well-informed decision that drives your online store’s success.
And to assure you, we also offer the Budget Integrity Promise: if we go over budget, we foot the bill with a month’s revenue. Guaranteed. So, go ahead and share your project details with us for a free quote.
