Decoding Magento Pricing: Cost Breakdown for Building Your Basic eCommerce Site

Are you planning to run an online website? Are you wondering whether Magento would be the right option for your store? If yes, it is crucial for you to consider the cost of establishing a basic Magento eCommerce website.

Magento is an incredible blend of scalable design and a giant support network. You can find help anywhere because there are a vast number of Magento developers across the world.

In this blog, we’ll help you explore the current price ranges of building a new site with Magento.

Table of contents

• What is Magento?
• Factors Influencing Magento Pricing
• Magento Pricing Structure
  • Magento Pricing Plans
  • Magento Themes Cost
  • Magento Extensions Cost
  • Magento Development Cost
  • Magento Domain Cost
  • Magento Hosting Cost
  • Magento SLL Certificate Cost
  • Cost for website maintenance
• Save costs with Mageplaza’s comprehensive solution for Magento
• Summary

What is Magento?

Magento is an open-source e-commerce platform written in PHP. It is one of the most popular e-commerce systems in the world and provides a robust set of tools for building and managing online stores. Magento offers powerful features for customizing the look, content, and functionality of an e-commerce website, and it is known for its flexibility, scalability, and extensive range of customization options.

Magento is an excellent choice for your eCommerce business because it is a flexible buying cart system. Magento offers your web developers a smooth experience and control. The main benefits that Magento brings you include:

• Customizability: Magento is highly customizable, allowing businesses to tailor their online stores to meet specific requirements and branding needs. It offers a variety of templates and themes, which can be modified to suit individual preferences.

• Scalability: Magento is designed to scale with your business, handling large product catalogs and high volumes of traffic without compromising on performance. This makes it suitable for businesses of all sizes, from small startups to large enterprises.

• Robust Feature Set: Magento comes packed with a wide range of features, including advanced product management, inventory management, customer segmentation, marketing tools, and analytics. These features help businesses manage their online stores efficiently and drive sales.

• SEO-Friendly: Magento is built with SEO efficiency in mind, offering features like SEO-friendly URLs, sitemaps, and meta-information. This helps in improving the visibility of the website in search engine results.

• Extensive Community and Support: Magento has a large community of developers and users who contribute to its ecosystem. This means businesses have access to a wealth of plugins, extensions, and support options.

Factors Influencing Magento Pricing

When considering Magento for building an eCommerce platform, it’s important to understand the various factors that influence its pricing.Magento, known for its flexibility and scalability, offers different pricing models based on various key aspects. Here’s a brief overview of the primary factors affecting Magento pricing:

• Magento Edition: The choice between Magento Open Source, Adobe Commerce, or Adobe Commerce Cloud significantly impacts the overall cost.

• Hosting costs vary depending on the chosen service type, like shared, private, dedicated, or cloud hosting.

• Development Effort: The complexity of the project and the expertise level of developers influence custom development costs.

• Extensions and Add-ons: The functionality and provider of Magento extensions determine their price range.

• Adobe Integrations: Integrating with other Adobe products may involve additional fees.

• SSL Certificate: Necessary for website security, the cost of SSL certificates can vary.

• Maintenance and Support: Continuous support and maintenance services contribute to the overall expense.

• Design and User Experience: The costs for UI/UX design and front-end development are essential for a user-friendly site.

• Back-End Integration: This includes integrating ERP systems and configuring essential components like payment processors and shipping.

Magento Pricing Structure

Magento Pricing Plans

Magento offers different pricing plans based on its various products. These products cater to different sizes and types of businesses, from small startups to large enterprises. Each plan offers different features and capabilities, catering to the varying needs of businesses of different sizes and industries. Here’s an overview of Magento’s pricing plans as of my last update:

Magento Plan	Pricing
Magento Open Source	Free (additional costs for services)
Magento Commerce (Adobe Commerce)	Starts at $22,000/year (varies based on sales revenue)
Magento Commerce Cloud	Starts at $40,000/year (varies based on sales revenue)

Magento Open Source

Magento Open Source is a free, open-source platform. This means that the core software can be downloaded and used without any direct cost. However, it’s important to note that while the base platform is free, running an online store on Magento Open Source will incur other costs. The main features include:

• Completely free to download and use.

• Basic eCommerce features: integrated checkout, payment, and shipping; mobile-optimized shopping, catalog management.

• Extensible through free and paid extensions.

• Large community support.

Pros	Cons
- No cost to acquire the software. - Highly customizable with a large number of plugins and themes. - Good for those comfortable with technical aspects or who have access to development resources.	- Does not include hosting, security, or advanced features. - Requires technical expertise for setup, customization, and maintenance. - No official technical support.

Magento Open Source is ideal for small businesses, startups, or entrepreneurs operating on limited budgets who require a customizable eCommerce platform. It’s well-suited for those with some technical expertise or the ability to hire developers, offering a cost-effective solution without the need for a substantial initial investment.

Magento Commerce (Adobe Commerce)

Magento Commerce, also known as Adobe Commerce, is tailored for enterprise-sized businesses and offers a more robust set of features compared to the Open Source version. The pricing for Magento Commerce starts at $22,000 per year and increases based on the annual gross sales revenue of the business. Characteristics:

• Advanced features: B2B functionality, customer loyalty tools, content staging, advanced marketing tools.

• 24/7 technical support from Adobe.

• Enhanced security and performance capabilities.

Pros	Cons
- Comprehensive set of features suitable for complex eCommerce needs. - More out-of-the-box features compared to Open Source. - Professional support and security updates.	- Significantly more expensive, suited for businesses with higher revenue. - Complexity may be overkill for smaller businesses. - Requires a long-term financial commitment.

Magento Commerce (Adobe Commerce) is best suited for mid-sized to large businesses that have substantial online sales and are in need of a platform that offers advanced features and scalability. It’s the preferred choice for companies seeking professional support and a robust, secure platform to efficiently manage and grow their eCommerce operations.

Magento Commerce Cloud

Magento Commerce Cloud is essentially Magento Commerce with additional cloud-hosting services. The starting price of $40,000 per year is higher because it includes hosting, which is managed on the AWS cloud. Characteristics:

• Includes all features of Magento Commerce, plus cloud-based hosting.

• Enhanced performance with cloud infrastructure (AWS).

• Integrated CDN and Performance Monitoring tools.

Pros	Cons
- All-in-one solution including hosting and advanced eCommerce features. - Scalable and secure, suitable for high traffic and sales volume. - Reduces the need for internal server management.	- The most expensive Magento option. - May be more complex than necessary for smaller operations. - Hosting is tied to Magento’s infrastructure, offering less flexibility.

Magento Commerce Cloud is tailor-made for large enterprises experiencing high traffic and sales volumes, who are in search of a comprehensive, enterprise-level eCommerce solution. It’s particularly well-suited for businesses seeking a fully managed, scalable cloud infrastructure to support their expansive online operations.

Magento Themes Cost

When setting up an online store with Magento, one of the key decisions involves choosing the right theme to define your store’s appearance and customer experience. Your choice can significantly impact how your brand is perceived and how effectively you can engage with your customers. Here’s a brief overview of the three main types of Magento themes:

Theme Type	Pricing
Free Theme	Free
Pre-built theme	Generally between $0 to $200.
Custom-Designed Themes	Can vary widely, typically starting from $100 to $1,000 or more

Free Themes:

• Best for budget-conscious startups or small businesses.

• Offer basic functionality and design, suitable for getting started.

• Limitations in features and customization options.

Pre-built Premium Themes:

• Ideal for businesses seeking professional aesthetics without the high cost of custom development.

• Range in price, generally between $0 to $200, offering better features and design than free themes.

• More customization options than free themes, but might be used by multiple stores.

Custom-Designed Themes:

• Perfect for mid-sized to large businesses aiming for a unique brand identity.

• Tailor-made from scratch, prices start from $100 to $1,000 or more, depending on complexity.

• Offer maximum customization, unique features, and tailored user experience.

Read more: eCommerce Themes - Key Features Your Theme Should Have

Magento Extensions Cost

The cost of Magento extensions can vary significantly based on several factors, including the type and complexity of the extension, the vendor, and additional services like support and customization. Here’s a general idea of the pricing ranges you might encounter:

• Free Extensions: There are many extensions available for free. These are often basic in functionality and might not come with dedicated support.

• Paid Extensions: The price for paid extensions can range widely:

  • Basic Extensions: Prices can start from as low as $50 and go up to a few hundred dollars. These are typically simple add-ons with limited functionality.

  • Advanced Extensions: For more complex functionalities, prices can range from a few hundred to a few thousand dollars.

  • Custom Extensions: If you need an extension developed specifically for your needs, the cost can be significantly higher, often several thousand dollars, depending on the complexity of the requirements.

Some extensions include a period of free support and updates, while others might require a subscription or additional payment for ongoing support and updates. Some extensions are sold under a one-time purchase model, while others might use a subscription-based model where you pay a recurring fee.

Magento Development Cost

Besides Magento cost, the site development cost is one of the priciest. Store owners often have three ways to consider: hiring a web developer or hiring a web agency.

Hire a web developer

For this selection, you can freely check developers’ qualifications and experience before hiring them. The standard price for this option may vary from $15 to $250 per hour. Some web developers you can hire include Toptal, Hired, GitHub Jobs, Stack Overflow, People Per Hour, and Guru.

But we recommend you find developers from trustworthy companies, so you can save a great deal of hiring time and money. The cost is not much higher, while you can ensure the quality of developers because companies have already tested and trained their developers. Mageplaza is a good option for you to pick appropriate developers.

When working with Mageplaza, you can rest assured of experienced developers and professional project management. We offer the following:

• High-quality code development that follows Adobe Commerce/ Adobe Cloud standards

• Unique custom functionalities that make your E-commerce site outstanding

• Transparent and straightforward communication, as you’ll work directly with our technical leader

• Guaranteed time range that satisfies your needs

• Cost-effective pricing, only from $15/hour

Hire a web agency

If you decide to hire a Magento web agency, you’ll have a quality and professional team to build your eCommerce site. The total costs start around $50,000 for a basic Magento site while $250,000 for Adobe Commerce/ Adobe Cloud Edition. For example, you can hire some web agencies such as Top Notch Dezigns, Unified Infotech, Lounge Lizard, Jordan Crown, and Huemor. They can help you build a stunning website to attract more and more visitors.

Magento Domain Cost

The cost of a domain for a Magento store, like any website, depends primarily on the domain name itself and the registrar you choose. Here’s a general idea of what to expect:

• Regular Domains (.com, .net, .org): Usually $10 to $20 per year.

• Premium Domains: Can be much more expensive, from a few hundred to thousands of dollars, depending on how catchy or short they are.

• New Extensions (.shop, .store): Generally between $20 to $60 per year.

• Renewal Costs: Similar to initial costs, but check for any increase in price after the first year.

• Extra Fees:

  • Privacy Protection: About $10 to $20 per year to keep your personal info private.

  • Email Hosting: Might cost extra for a professional email linked to your domain.

• Bundled Offers: Some hosting services give a free domain for the first year when you buy hosting.

• Buying from Auctions: If someone already owns the domain you want, the price can vary a lot.

Read more: How to Choose a Best domain name for eCommerce website?

Magento Hosting Cost

The cost of hosting for a Magento website can vary widely based on several factors including the type of hosting, the size of your online store, traffic volume, and the level of performance and support you require. Here’s some type of hosting and cost:

• Shared Hosting:

  • Cost: Starts as low as $5 to $20 per month.

  • Best For: Small stores with low traffic.

  • Limitations: Shared resources can affect performance; not ideal for larger stores.

• VPS (Virtual Private Server) Hosting:

  • Cost: Approximately $20 to $100 per month.

  • Best For: Medium-sized stores needing more resources and better performance.

  • Benefits: More resources and customization options than shared hosting.

• Dedicated Server Hosting:

  • Cost: Around $100 to $300+ per month.

  • Best For: Large stores with high traffic requiring extensive resources and control.

  • Benefits: Full control over the server, high performance.

• Cloud Hosting:

  • Cost: Can range from $20 to several hundred dollars per month.

  • Best For: Businesses looking for scalability and high performance.

  • Benefits: Scalable resources, pay-for-what-you-use pricing model.

• Managed Magento Hosting:

  • Cost: Typically starts around $50 and can go up to $500+ per month.

  • Best For: Those who need a hassle-free hosting solution.

  • Benefits: Optimized for Magento, includes support, security, and maintenance services.

Magento SLL Certificate Cost

The cost of an SSL (Secure Sockets Layer) certificate for a Magento website can vary based on the type of certificate you choose and where you purchase it from. Here’s a general idea of the pricing:

• Free SSL Certificates:

  • Providers like Let’s Encrypt offer basic SSL certificates at no cost.

  • Suitable for small websites or blogs with basic security needs.

• Domain Validated (DV) SSL Certificates:

  • Cost: Generally between $10 to $70 per year.

  • Quick to obtain as they only require domain validation.

  • Ideal for small to medium-sized businesses.

• Organization Validated (OV) SSL Certificates:

  • Cost: Typically ranges from $50 to $200 per year.

  • Requires additional validation, including organization information.

  • Provides a higher level of security; good for businesses with moderate online transactions.

• Extended Validation (EV) SSL Certificates:

  • Cost: Usually between $100 and $500 per year.

  • Involves a thorough validation process, including legal, operational, and physical existence of the entity.

  • Offers the highest level of security and user trust, with the green address bar in browsers. Ideal for large businesses and eCommerce sites.

• Wildcard SSL Certificates:

  • Cost: Ranges from $70 to $300+ per year.

  • Secures a primary domain and unlimited subdomains.

  • Suitable for businesses with multiple subdomains.

• Multi-Domain SSL Certificates:

  • Cost: Around $100 to $300+ per year.

  • Secures multiple distinct domain names.

  • Useful for businesses operating several different sites.

Cost for website maintenance

Merchants often have plans to maintain their online stores. This maintenance ensures that your website stays in a stable situation and prevents potential issues which can lead to a loss in shoppers and revenue.

The annual maintenance fee is between $1,000 and $100,000, depending on the Magento site builder you choose.

Save costs with Mageplaza’s comprehensive solution for Magento

Embark on your eCommerce journey with confidence, knowing that Mageplaza’s services not only bring expert solutions but also offer a highly cost-effective approach. As an official Adobe Commerce Partner with a history dating back to 2014, Mageplaza ensures unparalleled quality delivered by certified developers. Why Choose Mageplaza?

• Expert Team: As an official Adobe Commerce Partner, Mageplaza has been delivering unique solutions implemented by certified developers since 2014. Trust in the expertise of our team for top-notch Magento services.

• Flexible Engagement Models: Choose the level of involvement that suits you best with our flexible engagement models. Mageplaza adapts to your preferences, ensuring a collaborative and tailored approach.

• Scalability: Mageplaza offers scalable solutions, allowing all functionalities to expand and deliver optimal performance for your enterprise as it grows.

• 100% Transparent Workflow: Experience absolute transparency in our workflow through active communication and weekly reports. Stay informed and engaged throughout the development process.

• Cost-effective Solutions: Budget concerns? Worry no more. Mageplaza provides cost-effective solutions with different packages tailored to meet your specific needs and financial considerations.

• Extended Support: Mageplaza goes beyond development with a dedicated managed services team ready to cater to your long-term support needs. Count on us for continuous assistance and maintenance.

Choose Mageplaza for a trusted partnership, unparalleled expertise, and scalable solutions that propel your eCommerce success.

CONTACT MAGEPLAZA FOR FREE CONSULTATION

Summary

We’ve just listed some required costs to create a Magento eCommerce site. We hope that this guide can support you in deciding your budget allocation rightly. The price for a basic Magento site is from $20,000 to $150,000. Meanwhile, upgrading to Adobe Commerce/ Adobe Cloud will require an amount of more than $100,000.

If money is not your concern, it is a great idea to choose a local partner because of more accessible communication. On the other hand, if you’ve run an online business with a limited budget, we suggest you try collaborating with an outsourced web design or development agency.