Magento Pricing: An Estimated Budget To Run An Online Store | 2024 Updated

magento pricing - esential budget

Bill Gates, Founder of Microsoft,  wasn’t kidding when he said: ‘If your business is not on the internet, then your business will be out of business.‘ More than ever, merchants are creating and/or improving their ecommerce businesses to meet customers’ demand and expand their revenue.

Undoubtedly, Magento becomes one of the best choices for hundreds of thousands of retailers in the world. If you want to run a new Magento-based website store and are confused about the general Magento pricing, then this post will help you.

1. Magento Definition and The General Magento Pricing For A Magento-based Store

1.1 What is Magento?

Magento is widely known as an e-commerce platform written in PHP. It uses multiple other PHP frameworks such as Laminas and Symfony. It has become a worldwide trusted brand with huge customers in all industries. 

Magento provides online merchants with a flexible shopping cart system, and the right to control over the look, content and functionality of their online store. The marketing, SEO, as well as catalog-management tools are extremely strong tools of Magento. 

It is a fact that Magento is one of the most expensive platforms for your online business, and Magento pricing varies greatly and depends on your goals and your expected achievements. 

1.2 The General Budget For A Magento-based store

At the moment, Magento offers the following platform versions along with the total price you can expect to pay for your website:

  • Magento Open Source (former Magento Community) ($15,000+)
  • Magento Commerce (former Magento Enterprise) ($22,000+)
  • Magento Commerce Cloud ( $40,000+)

Magento Community Cost

Magento Community is free to download and install, with some of the best features such as: Product variants, Mobile-optimized email templates, Google Universal Analytics. However, you’ll have to pay for your hosting, domain, and security, as well as web development assistance if you don’t have a team of developers in-house. Then, you need to spend at least $15,000 in total for a basic Magento Community website.

Magento Commerce Cost

The Commerce edition, formerly known as Magento Enterprise, is better suited to enterprise-sized enterprises than the Community edition, with more advanced features.

The most important point is the pricing is based on annual Gross Merchandise Value. Here is example for your reference:

Magento Commerce Cost based on Average Gross Sales Revenue

Magento Commerce Cloud Cost

The Cloud edition, like Magento Commerce, is only for big companies with a lot of revenue. Instead of a hard disk that may be lost or stolen, all of your data is backed up in the cloud.

What you get with Magento Commerce Cloud is undeniable. Magento Commerce Cloud provides top features: fast page loading, realtime performance monitoring, automatic infrastructure updates, ect. For these reasons, it’s slightly more expensive than Magento Commerce.

Magento Commerce Cloud estimated cost

Above is an overview of the average budget if you want to open a Magento-based website store. For more details, the Magento pricing comes from things like web hosting, extensions, themes, website development to help customize or fix issues in your website. 

2. The Main Factors Determining The Magento Pricing

2.1 Domain ($10 – $500)

Domain costing depends on how popular your domain name is and the registrar you use. There are two types:

  • Brand New Domain: generally costs you from $10 – $15 per year.
  • Aged domain: costs you hundreds, thousands of dollars and even more.

Hostgator, GoDaddy, namecheap, bluehost, ect are currently popular websites to buy a domain. 

2.2 Web Hosting ($3.95 – $99/month)

The hosting fee for your store depends on your choice, starting from $3.95/month  for Shared server, $29/month  for virtual private server and $99/month for dedicated server.

Here are some of the best Magento 2 Web Hosting Vendors for your reference:

  1. Cloudways
  2. Nexcess
  3. Mgt-Commerce
  4. Mgt Clusters
  5. FastComet

2.3 Themes ($17 – $5,000+)

Currently, there are a lot of themes used for Magento stores, and many of them are free. However, if you want a beautiful store, you should consider purchasing the paid ones. 

free theme

2.4 Extensions ($0 – $2,000+)

Additional Magento extensions can help to expand the functionality of the store and depend on your store’s requirement  There are almost 2,000 free extensions available among over 5,000 extensions developed for Magento store. The cost of a paid module begins at about $50.

m2 market place extension

Visit here to get the best Magento free extension and paid extensions for your online store. There are a number of the useful extension categories to customize your online store with high-quality as belows with the prefered price. 

Rich Content: Page Builder, Form Builder, Image Gallery Pro, Product Label and so on.

Site Management: Multi vendor Marketplace, Quote Extension, Company Account, and so on.

Search and Navigation: Mega Menu, Add Multiple Products To Cart, Multiple Wishlists, and so on.

2.5 Developer cost ($65 – $150/hour)

If you don’t already have a team of developers in-house, you need to hire website developers. However, this factor in Magento pricing is worth money.

The hourly rate for Magento developers varies depending on their experience, but you can expect to pay between $65 and $150 per hour. The price you pay will be determined by the scale of your project, such as whether you need a few backend updates or your entire site migrated from another platform to Magento.

You will need Best Magento 2 Services to build or enhance your site with essential services from TOP 1 Magento 2 extensions provider to encourage purchase volume, reach your potential customers, and increase customer satisfaction. 

2.6 Payment Fees (2% – 4% per transaction)

You must pay transaction fees to the payment gateways to accept payments online. These usually cost between 2% and 4% per transaction.

3. In conclusion

After reading this article, you generally understand Magento pricing  in more detail, which helps you estimate how much you’ll need to spend on a new Magento-based website. Hopefully, you have a precise choice to customize your site and reach expected achievement. 

Read more:

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