Magento Pricing: How Much Does Magento Cost?

Piotr Kujawa
Author: Piotr KujawaCEO

Magento is an e-commerce platform that will satisfy even the most demanding users. It is a high-end, fully-functional, and futureproof e-commerce software that enables, e.g., managing many online stores within one admin panel. Thanks to that, it is a well-suited solution for medium and large e-commerce platforms.

Do you think about launching your online store on Magento? Then check, what are the basic Magento costs that you have to bear.

Magento cost

A Few Words About Magento

Numerous large enterprises and worldwide corporations bet on Magento. Among them, you can find Coca-Cola, Nike, or Ford. Why have they decided on the Magento site? There are at least a few arguments. Above all, Magento provides a bunch of useful functionalities. An example? You can change the product page depending on the time of the day or integrate your e-commerce with multiple payment methods, installment, or delivery systems at once.

Moreover, Magento ensures various products, categories, or order management enhancements and valuable reporting and marketing tools. Working on Magento, you can also count on top-class search engine optimization. You can automate, e.g., SEO-friendly URL structure or meta tags creation process.

Magento is an ideal environment for well-experienced programmers who are not limited to the system's rigid architecture and enjoy building scalable and flexible projects. Last but not least, an extended community working on CMS constant development is an undisputable Magento advantage.

Then, how much does Magento cost? Is it free or paid? It all leans on the chosen options, functionalities, necessary plugins, layout, or business needs. Beneath, you will find a few vital factors that influence the final Magento price.

Contractor Choice and its Price

Magento website development costs vary depending on whom you would like to contract out the implementation process. You can choose between three options:

  • building Magento store with in-house IT team,
  • hiring a freelancer,
  • contracting a professional Magento software house.

Find out more about each of them.

In-house Development – Magento Cost Reduction or Increase?

If your employees are Magento experts, you can vastly minimize the Magento implementation costs. However, remember that it is a highly advanced tool that demands solid practical knowledge to exploit the platform's possibilities. Installation, layout implementation, multiple integrations – those activities can be above their abilities even if they have programming experience. It may turn out that the in-house IT team needs more time than you have assumed, and nevertheless, the effects can be unsatisfactory. If you don't have well-skilled Magento developers or don't have enough experience, you would instead think about hiring an external contractor rather than throwing money down the drill.

Magento Development Cost in Software House

Hiring a professional Magento agency is the best way to get a fast implementation without giant obstacles. However, usually, the hourly rate is lower when you hire a freelancer. Even the CMS installation in the software house requires the testing environment set up and maintenance cost, which raises the final Magento price. If you choose a reliable Magento software house, the investment may return to you rapidly, thanks to an efficient, fully functional e-commerce platform implementation that generates revenue from the start. Additionally, the agency is always up to date with the latest solutions, can advise you on each development stage, and above all, provides support and maintenance whenever it is necessary without worrying you about every single obstacle.

Magento Prices with Freelancer

For whom will freelancer be an adequate solution? Certainly for those who want to minimize the expenditures. A well-chosen freelancer can be a top-class, engaged specialist. Usually, he wants to finish the project as soon as possible to catch another assignment. His reputation vastly depends on recommendations and customers' opinions. That is why he has to pay attention to good communication and solid project implementation to satisfy the client. However, cooperation with freelancers bears a lot of risk at once. It is just one person who is responsible for the entire project. Any unfortunate accident can stop the development works for weeks or even months. Moreover, it is often hard to verify the freelancer's credibility at the research stage because there is less information about his activity than, e.g., in the Magento agency case.

How Does the Layout Influence the Final Magento Cost?

Magento pricing significantly depends on the layout which you want to implement. You can always use a ready-made theme which vastly reduces the Magento website development costs. A dedicated theme preparation is usually time-consuming, and in the case of highly extended projects, it generates many additional expenses.

The final layout price pivots not only on the views number but also on its complexity. Non-standard solutions, configurators, or numerous animations are time and cost-consuming. Indeed, it would be best if you did not give up on all of them – in the end, they are responsible for the positive user experience, their engagement and encourage them to finalize the transaction. However, you have to be conscious that those dedicated solutions are usually the main reasons why the final Magento price is higher than you have expected.

Then, is there any compromise between high-quality and reasonable pricing?

Yes – in such cases, our team recommends a ready-made theme purchase and preparing a dedicated graphic design for the key views, e.g., the home page, the product page, etc. This solution significantly reduces the layout implementation cost and simultaneously provides the project's uniqueness.

Magento Pricing vs. the Platform Version

Magento's cost also depends on the chosen platform version. You have three different options – Magento Open Source, Magento Commerce, and Magento Commerce Cloud.

  1. Magento Open Source – former Magento Community Edition; as the name indicates, it is a free-of-charge Magento version – there are no Magento license costs in this case. It satisfies the needs of most medium and large-size e-commerce. Thus, the Open Source version is usually a first choice for the companies that start their work with Magento. Choosing this version vastly reduces costs. However, it also requires good programming skills and experience, similarly as in the paid Magento versions.
  2. Magento Commerce – former Magento Enterprise Edition. It is a paid platform's version. The Magento Commerce price depends on the online store turnover. It starts with 22 000 $ annually (around 1 800 $ per month) and grows along with the turnover. The platform's creators fully support Magento Commerce. It allows you to set up an eCommerce website without any limits and with dozens of advanced solutions.
  3. Magento Cloud – or Magento Commerce Cloud; has been available since 2016. Besides the same functionality as in Magento Commerce, the hosting, platform's upgrade, and security are included in the costs. Magento Cloud pricing starts with 40 000 $ annually (around 3 300 $ per month).

Each version ensures a bunch of additional options. The extensions remarkably help in increasing the functionality and usability of Magento e-commerce. There are thousands of them available on the market made by Magento itself or third-party providers. The paid extensions start with 50 $. It is worth mentioning that there is a possibility to build dedicated extensions with the development team's help.

Magento Integrations Costs

Magento price rises along with the number of integrations. Usually, companies use multiple tools which facilitate their day-to-day operations. To automate Magento e-commerce, you should integrate, e.g., CRM, marketing tools, delivery methods, warehouses, and payment systems. The pricing depends not only on the number of integrations but also on their complexity. The biggest problems occur in systems without any documentation or those that do not provide integration functionality by default. Then, dedicated solutions seem to be necessary. They are time-consuming and notably increase the Magento costs.

Magento Hosting Costs

There is no surprise that Magento website development requires hosting purchase. However, it is another element that influences the final Magento price. The CMS needs an efficient server – VPS or, preferably, dedicated server hosting. Magento Commerce Cloud pricing includes the hosting cost – it is hosted in the cloud. However, it is an exception. Magento Open Source and Magento Commerce online stores need a reliable server to exploit all the functionalities that the platforms offer.

Additional Functionality and Their Prices

Additional functionality constitutes an integral part of Magento implementation cost. They are meant to enhance the online store possibilities, increase users' comfort, or facilitate marketing and sales activities. It would be best if you did not give up on their implementation because, in most cases, those investments return faster than you expect. Moreover, you can stagger their development and boost the platform's possibilities in a few months.

What functionality does affect the final Magento website cost? For instance, blogs, bestsellers, lookbooks, personalized forms, configurators, or any other original ideas that can help you distinguish your e-commerce from the competition.

Magento Multistore Pricing

Magento Multistore is a well-suited solution for companies that manage multiple stores at once. Thanks to that functionality, you can manage and fully supervise a few e-commerce sites with different URLs within one admin panel. The panel is highly extended and does not limit any management functionalities. On the other hand, it does not require additional log-in or switching to another panel. Last but not least, Magento Multistore is free of charge.

How Much Does Magento 2 Cost? Summary

What is the crucial factor that influences Magento price? Primarily, the customers' demands. The price depends on how he wants to configure the e-commerce, what solutions are essential, how many extensions will be installed, or the overall complexity level. The final Magento website development cost pivots on the programmer's skill and competencies. Thus, it is worth investing in Magento agencies or software houses that offer solutions and top-class knowledge. They know what functionalities users desire, which solutions work in other e-commerce, or which options it is worth investing in.

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