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How Much does Magento eCommerce Development Cost to Merchants?

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How Much does Magento eCommerce Development Cost to Merchants?

Acceptance of eCommerce has seen a huge rise as people are getting more inclined towards the online purchase and are doing shopping with a great ease while sitting at their homes. The vast spread of this shopping trend provides the retailers with an opportunity to push their business limits online by many folds to increase their market share. To serve this need of retailers, multiple eCommerce platforms (Shopify, Magento, BigCommerce etc.) are available in the market. Amongst all these eCommerce platforms, Magento has always turned up victorious as every year a number of merchants opt for Magento web development to grow their profits with a wider customer reach.

If you are also planning to be among those successful merchants and are curious to know the cost involved in Magento eCommerce development, we are here to assist you in taking a wise decision.

There are a number of freelancers and Magento development companies available in the market who give counterfeit assurances of completing your project within no time or at an insignificant cost. However, the price estimates given by some companies can haunt you for the whole night. A dedicated Magento development company would always value every single penny spent by you and believe in giving a genuine and transparent advice.

A few facts about Magento,

-Magento, a PHP based platform, currently powers 250,000 online retailers worldwide and is managing $100 billion in yearly gross merchandise volume.

-With a market share of 19.64%, Magento has managed to top the list of highly preferred 10 market leaders of eCommerce platform.

How does the cost occur?

Overall, Magento eCommerce indulges in everything which an online retailer would need to get high conversions & sales while receiving a good ROI.

It doesn’t make a difference whether you are a startup; an existing SME or a large enterprise, Magento covers all. It offers both free and paid options. Regardless of the free offering by Magento, it gives you a complete flexibility to enhance its default functionality with a little investment.

Every Magento shop development comes at a different cost due to the fact that eCommerce needs can never be same for all the merchants. For e.g., if a merchant wants to have a customized checkout process it is not necessary that the other one would want the same as he may be happy with the default one. Thus, the Magento programmers are always required to do the customization & implementation of features which exactly compliment the future vision of the client. And, this is where the cost varies for each development.

Yet we have tried to come up with some facts regarding the cost involved in developing a Magento shop. Please have a look below:

Magento Community Edition (CE) or Basic Magento Website

Magento offers a free community edition which is primarily built to serve the small business’s needs. Although it is free to download and use still there is a need for technical assistance from any Magento development expert. This edition comes with the following:

  • Basic Functionality
  • A Simple Theme
  • An access to Magento Community
  • No back-office system integration
  • Seamless CMS

Its major key features are also inclusive of Configurable swatches (a Magento feature that allows you to visually display the multiple options available for a configurable product); Better site performance & security; an improved responsive design reference theme with over 70 enhancements done by active Magento community in context with merchants’ needs and help them to get deeper customer insights through Google universal analytics.

Provided that you hire a tech-savvy, you can unleash the advancement of this edition by customizing its inbuilt functions further. An approximate cost of Magento Development Services in regards to this edition generally starts from $720 and may increase depending on your unique needs or requirements.

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Lately, in the year 2015, Magento came up with an enhanced version widely known as Magento 2. That time, it did some architectural and functional improvements to make the eCommerce trade more seamless and effective for both vendors and customers.

This change also included advancement of Magento enterprise edition and below you can have a look at the current enterprise version available in Magento marketplace.

Magento Enterprise Edition (EE, a premium-paid version of Magento)

A perfect eCommerce solution for large businesses!

It offers a faster site setup with few modules & a great performance with low prices. Currently, when Magento has upgraded itself with Magento 2 this enterprise edition is worth the investment.

The key features of this edition include:

  • Set up multiple stores with advanced SEO features
  • Targeted Promotions and Merchandising
  • Integration with various shipping providers and social media
  • Completely hosted by Magento with a professional customer support
  • A huge amount of SKU’s with full page caching system
  • Mobile-friendly & built-in modules
  • Customer Segmentation etc.

You can get a complete development of your Magento store with this edition at an approximate cost $10,000 which may vary in accordance with your needs. This edition was first licensed in 2009 and till now the merchants have seen varied pricing structures associated with it. For instance, in the year 2009 its license cost was $8,000 and for 2016 it raised to $22,000.

Also, Magento 2 offers a cloud hosting option widely known as Enterprise Cloud Edition (ECE). It has combined the licensing and AWS-based managed hosting. This edition’s cost is totally based on expected annual gross sales revenue and ranges from $40,000.00-$190,000.00 per year.

Apart from these above-mentioned cost estimations, there are some extra charges associated with every Custom Magento development:

- Developer or Agency’s hourly rate

- Server cost

- Paid theme or extensions, and

- post-completion support if you require any.


As we can conclude that Magento is for everyone and you can appreciate its features at varied cost depending on your requirements. Thus, it becomes the responsibility of the Magento development company (whom you approach with your requirement) should offer you a perfectly suitable Magento edition the development diffiprocess overrated.

© 2018 Ashok Goyal

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