Magento price tag has always been one of the lowest on the market. And, as Internet retailer states, in 2016 63.3% of respondents admit that the value for the price was the most crucial point when they were choosing an e-commerce platform. This is a very understandable point. But you always get what you pay for. Right?
Because of the size and changes that Magento undergoes, it is pretty hard to predict and estimate the exact cost of a Magento website for sure. If you’re a developer then you’re probably seeking for the precise price tag for your services. And if you are a customer – then you’re just looking for the best deal possible. Let me assure you, both of you will find the necessary info here, to figure out the best Magento price tag.
Nevertheless, Magento has always performed on the same level or even better than their opponents: IBM WebSphere, Demandware, and Oracle. But is it still the same in 2017? Is Magento price tag still a bang for your buck? Or it is just the excessively big platform with redundant functionality for such price? Let’s find it out. But first, we have to acknowledge ourselves better with Magento itself.
Two ways to go with Magento
As every decent e-commerce platform, Magento proposes different ways for setting up a store on its platform. But, as you may have guessed from the title, unlike the others, Magento’ options list is pretty short. There are only two variants available: Magento CE (customer edition) and Magento EE (enterprise edition). But those are drastically different. And, obviously, Magento price tag for the store on the both is tremendously distinctive, as well. Also, as you’ll see, the price for the site varies dramatically even inside of both options.
Let’s now look closer to those alternatives, and what Magento price is there for you. For those of you who “TL;DR” here is the short table with the suggested average business numbers for each edition.
Magento CE (Community Edition)
Open-source and free to download. But don’t get too excited. As no one is going to give you the site for free. You’ll have to build it on your own or hire some people to do that for you, anyway. In this case, you’ll have to hire a developer or contract an agency. Good idea is to address the guys, who are skilled in developing Magento solutions. Even better idea is to hire Magento-certified developers. That is a real guarantee of the quality of the end result.
So, you have contracted some developers/agency or decided to do everything on your own. What now? Possibilities are pretty much limitless. That is why Magento is #1 e-commerce platform. You can enhance your shop with various extensions present on the Magento marketplace. There are dozens of free extensions over there. Or you can develop necessary extensions on your own. So you have a great opportunity to make a comprehensive shop without spending a single penny.
Although there are pretty obvious (and not so) disadvantages in the Community Edition.
- No access to the support from Magento team. So all you have left is the community forum or some 3rd parties.
- No advanced reports. Not a problem at all if you have a shop with annual revenue near $20 thousand. But a huge problem if you have a big and ever-growing business.
- The absence of a built-in security might be a problem for you, too. As security provided by third party developers might not be the cheapest and/or safest decision.
- Limited customer loyalty features. Gift cards, invitations, reward points, events, private sales – forget about that in Magento CE.
- Pretty narrow inventory and payments functionality. Not the biggest deal for a small business, huge pain in the ass for the big one.
And the list can go on and on (it can be its own article), but those are the most crucial disadvantages.Already own a store and want to handle it more efficiently? We know how to help you out!
Magento EE (Enterprise Edition)
A highly scalable decision for middle – huge businesses which make a decent profit through their store(s). It is specifically designed to cope with thousands of requests simultaneously. Performance and reliability – that’s what you can be sure about in Magento EE.
Also, this option gives a huge space for customization. Sure thing, it includes all the features present in Community edition. Plus those absent one, previously listed. And, of course, it has lots of additional features on top, like:
- Complete multiplatform compliance. Your site will work on any device possible. If you’ll port it there with provided SDK and API.
- A comprehensive CMS with different admin levels.
- Automatic customer serving and relationship management system. One-page auto – checkout, email notifications, automatic additions to wish lists, notifications, etc..
- Advanced analytics tools. Analyze everything – from a single order to customer’ gender and location classification.
- Out of the box SEO friendly functionality: Google sitemap, optimized and customized meta keywords, URLs, descriptions.
- Secure testing site. Here you can test anything you want and how you want before going live.
- Built-in SOLR search and blog. Features which in CE might cost you a lot, are already included here.
To describe all the Magento EE features we would require a whole new and a big one article. So we will stop on these essential features and talk about what we are actually here for – Magento price.
How much will you pay for the site
Here the price is pretty transparent – you’re not paying any license cost and other fees. All you have to pay is:
- Website development $2.5K-$45K. Where $5K is the lowest price for the very basic version of Magento CE website. And $45K – for the custom version of the site on the same platform. This difference has been introduced by developers themselves and is pretty vague. So, custom version differs from basic with:
- Limited amount of SKUs in the Basic version
- Design in the Basic version is limited only to themes provided by Magento
- Integrations with backoffice systems in the Custom version
- Integrations with social networks
- Drop shipping functionality
- Migration to host
- Custom scripts, logic, and attributes for products
- Lots of other features which differ from company to company
- Implementation $3K – $55K. Depends heavily on the complexity, type of your business and the website complexity as well.
- Hosting $0 – $600 per month. It is up to you where to host your website. If the website is quite simple you can even host it on your own server. Or you can rent a plain dedicated server, the price for which rarely reaches the point of $600.
- Maintenance $0 – $250 per month. You can either run the website on your own or entrust this to some freelancer or a special agency. Freelancers usually work on the hour basis, while agencies usually take fixed monthly payment and take an extra pay for extra hours.
While in this case, everything isn’t so straightforward. You have to pay annual license cost which is now bonded directly to your gross merchandise sales value (GMV). In other words – your revenue. Currently, it looks like this.
And in the case of website development and maintenance – prices skyrocket. Which is pretty understandable.
- Website development $50K – $250K and up. That is the biggest part of Magento price tag for enterprise edition webstore. As really comprehensive and stable webstore requires very complex backend logic with beautiful design, great optimization and lots of properly working modules. The price is also so high because a regular web developer won’t be able to work properly with Magento’ logic. So you need to find someone who knows Magento or hire Magento certified specialists.
- Implementation $50K and up. Implementation of an enterprise-scale business is a very complex process which also consumes a decent amount of time. A minor issue like an implementation of a specific POS terminal may raise the price to dizzying heights. And don’t let me even start on shipping or custom payments…
- Hosting $300 – $5K. A reliable hosting solution is fundamental for solid webstore. You’ll need at least a decent dedicated server. And a cluster hosting environment may not be the limit, either.
- Maintenance $100 and up. We weren’t able to find the highest price here, as different agencies put a “negotiable” price tag for their services. The minimum average price we have found was near $100 per month. Plus extra payment on the “per hour” base which is near $120.
Note: all the listed here prices were gathered from various sources, including magento.com and official websites of different developer agencies or job-finding platforms like upwork.com. The prices may not be 100% accurate and may change anytime. We will update this info on the regular basis. So stay tuned!
Want to know to run you multiple Magento stores from one place?
Whom to trust the development
As you may have noticed average Magento price tag is pretty vague. The cost for the services of developers or agencies differs drastically. Also, the price largely depends on the location and qualification of a developer or an agency.
Speaking of qualification, there is a special Magento certification program for developers and agencies. This certificate confirms that particular developer or agency is a recognized Magento specialist. Magento divides its partners into solution partners and technology partners.
Solution partners further divide into:
- Global elite partner
- Enterprise partner
- Professional partner
- Business partner
Technology partners divide into:
- Premier technology partner
- Select technology partner
- Magento technology partner
The price for the services of a particular partner usually correlates to the rank of the one. Typically the price for one developer per hour from an Elite partner rarely goes lower than $100. While the same developer from a low-ranked partner may cost you $20-$50.
The location of a developer/agency is one more interesting point which heavily influences the price formation for the services. This issue is pretty common for the whole IT market. Let’s have a look at some examples:
- US, Canada – $80 – $150/hour
- Europe (Germany) – $70 – $120/hour
- Eastern Europe (Ukraine) – $20 – $40/hour
- India – $5 – $30/ hour
So, it is all up to you to decide whom to trust your project: a freelancer who takes $10/hour or an agency which might cost you thousands of dollars. But remember the rule from the very beginning of this article: you get what you pay for. Even if some $5/hour freelancer will manage somehow to launch your site, there is no guarantee that it will last for long. And after the subsequent problem, you’ll probably have to deal with professionals which, usually, charge even more for dealing with custom build projects. Which is pretty understandable, as in the most cases, the site has to be rebuild from the scratch.
Is it worth it?
Magento continues to bear the title of #1 e-commerce solution. Thanks to its pricing plan, which is still lower than the one from its closest rivals: Demandware, Oracle, and IBM. Because of comprehensive functionality, it provides and tremendous customization possibilities. But is Magento the best decision for your business? It is all up to you to decide. While the price is a crucial factor – it definitely isn’t the only one. Magento won’t provide you with such level of support like IBM would. Or in the case of Magento – hosting is completely your headache, while Demandware takes care of it for you. And that’s only the tip of the iceberg.
What we can say for sure, to conclude this article, is: Magento Enterprise is definitely one of the best solutions for medium – large businesses. In terms of pricing, of course. While Magento Community Edition – maybe not. Why? We have covered this in our article Magento vs Shopify. And we are just starting to expand the series of these articles further on, so watch for the updates.