Magento Pricing: How Much Does It Cost to Run a Magento Store?

Starting an online store with Magento isn’t always straightforward. There can be unexpected costs and tricky financial hurdles to watch out for. If you are struggling to understand these things well, look no further! In this guide, we will break down Magento pricing related to multiple factors. By evaluating these factors, you can plan your technology investment effectively.

• Why pick Magento for your online store
• The cost of running a Magento store: What affects the price?
• Magento pricing 2024: A quick look at the costs
• A rough guide to Magento Open Source pricing
• Magento Commerce & Magento Cloud pricing
• Comparing Magento eCommerce pricing with other platforms

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Why Choose Magento?

Magento eCommerce stands out in the digital marketplace for these good reasons:

• Performance: Magento is tailored for eCommerce, offering notable speed and functionality that can be critical for online store operations.
• Community support: Magento’s open-source model allows for a collective development effort, which can lead to diverse contributions and support options.
• Search Engine Optimization: Magento’s architecture benefits SEO practices and accommodates various external tools for enhancing search visibility.
• Customization: The platform provides an extensive array of themes, which can be great in tailoring the visual aspect of an ecommerce site to match a company’s branding.
• User experience: Magento’s design philosophy emphasizes user experience, potentially leading to faster and more secure transactions.
• Dashboard interface: The backend interface of Magento is designed to be intuitive, which may facilitate the management of store performance and the analysis of business metrics.

More than just an eCommerce platform, business owners can also enjoy a supported omnichannel journey with Magento POS.

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Magento Pricing: Elements That Influence Magento Prices

Now that you have a clearer understanding of the advantages of Magento, are you feeling motivated to invest in a Magento website yet? Hold a second, you still need to understand the factors that influence the overall Magento price is crucial.

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Magento Open Source Pricing Breakdown: An Estimation

1. Magento domain name cost ($10–400/year)

When establishing your eCommerce business, you have the choice of purchasing either an expired domain name or a brand-new one. That’s why the annual Magento 2 pricing for domain names can vary:

• Brand new domain: Typically priced between $10 and $15 per year, a brand new domain allows you to create a unique brand name and grants you full control over it. Also, opting for a new domain reduces the risk of inheriting poor-quality backlinks.
• Expired domain: The cost of expired domains ranges from $20 to $400 per year. By selecting an expired domain, you may benefit from faster search engine rankings and quicker indexing by search engines. Furthermore, the existing high-quality backlinks associated with these domains can enhance your store’s visibility on search engine results pages (SERPs).

2. Magento hosting cost (from $10/month)

There are primarily 4 categories of web hosting available: shared hosting, virtual private server (VPS), dedicated server hosting, and cloud hosting. For a robust Magento website, a Virtual Private Server is often the most suitable choice out of these options.

The Magento cost per month for these services can range from $10 to $850, depending on your data storage needs and the chosen hosting provider.

Crucially, before settling on a hosting service, you must verify its compatibility with Magento. Numerous providers offer dedicated hosting solutions fully optimized for Magento. Based on thorough research into hosting services, we strongly suggest considering these top 5 best Magento hosting providers.

3. Magento SSL cost ($50–300/year)

The Magento pricing for an SSL certificate can range from $50 to $300 per year, depending on the type of certificate and the provider.

Domain-validated (DV) SSL certificates only verify domain ownership. They are the most affordable option, typically costing between $10 and $100 per year. Meanwhile, Organization-validated (OV) SSL certificates, which provide higher assurance by verifying domain ownership and basic company information, usually range from $50 to $200 per year.

Extended-validation (EV) SSL certificates offer the highest level of assurance and display the company name in the browser’s address bar. They can cost between $100 and $500 per year.

4. Magento design cost ($0–5,000+)

When it comes to designing your Magento website, you’re presented with 2 distinct paths:

• Utilize an off-the-shelf Magento theme.
• Design a custom theme perfectly suited to your requirements.

For a standard theme, the Magento 2 cost related to the design can vary from $0 to $180. Alternatively, crafting a personalized design necessitates engaging a professional web designer.

On the other hand, Magento developers can create a tailor-made theme in 40 to 160 hours. With the base rate starting at $40 per hour, the total cost can exceed $5,000.

It’s essential to acknowledge the growing trend of mobile usage and its contribution to revenue. Hence, you should ensure that your website is responsive across various devices, such as tablets and smartphones, to provide a user-friendly experience for mobile shoppers.

Moreover, don’t forget to verify the compatibility of a new theme with your existing Magento version before implementation. This is to make sure that the design perform well on your online store. If you feel that choosing a suitable theme from Magento is too difficult, please check out the top 10 best Magento themes.

5. Magento extensions cost ($60–600/extension)

The Magento eCommerce platform equips you with fundamental functionality to operate an online business. However, Magento stores usually enhance their capabilities by incorporating additional extensions for customer support features, improved layered navigation, and advanced search.

You can discover and add these extensions from the Magento marketplace to your store. To make it even easier for you, we’ve compiled an updated list of the best Magento extensions to explode sales.

Keep in mind that while some extensions are free, most high-quality and advanced ones require a one-time fee. The average Magento pricing for an extension typically ranges from $60 to $600, depending on the specific features offered and the extension provider’s reputation.

6. Magento SEO & marketing cost ($10,000–40,000/year)

Running an online business is fiercely competitive. Therefore, you have to make substantial investments in website promotion and SEO to attract customers. However, if you specialize in niche products and services, you might be able to bypass this step. Otherwise, the average annual cost for SEO and promotion services typically falls within the range of $10,000 to $40,000.

This Magento pricing covers a variety of strategies aimed at enhancing online visibility and driving traffic to the website. It includes costs for keyword research, content creation, backlink building, and implementing SEO best practices to improve search rankings. Additionally, promotional expenses may encompass social media marketing, pay-per-click campaigns, email marketing, and other digital advertising efforts to attract and retain customers.

Magento also holds a reputation as a powerful platform for B2B eCommerce. Learn more about B2B feature of Magento now.

7. Magento payment cost (2.9% + $0.30/transaction)

Stripe, Authorize.net, and PayPal are the leading payment processors for Magento stores, collectively handling 75.6% of worldwide payment transactions. They stand out for not imposing any initial setup fees. That said, they do charge for transactions, with rates beginning at 2.9% and an additional $0.30 per successful payment.

To ensure you select the most economical option for your enterprise, we suggest conducting thorough research to find a payment service provider that aligns with your specific business needs and financial considerations. This approach will help you balance transaction costs with the benefits each service offers, such as security, customer support, and integration capabilities.

8. Magento development & maintenance cost (from $50/hour)

In eCommerce, there are 5 key pages to customer loyalty and engagement, thereby enhancing conversion rates:

• Homepage
• Category page
• Product page
• Shopping cart page
• Checkout page.

Customizing these pages to align with your brand’s aesthetic—even when utilizing a free Magento theme—requires about 40 hours of development work. Tasks include crafting banners, modifying the color scheme of text, icons, and buttons, and repositioning elements.

Given that Magento developers charge an average of $50 per hour, the baseline cost for developing a Magento site begins at $1,800.

Further, maintaining and updating a Magento site is an ongoing process, requiring your attention. Maintenance tasks often involve:

• Theme upgrades
• Implementing unique payment or shipping integrations
• Developing new features for a better customer experience
• Custom import, return, and pick-up point services
• Complex custom product development; and bug fixing.

Depending on the complexity of your site, you may need a specialist for a few hours each month or on a full-time basis, with hourly rates ranging from $50 to $100. This investment ensures your site remains up-to-date and operates smoothly.

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Magento Commerce & Magento Cloud Pricing

Magento Commerce caters specifically to enterprise-sized businesses. Compared to Magento Open Source, Magento Commerce provides a suite of extra features and stronger security measures. These enhancements can improve business performance and may increase revenue.

However, it’s essential to note that Magento Commerce doesn’t include hosting services. As a result, you’ll need to arrange and pay for hosting separately.

The Magento Enterprise pricing structure is determined by your yearly average gross sales revenue. This edition offers 5 distinct cost levels to accommodate varying business needs.

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Talking about Magento Commerce Cloud, the platform closely resembles Magento Commerce. But it boasts 2 notable enhancements:

• Data backup cloud: Magento Commerce Cloud offers a built-in cloud backup solution to safeguard your data in the event of hard drive failures or unforeseen incidents.
• Integrated hosting plan: Unlike Magento Commerce, this version includes a hosting plan, eliminating the need for separate server expenses. Thus, the Magento Cloud pricing is higher than that of Magento Commerce.

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Besides, please remember that for Magento Commerce and Magento Commerce Cloud editions, you have the option to submit a ticket for technical issues and receive remote support. However, their response time and scope are restricted to Magento’s built-in functionality. That’s why you might still require your own dedicated Magento development team to address issues related to third-party extensions, integrations, and custom logic for immediate support.

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Magento Pricing vs Other Platforms Comparison

If you’re interested in how Magento eCommerce cost stacks up against its main rivals, here is an important summary:

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