Magento costs range from free to $100.000+
Here are the different licenses that Magento offer:
- Magento Open Source: Free, but you'll need to pay for hosting, development, and maintenance.
- Magento Commerce On-Premise: Starts at $22,000 per year, increasing with your gross merchandise volume (GMV).
- Magento Commerce Cloud: Begins at $40,000 per year, with costs rising based on GMV and additional services.
How much does Magento cost? "Magento pricing ranges from free for Open Source to $22,000+ per year for Commerce On-Premise and $40,000+ for Commerce Cloud, scaling with your business needs."
But it is more complex than that. You might be a small company that doesn't need much, or you might be a larger company that needs a lot of help. Maybe you are looking to hire a whole team around your Magento shop.
If this is too expensive for you, maybe you should check out the 15 best eCommerce platforms, and see if there is a better fit for you.
What is Magento?
Magento is a powerful eCommerce platform that helps businesses create, manage, and scale their online stores. Known for its flexibility and extensive customization options, Magento allows merchants to tailor their online presence to meet unique business needs. Whether you're a small startup or a large enterprise, Magento offers a range of features for product management, order processing, and customer engagement.
Founded by Roy Rubin and Yoav Kutner in 2008 in sunny Culver City, California, Magento was envisioned as an open-source solution providing unparalleled control over the look, content, and functionality of online stores. Over the years, it has grown into one of the most popular e-commerce platforms globally, attracting a vibrant community of developers and merchants who continually contribute to its evolution.
In 2018, Adobe acquired Magento, further enhancing its capabilities and integrating it into the Adobe Experience Cloud, offering even more tools and resources for digital commerce.
Historic Pricing of Magento
Magento's pricing has evolved significantly over the years, reflecting its growth and the increasing value it offers to businesses. Below is a graph illustrating the development in Magento's pricing from 2015 to the present:
Key Milestones in Magento Pricing:
- 2015: Magento Open Source (formerly Community Edition) remained free, while Magento Enterprise Edition started at around $18,000 per year.
- 2016: Magento 2 was launched, bringing enhanced features and performance. The pricing for Magento Enterprise Edition increased to approximately $22,000 per year.
- 2018: Adobe acquired Magento, rebranding Magento Enterprise Edition to Magento Commerce. The starting price for Magento Commerce On-Premise was around $22,000 per year, while Magento Commerce Cloud started at approximately $40,000 per year.
- 2020: Magento Commerce pricing continued to scale with gross merchandise volume (GMV), with larger enterprises paying upwards of $100,000 per year.
- 2023: Magento Commerce On-Premise and Cloud pricing remained consistent, with starting prices at $22,000 and $40,000 per year, respectively, scaling based on GMV and additional services.
How Much Will Magento Cost for You?
Magento or Adobe Commerce can be either expensive or difficult, and you must choose what you need and don't need. For that reason, we have compiled some statistics that give you an indication of what you should be paying for the different options and help you figure out how much you need to spend to get what you are looking for.
Factors Affecting Magento Pricing
Store owners often seek a precise estimate of Magento eCommerce website costs. However, several elements influence the total fees:
Functionality and Customization: The extent of additional features and customizations you want beyond the core functionalities and storefront design.
Integrations: The number and types of integrations, such as shipping providers, payment gateways, or third-party solutions like Product Information Management (PIM) and Customer Relationship Management (CRM) systems.
Here follows the most notable factors when choosing what your Magento shop will cost, this will give an overview over not only the price, but also what goes into the price.
Magento Cost for Development
Here is a table that shows an overview of the development costs of a Magento shop:
Magento Pricing Overview
In order to understand the table, statistics and information about what goes into the table is needed:
1. Magento License Cost
As mentioned, Magento offers three editions, each with different pricing models:
- Magento Open Source: Free of charge.
- Magento Commerce and Magento Commerce Cloud (renamed to Adobe Commerce and Adobe Commerce Cloud since April 2021) offer exclusive built-in features and optimized code. Pricing is based on annual gross revenue:
2. Magento Hosting Cost
With Magento Commerce Cloud, hosting is included in the license. For Magento Open Source and Magento Commerce, hosting costs vary based on performance and functionality needs:
- Hosting Cost: $10–$50/month
3. Cost of a Domain Name
The cost of a domain name can vary depending on whether you purchase a new domain or an expired one:
4. SSL Certificate
To enhance the reliability and security of your Magento website, you need an SSL certificate. The average annual cost is:
- SSL Certificate Cost: $50–$300/year
5. Magento Web Design Cost
You have two options to design your Magento website:
- Ready-made Magento Theme: $0–$180
- Custom-made Theme: Requires hiring a website designer. It takes 40–160 hours to complete, with a minimum hourly rate of $40/hour, totaling $5,000+.
A mobile-friendly design is crucial for optimizing customer experience and boosting conversion rates.
6. Magento 2 Development Cost
On an eCommerce website, the most important pages include:
- Homepage
- Category Page
- Product Page
- Shopping Cart Page
- Checkout Page
Even with a free pre-made Magento theme, developers usually spend at least 40 hours adjusting these pages to suit the brand design. With an average hourly rate of $50, the minimum development cost starts at $1,800.
7. Extensions
Magento stores often use additional extensions for enhanced functionality:
- Customer Support Features
- Improved Layered Navigation
- Advanced Search
Extensions can be found on the Magento marketplace, with prices ranging from $60 to $600 depending on the features and provider reputation.
8. Payment Provider Fees
Popular eCommerce payment solutions like Stripe, Authorize.net, and PayPal charge no setup cost but have transaction fees:
- Payment Provider Fees: 2.9% + $0.30 per transaction
9. SEO & Digital Promotion
To stay competitive, significant investment in SEO and digital promotion is necessary. The average annual cost ranges from $10,000 to $40,000.
Investing in these areas ensures your online store attracts and retains customers effectively.Magento Pricing Breakdown
SEO can be really expensive, but there are several ways that you can make it a lot cheaper, and it starts with doing it yourself. Check out the top SEO Magento tips.
How Much Does Outsourcing Support and Maintenance Cost for Magento?
The development of your Magento store is only one part of the two-piece puzzle that is Magento. The other half involves the support and maintenance of your shop, which also comes with a cost, either from paying your own workers or outsourcing it to others. Here is an overview of the price if you choose to outsource support and maintenance with both Magento Open Source and Magento Commerce/Commerce Cloud:
Why Do You Need Support and Maintenance for Your Magento Store?
You are already spending a lot of money on the development of your store, so you might be wondering why this is necessary and why it costs so much. There are different reasons for this:
Ensure Trouble-Free Business Operation
Website downtime, unpredictable errors, and hacker attacks can occur at any time, regardless of the eCommerce platform you use. Regular updates for software and extensions are essential, as some even have expiration dates. These actions keep your eCommerce site running efficiently and ensure it remains fresh and modern. Professional Magento experts can provide services to:
- Renew Domain Names, Certificates, and Licenses: Keeping these elements up to date is crucial for smooth operation.
- Protect from Potential Threats: Regular security measures help safeguard your site from attacks.
- Perform Daily and Routine Backups: Ensuring data is backed up regularly prevents loss in case of issues.
Stay Updated with Technology Changes
Customer needs and eCommerce trends are constantly evolving. While your eCommerce website may be modern now, it will require frequent updates and adjustments to stay current with the latest technology. Keeping up with trends and ensuring your website is flexible to adapt to changes is essential. Hiring a professional Magento team for system operation services allows store owners to focus on business strategy while experts handle technical updates.
Maintain High Security Standards
Adapting the latest security solutions is crucial for maintaining high standards for your online store. Magento regularly releases new versions that include updated system requirements and enhanced functionality. Updating Magento versions and installing security patches significantly reduce the risk of hacker attacks and data breaches.
By investing in continuous support and maintenance, you ensure your Magento store operates smoothly, stays up-to-date with the latest technology, and maintains high security standards.
Most Frequently Asked Questions About Magento Pricing
Here we answer some of the most frequent questions that users ask online about how much magento costs:
Is Magento free or paid?
Magento offers both free and paid versions.
The free version is known as Magento Open Source. This version provides a robust set of features that make it suitable for small to medium-sized businesses. It requires self-hosting and handling various aspects of maintenance, but it offers great flexibility for those with some technical know-how.
The paid version is called Magento Commerce.
Magento Commerce is a premium offering designed for larger businesses. It comes with advanced features, enhanced performance, and dedicated support from Adobe, which acquired Magento back in 2018.
So, if you're a business looking for enterprise-level solutions with extensive capabilities, Magento Commerce may be the way to go. But for those just starting or with tighter budgets, Magento Open Source could be the perfect fit.
How much does Magento Pro cost?
Magento Pro isn't light on the wallet.
The cost can vary depending on the business’s size and specific needs:
- Smaller Enterprises: Around $22,000 per year
- Larger Businesses: Up to $125,000 per year
Purchasing Magento Pro is more of an investment. Think of it as an e-commerce superhero, managing your online store effortlessly. The package includes:
- Advanced marketing tools
- Seamless third-party integrations
- Robust security features
Don’t let the sticker shock scare you. Many businesses find the return on investment well worth it. Magento Pro offers scalability and flexibility, equipping your business with a dynamic platform capable of growing alongside you.
Are there additional costs for Magento?
Costs can add up quickly when dealing with Magento. While the platform itself has its own pricing structure, additional expenses can significantly increase the total outlay. Here are some key areas to consider:
- Hosting: The more traffic your site gets, the more you'll likely spend to keep it fast and functional.
- Extensions and Plugins: These enhance functionality but often come with their own price tags.
- Development and Customization: Costs can rise quickly, especially for highly specialized sites, even themes can cost up to $499.
- Security: Investing in robust security measures and SSL certificates is essential to keep your site safe.
- Ongoing Maintenance and Support: Regular updates and troubleshooting ensure your site runs smoothly, but these services can add up over time.
In summary, using Magento involves more than just the initial cost. Be prepared for various additional expenses.
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