ECommerce Development Cost: Advice and Guide

17/10/2019 158
ecommerce development cost 1
E-Commerce

Your online store is your chance to prove your brand value to customers. As an IT company having many years of experience in eCommerce development, we are often asked, “How much does your company charge to develop an eCommerce website?” or “What is the basic eCommerce development cost?”. Actually, there is no exact number. The cost of developing an eCommerce website is very subjective depends on numerous factors, such as business size, platforms, design, setup, integrations, maintenance, features, and functionalities.

In this article, CO-WELL Asia is going to analyze all the costs involved in launching and maintaining websites of various sizes to give you a clear idea about eCommerce website development cost.

ecommerce development cost

First of all, let’s find out 6 factors you need to take into consideration to determine the online store development cost.

1. ECommerce platform

Nowadays, thanks to numerous eCommerce platforms available on the market such as Magento, Shopify, WooCommerce, Big Commerce, Volusion, etc., building an online store has not been so difficult.

These platforms offer an easy way to design website infrastructure and include ready-made layouts, content management systems, search and filtering, payment, and shipping integrations. If you want to discover more about the pricing plans of these eCommerce solutions and find out which one is suitable for your business, we have written a useful article about TOP 9 Best eCommerce Website Builders.  

At the lowest cost, if you don’t need any outside help, some SaaS offerings (Shopify, Wix or Squarespace) start at $20-$30 per month). More configurable and customizable offerings like Magento and Magento Enterprise are not designed to be set up by a business owner, so you still need to hire a professional team with certain technical skills to be able to launch and maintain your online store. A developer can charge $10-250 per hour to develop an online store. The rate largely depends on the region where you hire a developer, but can also depend on experience and qualifications.

2. Business Size

eCommerce stores are usually differentiated by the number of products they sell and the amount of traffic their websites receive.

Small business: If you have a limited range of products, a small customer base, and no intention to expand in the near future, it’s better to keep things simple and try to save some money. There are many possibilities on the market to design your online store investing not so much.

Medium business: If you have a decent range of highly specialized products, an average customer base and you consider increasing your sales in the future, it’s better to search for solutions that can help you to reach your goals. You will need to have robust features and functionalities and might require implementing a few plug-ins or extensions. When setting up your budget you have to take into account the cost needed for custom software development.

Enterprise business. If you have a wide range of products, a large customer base and you’re well-established in the market you need to choose a perfect solution for your enterprise business. This solution should provide scalability, manage large inventories, unlimited categories, multiple sales channels, and product attributes. Don’t forget about Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) systems integration. Enterprise store development requires a considerable budget.

ecommerce development cost

3. Design complexity

The design is a crucial factor that contributes to the overall cost.

Several platforms, and especially SaaS offerings, have design galleries, themes, or templates you can apply to your site yourself. These themes don’t take into account the characteristics of a particular business. Also, other online retail companies might apply the same templates. However, a template-based design is fast and inexpensive. Anticipate spending from $0 to $300 to purchase a template and $1,000 to $3,000 if you want to alter or customize the template. Remember that you still need taking into the additional budget to spend on logos, banners or creative images.

Another option is custom-made design, and the sky is the limit on possible expenses. It gives you the opportunity to design a website that is unique to your business. You can design any features you want, including custom layouts, scrolling animations, and more. A custom-made design created with your specific user persona in mind helps to significantly increase the sales. Needless to say, you should pay more, but the chances of someone else having the same design are zero in this case. When it comes to custom design, it’s difficult to figure out possible costs. Generally, a custom layout design may approximately cost from $10,000 to $100,000 depending on the specifics, requirements, and complexity of the website.

 

4. Functionality

Typically, eCommerce functionality makes the greatest cost of an online store. A successful retail company should provide the latest, efficient, interactive functionalities to navigate the website easily and find the products that the customers are looking for.

For instance, you might need customized search functionality due to the type of product you sell or you want to offer an effective checkout with special benefits for clients. These kinds of functionalities demand extensive programming and thus only bigger budgets can sustain the design and development of these features.

Numerous eCommerce platforms offer various modules or extensions where functionality has been developed by someone else and can be applied to your online store for a much lower price than you could build on your own.

However, you need to check what plugins are available before writing custom code. Quite often extensions are incompatible with certain online stores. Our company always evaluates extensions for effectiveness, security, features, and integration before advising them to our clients.

 

5. ECommerce Web hosting

Put simply, hosting is a service that makes your website accessible via the World Wide Web. Web hosting has an impact on the page loading time so you need to choose a provider thoughtfully. You have three options on how to host your online store accessible on the internet 24/7/365:

  • Hosting services – the most typical type where you “rent” space from the servers of the web hosting providers such as Amazon.
  • Hosted platforms – you can build your online store on platforms with built-in hosting such as WordPress or Shopify.
  • Host your own – a self-hosted website where you manage everything yourself.

Web hosting cost is one of the easiest aspects to calculate when we talk about eCommerce website development costs. The majority of SaaS platforms include some level of hosting, though they can have some restrictions on the amount of storage, traffic, orders, customers, and products. The costs start cheap and grow as your sales volumes increase. Expect to pay at least $20 – $250  per month.

Hosting for a custom eCommerce online store is likely to start at around $250 – $350 monthly for decent service and support. If you also need to include high-quality security, high speed, scalability the cost for hosting can go up to $2,000 monthly.

Amazon Web Services offers low-cost ways to host eCommerce websites. It supports a broad variety of website hosting options. The price for optimal package storage starts from $320 to $1,000 per month. However, you need DevOps to create cloud instances to obtain optimal performance. You should pay an additional price for the implementation.

6. Ecommerce developer rate:

ECommerce developer rates depend considerably on the expertise and location of the web developers.

They charge between $5 and $125 per hour. North American developers charge the highest, followed by Western European, Eastern European, South American Asian developers respectively. Expert agencies specializing in designing eCommerce online stores charge between $50 up to $250 per hour. Working with an agency is a more reliable option than working with a freelancer.

 

Types of eCommerce websites and their costs

  • Small-sized eCommerce website

A small-sized eCommerce website is determined by a few aspects: small product catalog (100-1000), some custom programming (mainly concerning the appearance of the site and the structure of pages), off-the-shelf themes, light traffic, basic design. Small websites have no more than 25 pages and out-of-the-box functionality. Estimated small eCommerce website development cost: $2,000 to $15,000.

  • Medium-sized eCommerce website

A medium-sized eCommerce website is built using an average product catalog, medium traffic (1000-5000), customized themes, unique functionality, design, and development of “pro” features. Medium-sized eCommerce stores usually have less than 100 pages and a content management system. Estimated medium eCommerce website development cost: starting with $15,000 – $30,000.

  • Custom eCommerce website

A custom eCommerce website is built from scratch and usually has a large product catalog, high traffic, custom layouts, and imagery. In addition, it has a custom design, custom programming, system integration, a great variety of payment methods, multiple shipping options, a content management system, unique functionality, order tracking, refund processing, and other advanced features.  Such custom stores usually have more than 100 pages and a content management system. The estimated custom eCommerce website development cost starts from $30,000.

Bear in mind, that all these estimates cover only the initial costs to establish an online store, and do not include upcoming monthly costs to maintain a site or extra costs such as marketing and branding.

Magento Pricing: How much will a Magento ecommerce website development cost? 

magento e-commerce

Ecommerce platforms can be an excellent solution for launching an online store, as they are constantly evolving. Magento platform is considered to be one of the most frequently used platforms for eCommerce. It offers simple layered navigation, wish lists, advanced search, categorized products, multi-currency payment systems, a content management system for static pages and more. Magento is a solution that suits all types of businesses from small businesses to large enterprises. Here are estimated costs for a Magento eCommerce website built in the U.S versus one built in Vietnam. This is a general breakdown of our Magento pricing and other costs associated with maintaining a store on the Magento eCommerce platform:

TypeFunctions

Cost (in USD)

VietnamUSA
Basic Magento Ecommerce Website
  • Basic Magento functionality
  • Simple design or theme
  • Access to Magento community site
  • A smooth CMS
$6,000 – $12,000 $20,000 – $40,000
Custom Magento Website
  • Custom Magento design
  • Integration with back-office systems
  • Custom attributes required to be created for products
  • Customer groups
  • Migrations to host
  • Extensions, etc.
$12,000 – $30,000$40,000 – $100,000
Magento Enterprise Website
  • Built-in modules
  • Mobile friendly
  • Multiple stores
  • Full-page caching
  • Free professional customer support
  • A large amount of SKU’s
  • Hosted by Magento
  • Search Engine Optimization
  • Customer segmentation
  • Targeted promotions & merchandising
  • Custom coupons
  • Integration with shipping providers
  • Social media integration
  • Training and much more
$30,000+$100,000+
Magento Development Hourly RatesCost per developer per hour20$ – 45$$65 – $150
Maintenance Hourly RatesCost per hour25$ – 40$$80 – $125

Conclusion

All in all, eCommerce website development cost depends greatly on what you need and, of course, your eCommerce developing partner. It would be best if you’re clear about how your eCommerce website would look like and which functions are necessary. Therefore, do not hesitate to consult an expert company to make sure you are making the right move. Besides, considering an offshore service could save you quite a lot.

With all the experience and a team of hundreds of skillful IT engineers, CO-WELL Asia is a truthful partner of every company that wants to build an effective Magento e-commerce website. Drop us a message now at sales@co-well.vn for quality service at a reasonable price.