Costs for creating Magento online shops

A digital presence is currently essential for companies, not least because 70% of the population use the internet not only for entertainment but also to buy products and services. With the pandemic caused by the new coronavirus, online sales have risen sharply, so a website or online shop can often mean the survival of a business.

It used to be very expensive to have your own website and only a person with web development skills could create it. Today, with the popularisation of the internet and the advancement of technologies, anyone can have a website: there are currently almost 2 billion websites and this number continues to grow every day.

If you have opted for a Magento online shop, you should already know that it is the best-known e-commerce platform, certainly in terms of self-hosted solutions. Every year, Magento handles a gross merchandise volume of over 100 billion US dollars.

Advantages of Magento

• All-in-one e-commerce solution with countless functions
• Flexible customisability and expandability
• Multishop and multilingual capability
• Extensive marketing, promotion and social commerce features
• High Usability
• Self-hosting on any PHP hosting
• The developers to customize your online store are easy to find
• The software is free to start
• Widely used and well-known platform
• An active community
• More than 5,000 extensions available
• Highly scalable

Magento is used by large retailers such as Samsung and Nespresso as well as countless small and medium-sized e-commerce companies.

Source: BuiltWithhttps://trends.builtwith.com/shop/Magento

Explanation of the scheme: TOP 10K, 100K, 1m - means: TOP of websites according to traffic, i.e. among the 100K most popular websites, for example, Magento-based websites in 2022 took about 1750. Among the TOP 1m in the same year - about 8750.

The most important Magento functions at a glance:

• Inventory management
• Processing of shipping costs
• Voucher management
• Multiple payment options
• API for web services
• Optimized for cell phones and tablets
• Built-in SEO functions
• Customer groups
• Newsletter management
• Marketing tools
• Order processing
• Customer service

What does a Magento online store cost?

Determining the costs of an online store can be a complicated task, as it is a personalized service that depends on several factors. The costs of an online store can be divided into 3 phases: set-up, launch and operation. Each phase can be reasonably affordable or extremely expensive depending on your budget and goals.

The price for creating a Magento online store basically depends on what plan you have. A very important factor here is the size of your company, which also influences other actions: which edition you choose, which design and which store functions and modules you need. Magento is more suitable for large companies that have a complicated business model and the funding to support it, as Magento is an expensive store system.

Hosting and domain

Costs vary depending on the functionality of a website, where it is hosted and who develops it. When you open a new online store, you must first consider hosting and domain costs. A web host or hosting service provides a server on which your website is hosted and makes it available to online users.

There is a wide variety of hosting providers to suit every budget. The following hosters are popular in Germany: Hetzner, 1&1, SchlundTech, Hosteurope, Strato, Domainfactory and All-Inkl.

After you have selected the hosting plan, you must register a domain name. This is the address of your website and allows users and search engines to visit your website.

Magento Edition

Magento offers a free Community Edition and a paid Enterprise Edition.

The main difference between the two editions is that Magento Community Edition is free. That's great, after all, anyone can use Magento. But this edition has no support from Adobe developers. Everything has to be done by your team or the company you hire to develop your Magento.

The Enterprise Edition is subject to a fee. According to official information, Magento Enterprise starts at approx. 15,000 euros (license for 1 year). For larger projects, however, the costs can also amount to 100,000 euros, and there are even more expensive packages.

Magento is fundamentally identical in both editions. Both editions use the same core of the Magento store. For the Enterprise Edition, the Community Edition was used as the basis and additionally extended.

Design of Magento Shops

With the domain and hosting in place, you can now move on to the most important (and most expensive) part, namely the development of the website and its design. An appealing design is crucial for the success of an online store. Here you also have a choice: a standard template or a customized template. On Magento Marketplace there are available themes that you can use. Or you can have a customized design created. A customized design for Magento 2 is a time-consuming but rewarding task. The appearance of your online store embodies your company, your product range and your corporate philosophy at first glance. Appealing designs are engraved in your customers' memories - this also ensures brand awareness and loyalty among your existing and potential buyers.

Magento Standard Theme:

Functions of the online store

The cost of developing a Magento online store also depends on the store functions: the more complicated the structure and functionality, the more complex and correspondingly more expensive the implementation. These include

• Structure of products, categories, navigation
• Configuration of customer groups
• Shipping processing, forms, confirmation emails, search function, rating function
• Payment methods and shipping methods
• Price groups for e.g. dealers
• User access and administrator accounts

Magento Module

If you need functions for your online store that Magento Standard does not offer, you can purchase additional modules. There are many extensions for every need on Magento Marketplace.

The cost of a Magento online store also depends heavily on the modules you need. So if you have specific requirements that cannot be covered by extensions, you can have individual modules created. The more complicated the module, the more expensive the development - that goes without saying. The creation of product configurators for Magento is also time-consuming but worthwhile.

Selection of the agency

Choosing the right e-commerce agency is the most important task when it comes to successfully launching your Magento online store. The quality of the work, reliability and deadlines are crucial.  When choosing the web agency that specializes in Magento development, you need to look at the customer reviews. This is the best sign of qualification. You can compare finished projects with your expectations.

The role of the team is equally important, as the creation of an online store requires different skills and qualifications. A project requires specialists such as programmers (frontend and backend developers), designers and project managers. Each member fulfills a specific role that is essential for the smooth running of your project.

The cost of the services is also of huge importance. It is advisable not to select a web agency for Magento with hourly rates that are too low or too high. You must inform yourself in advance about the conditions of sale:

• Are there any hidden costs?
• Do I have to pay for everything in advance?
• How is maintenance carried out?
• What is the guarantee and how does it work?

A good agency will always be transparent about these issues.

Support des Magento Onlineshops

To ensure that your online store continues to function flawlessly after the launch, it needs support. Over time, you may require information, personal advice, have technical difficulties, want to add new functions or change something else - Magento support is essential. The following options are possible: you can purchase a support package where the services are prescribed or find a software developer who will work with you at an hourly rate.

Fazit

The development of a Magento online store is a complex, multi-stage process and the costs depend on many factors: Hosting, edition, functionality, modules, design and many more. As this store system is suitable for large projects with complicated business logic, we would offer the store software OXID or Shopware for small and medium-sized companies. You can read about the advantages of migrating from Magento to Shopware in our article.

Our agency is an expert in the creation and support of Magento online stores. We take care of the qualitative implementation of your projects with the highest standards of performance, design and user-friendliness. We create an outstanding online store for you and with you, take care of digital marketing and are happy to advise you.