What Is The Total Cost Of Building A Magento eCommerce Store?

In recent years, Magento has become one of the most popular e-commerce platforms. More than 150,000 stores worldwide are now built on Magento, which accounts for about 25% of all e-commerce stores. However, to decide whether Magento is suitable for your future business, you have to consider carefully about your budget since it might take a huge cost to build a Magento website.

In this article, we will give you an estimation of total cost of building a Magento eCommerce store. But first, please follow 2 below steps:

Step 1: Clarify which kind of Magento e-commerce store you want to build:

  • Basic Functionality:

The purpose of this type is mainly to inform your customers of your business existence on the Internet. In general, it will include necessary information about your firm, your products and services and your contact. Because of that, the store website will contain simple page such as About page, Homepage, the Services/Products page, and the Contact page.

Another thing to concern is that you will not have a custom design for this type of website but a static website, which means that the website development company will set you up with a CMS (content management system), then add your content into the pages, and finally apply a ready-made theme for your website.

  • Moderately Complex Functionality:

In comparison to the first type of website, the moderately complex one will consist of several general informative pages plus some functional pages like Shopping Cart page, Checkout page, Product galleries and Blogs and News and so on.

The advantage is that you can get a fully customized design backed by a CMS, which gives you an easier option for making changes to the content of the site. Therefore, the cost might vary based on the designer’s skills and qualifications, the specific number of customized pages beyond the available template and also the level of browser compatibility, …

  • Highly Complex Functionality:

This type of website is obviously more complicated to build than the first two types. It also provides you with a 100% custom design for your store with multiple informative and functional pages. The special thing is that it allows you to add many superior functions/ features for your e-commerce store. For example, it gives you possibility to process consumer input and handle data in order to return valuable analysis.

What you will get is a well written, fully tested web application that goes well beyond the complexity of a basic CMS backed website.

Step 2: Estimate your budget and select where you want to find a Magento development company

The cost of building a Magento eCommerce store is quite flexible, depending on the regions:

In developed countries (E.g.: US, UK)

  • Basic functionality: $3,000 to $5,000
  • Moderately complex functionality $5,000 to 7,000
  • Highly complex functionality: $7,000 to $15,000

In developing countries (E.g.: India, Vietnam)

  • Basic functionality: $600 to $1,000
  • Moderately complex functionality: $1,000 to $2,000
  • Highly complex functionality: $2,000 to $5,000


You may probably wonder why there are a huge gap in cost of building a Magento eCommerce store in different countries. As far as I know the main reason is the unequal labor costs. While you have to pay more than $100 per working hour for a developer in the US, it costs you only a half or even less for an East Asia developer to get the work done.

If you are granted a generous budget, choosing a local development team might be a better option due to more convenient communication. On the other hand, in case you’ve started an online business with a limited budget, it is recommended to partner with an outsourced agency.

Tigren Website Design and Development Company is one of the top web solution agencies that is specialized in Magento. Owing to more than 5 year experience working on Magento and collaborating with clients from many countries in the world like the USA, the UK, Australia, Netherlands, Singapore, Thailand, Tigren promises to create a well-design and highly functional Magento website that suits your budget. Especially, they offer a special package: “Build an awesome Magento website from just 1,499” for small and medium businesses.


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Which Factors Affect The Cost To Build A Website?

To evaluate whether the cost to build a website of a web design and development company is appropriate or not, you must depend on these following factors.

  1. Domain Name

When it comes to cost to build a website, the very first thing you must concern is the domain name – the unique address of your website. It is basically obtained for a year and so the cost is given for the year, ranging from $10 to $100. There are several extensions available like .com, .in, .org, .co, .in and so on, which decide the cost you have to pay.

  1. Hosting:

Web hosting is another important factor in web designing. Hosting that means where your website runs. When you host your website, it means that you are creating your website live for the audience. The hosting cost which depends on upon the type of hosting you prefer for your website:

  • Cloud Hosting ($100+ a month): This gives you access to load balancing, autoscaling, replica databases and other technologies that allow to scale to any size. Everything is hosted in the cloud making it an extremely fast and resilient solution.
  • Dedicated Server ($40+ a month): This is basically a single dedicated server that you host everything on. This is much faster than virtual hosting, but for most sites it will be more than sufficient. The disadvantage is that you are relying on a single point of failure. If your server goes down so does your website.
  • Shared/ Virtual Hosting ($5+ a month) This is very cheap and fairly reliable for light traffic websites. Many virtual hosting packages also have very low bandwidth limits so they could take your site down for extended periods if you exceed the limit.

There may be some sites that offer free hosting of some kind, but inevitably there will be some kind of catch – such as displaying ads all over your site. Hosting multiple sites is very expensive and there’s no charity that will pay for true hosting without any revenue.

  1. Quality of Web Developer

To evaluate a good web developer, you should look on their number of experience, their qualifications and their actual portfolio. It seems that these criteria are directly proportional to the fee you have to pay if you compare among local developers. However, it is not true for all the cases. Since the labor cost offshore is generally much cheaper, the cost for hiring a good web developer might be lower with the same capabilities. For example, for 1 working hour you must pay $60-150 for local workers but pay only a hard or even less for the ones from other countries.

  1. Website Designing

Website designing process includes various steps from designing mockup to final template designing in HTML. Depending on your requirements and level of customization, it usually costs you between $400 – $2500. In some web design and development agencies, they offer a bank of available design templates for you to choose. If you agree to use one of those templates (with minor changes), the cost is relatively low. In constrast, if you ask for a unique design – 100% customization, the cost would be obviously very high.

  1. Website Development

Website development is all about functionalities – What would you like to have in your website. To be more specific, it is related to content management system, order management, checking and payment, customer management, product and service management, and so on. Web development cost is flexible and depends on the number of modules and features. (at least $500 for a basic website)

  1. Support & Maintenance

Most of the web design and development companies offer support and maintenance services after building the website. Some of them include this fee when calculating the total cost and make it higher while others charge it separately. As a result, sometimes a firm requires a lower cost for building a website but there is a hidden charge of maintenance that make the total cost is even higher.

In conclusion, there are 6 factors deciding the cost to build a website that you have to consider. Based on these factors, you can avoid to be overcharged and feel easier to evaluate different offers from web design and development companies. Last but not least, we want to give you a suggestion that don’t hesitate to ask the agencies why they give you that price. Owing to that you can know what are included and what are not and then select the best website builder.

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