Magento is a robust e-commerce platform used by some of the world's most recognizable brands, like Landrover, Ford, Liverpool, HP, Nike, Olympus, and Nestle Nespresso. The extensive list of built-in e-commerce features is aimed at large enterprises that generate massive business.
How much does Magento cost?
Magento is an open-source platform, which means it is free to download and use. Users have full access to its original source code, giving them control over the store’s design and functionality.
So, is it free to use Magento? No, it's not, and we explain in this article why that is so.
Magento pricing plans
Currently, Magento has three pricing plans: Magento Open Source, Magento Commerce, and Magento Commerce Cloud.
A quick view of the Magento pricing tiers:
- Magento Open Source ($15,000+)
- Magento Commerce ($22,000+)
- Magento Commerce Cloud ($40,000+)
Let's go into more detail on each version to understand the pricing.
Magento Open Source Cost
Magento Open Source is free to install, but it's not useable out of the box. You will have to pay for web development if you don't have the skills to do it yourself. In addition, companies have to pay for hosting, a domain, and data security.
All that will come to an overall cost of $15,000 for a basic Magento Open Source website.
What do you get for your money?
Magento Open Source Features
Magento Open Source features are tailor-made to get small businesses to succeed.
- Integrated checkout, payment, and shipping
- Mobile optimized shopping
- Global selling
- Catalog management
- Extended functionality via App Marketplace
- Instant purchase
- Site search
- WYSIWYG Page Builder
Magento Commerce Cost
Magento Commerce offer robust out-of-the-box functionality, limitless scalability, and powerful business tools for businesses that are experiencing rapid growth and want to expand globally.
Magento Commerce is a premium, paid-for option. The Magento Enterprise pricing is based on a company's gross sales revenue. The price of the license depends on a company's annual revenue, as can be seen below.
|Average Gross Sales Revenue||Magneto Commerce Cost|
Magento Commerce Features
Magento Commerce features are tailored to help enterprises scale. In addition to the Magento Open Source features, this plan also includes the following functionalities.
- B2B functionality
- Business intelligence dashboards
- Advanced marketing tools
- Content staging and preview
- Customer loyalty tools
- Visual merchandising
- Product recommendations
- Customer segmentation
- Live Search
- Gift cards
Magento Commerce Cloud Cost
The Cloud edition is specifically for large enterprises dealing with massive sales volumes. With this solution, all data is securely backed up in the Cloud.
|Average Gross Sales Revenue||Magneto Commerce Cloud Cost|
Magento Commerce Cloud Features
Adobe Commerce Cloud provides the following advanced built-in features.
- Optimized cloud commerce for Adobe Commerce
- Cloud onboarding support
- Global availability
- Cloud availability SLA up to 99.99%
- Fast page loading with Content Delivery Network (CDN)
- Performance monitoring tools
- Web application firewall
- Enhanced security with Fastly WAF and DDoS services
- PCI compliant
- Easy deployment
- Streamlined updates and testing
Why is Magento so expensive?
The reason Magento is so expensive lies in the fact that it's not a ready-out-of-the-box solution. It's not a simple drag-and-drop solution like Wix or Weebly. You need serious development abilities to benefit from Magento. Even for experienced developers, it can be a steep learning curve, especially Magento Commerce Cloud.
In addition, with open-source e-commerce platforms, there are always additional costs.
Magento pricing: the costs analyzed
The main reason for Magento's high price is the need for highly skilled developers who can do the necessary coding for a high-end enterprise website requires. In short, a high level of technical experience is required to realize the full potential of the Magento software.
Three development options are open to website owners.
- Web Development Agency
The services of a web development agency will cost between $25 and $200 per hour. These firms are notoriously expensive, but you are assured of a professional service.
Hiring a freelancer is more affordable. The benefit of hiring a freelancer is direct and fast communication, which is not always the case with an agency. A freelancer will cost between $10 and $200 per hour, depending on the country the developer comes from.
- In-house Development Team
An in-house development team is the obvious solution for large e-commerce enterprises that constantly have to deal with the different issues affecting this ever-changing environment. An in-house development team will not only take full control of the development phase, the team will also handle any issues that arise as the enterprise grows.
As the team will comprise more than one highly skilled developer, merchants need to budget for a cost of between $60,000 and $120,000 a year.
Domain cost ($10 - $20 per year)
You need a unique URL for your online store – the address where your store resides online. A new domain will cost between $10 and $20 per year, depending on how popular the domain name is and the registrar you use.
Hosting cost ($10–50/month)
Magento being open-source software, store owners are responsible for hosting their stores. However, this is not applicable to Magento Commerce Cloud, as the cost of this version includes an automated and managed-to-host license.
Magento Open Source and Magento Commerce users can consider any hosting type available such as cloud, dedicated, or shared. The Magento hosting price will be $10–50/month.
SSL certificate ($50–300/year)
You need to purchase and use a Secure Sockets Layer (SSL) certificate to protect your store online. . It encrypts the sensitive data generated when sales take place, including bank and credit card details.
The average annual cost is $50–300, but it can be as high as $600 per year.
Themes ($30 – $499)
There are hundreds of Magento templates, both free and paid options. The price for paid ready-made Magento themes varies from $30 to $499. On ThemeForest, the average price seems to be around $100.
Extensions and Add-ons ($0 – $500)
There are loads of free and paid extensions available. The cost of each extension will depend on the development agency and the number of features of the extension.
The average Magento extension cost ranges from $50 to $500, but prices also go much higher, up to $2,000.
Payment providers cost (2.9% + $0.30/transaction)
The most popular e-commerce payment solutions are PayPal, Stripe, and Authorize.net. Store owners pay 2.9% plus $0.30 for every successful transaction.
SEO & marketing costs ($10,000–40,000/year)
These days, you can't be competitive if you don't have a marketing budget and an SEO strategy. The above figures are a placeholder. The actual cost of marketing your online store and having everything SEO optimized can come to much more.
Does Magento take a percentage of sales?
Magento does not charge any transaction fees. All transaction fees are payable to the payment processors like PayPal or Stripe.
Magento pricing 2023 – Magento is a pricy e-commerce platform, but it has everything you need to run an online store, no matter the size.
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