Planning to start a successful eCommerce business but not sure how much it will cost? Building an eCommerce website involves several factors that can affect your overall cost. Without a proper plan, you might end up overspending, which is not what you want. But no worries, we’ve got you covered.
In this article, we’ll break down all the information you need to know to get a clear idea of eCommerce website cost. Plus, we’ll give you some tips to avoid overspending and maximize your profits.
Exciting, right? Let’s dive in.
eCommerce websites: Builders vs Web development companies
To create an online store, you can either use an eCommerce website builder like Wix, Squarespace, etc. or hire an eCommerce development agency. The approach you select will have a significant impact on the overall eCommerce website cost. Here are the advantages of using website builders:
- Least expensive way to build an online store
- A viable option for merchants planning to create a basic eCommerce website
- Ideal for people with little/no technical know-how
- Best for people who need to build an eCommerce website fast
Monthly cost of an eCommerce website builder can range from $39 to $399, depending on whether you have retail stores or not. Although using free, open-source platforms may be attractive, you can face additional costs for hosting, themes, plug-ins, and even developer assistance if you have specific needs, all of which can increase your total expenses.
How to calculate eCommerce website cost
The cost of an eCommerce site can vary greatly depending on several factors. Some online stores can be set up for just a few hundred dollars, while others can cost tens of thousands, or even hundreds of thousands of dollars.
To give you a better idea of what to expect, here are some of the items that you’ll need to budget for when building an online store:
Infrastructure costs
- eCommerce software
- Domain name
- Hosting
- SSL certificate
- Payment processing costs
eCommerce website design costs
- Store theme and design
- Add-ons and extensions
Extra costs
- Marketing and advertising
- eCommerce website support and maintenance
Each of these items plays an important role in the functionality and success of your online store. By properly budgeting for each of these items, you’ll be able to build an online store that fits your needs and meets your goals.
Let’s consider each of the factors in more detail.
Magento
Development Get an online store that sells. Woo customers with a seamless UX that guides them from the first point of contact to the checkout page.
Infrastructure costs
Your website’s infrastructure is the foundation of your online business, and any issues or downtime can negatively impact your sales and reputation.
eCommerce software
When it comes to eCommerce solutions, there are various platforms to choose from, each with different out-of-box features, software types, and service levels, all of which can affect the overall eCommerce website development cost. Choosing the right platform is a critical step in launching a successful eCommerce store.
Let’s take a closer look at some options you might want to consider.
- Adobe Commerce
Adobe Commerce, previously known as Magento Commerce, is an eCommerce solution designed for larger online retailers with a focus on developer needs. Its robust inventory and sales management system help streamline operations, while its page builder feature allows effortless creation and customization of web pages.
Adobe Commerce is part of the Adobe Commerce Cloud (ACC), which provides a flexible, open-source platform for personalizing, managing, and optimizing eCommerce stores. With its comprehensive set of tools and features, Adobe Commerce is a popular choice for businesses looking for a scalable and custom solution.
It is trusted by big names such as Coca-Cola, Nike, and Samsung. Adobe Commerce offers a comprehensive range of functionality, including shopping cart systems, catalog management, and content management, providing companies with the freedom to create an eCommerce website that accurately represent their products and brand.
- Shopify
Shopify is another popular platform that offers a wide range of tools and features for building and running online stores, as well as selling goods in person. With over 641,446 sites using Shopify worldwide, it is a reliable and robust solution for businesses of all sizes. One of the key advantages of Shopify is its fast and easy setup, with a range of professionally designed themes available to provide a corporate look to your eCommerce site. Additionally, the vendor hosts your store, ensuring that your servers are secure and always updated, and offers reliable 24/7 customer support for any issues that arise.
Shopify offers a comprehensive feature set, including automatic carrier shipping rates, a free SSL certificate, your own domain name, branding and customization of your eCommerce site, mobile commerce readiness, a full blogging platform, and a web-based website builder. The platform also includes robust marketing features, such as the ability to recover abandoned carts, import catalogs quickly and easily, and access easy-to-use reports. Finally, Shopify allows you to operate your own payment gateway, providing you with greater flexibility and control.
- WooCommerce
WooCommerce is one of the most popular eCommerce software solutions. It is an eCommerce plugin for WordPress, making it an excellent option for businesses already using WordPress as their website platform. WooCommerce can be used to build a standalone online store from scratch or modify an existing WordPress website or blog to sell products. The plugin is free, but advanced features are available through priced updates and upgrades.
With WooCommerce, you can quickly and easily set up your eCommerce website using the onboarding wizard, which offers an intuitive and robust interface. The platform also provides reliable support from both WooCommerce agents and user communities that include business owners and software experts.
WooCommerce’s key features include a clean and modern interface, geo-location support, default currency setting, full control over the checkout process, pre-installed payment gateways, WordPress content integration, and an enhanced experience for store owners. Its flexibility and customization options make it a popular choice for businesses of all sizes and industries.
- BigCommerce
BigCommerce is an eCommerce software that provides businesses with a powerful solution to build and operate their online stores. The platform offers a wide range of customizable templates, enabling businesses to integrate their brand designs seamlessly. BigCommerce supports the sale of both physical and digital goods and comes with a set of useful marketing features to help businesses expand their customer base.
In addition to designing eCommerce websites, BigCommerce offers a vast arsenal of features, including marketing tools, site hosting, analytics, and online marketplace integrations. It simplifies the checkout process with tools that collect transaction data in real-time, providing businesses with a clear picture of their performance. The platform’s central control panel allows businesses to handle all transactions, speeding up order accommodation.
BigCommerce also offers functionalities such as warehouse management, payment processing, social media marketing, and SEO, making it a total eCommerce tool. Its API capabilities allow for integration with third-party applications, and its mobile-optimized and SEO-friendly features help improve search rankings, traffic, and lead conversion. Visitors to an eCommerce website will enjoy their experience, and the platform’s reliable analytics provide actionable insights for smart business decisions.
- Salesforce Commerce Cloud
Salesforce Commerce Cloud offers a robust set of AI-powered features and is highly customizable and scalable, making it suitable for businesses of all sizes.
As part of the popular CRM suite, Salesforce Commerce Cloud combines essential eCommerce features with functionalities that enhance customer engagement and experience. It offers personalized storefronts, multiple carts, personalized coupons, split shipments, and quick order and reorder templates designed to streamline the buying process.
Salesforce Commerce Cloud is highly customizable and can be configured to meet the unique needs of both B2B and B2C businesses. B2B owners can benefit from the platform’s global support and scalability features, while B2C owners can leverage its robust merchandising and marketing tools to boost sales and customer engagement. Additionally, the platform utilizes AI-powered experience enhancements for improved performance.
Lean about the state of headless in eCommerce
Domain name
As of 2023, the cost of a domain name varies depending on the extension and the domain registrar you choose. The most common domain extension, .com, typically costs between $10 to $20 per year. Other popular domain extensions such as .net, .org, and .co can cost between $10 to $30 per year. However, more specialized domain extensions such as .io or .ai can cost upwards of $50 to $100 per year.
Some domain registrars may offer discounts for bulk purchases or first-time registrations. It’s important to note that domain name costs can fluctuate over time, so it’s best to do your research and compare prices before making a purchase.
Depending on your needs and budget, you can choose between a new and an aged domain name. New domain names are those that have never been registered or used before. They are often more affordable and easier to obtain than aged domain names. Additionally, new domain names provide a fresh start and can be used to build a brand from scratch. However, new domain names may lack the authority and trustworthiness that aged domain names can provide, and may take longer to rank in search engines due to lack of history and backlinks.
On the other hand, aged domain names are those that have been previously registered and used. They may have more authority and trustworthiness in the eyes of search engines, as well as an established backlink profile that can help with SEO. Aged domain names may also have existing traffic and brand recognition, which can be beneficial for businesses looking to expand their reach. However, aged domain names may be more expensive to purchase and can come with potential risks, such as previous penalties or negative backlinks.
Hosting
The cost of hosting for an eCommerce site varies depending on several factors, including the hosting provider you choose, the size of your website, the amount of traffic it receives, and the level of security and support you require.
Shared hosting, which involves sharing server resources with other websites, is typically the most affordable option for small eCommerce startups and can cost as little as $2 to $15 per month. With shared hosting, all websites on the server share the same pool of resources, including storage, bandwidth, and processing power. This means that if one website experiences a spike in traffic or resource usage, it can affect the performance of other websites on the same server. However, shared hosting is typically suitable for smaller websites or businesses with low traffic and resource needs.
VPS (Virtual Private Server) hosting, which offers dedicated resources within a shared server environment, can cost anywhere from $20 to $100 per month and is a good option for eCommerce sites that require more control and flexibility. With VPS hosting, you have the freedom to configure your server environment as needed, without worrying about interference from other users.
Cloud web hosting, which uses multiple virtual servers to host a website, is a popular option for websites that need high uptime and scalability. Unlike traditional hosting, where your website is hosted on a single server, cloud hosting utilizes a network of remote servers. This means that if one server goes down, another can take over, keeping your website up and running. Cloud hosting for eCommerce websites cost: $10 to $200 per month, depending on the hosting company and the level of resources needed.
Dedicated hosting, which involves having a server dedicated solely to your website, is the most expensive. On average, it costs $80 to $500 per month, depending on the level of resources and support required. Dedicated hosting is typically recommended for large eCommerce sites with high traffic and complex security requirements.
In addition to these hosting options, many eCommerce platforms also offer their own hosting services. The cost of these services varies depending on the platform and the level of features and support included.
SSL certificate
An SSL (Secure Sockets Layer) certificate is a digital certificate that encrypts data transferred between a user’s browser and a website’s server, ensuring that sensitive information remains private and secure.
In eCommerce, an SSL certificate is crucial for protecting sensitive information during online transactions. Without an SSL certificate, information such as credit card details and login credentials can be intercepted by hackers, putting users’ personal and financial information at risk.
When it comes to SSL certificate pricing, two main factors are the number of domains the certificate will protect and the level of verification required to validate the entity that owns the domain. Based on these parameters, there are several types of SSL certificates available today, including:
- Single Domain SSL Certificate. This certificate protects one domain and its subdomains. Prices start at $5 per year.
- Wildcard SSL Certificate. This certificate protects one domain and all its first-level subdomains. Prices start at $30 per year.
- Multi-Domain SSL Certificate. This certificate protects multiple domains and subdomains with one certificate. Prices start at $60 per year.
- Domain Validation (DV). This is a basic validation process that verifies only domain ownership. Prices start at $70 per year.
- Organization Validation (OV). This validation process checks domain ownership and basic information about the organization. It’s suitable for businesses that don’t require visitors to enter sensitive information. Prices start at $150 per year.
- Extended Validation (EV). This is the most rigorous level of validation, checking the physical and legal existence of the organization in addition to domain ownership and organization information. It provides the highest level of trust and credibility. Prices start at $200 per year.
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Payment processing costs
It’s important not to overlook the eCommerce website costs associated with payment processing when setting up an ecommerce website, as they can quickly add up. Payment processing costs depend on the types of payments you want to accept during checkout, such as credit cards or PayPal, the currencies you’ll accept, and the regions where you’ll be selling.
Regardless of what third-party payment gateways you’re going to use, each of them will have its own payment gateway fees, such as PayPal’s 3.49% plus $0.49 per transaction or Stripe’s 2.9% + $0.30 per transaction. Additionally, services like Authorize.net charge 2.9% + $0.30 per transaction plus a $25 monthly fee for using their services. It’s important to note that these fees don’t include any additional charges from your bank.
eCommerce site design costs
As you develop your eCommerce store, one important aspect is creating a unique user experience with a website design that reflects your brand and encourages customer loyalty. Here’s a breakdown of the typical costs associated with designing an eCommerce website.
Store theme and design
The eCommerce industry is rapidly expanding with new online stores emerging every day, making it increasingly competitive. To stand out from the crowd, a professional and customer-focused eCommerce site design is crucial.
“But how do I create a unique and appealing design when I’m not a professional designer?” you might ask. Well, most eCommerce platforms solve this problem by offering ready-made templates that can be customized with drag-and-drop tools. Depending on the ecommerce platform, some themes may be included in the overall cost while others may have additional fees ranging from $60 to $200+ each. Premium designs with additional features, unique layouts, and priority support are also available for purchase.
Alternatively, you can hire a developer to create a unique template from scratch with custom eCommerce features to best fit your needs. The cost of a custom theme for an eCommerce website can vary greatly depending on the required features and the expertise of the developer. For an average-sized business, the cost could range from $1,500 to $6,000. However, an enterprise-level custom theme with its own companion plugins could cost anywhere from $10,000 to $30,000+.
Add-ons and extensions
Finding an eCommerce solution that’s going to meet your every single requirement is hardly ever possible. When basic features are not enough, add-ons, plugins, and extensions come into play. These are additional features or software components that you can add to your eCommerce platform to enhance its functionality and tailor it to your specific business needs.
These add-ons can be anything from payment gateways, shipping modules, social media integrations, customer relationship management software (CRM) to advanced analytics and reporting tools to improve your marketing efforts. Most ecommerce platforms offer a wide range of add-ons, some for free, while others require a monthly or yearly subscription. The cost of add-ons varies depending on the functionality they provide, the level of integration with the platform, and the popularity of the add-on among users.
An important note: When considering add-ons and extensions for your eCommerce store, it’s important to carefully evaluate the eCommerce functionality they provide and weigh the cost against the potential benefits to your business.
Extra costs
When building an eCommerce site, there are additional costs to consider beyond the initial setup and design. One of the most significant costs is marketing and advertising, which are crucial for attracting customers to your online store. Other ongoing costs include website maintenance and support, updates, and security measures to ensure your customers’ data is protected. In addition, payment processing fees, shipping costs, and returns management can add up quickly. It’s essential to factor in these expenses when budgeting for your eCommerce site to avoid unexpected costs down the line.
Total cost for creating an eCommerce website
The total cost of creating an eCommerce website varies based on multiple factors such as platform, design, and customization. To give you a rough estimate of how much it could cost to create an eCommerce website, the following is an eCommerce website pricing breakdown of the calculation:
Domain: $10 — $100 (depending on the extension and the chosen domain registrar)
Hosting: $5 — $500 (depending on the chosen provider and the plan as well as the type of hosting and the resources and features offered)
SSL certificate: $5 — %200 (depending on the number of domains to protect and the level of verification required)
eCommerce software (platform):
- Open-source (Magento, WooCommerce, etc.): Free to download, but extensions, plugins, and themes can be charged for
- Hosted solutions (Adobe Commerce, BigCommerce, Shopify, etc.): Varies based on the chosen plan and features
Website design and development:
- Pre-built themes: $0 — $200+
- Custom eCommerce design and development services: $1,500 — $30,000+, depending on the level of complexity, functionality, and custom features required
Additional costs:
- Payment gateway transaction fees: Varies based on the provider (Stri[e, PayPal, etc.) and transaction volume
- Marketing and advertising: Varies according to the strategy and budget
- Website maintenance and support: Varies depending on the degree of support required
The final word
Initially, when you launch your eCommerce website, you may only require the essentials. However, as your business expands and gains momentum, it’s vital to invest in better infrastructure and design to ensure that your website outperforms the competition. Remember, it takes money to make money, and enhancing your site’s features and appearance can lead to greater sales and success in the long run.
