Magento Web Development Cost And Tips To Reduce It

magento web development cost

E-commerce is now widely used by people of all ages, with 22% of the world shopping online. Undoubtedly, e-commerce helps businesses of all sizes enhance their revenue through an online customer base. Out of the reputable e-commerce platforms, Magento is an optimal solution that owners can entrust to build their websites. However, does the Magento web development cost keep you up at night if you have a limited budget?

Many people consider that to be a huge problem. But don’t worry. This post will help you understand the Magento pricing breakdown and provide you with tried-and-true tips for reducing it.

magento website development cost

Magento Web Development Cost Breakdown

Web Design Cost ($500-$3,000)

Theme selection is crucial since it determines the store’s frontend appearance. There are two options for web design:

Ready-made Magento themes

Using a ready-made theme might cost anything between $500 and $1,000. You may start with a simple base theme (which is the closest to what you’d want your store to look like) and then hire developers to install and customize it.

Custom design

On the other hand, if you want a custom design from scratch, you’ll need a clear understanding of what you want out of the theme before hiring a team of developers. Get inspiration from similar businesses as well as advice from the developer you’d work with. The budget for this option ranges from $2,000 to $3,000.

Web Function Cost ($150+)

Given the fact that the Magento platform includes all of the necessary features, many stores still require extensions. The answer is that it depends on the owners’ goal to grow their businesses.

Some extensions are free, while others can cost hundreds (even thousands) of dollars.

There are two options to develop web functions:

  • Use Magento extensions: all you need to do is buy the extensions and hire developers for installation and customization. Each extension usually costs between $150 and $200.
  • Develop custom functions (in case there are no available extensions): the cost is determined by the function’s complexity.

Payment & Shipping Method Installation Cost ($300 -$1000)

how much does it cost to build a magento website

While the payment gateway plays the role of the guardian of your customer’s payment data, capturing and transferring it from the customer to the acquirer, the shipping method guarantees that goods are delivered to your customers.

Therefore, they are of crucial importance for Magento web development. You usually have two options for installation payment gateway and shipping method:

  • Using payment gateway default and shipping carrier of Magento: the budget is up to $300.
  • Integrating any other payment gateway such as Paypal,, Google Wallet, Amazon payment, 2checkout, and the shipping carrier corresponds to your business needs.

Those gateway providers can support your store regarding security, payout time, and multi-currency, and each can cost between $500 – $1,000.

Project Management Cost

Many elements, such as feature lists, design complexity, categories, and the number of localizations, can significantly influence the budget for a Magento project.

There is no fixed number as project management cost is around 10% of the project’s total cost.

Support Cost

In the event that something goes wrong, support is a crucial service that your shop needs. Based on each company’s policy, whether they charge a support fee or not.

If the agency offers free support, the period is usually 3 months.

Domain name cost

The cost of a domain name can vary depending on a number of factors such as the top-level domain (TLD), the domain registrar, and the length of registration.

The cost of a domain name can range from a few dollars to hundreds of dollars per year depending on the factors mentioned above. On average, the cost of a domain name is around $10 to $20 per year. It is crucial to note that some premium domain names can cost thousands or even millions of dollars to purchase. It is also necessary to renew your domain registration before it expires to avoid losing ownership of your domain name.

SEO and digital promotion cost

The cost of SEO (Search Engine Optimization) and digital promotion can vary depending on a number of factors such as the complexity of the campaign, the level of competition in your industry, the geographic area targeted, and the marketing channels used.

The cost of SEO and digital promotion can range from a few hundred dollars to tens of thousands of dollars per month depending on the level of optimization required and the marketing channels used. It is noteworthy to work with a reputable digital marketing agency to get an accurate estimate of the cost based on your specific requirements.

The Average Magento Web Development Cost

There are 2 ways to create a Magento website.

The first option is to hire a local web development company, which can cost anywhere between $50,000 to $100,000.

The second option is to employ an outsourcing firm. The price for this option only stays between $5000 to $20,000.

Why is there such a massive difference in the costs? The answer has to do with the labour costs of different countries.

That is one of the main reasons why end clients prefer to hire development businesses from countries with cheaper labor costs. And local enterprises also want to outsource projects to other countries to gain profits from cost differences for this reason.

Selecting outsourcing companies to design Magento websites is more popular as it allows businesses to save money. So this article will follow this direction to break down the costs of outsourcing a Magento development business.

5 Essential Steps To Calculate Magento Web Development Cost Yourself

magento web development cost

Step 1: Define the time spent on Magento website design and Magento setup

Buy a ready-made Magento theme: If you build a new website based on a ready-made Magento theme and templates, it would take about 5 hours to implement that theme and set up a basic Magento website. Moreover, you also have to customize/ make some changes to make the template match your brand (e.g.: change logo, banner, colours, layout, …), which will take 15-20 hours.

Design a new theme from scratch: If you want a unique design, you can hire a Magento agency or just a website designer to create a new one to your requirements. In order to do that you have to spend at least 1 month on both design and coding (approx. 160 hours).

Magento 2 Migration: It’s worth noting that for the Magento migration project (from Magento 1 to 2), you also have to spend at least 24 hours on data migration (products, customers, orders, categories,…). Additionally, you should concern about the time for migrating the Magento extensions (3 hours for 1 extension installation and configuration on average). Since it’s impossible to move any Magento 1 extensions to your Magento 2 store, you have to find similar extensions for Magento 2 version. Although this process might take time, it is not included in the cost because you can do it yourself without delegating it to the agency.

Last but not least, your project will take about 24 hours for feedback and deployment on the live Magento site.

Step 2: Define the average Magento hourly rates for different regions

From our research, there is a huge gap between the hourly rates of developed countries like the US, the UK, and Australia and developing countries like India, Vietnam, and Malaysia,… due to the difference in their labour costs. While it costs you $75-150/hour for hiring a Magento developer in the UK, you have to pay just half or even less:$25-50/per hour for having your work done by an offshore Magento programmer in Vietnam but the quality of your project might be the same.

Probably you may wonder why some people still choose to partner with a UK Magento agency instead of going for an outsource Magento company to get a much cheaper price and the same product quality, aren’t you? The reason is simple, it’s obviously more convenient to communicate with a local firm with the same timezone and language and easier to meet face-to-face.

However, more and more people now prefer working with outsourced Magento development companies in Vietnam and India. Owing to modern technologies, they can contact easily through video conferences or via emails so the previous communication barrier was removed. Also, most of the Magento developers and staff of these firms are trained carefully not only in technical skills but also English. Therefore, you don’t have to worry much about not sharing the same language with your partners.

Step 3: Calculate the cost of hiring a Magento web development agency based on step 1 & 2

To calculate the website developer cost, you just have to apply the simple following formula: Estimated Cost of hiring Magento developer/ Magento agency = Total Estimated Time for Work (hours) x Magento hourly rate ($)

For example, I will buy a ready-made theme and templates and let the agency implement & customize it in 20 hours. Besides, I need to migrate the database (24 hours) and 10 extensions (3 hours/ extension). Especially, I would like to coordinate with a reliable Magento agency in Vietnam ($30/working hour), so here are the Magento website development costs I have to pay: Estimated cost for my project (VN) = (20 + 24 + 10 x 3 + 24) x 30 = 2.940 ($)

On the other hand, if I want to conduct the same project with a US agency ($75/working hour), the estimated cost would be: Estimated cost for my project (US) = (20 + 24 + 10 x 3 + 24) x 75 = 7.350 ($) Apart from these costs, it depends on the agency you work with that you will be charged for the support after the site goes live or not.

Step 4: Define other involved Magento costs

Before working with the Magento agency, you will have to prepare some “materials” for your new e-commerce website.

– Magento theme and templates: If you don’t have enough time and budget for designing a new website design from scratch, buying a ready-made Magento theme is an ideal solution. A good theme’s price is mostly from $100 to $200.

– Magento extensions: In general, almost Magento stores have to install several modules and plugins to enhance their functionality and performance. The average price of a Magento extension on the market is $80-100. – Website domain: The cost of registering a domain is $5-20/year.

– Hosting: It would cost you $77-200/year for the hosting fee. Since Magento has a lot of complex features, it requires a powerful hosting server to run smoothly.

For example, I have to pay $100 for the theme, $800 for 10 extensions, $15 for the domain, and $80 for the hosting, the total “material” cost would be $995.

Step 5: Calculate the total cost of your Magento projects

Now, you just have to add up the cost in step 4 to step 3 to get the total estimated cost for your Magento web development project. From the 2 previous examples, the total estimated cost for the whole project would be nearly $4,000 (implemented by the Vietnamese agency) and doubled price – more than $8,000 (carried out by the US agency). Note that these costs are just for reference. Depending on your specific needs and requirements that the Magento pricing might be lower or higher.

The Best Magento Web Development Service Provider

Rather than hiring a local development company, which may cost thousands of dollars, Tigren Solutions can provide you with all Magento services with the best quality and at a reasonable Magento pricing.

Currently, we offer a variety of Magento development services, including building a new Magento website from scratch, Magento migration, Magento web development packages – starting from $2,499, and Magento progressive web app development.

magento ecommerce development provider

Wrapping Up

Though Magento web development cost varies depending on the shop owners’ choice when running a Magento store, the typical cost in local firms is significantly more than that of outsourced companies.

Therefore, store owners must choose a good Magento service provider that ensures excellent quality and cost-effectiveness.

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