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Magento Development: The total cost of launching your e-commerce store

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Magento is a popular e-commerce platform offering various features and functionalities for online merchants. When launching an e-commerce store using Magento, the total cost can vary greatly depending on several factors such as the complexity of the design, the number of custom features and functionalities required, and the amount of customization necessary for the store. 

In this article, we will look at the components contributing to the total cost of launching a Magento e-commerce store including Magento hosting and development related fees. This will assist you to get to know about the estimated and possible cost of launching your e-commerce store with complete resources. So without any further ado. Let’s get straight into this. 

Is Magento E-commerce free? 

Magento (also known as Adobe Commerce) has two editions. The first being, Magento Open Source (formerly known as Magento Community Edition) and Adobe Commerce Cloud (formerly known as Magento Enterprise Edition). Magento Open Source is a free version of the platform that anyone can download and use. 

The open-source edition provides essential features and functionalities suitable for small to medium-sized businesses. However, if you require advanced features and functionalities, you will need to opt for the Magento Commerce edition, a paid version of the platform that starts from $22,000 per year. 

Keep in mind that while the platform itself may be free, there are still costs associated with hosting, design and development, payment gateway integration, and ongoing maintenance and support, which can add up over time.

Factors to keep in mind when starting an E-commerce store. 

  • Platform License: The first cost you must consider when launching a Magento e-commerce store is the platform license. Magento has two editions – Magento Open Source (free) and Magento Commerce (paid). The Magento Open Source edition is free to use and offers a range of basic features and functionalities. 
  • However, if you need advanced features and functionalities, you must opt for the Magento (Adobe) Commerce edition, which starts from $22,000 per year and goes into the hundreds of thousands. This cost can vary based on the number of orders processed, annual revenue, the number of server instances used, and the support and maintenance services required. 
  • Design and Development: The next cost component to consider is the design and development of your e-commerce store. This includes customizing the look and feel of the store, developing custom features and functionalities, and integrating third-party tools and services. 
  • The costs associated with Magento development and design can range anywhere from $10k to $100k or greater. The fees depend on the complexity and scale of the project. If you opt for a custom design, expect to pay more. On the other hand, if you opt for a pre-made template (try Themeforest), you can save a significant amount on development fees. Pre-made templates can typically be had for under $100.
  • Hosting: Hosting is another critical component to consider when launching a Magento e-commerce store. Hosting costs for a Magento store can range from $100 to $1,000+ per month. The fees are dependent upon the size of the store and the hosting provider. If you opt for a dedicated server, you can expect to pay more. On the other hand, if you opt for a shared hosting environment, while you may save money, you will put your client’s security at risk. This is due to the shared nature of a shared hosting environment. 
  • Domain and SSL Certificate: The next cost component is the domain and SSL certificate. A domain name  (like is the web address of your e-commerce store. While an SSL certificate is a security certificate that encrypts your customer’s sensitive data such as their login credentials and payment information. Depending on the domain registrar and SSL certificate provider, a domain name and an SSL certificate can range from $10 to $50 per year.  
  • Payment Gateway: A payment gateway is a primary component of an e-commerce store that allows you to accept customer payments. The cost of integrating a payment gateway (like into the store can range from $50 to $500, depending on the provider. Some popular payment gateways include PayPal, Stripe, and  
  • Maintenance and Support: Finally, you need to consider the ongoing maintenance and support costs for your Magento e-commerce store. This includes updates, security patches, and technical support. Hiring a developer for maintenance improvements can range anywhere from $200 per month to $500 per month. Again, this is dependent upon the complexity of your site, number of products, and third-party extensions.

Does Magento provide good performance to the website? 

Yes, Magento is known for providing good performance in terms of speed and scalability. It is designed to handle large amounts of traffic and products, making it a popular choice for many online businesses. Magento provides several caching options to improve performance, such as full-page caching and cache management. 

Additionally, Magento is optimized for search engines which helps improve the visibility of your online store in Google. However, it’s important to note that the performance of your Magento store also depends on various factors such as the hosting environment, your store’s design and development, and the platform’s customization. 

A well-optimized Magento store can provide customers with a smooth and fast shopping experience, while a poorly optimized store can lead to slow page load times and other performance issues. 

To ensure that your Magento store provides good performance, it’s important to work with an experienced Magento developer and invest in quality hosting, design and development, and ongoing maintenance and support services.


Launching an online store will likely set you back a thousand dollars or more. However, with any business, you must invest to receive a return. When considering the total cost, it is important to factor in all of the above components and to work with an experienced Magento developer to ensure that your e-commerce store is in optimal and tip-top shape.

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Stephanie Connelly