Building an e-commerce store for your business is among the important and easy ways to reach out to your target audience, boost your visibility, and expand your customer base.
Did you know, that Worldwide, e-commerce revenue is projected to reach US$3,178.00 billion in 2024 and the annual growth rate (CAGR) from 2024 to 2029 is expected to be 9.47%, resulting in a projected market volume of US$4,997.00 billion by 2029
If you've come to this page, we're confident your eCommerce application idea is ready to join this rapidly growing industry! However, all good things come at a cost and eCommerce development is no exception. You need to invest to build a full-fledged store that your customers will love.
But, now the question is: How much does an eCommerce website cost? Well, worry not. Our eCommerce website development company has created this guide to help you find out how much it exactly costs to create an eCommerce store.
Let’s dig & get started.
Some key considerations before getting started.
- What kind of online store do you intend to have?
The type of online store you want to create is an important consideration during the building process. Selling goods is one thing; selling services is quite another. If you intend to sell products, how many different products or models will you offer in your online store? Do you sell to other businesses (B2B) or consumers? To make the best decision, be as specific as possible throughout the planning process.
- Do you intend to market your goods online? Or do you already operate a physical store?
In particular, a lot of physical retailers are opening an online store. In addition to having a physical storefront, small businesses can expand globally by offering customers the option to purchase products online and pick them up in-store (BOPIS). Either of these options can help a business grow, but it's also something to consider when looking for an e-commerce solution.
- How much is your budget for e-commerce development?
When looking into e-commerce solutions, it's very simple to become distracted by the various options available for custom design and features. For this reason, it's critical to establish a clear budget for e-commerce development in advance. Which features are necessary? Which extras are you wishing you had? Make a list and remember to stick to your spending limit.
E-commerce website cost calculator: Covering everything!
Domain Name
The very step you need to do while getting started with the eCommerce website is choosing the domain name & its registration. In the total eCommerce website cost, you need to incorporate a domain name which costs around $10 to $50 annually.
However, there are so many factors that affect the domain name costs, such as the choice of domain registrar, the domain's popularity, the domain's length, relevance to popular search terms, and its top-level domain (TLD), such as .com or .net.
Premium domains, which are known for their brevity and direct industry relevance, are available for significantly higher prices. All in all, choosing a reputable registrar is essential to ensure reliability, support, and the domain's impact on your brand's online identity and searchability.
Hosting
When considering the e-commerce website development costs, you need to look after the hosting. It is a crucial element that can vary significantly based on different factors. The type of hosting—ranging from shared hosting, which is the most cost-effective, to more expensive options like VPS (Virtual Private Server), dedicated hosting, and cloud hosting—affects the cost directly.
These choices depend on the expected volume of traffic, the size of the online store, the required level of security, and the desired customer experience. Each hosting type offers different benefits, such as shared hosting being budget-friendly but potentially slower, while dedicated and cloud hosting provides superior performance, security, and scalability at a higher cost.
Shared hosting services range from $5–$50/month; dedicated or virtual private hosting services typically $20–$100/month. However, some website builders offer free hosting in their packages. So, look after it.
Designing
The intricacy and inventiveness of the visual components of your eCommerce website, such as the banners, logo, and general layout, have an impact on design expenses. Hire a professional web design firm or individual to create a unique design for your brand.
Formula: Calculated Design Expenses = Design Hourly Rate × Total Hours a Web Designer Works on a Project
For example, if you are working with an eCommerce development company and you have hired two designers who charge $30 per hour. They estimate that each designer will take 60 hours and the designer is charging $30 per hour, the total website design costs for 60*30*2 will be $3600.
Also Read: Cost to Build an eCommerce app like Namshi?
Coding & Development
The most laborious stage of the development process is this one. It goes without saying that this stage is the most costly and time-consuming. The precise e-commerce website cost will vary depending on the app's complexity, features needed, overall time, and selected tech stack, among other factors.
There are two steps in the coding phase:
- Front-end programming: In this case, a front-end developer develops the User Interfaces in accordance with the UI/UX design, allowing visitors to interact with the website and see its features. You can hire dedicated developers to develop components that users see on the page.
- Backend programming: Here, a backend developer builds the server-side framework that allows frontend clicks to communicate with the server and carry out essential functions. Developers here create parts that users do not see on the platform.
If you have connected with a development company that charges $50 per hour the development process will take 300 hours. The estimated eCommerce website development cost would be $50 × 300 = 15,000.
Your eCommerce website builder
While calculating the total cost to develop an eCommerce website, you need to consider the cost of a website builder if you are using one. The eCommerce website builder you choose has a significant impact on the total eCommerce website price.
Here’s how it varies:
Subscription Fees: Platforms like Shopify, BigCommerce, and Wix follow a subscription model, with monthly fees ranging from $20 to $300 or more for advanced plans. However, you can reach out to the Shopify development company or any eCommerce company to get an estimate. The level of features, support, and scalability you require directly influences these eCommerce website cost calculators.
Transaction Fees:
- Shopify: Imposes a transaction fee of 2.9% + $0.30 for online credit card transactions if you plan for Shopify app development.
- WooCommerce: While WooCommerce itself is a free plugin for WordPress users, it integrates with various payment gateways like PayPal or Stripe, which typically charge a fee of 2.9% + $0.30 per transaction.
- BigCommerce Standard Plan: It charges a lower payment processing fee of 2.59% + $0.49 per transaction.
Add-ons and Extensions: Many eCommerce platforms provide essential features out of the box, but specific business needs may require additional plugins, apps, or extensions. However, there are a range of free plugins available, you need to get your hands on some premium plugins as well, which comes at a cost.
Processing charges
Navigating the costs of payment processing is crucial for eCommerce, as these fees can significantly impact your bottom line. Payment processing fees vary based on the gateway (e.g., PayPal, Stripe, Authorize.net), the types of payments accepted, currencies, and sales regions. Here's a general breakdown:
- PayPal: Charges 2.9% + $0.30 for transactions over $10.
- Stripe: Levies a fee of 2.9% + $0.30 per transaction.
- Authorize.net: Has a rate of 2.9% + $0.30 per transaction, with an additional $25 monthly fee.
It's important to note that additional bank fees may apply, and businesses should consider these when calculating the total cost of payment processing. When selecting a payment gateway or eCommerce platform, consider the overall cost-effectiveness and ensure it supports your business's financial and operational needs.
Marketing
Even though your well-researched website looks amazing and you have launched it, no one seems to be visiting it or leaving positive reviews. However, why?
For your eCommerce website to take off, especially in the early going, you need to draw users in. And this happens through marketing—everything from SEO web copy to a PPC campaign can drive traffic.
The actual cost of copywriting is directly proportional to the number of pages and is more of a one-time investment. Furthermore, you must continue working on SEO for as long as the store is operational.
In addition, you should concentrate on email marketing, social media marketing, and the creation of excellent blogs. In the case of a small store, marketing expenses may reach $500 to $2,000, while for larger eCommerce websites, the figure may soar to $5,000.
Support & Maintenance
Maintenance is always a consideration. You'll need to carry out routine checks and updates after your e-commerce site launches to make sure everything functions properly. The costs of maintaining sites built on e-commerce platforms vary according to their size.
Smaller websites don't require a lot of technical upkeep, but custom-built stores might require a developer's help to stay operational. A small to medium-sized store should budget $300 to $1,500 annually, while a large site with high traffic and extensive inventory should budget $3,600 to $24,000.
So, how much does eCommerce website development cost?
Creating a full-fledged eCommerce website involves a range of eCommerce website prices across various stages, including domain registration ($10 to $50 annually), hosting ($5 to $100/month depending on the type), design ($3,600 based on the example provided), and development ($15,000 for custom coding).
Additionally, choosing an eCommerce platform introduces subscription fees ($20 to $300/month), transaction fees (e.g., Shopify's 2.9% + $0.30 per transaction), and potential costs for add-ons or extensions. Payment processing fees will also vary based on the chosen gateways, with typical fees around 2.9% + $0.30 per transaction, plus any applicable bank fees.
Marketing efforts can range from $500 to $5,000 or more, depending on the scale and strategies employed. Finally, support and maintenance costs can range from $300 to $24,000 annually, depending on the website's complexity and traffic.
Overall, the eCommerce website development cost to launch a comprehensive eCommerce website can start from $20,000 and go up to $1,00,000 for a more advanced, custom, and feature-rich eCommerce website.
To Conclude
Here’s the complete wrap on how much an eCommerce website costs, including all the factors that affect costs. So, to calculate the total cost, you need to list down all the factors and estimate it on your own.
On the other hand, you can reach out to an e-commerce development company, that will look after all your requirements and offer a quote accordingly. If you are looking for one, reach out to Sufalam Technologies. Our team of professionals will analyze the requirements, offer the quote, and offer the best solutions accordingly.
To connect with us, reach out to us, and start your own eCommerce store, right away.
Frequently Asked Questions
What are some tips to save eCommerce website development costs?
Invest in the best hosting provider that offers the most services at the lowest possible cost.
Make use of a pre-made template that already has the fundamental design and layout components.
To save money, concentrate on the necessary features & use open-source software.
Which are some of the best ecommerce website builders?
The top e-commerce website builders are as Shopify, Woocommerce, BigCommerce, Square Online, Wix, and Squarespace.
