In this post, I will introduce the topic of Magento implementation costs, and explain why it can sometimes seem extremely expensive. Especially compared to other ecommerce technologies.
Magento – how much does it cost to implement?
What elements affect the cost of Magento implementation?
How much does an hour of Magento coding cost?
What affects the number of hours needed to code Magento?
Scope of Magento implementation
Magento implementation cost – summary
The cost of implementing Magento, in the MVP version (in my opinion, keep in mind that MVP for everyone means a different range), is usually between 90,000 USD/EUR and 105,000 USD/EUR.
This is the amount you should assume at the very beginning. Of course, this applies to a B2C store, not B2B platforms, because B2B platforms generally cost a bit more (because they need more functionality already at the start, which complicates implementation).
Where does the amount come from? Deployment budgets are simply derived from calculating the hourly rate of developers, multiplied by the number of hours it takes to create a given online store.
This is taken from the fact that most Software houses bill on the Time&material model. This means that we take a certain number of hours, multiply it by the hourly rate proposed by the Software house, and then get the cost of Magento implementation.
Let’s start with the hourly rate. How much does an hour of Magento coding cost at a software house?
Of course, it’s not just coding, as there is also graphic design, project management, etc. Nevertheless, let’s average this rate. I believe that in the Polish market, it is safe to assume that it is between 65 and 75 USD/EUR per hour. Of course, I am describing the net amounts here. I will only add that this rate is current as of today, and we are now in September 2023.
The second element of our product, in addition to the hourly rate already mentioned, is the number of hours.
So how many hours are needed to code Magento? At the very beginning, we need to consider the scope of the implementation.
Magento is open source and allows us to create a bespoke ecommerce, tailored to your specific business. This means that you can have any integrations, build the frontend on several different technologies, the graphic design can be individually prepared or we can use some ready-made template.
At the beginning I mentioned that we are talking more or less about the amount from 90,000 USD/EUR and 105,000 USD/EUR, so now I will describe more or less what the scope of implementation is within this amount.
The first point is that we are talking about the entire Magento implementation together with the production launch (this is very important because often the production launch is omitted in the pricing).
At the very beginning, we have a business analysis, where user stories and acceptance criteria are prepared, as well as the architecture of the whole system. Then graphic design is prepared, and even before that, UX sketches are prepared. After that, coding (front-end and back-end) and implementation of integration begin. In the scope, we also have the work of a tester (at the implementation stage it is mostly manual testing). In the background, the whole project is managed by a project manager. At the very end, automated tests may be added for key functionalities. Then comes the so-called production launch, or in short making your store available to users.
In the context of a budget of 90,000 USD/EUR and 105,000 USD/EUR, all the stages I discussed above are included. None of them is left out.
As for the functional scope, we are talking about the fact that graphic designs are prepared for desktop and mobile. And there are these individual graphic designs.
The front-end is coded on Hyva. So we get a very fast store with results on Google PageSpeed of 90-95 on mobile and on desktop.
As for integration, I included integration with ERP, PIM and OMS as part of this scope.
In terms of functionality on the user side, we focus on the basics. We don’t have fireworks, but some functionality can be implemented to increase the conversion rate and make the store technically optimized for SEO.
So we are talking about such a robust store that:
So we have a great foundation that will generate decent revenues. What we don’t have in this budget is the implementation of a PIM, an individual product configurator, or an advanced loyalty program.
In conclusion, you should anticipate that the cost of implementing Magento will be at least 90,000 USD/EUR and 105,000 USD/EUR. For this amount, you will get an integrated store with a customized graphic design. The front-end will be really fast, and the generated conversion rate will be high.
The budget will be influenced by two main factors: the programmer’s hourly rate and the number of hours needed to code your online store. In Poland today (March 2023), the rates are roughly 65 and 75 USD/EUR net per hour. The number of hours will be determined by what functionalities in Magento you dream up for yourself.
Finally, I’ll add that, of course, if you add more functionalities and integrations, you can easily reach a budget of 200,000 USD/EUR or 300,000 USD/EUR.
However, is it possible to significantly reduce costs below 90,000 USD/EUR? In my experience, it is rather difficult. This year we have implemented a wide variety of projects, and to tell you the truth, only in 2 cases did the budget fit below 90,000 USD/EUR. If you would like to spend 20,000 USD/EUR on Magento, you would rather get an ecommerce – like product for this budget. In such a budget it is better to implement Shopify or Presta.
If you are at the stage of thinking about Magento implementation, I encourage you to read the article about how long it takes to implement Magento. You’ll find specific information there.