In this post, I will answer the question of whether it is possible to implement the most basic version of Magento (and what does that actually mean?), launch it and make it available to customers, and only later develop this online store.
Is it possible to implement a Magento MVP and then develop it?
Pricing of projects on Magento
What do you need to know about the initial Magento implementation budget?
Is it possible to make Magento into an MVP version?
What is necessarily needed in the initial scope of Magento implementation?
How much does the MVP version of Magento cost?
Summary – Is it possible to implement a Magento MVP first and develop it later?
Yes, you can implement a Magento MVP first and then develop it later. This is an approach that I personally promote a lot and think it makes the most business sense.
I believe that if you assume that the cost of Magento in the MVP version will be about 91,000 USD/EUR, this is a good assumption. Such a store on Magento will sell effectively (have a very high conversion rate), will be integrated, very fast (thanks to Hyva) and technically optimized for SEO.
A problem often faced by those considering Magento comes when they receive a quote – they are often horrified by the amount.
The whole process of preparing a quote often looks like this: first someone prepares a preliminary functional scope, then the first discussions with the agency take place, then the scopes are refined, a brief from the agency or Software House side appears, on the basis of which you, as clients, begin to mark the elements you would like to have in the store and which you care a lot about.
Of course, it’s always the case that the appetite grows as you eat, so when you see how many interesting things you can do with Magento, you start adding more functionality.
The scope grows so that it reaches a size twice as big as it was initially. The agency prepares a quote, taking into account all our expectations. And that’s how a valuation on the level of 196,000 USD/EUR or 336,000 USD/EUR is created!
Let’s take a look at two issues.
A. The bigger the budget, the more funkiness.
If the budget of the initial Magento implementation is high it usually means that you have more functionalities that you want to implement. And this, in turn, entails more project risk. The rule of thumb is simple the more complex the project is, the greater the risks in the project. This is unquantifiable no matter who will conduct the project. Smaller scope = fewer project risks. Larger scope = more project risks.
B. The bigger the budget, the longer the project.
The second aspect is that the bigger the budget, the longer the project usually takes. To put it simply, it is the case that the bigger the project budget, the more working hours must be allocated by the software house or ecommerce agency, which translates into a longer project time. And sometimes even additional programmers to the project team will not drastically shorten the schedule. For example, a project worth 91,000 USD/EUR will probably be completed in about 6 months. If, for example, the budget is 196,000 USD/EUR the implementation time for this project may be 10 or 12 months.
In business practice, this means freezing a larger sum of cash for a longer period of time. The question arises as to whether it is worth it. Is it not better to create a store that will be integrated, will generate a high conversion rate and will be fast? On the other hand, the store will generate a high conversion rate and will be optimized for SEO, which will positively affect the revenue. We make the store available to customers earlier, the store begins to generate revenue, which accelerates the return on investment. I often see a long list of great functionalities that increase the budget by 56,000 USD/EUR or 84,000 USD/EUR, but their impact on the revenue generated by ecommerce is marginal. In such a case, we always recommend a smaller scope of implementation, a faster launch (let the project already start to pay off and only in the next step expand the store with more functionalities.
So, where is the perfect balance? How much do you need to spend on Magento to have a store with a very high conversion rate, optimized for SEO, integrated and with good results in Google Page Speed?
Often there is a question from customers at the stage of budget discussions, when someone sees this big budget, whether it is possible to wisely reduce the scope and implement something like a MVP.
This concept comes from the startup climate. I first heard about it in the book “Startup Manual”. MVP is often described in the context of innovative applications, which are developed in such a way that the goal is to release the application as quickly as possible with the core functionalities, the most important from the point of view of delivering value to the user. No unnecessary add-ons.
First of all, it’s about being first to market, because there are usually many teams around the world working on a similar idea, so first come, first served.
Second, the faster we release something to the market, the faster we can test it on real users.
On the other hand, is an online store an innovative application on the scale of something like Uber was when it hit the market? Not really.
An online store is unlikely to be developed like an app in a start-up.
Therefore, I’m not sure that MVP is the most appropriate term in this situation. However, what should we get out of it for ourselves? If we get a quote for Magento implementation at the level of 196,000 USD/EUR, we should consider whether we really need all the functionalities and solutions that have been planned in this scope. Experience tells us that most often they are not.
If you already have an operating store and plan to switch to Magento, because the current platform limits your development, the task is quite simple. It’s worth analyzing, using tools such as Google Analytics, how users are using the website. You should check whether all the features that are currently available on your site should be included in the new online store, or whether they should be available from day one of operation. Sometimes launching a store without all the features doesn’t hurt your business at all (in the sense of not reducing the revenue generated). So it’s worth doing your homework, sitting down with a web analyst and later a UX designer, analyzing the data and thinking about which features should be included in the initial Magento scope.
In our experience, in addition to the basic version of Magento, there are 5 key elements that are necessary for an implementation to end in business success.
Why was Hyva chosen in particular? Hyva offers remarkable speed and is a more economical choice than, for example, PWA. It is no longer worth investing in Luma. I have already prepared a ranking of various frontends, so I encourage you to read this article.
Recommend an individual design on Hyva prepared for Mobile and Desktop. Customized design has the greatest impact on the conversion rate. In the A/B tests we conducted, we clearly noticed that it is the graphic design, the way we communicate the price, promotions, the ordering process or the presentation of the price, that has the greatest impact on the conversion rate.
That’s where you’ll find the easiest, or in other words, the cheapest conversion rate increases.
Another thing that should be in the minimum scope of a Magento implementation is to improve communication within the price list. Magento’s standard price communication is not the most effective. For example, the Communication of price promotions is poor, and delivery time information also needs solid improvement.
Another element that should come into play is a simplified shopping process. We are not talking about a one-step checkout, but the removal of top and bottom navigation, which can bring significant increases in conversion rates.
A key element should be integration with your ERP, or at least with PIM and OMS if you use it. Typically, there are 3 standard integrations that should appear in the scope of implementation.
If the PIM function is performed by the ERP system in your case, then you have one less integration to do.
Another topic that needs improvement is navigation and filtering. The standard ones are inefficient and users have trouble using them intuitively.
In conclusion, taking into account all the necessary elements that should be included in the initial stage of Magento implementation, you will find that the whole thing will cost you at least 1,300 hours.
Multiplying this number of hours times 70 USD/EUR (the average hourly rate in September 2023) shows that it costs 91,000 USD/EUR to implement Magento.
Is it possible to implement Magento for 30,000 USD/EUR? Of course, it is possible. For example, you can choose not to create a custom graphic design, you can choose not to implement Hyva, and instead implement Luma. It is also possible not to integrate, not to change the price list, etc. In this way, we reduce the amount.
Does such a course of action have any business justification? In my opinion, no – for such a price in the case of Magento we will get an ecommerce-like product. If I had 30,000 USD/EUR at my disposal, I would prefer to choose Presta or Shopify, which will generate a higher revenue for this amount than Magento (in the sense in this budget I will create a store that sells better than a store put on Magento in this budget)
Spending a lot of money on Magento doesn’t make sense if you don’t plan to develop intensively. However, if you have ambitious plans, such as creating new channels, adding new foreign marketplaces, expanding into new foreign markets, developing B2B and B2C business, or launching new brands, Magento may be essential. In such a case, investing 91,000 USD/EUR at the very beginning is justified. However, if you have no such plans and there is no indication of the necessity to choose Magento, I would advise you to give up on this engine.
Yes, it is possible and I strongly recommend this approach.
It seems to me that you should assume about 91,000 USD/EUR, assuming a rate of 70 USD/EUR per hour. Maybe a little more if, for example, due to the type of products you sell, you need more unusual solutions to start.
With such a scope of implementation, you get Magento, which generates a very high conversion rate (and therefore generates high revenue), is SEO optimized, integrated (so you don’t waste time on errors and unnecessary manual work), and incredibly fast (with high Google Page Speed scores).