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Costs Magento

I am a long time user of Magento. A great open source e-commerce software package with “infinite” amounts of possibilities and features. I don’t want to discuss the features and advantages in this blog post. I do want to discuss the price with you…

Download Magento for free

magento_logo

You can download Magento for free through their site. You could think that Magento is one of the cheapest options to start an online store. You only need a hosting package and a domain name, and you are ready to start.

Still there are some issues with the Magento platform…

Letting someby build your Magento store

When you don’t have (enough) technical knowledge you will have to hire somebody to develop your Magento store. This will quickly cost you at least 5000 USD / 3000 GBP.

In principle it is not a bad investment. When you start an online store you probably have some savings and you can pay for such an investment.

Updating Magento

Then the updates – Magento of course continues to develop itself. They put the bar higher for possible competitors with developing new features. Also there sometimes appear security issues in the software making an update needed.

Let’s assume you have to update your Magento store once every 2 years. The costs amount to about 1500 USD/ 1000 GBP.

Hosting your Magento store

I can be short about hosting your Magento store. Magento is a heavy package, so you will need a powerful server. Such a server is not available for less than 40 USD/ 25 GBP per month.

Total costs for 5 year

First investment: 5000 USD / 3000 GBP

Update two times: 3000 USD / 2000 GBP
5 years hosting of 40 USD / 25 GBP: 2400 USD / 1500 GBP

Total costs for 5 years: 10400 USD / 6500 GBP

So you will need about 2000 USD / 1300 GBP per year for keeping a Magento store up-to-date and online. We talk about a standard Magento installation with a few plug-ins.

Other E-commerce software is closing the gap

During the last years SaaS E-commerce software has been closing the gap with Magento.

I believe that e-commerce solutions such as Shopify, BigCommerce or SEOshop (with their API integration) have become reasonable competitors of Magento.

You can of course never compare an open source platform such as Magento with a closed (SAAS) platform such as Shopify, but for the e-commerce entrepreneur looking for saving money on their software package it is only a positive development to have more choice available.

Magento vs Shopify vs SEOshop vs Bigcommerce

Magento costs per year about 2000 USD / 1300 GBP.

For Shopify you pay 348 USD per year for the Basic package and 948 USD for the Professional package

For SEOshop you pay 588 EUR per year for the Medium package.
For BigCommerce you pay 419.4 USD for the Silver package and 959.4 USD for the Gold package

Check also our E-commerce software comparison!

Conclusion

I still stay with Magento. When you want freedom Magento is still the best solution. But underwhile other e-commerce software is closing the gap. For me, operating primarily in the Netherlands and other European countries, SEOshop would be the first other package to consider.

The great advantage of these e-commerce software suppliers is that you mostly can start your online store with about 35 USD per month and can scale up when needed while you need to make a significant investment right-away with Magento.

Magento users stay tuned: we are working on a massive post with very valuable information about the plug-ins we use in Magento – it is planned for next week.

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