Assignment Statements, Comparisons & Observations
Font: Size: + -

E-Commerce Setup Costs based on Magento

Thursday, February 25, 2010

Money Suckers ! Thats the idea most clients seem to get when proposing a rough cost estimate range (±25%) for an e-commerce website based on Magento Commerce.
If you are dead serious about selling online, you should also be ready to invest a fair amount on a system that is run by an organization which is dedicated in making the best possible open-source e-commerce platform available. Open-Source does not necessarily mean free, though most are.

Magento comes in two flavours : Community and Enterprise.
The Enterprise has some additional features which are lacking in the Community edition, but because both are open-source, ideally you could make an Enterprise edition from the Community edition if you got that much time and energy.

Here is a rough annual cost for just setting up an online store based out of Magento Commerce. (raw material)

Note : Magento has the ability to run multiple websites (e-shops) running on a single Magento installation. An SSL Certificate and a unique IP address are required for each domain separately.

Magento Community Edition
Magento Enterprise Edition
Magento Cost
Web Hosting
Guys at WebFaction are really helpful in maintaining a robust platform - they really go out of their way answering issues posted on forums too
SSL Certificate Per Domain
You get Thawte's SSL Certificates from DirectI
Dedicated IP Address per Domain
Multiply this with the number of magento websites you want
Email Newsletter Campaign
$96 - $8,388$96 - $8,388
With MadMimi's you can get achieve almost 100% branding
OneStepCheckOut Magento Module
The CheckOut experience is the most important part in a sale. Magento's default one-page checkout is 6 steps - which is 6 clicks
Amazon S3 for Static File Storage
This is really varies based on your bandwidth usage. It can be from $1 a month for a low-traffic site to $100 a month for a high-traffic site
Amazon CloudFront for CDN
This is really varies based on the geographic location
Google Apps
$0$50 per user id (email id)
I prefer insist on using ASchroder's SMTP module to native mail so that all sent mails are reflected in Google Apps Email, so that you or the client can actually validate what mail contents are going through. (Many Email providers don't store sent mails sent via SMTP remotely, on their servers)
~ $700
~ $17,000

The most popular free & open-source e-commerce system is OsCommerce which has dominated the e-commerce industry in the last decade. If selling products is not your primary business, Magento Community Edition or OsCommerce will just suffice. After all, even Google uses OsCommerce at

Related Links :


Vivekananthan said...

Really well said. I see cost per IP with hostgator is just $2 per month. Which I guess is affordable. Really a nice article.

Unknown said...

its good to see detailed and clear picture. it will help clients to understand cost breakup and make arrangement of funds before signing contract. lol....

cms design said...

Thanks for the posts we are the professional web design and development company offering an array of services like template customization,web designing, CMS solutions, eCommerce solutions, Search engine optimization and Internet marketing.
eCommerce Solutions

Reynold Hugh said...

Interesting Facts and Figures!
Magento Commerce Templates

Unknown said...

Check out our blog for all types of shopping cart and ecommerce solutions at extremely affordable rates. Contact to get disocunts and your online shop Now!

Konstantinfo Blogs said...
This comment has been removed by the author.

Unknown said...

EOS Web has extensive expertise in magento commerce websites.
They have many modules for FREE in your web site
Take a few minutes and look at this page.

Enjoy !

Unknown said...

Thanks for the information, we will add this story to our blog, as we have a audience in this sector that loves reading like this” ecommerce solutions

amhash said...

Awesome information. I am really surprised with this topic. Keep up the good work and post more here to read. Affordable Logo Design

Unknown said...

Thanks for sharing such a useful information. I was just surfing on internet and found your blog after reading this i realize that i should come here often.Provillus Hair Regrowth

mithun said...

Hi, probably our entry may be off topic but anyways, I have been surfing around your blog and it looks very professional. It’s obvious you know your topic and you appear fervent about it. I’m developing a fresh blog plus I’m struggling to make it look good, as well as offer the best quality content. I have learned much at your web site and also I anticipate alot more articles and will be coming back soon. Thanks you.

Ecommerce Web Design New York

angels said...

Its more about ideal strategies that make website great. What’s say?Ecommerce Website Development

Unknown said...

Nice Post... It will useful to many people. We also Providing Bulk SMS Marketing services, If any one need our services they can go with this Bulk SMS Marketing in Hyderabad

Bulk SMS Services said...

Thanks for the information,I am really surprised with this topic.
Bulk SMS service Providers Huderabad

Zinavo-Web Design | Web Development | SEO | Mobile Apps | ERP/CRM said...

Your blog provided us with valuable information to work with. Thanks a lot for sharing. Keep blogging. Website Designing Companies in Bangalore | Website Design in Bangalore | Top Web Design Company in Bangalore

Ram Niwas said...
This comment has been removed by the author.