If you want to set up an eCommerce store, you must have a strong platform for quick and easy operations. Magento (now Adobe Commerce) is a popular, scalable, open-source eCommerce platform used by big brands like Nike, Ford, and BVLGARI use Magento, showcasing its reliability and scalability.

Whether you’re new to Magento or a seasoned user, choosing the right pricing plan for development is vital for your business's success. To create a Magento website, you only need specialized skills, and development charges varying fees based on the site's complexity. A simple checkout process costs less, while more features increase the price. Despite being one of the best eCommerce platforms, many business owners hesitate to use Magento due to high development costs. Are you wondering how?  

This article will share a detailed breakdown of Magento pricing plans, its website setup, and alternatives. Read this blog to evaluate whether Magento would be the right option for your website development.

Understanding Magento (Adobe Commerce)

Magento, or Adobe Commerce, is an online eCommerce platform that was acquired by Adobe in 2018 and integrated into the Adobe Experience Cloud. Magento Commerce, also known as Adobe Commerce, is software used to build eCommerce stores for any business size. Adobe Commerce provides a range of customizable solutions for managing online stores, including:

• Customizable store themes
• Seamless integration with other software
• Extensive range of extensions and add-ons
• SEO and marketing tools
• Point-of-sale (POS) integration for in-person sales
• Scalable architecture for growing businesses
• Multi-store and multi-language support

Magento Pricing Plans

Magento offers three main pricing plans: Open Source (free), Commerce (paid), and Commerce Cloud (paid). Here’s a breakdown of each:

1. Magento Open Source

It is a free, downloadable platform with basic eCommerce functionalities. This edition's core code can be easily downloaded and edited as desired. It includes basic functionalities that can be enhanced using custom modules or pre-designed extensions from the Magento Marketplace. 

Key features

• Drag-and-drop website builder
• Mobile Optimization
• Integrated checkout and payment options
• App marketplace for extensions.

Pricing: Free, but with additional costs for hosting, domain, security, and customization.

Pricing Breakdown

Let’s understand the total investment required when you decide to use Magento Open Source for website development and deployment. 

• License Cost: Free
• Hosting: $100-$500/year
• Domain Name: $10-$400/year
• SSL Certificate: $50-$300/year
• Design: $0-$5,000+
• Development: $1,800-$10,000+
• Extensions: $60-$600/extension
• Payment Provider Fees: 2.9% + $0.30 per transaction
• SEO & Digital Promotion: $10,000-$40,000/year
• Total Development Fees: $12,000-$57,000+

Suitable for: This plan is suitable for small businesses or startups with limited budgets. 

2. Magento Commerce (Adobe Commerce)

This is a paid plan that comes with advanced features required by established businesses. This edition of Magento can be installed in its self-hosted version or as a cloud-hosted edition (which is discussed next). The features available in Magento Commerce are much more extensive than those in its basic plan. To get started with Magento Commerce, you will have to pay license fees and create an account on Magento. 

 Key features

• B2B functionality
• A business intelligence dashboard
• Comprehensive marketing and analytics tools
• Customer loyalty features
• Extensive customization options

 Pricing: Custom quote required and typically starts at $22,000/year.

Pricing Breakdown

• License Cost: $22,000–$125,000/year
• Hosting: $500-$6,500/year
• Domain Name: $10-$400/year
• SSL Certificate: $50-$300/year
• Design: $0-$5,000+
• Development: $10,000+
• Extensions: $60-$600/extension
• Payment Provider Fees: 2.9% + $0.30 per transaction
• SEO & Digital Promotion: $10,000-$40,000/year
• Total Development Fees: $43,000-$189,000+

Suitable For: Medium to large businesses needing advanced functionalities and support.

3. Magento Commerce Cloud (Paid)

It is a top-tier, cloud-based platform for large enterprises. This plan integrates the best of cloud infrastructure and managed services, eliminating the need to manage their own hosting and server infrastructure. Adobe will handle the server management and monitoring so that you can focus on your core business activities.  

Key Features

• All features of Magento Commerce
• Cloud storage for data
• Content Delivery Network for fast page loading
• Performance monitoring tools
• Automated backups and security patches 

Pricing: Custom quote required; typically, it starts at $40,000 per year.

Pricing Breakdown

• License Cost: $40,000–$190,000/year
• Hosting: Included in the license cost.
• Domain Name: $10-$400/year
• SSL Certificate: $50-$300/year
• Design: $0-$5,000+
• Development: $10,000+
• Extensions: $60-$600/extension
• Payment Provider Fees: 2.9% + $0.30 per transaction
• SEO & Digital Promotion: $10,000-$40,000/year
• Total Development Fees: $60,000-$247,000+

Suitable For: It is perfect for large businesses requiring a fully managed, scalable eCommerce solution.

How to Set Up a Magento Website: A Step-by-Step Process

Magento is a versatile platform, but creating its website can be daunting. That’s why here we have provided a step-by-step process for building a Magento website:

Step 1: Plan Your Magento Website

Before setting up your Magento website, outline your eCommerce goals, target audience, and budget.  

Step 2: Choosing the Right Hosting Provider

Next, choose a reliable hosting provider to ensure your Magento website’s performance and security. If your store is smaller and requires fewer resources, go for shared hosting; for larger stores, consider dedicated hosting. Here are a few top Magento hosting providers: Hostinger, Cloudways, GoDaddy, SiteGround, and A2 Hosting. 

Here are the minimum hosting requirements for a Magento website: 

1. Linux OS (Magento also supports MacOS and Windows)
2. Apache or Nginx web server 
3. MySQL or MariaDB database 
4. PHP version 7.3 or above 
5. SSL certificate 

Step 3: Select the Domain Name

Your domain should reflect your eCommerce store initiatives. Select a strong, recognizable, and easily memorable domain name that is easy to spell. You can also use an AI domain name generator tool to brainstorm new ideas. 

After selecting the domain name, register it with a reputable domain registrar. Some Magento hosting platforms provide a combined plan that includes domain registration free for a period with the Magento hosting plan. So, it is better to choose a hosting provider that offers web hosting and domain registration as well. 

Step 4: Install Magento

Once you choose your hosting and domain, it’s time to install the Magento edition, which fits perfectly as per your business needs. Make sure your hosting meets the Magento requirements, including the PHP version and memory limit. You should read out the Magento guidelines or consult with their experts if you have any issues.

Step 5: Select the Magento Theme

Choosing an appealing theme helps your website engage potential customers. Several free and paid themes are available on Magento Marketplace; choose the one that meets your industry and brand needs.

Source 

However, remove the access keys before downloading the themes from Magento Marketplace. You can do this by going to your user account under Marketplace -> My Products -> Access Keys. You will then be asked to create new access keys and give them new names. 

Copy the public and private keys, and then go to your Magento store dashboard and click on Settings -> Web Setup Wizard -> Extension Manager Section. Enter the access keys to access the Extension Manager, and connect your Magento Marketplace keys to your website admin panel to see all the purchased themes and extensions. 

Step 6: Customize Your Magento Theme

Source

You can personalize your Magento theme by modifying settings and editing CSS and HTML files. Customizing your theme may give your online store a distinctive appearance, making it stand out from its competitors.

Step 7: Configuring Your Magento Store Setup and Settings

In this step, you can configure your Magento store’s setup and settings, including general information, payment gateways, and shipping methods. With these configurations, you can ensure a seamless client shopping experience and efficient order processing for your business.

Step 8: Incorporate Products into Your Magento Store

Source

Now, it’s time to add your products to your Magento store. You can add them categorically, mention attribution for each of them, and set up product variations, helping visitors to navigate easily. 

Step 9: Managing Your Magento Store

Remember that a well-organized store is an essential key to a successful eCommerce business. At Magento, you can easily manage your orders, inventory, and customers from a single dashboard, helping you streamline your regular tasks and save time.

Step 10: Leveraging SEO

Implementing SEO best practices to optimize your website for search engines is an ideal way to attract organic traffic and improve sales. To do this, create SEO-friendly URLs and optimize your web content and keywords. You can also use Magento’s built-in SEO tools to boost your SEO ranking.

Step 11: Add Extensions

Source

Extending your Magento store’s functionality with extensions enables you to add new features. There is an extension for all purposes, ranging from marketing tools to payment gateways. Remember to choose extensions from a reputable platform and keep them updated.

Step 12: Enhancing Your Magento Website Security

As we all know, security is relevant for an eCommerce store to protect your customers’ data and maintain their trust. Use Magento security, including strong passwords, install SSL certificates, and update software regularly to make your store safe and secure. 

Step 13: Marketing Your Magento Webstore

Once your Magento website is completed, it’s time to market it. You can promote your store using social platforms, email marketing, and search engine marketing (SEM), which will help you gain more traffic and boost sales. 

Email campaigns, as per your segmented list, are highly beneficial in driving traffic to your Magento website. However, you will require email hosting and a custom business email address to create your unique brand identity among the targeted users. So, choose an email hosting provider and plan accordingly because the right provider can boost your marketing efforts. 

Step 14: Monitoring Your Magento Store Performance

Leverage Google Analytics and Magento’s built-in reporting tools to track your online store’s performance. Regularly review key performance indicators (KPIs) to identify improvement areas, helping you to make informed decisions for business growth.

Step 15: Maintain Your Store

Remember, running your eCommerce website seamlessly and securely requires regular maintenance. These are some key tips that you can apply to your online store:

• Update Magento core software regularly.
• Keep all extensions and plugins current.
• Perform routine security checks.
• Optimize the database and clear the cache periodically.
• Back up your store's data frequently.
• Monitor and resolve common issues. promptly
• Seek professional assistance for complex problems.

Neo: A Budget-Friendly Alternative Available For Magento

Have you ever considered a Magento alternative for building your website? Considering the development pricing breakdown and steep learning curve, it is wise for small-business owners, freelancers, and professionals to look for a Magento alternative that offers basic functionalities at pocket-friendly rates.

Neo is an all-in-one platform offering its users a wide range of features, including the opportunity to build a one-page website and business email with a custom domain for your brand without cost. Yes, you read it right. Neo offers a free one-page website on all of its business email plans and assists with free domain registration.

Besides that, creating a Neo website doesn’t require any technical knowledge or domain name. You can create a one-page website with your domain name and .co.site extension and list your products in your portfolio. You can add an email-integrated form for lead generation and integrate social media handles to drive traffic and increase engagement rates. 

How Can One Create a One-Page Website Using Neo?

To create a one-page website with Neo, you only need to follow a few simple steps, including:

Step 1: Choose a Neo plan and create your account and business inbox to get started.

Step 2: Log in to the Neo Admin Panel, click on the Neo site on the left-hand side, and click on Setup Now.

Step 3: Choose a theme, customize it with your brand details, and add external links, like your social media handles and email-integrated form.

Step 4: Deploy it, and your Neo business email address will be used as the website URL. Share it with your user base, add the link to your Instagram bio, and maintain it easily. 

Wrapping Up

In the end, Magento is a globally recognized eCommerce platform that works with many large companies, helping them boost their store revenue and overall success. If you’re seeking to start your store, it’s a great place to begin. It offers a wide range of features that make it a top-notch choice for all business sizes. When choosing the right eCommerce website platforms, consider the following factors: features, customization choices, pricing, and technical assistance.

However, if you are a small business with simple needs, then instead of going for a complex platform, you should go for Neo—a suitable Magento alternative for your business. Neo offers a one-page free website creation opportunity even if you don’t have a domain name or prior coding knowledge. It is an ideal platform for those who want to explore the online business world without spending a penny. So, sign up today for Neo to reach new heights and better future opportunities.

Frequently Asked Questions (FAQs)

1. What are the main pricing tiers for Magento?

Magento has three main tiers: open source (free), commerce ($22,000/year), and Commerce Cloud ($40,000/year). 

2. Does Magento offer a free trial?

Yes, Magento often provides free trials for its paid versions. This allows businesses to test features before committing.

3. Are there extra costs to consider when using Magento?

You should consider SSL certificates, domain name registration and renewal prices, extensions, and payment provider fees. These are not included in Magento’s base pricing.