As predicted by NASDAQ, by 2040, 95% of all purchases will be online. China is the largest e-commerce market in the world with $672 billion. The Indian eCommerce market is estimated to grow from $46.2 billion in 2020 to $111.4 billion by 2025.
If you aim to maximize your brand’s reach drastically, then creating a strategically designed eCommerce website is a great way to do the same. You can opt to move your business online to grow it optimally. Thus your business can access the target audience across multiple markets in your country and even across the globe.
Consumers are constantly getting online bound to buy everything from groceries to luxury items driving online sales to grow exponentially every year. Hence, no better time would be there to accomplish your e-commerce business than now.
Also Read:- Shopify vs Shopify Plus: Which Platform Fits Your Business Needs?
In this blog, we will cover all significant aspects of eCommerce website development costs.
How Much Does It Cost to Develop an eCommerce Store?
There are various factors directly impacting the eCommerce website pricing for your business. First and foremost, it is about choosing the right platform. Shopify, WooCommerce, and Magento are the chief options. While the last two are free to use, Shopify is a paid platform. It comes with a 3-day free trial period extendable to 3 months on payment of $1/month for three months.
The final cost of an eCommerce website mainly depends on specific features and functionality required. Here we have divided the cost of building a website into three main categories:
- Initial Costs
- Development Phase Costs
- Post-development or Ongoing Cost
The key expenses in the initial stage are related to Hosting solutions, Domain name registration, SSL certificates, and various paid tools. The hosting charges range from $12/month-$399/month. The Top Level Domain (TLDs)like .com, .net, or .org, can range from $10 to $50 per year. TLDs, such as .shop or .store are more popular ones and so come for higher costs. The SSL certificates are of three types- Domain Validated (DV), Organization Validated (OV), and Extended Validation (EV). The prices are as follows,
| SSL Certificate | Estimated Cost |
|---|---|
| Domain Validated (DV) | $50 per year |
| Organization Validated (OV) | $50 to $150 per year |
| Extended Validation (EV) | $150 to $500 per year |
In the Development phase, the cost largely depends on the web builders you are using. Here is an estimate based on the top choices.
| Web Builder | Cost |
|---|---|
| Custom | $22,000 |
| Shopify | $8,000 |
| WooCommerce | $8,000 |
| Wix | $7,000 |
The lifestyle expenditure varies from one country to another, therefore the cost of hiring developers varies too.
The table given below showcases the cost of outsourcing based on different regions,
| Region | Hourly Cost |
|---|---|
| The US | $100 |
| The UK | $90 |
| Canada | $90 |
| Australia | $80 |
| Western Europe | $70 |
| India | $35 |
There is a tested formula to calculate the total cost of building your eCommerce website. It is as follows,
Formula: Total Cost = Design Costs + Development Costs + Functionality Costs + Fulfillment Costs + Marketing Costs + Maintenance Costs + Other Essential Costs
Breakdown of eCommerce Website Cost
The key cost components of an eCommerce website are:
- Registering a Domain & Hosting – Before your eCommerce website goes live, you are required to register a domain name, which typically costs between $10-$50. Web hosting provides space on the server where the data of your website goes live. It ranges from $3 per month for basic shared hosting, up to hundreds of dollars per month for cloud or dedicated hosting solutions.
- Website Design & User Experience – The functionality and aesthetics of your eCommerce website are very critical. Pre-made templates can range from free to over $200, while custom designs can cost between $5,000 to $30,000. The cost depends on the level of complexity.
- Development of Website & CMS – This involves the actual building of your site and can vary widely based on whether you are using a self-service platform, an open-source CMS like WordPress with WooCommerce, or a bespoke solution. Costs may range from a few hundred dollars for a basic DIY site to up to $30,000 for a custom-built site.
- Digital Marketing & SEO – A fully integrated digital marketing plan will increase the cost of the build but is crucial for driving traffic to the eCommerce website.
- Third-Party Integrations – Developing a full-fledged eCommerce website that works with an ERP or other third-party systems can often cost thousands. Payment gateways may require separate integration costs, which can range from free to 2-3% per transaction, plus a minimum fixed fee.
- Features of Security – Security is critical for eCommerce sites, necessitating investments in SSL certificates (around $50 – $200 per year), and possibly other security features or services like PCI compliance audits.
- Support & Maintenance – Once your site is live, ongoing support for problem-solving, updates, and maintenance is needed. This can cost between $50 to $300 per hour, depending on the expertise and skill level of the service provider and the specific needs of the client.
Here’s a table showing how the cost varies from one case to another,
| Category | Small | Medium | Large |
|---|---|---|---|
| Design | <$1,000 | $1,000-$5,000 | $10,000-$80,000 |
| Functionality | <$2,000 | $5,000-$12,000 | $20,000-$100,000 |
| Fulfillment | Free | $30–$400 | $5,000 |
| Marketing | $0-$500 | $500-$2,000 | $5,000 |
| Maintenance | $0-$500 | $500-$1,250 | $3,600-$12,000 |
| Essentials | $300 | $6,000 | $10,000 |
Expected Cost to Build a Replica of a Popular eCommerce Website
Lastly, let’s have a look at the cost structure of some well-known eCommerce websites. These won’t be exact figures but only a rough estimation of the cost based on various factors but still, you can have a fair idea about it.
| eCommerce Store | Estimated Cost |
|---|---|
| Amazon | $50,000 to $150,000 |
| eBay | $50,000 to $100,000 |
| Alibaba.com | $50,000 to $90,000 |
Conclusion
By now, you must have gained a fair idea of the cost involved in building an eCommerce website. You may consult the experts from an eCommerce Website Development Company to receive the best outcome. A trusted Shopify development company will help you build a functional and aesthetic eCommerce website for you. If you are looking to invest in an eCommerce website, it is mandatory to work with an eCommerce development company. Consider Shiv Technolabs as your trusted partner and we will create a user-friendly and professional eCommerce website to attract and retain customers.
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