How much does an e-commerce website cost

Case Study , Posted by on 2019/10/17 0     Comments

You might find several blogs on this topic, but you are here expecting an answer to your question and Vyrazu Labs will not fail to surprise you. You see with the passing time and fallen leaves the street side retail shops have dried away making space for online e-commerce websites. Nowadays, an e-commerce website is one of the most profitable sites that we encounter.

Well, you see producing a cost-to-cost list is rather vague when it comes to determining how much does an e-commerce website cost. There are plenty of factors working behind the costing of an e-commerce website like tools, technologies, parts, business goals, developer rates, designer rates, project scope, and so on impacting the cost of development.

Nowadays, an e-commerce website is one of the most profitable sites that we encounter. There are plenty of factors working behind the costing of an e-commerce website like tools, technologies, parts, business goals, developer rates, designer rates, project scope, and so on impacting the cost of development.

There are many platforms nowadays which can be utilized to launch a website. On the other hand the features such as payment options, carts, favorites, etc that you will include play an active role in determining how much does an e-commerce website cost.

Some examples such as WooCommerce, Shopify, Magneto, BigCommerce, Squarespace are the platforms you can use to launch your app or just customize the details making it your very own project. Other concerns will soon cloud around you as and when you are done determining which platform to choose. 

These will soon disappear as and when the concept of how much does it cost to make an e-commerce website becomes clear to you. If you are thinking about entering the already overcrowded market of e-commerce entertaining hundreds of customers every day, you need to have a solid plan for the development and the designing of the app from the very initial stages. In this article, you will read about the features, initial costs, design, development, and other factors that will be involved in the cost determination process.

How much does an e-commerce website cost? | Determining the areas of cost. 

For determining the cost of an e-commerce website there are two things that are engaged with manipulating your cost one is the sales which include making of the app, i.e development, designing, inclusion of features, launching in a platform, using an e-commerce platform or not, the licensing of the app and your business, etc and the second one is the traffic goals and other factors that will secure your site from touching oblivion. For this, you will need a business model.

The business model 

As you start planning for making an app, you will also have to- set up a plan that will pull you through your business. This business model is the determination of what are the components that will be added in your app, which type of app will you have, and other factors elaborated as points below. Before which you must have an understanding of the business that you will be doing and how will your customers take it. 

For example, if you are making an e-commerce app that will be selling science equipment like microscopes, telescopes, sextants, etc. You will definitely target the science students, studying biology, chemistry, geography, physics, etc. Hence, having an understanding of the target audience is one essential point. Your app will have to be something that will attract your target audience. Let us use the same example and talk about the design. 

Your app will be designed as a sci-fi movie that will attract science bees. If you make it into a mainstream design like any other e-commerce app it might attract customers but they can just visit their usual sites. You need to include something that just anyone else is not selling or showing in their apps. This will attract the users, as well as the use of cool names, will work alike. However, these are the initial planning that will help you to choose your customers making the design accordingly.

Moving onto the factors that will influence how much does an e-commerce website cost. These are a few questions that will help you conduct research, while I will try to cover all these points. You just focus on planning and leave the rest to me. 

How much does an e-commerce website cost? Is our initial question generating from which comes questions such as:

  1. Will the site be hosted on an e-commerce platform like Shopify, Magento, etc or will it be a separate site managed by you?
  2. What hosting plan will you opt for?
  3. What are the features you will include?
  4. What will be the pricing? Will it be a standard one or a complex one?
  5. How many products will you be selling or how many varieties of products will be featured on your website?
  6. Are your images and contents already ready? Or Are you planning to get them done when the website development is on its way?
  7. Is your site going to be responsive? (meaning it will be optimized to be viewed on all devices)
  8. Will your site have social media, blogs, and other advanced features?
  9. What payment procedures will you provide your customers? Will it be Google or PayPal or something else?

So these are the main questions that we will be discussing in this article, this will help clear out the queries on how, who, where, and what questions that have already formed a thick cloud around your head. 

What will you have to consider to determine how much does an e-commerce website cost?

The basic components that you will have to consider are:

  1. Web development services
  2. Features like: database, integration, CMS, etc.
  3. Domain/hosting
  4. Web design services
  5. Marketing/ SEO
  6. The updates and maintenance

Smaller things

Let me first talk about the smaller things that will be counted in the cost list of the e-commerce app. Now, the smaller things include the domain name which is your unique name that you won’t let anyone else use, hence the payment of $5 – $20 per year will be deducted in order to protect the name. You will have to get an SSL certification, a cryptographic key for securing the data transfer from the user’s end. There will be credit card transactions which will cost you $300 yearly considering a medium scale business. 

Platforms 

While determining the platform you will have to be very careful as it will be your long-term investment. If you are planning to use a platform. That will be called a Hosted server. In a hosted server the website runs on a server far from your reach. For example, Shopify, Magento, etc which will offer you a preset which is ready and you can use it by paying the cost they ask for their server. It is good because it maintains simplicity, there will be stability, you will not need to code, and also get good hosting. There is a drawback to this, that is it won’t be able to adapt features and you will not be allowed to customize the website as you wish.

On the other hand, if you self host your website on your own server(s) with ownership of the website and access to the code. This is a better option because you will be able to approach the website, customize the website as you wish, contain the information or data directly, access the code and get complete control of the e-commerce website. When it is good there is bad as well, you will have to deal with updates and support all by yourself, the technical issues will screw with your head, and you there will be more cost involved in the setting up process.

Determining the platform is your first priority as it will be helping you decide how your cost will look like the above-mentioned points are just opposite to each other hence you will have to decide on which one to choose as both will have different cost list, hence understanding how much does an e-commerce website cost will get difficult.

Content Management System

You will need a CMS(Content Management System) maybe not initially but eventually. Content Management System manages the creation and moderation of digital content. You have two options to choose from one is a CMS as a piece of e-commerce platforms, like Prestashop, osCommerce, Magento, OpenCart, Shopify, etc.

With this, you will have no worries as there will be employed labor working behind the maintenance of the website making sure nothing goes wrong. However, there is another option in which you can add the CMS as a part of the functionality of the custom online store. In this, you will be able to control the content and do as you please with the CMS that will be built exclusively for you. 

For determining how much does an e-commerce website cost you will need to decide on the platform first as I said or hire developers for a custom made website directed by your guidelines. 

Web hosting 

While the topic of hosting came along you need to remember while choosing web hosting solutions you will be a reliable and secure hosting that allows fast transactions. This won’t cost you much at the start while it will never fail to grow with your business.

So first, you need to check the traffic, products, storage limit, and orders, etc. these will help you get a better idea of how much does an e-commerce website cost. As there are multiple options like Shared, reseller, clustered, grid, virtual dedicated, cloud, dedicated, homer server, managed web hosting services.

However, all these options are not for conducting an e-commerce website hence, I will discuss only two of these as it will be the most applicable option in your case.

Shared web hosting In this hosting option, you will have to share your hosting with numerous other websites as well as your server. Shared hosting is a low-cost service that will ask for a payment of $10 per month. Now, everything that offers a little less comes with a con, here your package will come with the risk of slow transactions.

Dedicated hosting– You will get your own server, with better speed, own IP address, no risks from corrupt sites, administrative control, and of course, the location that you feel best in your country. Companies such as Digital Ocean or Vultr will provide you with a dedicated hosting it will cost you more compared to the shared web hosting service. Don’t go for the super expensive hosting by Azure or Amazon their basic package and high storage will bill you $350 – $1050 on a monthly basis.

Content Delivery Network 

While deducing how much does an e-commerce website cost a CDN system will have to be taken into consideration. A Content Delivery Network (CDN) is a distributed system of servers (network) by which a page is delivered along with other web content to a user, depending on the geographical location of the user, the content delivery server, and the origin of the webpage.

In short, you will be able to hide the user requests which will help you to generate content faster from a server that will be closer to a particular user. Cloudflare service is commonly used as it is free and it provides a firewall service against sudden attacks.

Are you still confused about which one will be the best option for you read along hosted vs self-hosted websites for a better understanding?

Search Engine Optimization  

SEO is very important while determining how much does an e-commerce website cost. While there are millions of websites comprising of products, titles, descriptions, images and much more content which can be copied if not protected, also for being recognized by a search engine you will need to be equipped with SEO workers.

You might be expecting your SEO workers to be the best and produce effective optimization then it will cost you $2500 for a small website while it can go up to $4500 – $5500 for a bigger website as it will have more content than a smaller website with limited products. 

When it comes to SEO there are ample dubious SEO companies in the blue-water generating from Asian and African continents. So, please be careful when you are opting for SEO companies who will promise you a truck-load of work they will do, however fooling you resulting in a waste of time and money, when you are down for doing serious business keep in mind to check the background of the company before entering into a deal. 

Database

In an e-commerce business, the amount and type of data are very essential. The huge enterprises have numerous products concerning the brands, size, and color of the product, model, features, price, and other such details that have to be protected and stored so that it doesn’t malfunction and cause trouble for the users.

Cutting out the technical talk moving onto the popular providers who can provide you with support in terms of a database is EC2, AWS, and Google cloud. All these providers have a different price list which is driven on the basis of per user, one-time license, monthly subscriptions, etc. for a median business space, the cost might be between $300-$1000.                                                                           

Software/Platform    

Right now, I mean in 2019 there are far more options and platforms using which you can launch your website, which was not possible just 15 years back, ironic isn’t it? However, now that we have services that we can access why not utilize them for your own benefits.

You might have heard the names like WooCommerce, OpenCart, Magento, etc which provide the essential e-commerce functionalities in one package which you can use. They provide the admin panel, drag and drop interface, sometimes even open-source code.

If you have already framed a solution it will help in cutting down the cost remarkably, if you are just concerned about the promotion and customization. The famous five players in terms of platforms who are frequently called upon for their loyal services can be put as Shopify, WooCommerce, Magento, Volusion, and BigCommerce.

Are you still confused about which e-commerce tool you will use? The choice is clear when you read the comparison so as to determine it yourself. Once you understand which field will best suit your e-commerce business it will assist you to determine how much does an e-commerce website cost.

The web structure of an e-commerce website will consist of numerous products and variations, search and filtering, CMS, CND, payment methods, etc for which you will have to possess some developers’ skills for setting up and maintaining the store.

If you hire freelancer developers for this purpose it will cost you $60 – $135 hourly, if you hire an expert company full of developers it will cost $260 per hour, in a long-term basis plan the later will be more profitable as there are insertion of updates, management, and support, etc with an experienced team your product will no doubt shine.

Also, a few thousand dollars will just fly away with the configuration, customization, design set-up and rather technicalities.

The features in an e-commerce app

The most important element in an e-commerce website is its features. We know that when we have to please the customers we attract them and influence them in buying our product, in case of a physical store you can directly talk with the customers and convince them to purchase your product.

When it comes to window shopping you as the owner of that window will have to put up your best products and deals along with convincing features that will interact with your customers. Under this headline, we will critically consider which features can be included in the website and determine how much does an e-commerce website cost.

Here are the features you can include:

  1. User Registration
  2. Shopping Cart
  3. Search
  4. Payments
  5. Mobile friendly
  6. Chatbot
  7. Review
  8. Multi-platform integration
  9. Check Out
  10. Save for later
  11. Featured pricing
  12. Shopping history
  13. Exchange and Return
  14. Status of the product
  15. Help and Feedback 
  16. Filters

Many think that with the introduction of apps websites are becoming obsolete. On the other hand, research says that rather than downloading an app one feels comfortable with a website as they can use it as well as it won’t occupy space in their devices. You have to keep in mind to make your website multi-platform friendly so that it can run on any device that your customer uses. How are you planning to attract your customers? 

Of Course with your homepage? Then while inserting the user’s registration page don’t forget to make it precise as well as collective. On the registration page including their names, email ids, mobile number, maybe gender and age? For it will help the website to guide a male and female customer individually while the age will help to chuck products that the youth or the baby busters might not like. 

After which you can draw a lot of information while checking out. Making the check out option easy it something you will have to focus on as a complicated system might drive your customers away, Some websites also ask for buy now or check-out for cutting out the cart-time. With a few clicks, the check out used is done while gathering information like the user’s address for product disposal and if they are paying online you can gather their credit card details which will be saved for future use. 

The shipment is also a considered cost adder. Without a proper strategy managing shipment might get complicated here’s what you can do according to Forbes. 

The introduction of the cart option will allow your user to play around with different product purchases and for comparing similar products keeping their selected item in the cart.  

Various payment options will help your customers to pay with any platform they like, like PayPal, Credit Card, COD, Google, etc later you can introduce a smart wallet using which the users can make the payment as well as receive some credits and balance for your website. For the pricing will vary for different products. 

There are few products in the B2B companies that are produced as special products with offers and featured the price for certain customers as a promotional measure. The B2B companies are looking forward to a huge profit, according to Forbes. If you are focusing on attracting customers what is better than discounts and promo codes? 

There might be casualties with the product after it has been delivered and the customer might want to exchange or return it. This is a feature that is very essential in a shopping site or customer satisfaction might lag. 

A product might be too expensive for a certain user while they are shopping but later it might be convenient maybe with future offers or something else making scope for that user to buy it later. Hence saving for later is an option you can’t miss, however, initially, you won’t have to include it. It depends on your customer’s behavior entirely.

There are many questions that build up in a customer’s mind. Take your example when you are off for an online purchase you look at the product check the details and at times generate questions that you’d like answers of. A chatbot or Q&A will help your user to navigate in your website seamlessly.  

While there is Q&A there has to be help and feedback with which any website or product-related problem can be shared directly by the users. A review from your customers will help other customers to trust your product. The search option, on the other hand, is something you have to insert for your customers to search out the products they are searching for. It won’t be a bad idea to insert filters eventually as the website progresses.

Now providing a shopping history will help your customers keep track of the activity they have done on your website. Your customers will also look for an option that will help them track their products for a safer transaction.

The design of the website to determine how much does an e-commerce website cost. 

The design of your website is your USP. The design should be so simple and smooth that users can surf through one thing to the other as they can do on the water. Your sim should be navigating the customer first then purchase goals. You can opt for cheaper designs like templates and themes from the e-commerce platforms at a rate of $0 to $500. 

If you are planning to stand out for leaving space for future adjustments it would benefit you in a long-term span. The web designing agencies will cost at least $3600, on an hourly basis it will be $60 to $70. If you are concerned about the payment pennywise then it might not benefit you as the design will not be accurate. While how much does an e-commerce website cost will not be answered accordingly. 

Your home page being your USP as well will be the prime agent to bring traffic to the website and compromising the design rates will be the work of a fool. Your homepage will be something that conveys a message or a story that will engage your users, insertion of video contents for pictorial presentation will communicate with your users on your behalf.

Here are some easy guidelines that you can follow for designing your website:  

  1. Unique and product-specific UX 
  2. Clear and minimum interface
  3. Highlight the proposition value 
  4. Design keeping the conversion rate in mind
  5. Brand’s lifestyle highlights
  6. Product page can be reached with few clicks
  7. Flat or material design
  8. High-quality images that attract 
  9. Show the product than saying about it
  10. Custom web design for a unique buying experience 

If you want more help with UI, UX design read along.

How much does an e-commerce website cost?

If you are planning to customize your website the basic charges will be $6000. The exact figures can’t be put in order as the charges vary from company to company. Depending on who you prefer to hire is something that is ruling your cost.

If you hire freelancers or DIY agents you might end up spending some money on something “anyone” could do. While a company will offer you the maintenance and support with minimal yearly fees. Now, a company might offer you a price according to the features you will be adding and the development cost whereas other companies might offer an hourly list for the development of the app.

If we consider different company sizes to determine how much does an e-commerce website cost:

  • A baby website 

A small website will be easier to manage and create with the limit few features, small product catalogs (150-1000 products), lesser traffic and basic design with a custom development cost, the setting up of the website will cost as divided, domain and SSL ($1,500), host($3,500), database($600), development($6,000-11,000), design($3,500), and initial SEO($2,500) which approximately is $16,000 – $21,000.  

  • A teenager website

A medium website with a fair amount of product catalogue and a healthy traffic like thousands of monthly visitors with advanced features and properties the setting up will cost as parted domain and SSL ($2,000-5,000), host($8,500), database($1,200), development($10,300-21,000), design($5,300-10,500), and initial SEO($4,500) which roughly is $30,500 – $51,000.

  • An adult website

A bigger website with huge traffic and long following catalog, having a professional and unique design. Along with the other advanced features that we have discussed earlier plus the good image quality and shipping options the setting up will cost as distributed domain and SSL ($5,200-11,000), host($12,100), database($4,200), development($20,300-101,000), design($10,300-30,500), and initial SEO($5,500) an approx of $57,500 – $163,000.

Concluding to:

With a fair share of information on how much does an e-commerce website cost, you will now be able to decide for yourself what to do and what not to do. However, if you need any assistance, feel free to contact us for we are a leading software company filled with developers and designers as if you are located in Kolkata we have a rate no western company can provide. If you are not sure you can check our App store products and Google store products while your curiosity can be tamed and if you want to learn about software development outsourcing, read along.  

We also help freelancers new-comers set-up their business providing useful guidelines you can visit our website anytime for checking out the services we provide. I hope this article was useful and we could cover all the essential areas on e-commerce websites. Well calculating the real cost is slightly difficult due to various companies offers’ yet, I tried to give an idea of how much does an e-commerce website cost.