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August 12, 2024

Magento (Adobe Commerce) Pricing
– Everything You Need To Know

Author i95Dev Marketing
Category Blog | Magento | Magento 2.0 |
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Adobe Commerce is a popular eCommerce platform used by many online stores to build and manage their eCommerce outlets. While Adobe Commerce offers impressive features and functionality, understanding the costs involved is crucial for making an informed decision. In this blog, we’ll provide an overview of the various cost components and estimated expenses required to build an Adobe Commerce store.

Whether you are a small business looking to establish an online presence or a large enterprise seeking scalable eCommerce solutions, Adobe Commerce offers a suite of editions catering to diverse needs.

To help you choose the best option and avoid overpaying for eCommerce website features you won’t use, we’ve simplified Adobe Commerce pricing. This article explains what Adobe Commerce (Magento) is, outlines what each Magento/Adobe Commerce edition includes, and provides an overview of the key factors contributing to the final costs.

Before we begin, we would like to caution our readers about the cost trap. What is cost trap? We have far too often seen businesses evaluate and chose platforms on cost ALONE. We have seen them fail and pay a hefty price for it in the form of delayed go to market and re-platforming costs. It is not fair to evaluate these platforms on the parameter of cost alone.

Each one of these platforms offers something unique and it is important to choose the one that best meets your requirements. It can be overwhelming, but it must be done. If you need a helping hand to understand and document your requirements let us know and we will be happy to help.

For example, consider this, Magento/ Adobe Commerce offers various options like Open Source, Commerce, and Commerce Cloud and is used by businesses of all shapes and sizes. They offer different features and cost different (license and development).
Who Should Read This Magento / Adobe Commerce Pricing Blog?

This blog is written for business owners, eCommerce directors, and decision makers who are evaluating and exploring an investment in Adobe Commerce/ Magento. Whether you’re building a new site, re-platforming from another eCommerce store, or upgrading from an earlier version Magento, this blog is for you. Are you debating if Adobe Commerce is a good fit for your company and looking for some answers? Read on and you might just find what you are looking for. If you don’t, drop us a note and will be happy to answer them. Now, let’s get into the nitty-gritty.

Let’s start by taking a dig into what Adobe Commerce (Magento) offers

Adobe Commerce platform offers a flexible and scalable eCommerce solution that helps businesses create unique and engaging online experiences. With support for multiple languages, currencies, and tax rates, Adobe Commerce allows businesses to reach a global audience. The platform offers various features, including product catalogue management, shopping cart functionality, order management, and payment processing. Adobe Commerce is also highly customizable, allowing businesses to create a unique look and feel for their online store.

Feature comparison of different Magento/Adobe editions

Each edition offers varying levels of functionality, customization, and support to cater to different business needs and budgets. Choosing the right edition depends on your specific requirements, budget, and technical resources.

Magento Open Source
Adobe Commerce
Adobe Commerce Cloud

Core store management features
Yes
Yes
Yes

Site Search
Basic
Advanced
Advanced
Visual merchandising
No
Yes
Yes
Analytics and reporting
Basic
Business intelligence dashboards and AI-powered product recommendations through Adobe Sensei
Business intelligence dashboards and AI-powered product recommendations through Adobe Sensei
Customer Segmentation
No
Yes
Yes
Loyalty programs, such as gift cards
No
Yes
Yes
Search engine optimization (SEO)
Yes
Yes
Yes
Fast page loading
No
No
Yes
B2C capabilities
Yes
Yes
Yes
B2B capabilities
No
Yes
Yes
Hosting included
No
No
Yes, and promising 99.99% availability
Community forums
Yes
Yes
Yes
Technical support
No
Yes
Yes
Performance monitoring
No
No
Yes
Security and compliance
Very limited
Offers some security and compliance features
Enhanced security with DDoS and Fastly WAF services
PCI compliant
Automated updates and patching
No
No
Yes
Best For
Startups, Small Businesses
Growtableing, Medium Businesses
Enterprises with global reach
Additional Costs
Hosting, Extensions
Development/Maintenance, Implementation and Customization, Training and Support, Transaction Fees
Implementation and Customization, Training and Support, Third-party Integrations

Each one of these platforms offers something unique and it is important to choose the one that best meets your requirements. It can be overwhelming, but it must be done. If you need a helping hand to understand and document your requirement us know and we will be happy to help. For example, Magento/ Adobe Commerce offers various options like Open Source, Commerce, and Commerce Cloud and is used by businesses of all shapes and sizes.

Factors affecting Adobe Commerce (Magento) pricing

Licensing costs

  • Magento Open Source: Free to use.
  • Adobe Commerce & Adobe Commerce Cloud: License fee varies based on Gross Merchandise Value (GMV).
  • Approximate Annual License Fees:
The company’s gross merchandise value
Adobe Commerce license fees
Adobe Commerce Cloud license fees
Less than $1,000,000
$22,000
$40,000
$1,000,000–$5,000,000
$32,000
$55,000
$5,000,000–$10,000,000
$49,000
$80,000
$10,000,000–$25,000,000
$75,000
$120,000
More than $25,000,000
$125,000
$190,000

Tip: Choose the edition based on your business size and expected Gross Merchandise Value (GMV) to avoid unnecessary expenses.

Hosting:

  • Adobe Commerce Cloud: Hosting included.
  • Magento Open Source & Adobe Commerce: Self-hosted or via cloud vendor.
  • On-premises: Costs include server hardware, backup systems, and software licensing.
    • Server: $5,000 – $15,000
    • Backup System: ~$2,000
    • Software Licensing: ~$1,500 per server
    • Cloud Hosting: Scalable monthly fee ($130 – $2,000/month) based on functionality and data needs.

Tip: Consider Adobe Commerce Cloud for an all-inclusive package, or self-host for potentially lower costs but more responsibilities.

Domain Name Costs:

  • New domain: ~$10 – $20 per year
  • Renew expired domain: Up to ~$60 per year
  • Premium domains: Up to ~$400 – $500 annually

Tip: Register a new domain early to save on renewal and premium domain costs.

Secure Socket Layer (SSL) Certification:

  • Adobe Commerce & Adobe Commerce Cloud: SSL included.
  • Magento Open Source: SSL purchased separately.
  • Annual cost: $50 – $600 (premium options up to $1,000)

Tip: Factor SSL costs into your budget if using Magento Open Source.

Web Store Design/Themes:

  • Pre-built Themes: You can look into free and paid options on Adobe Marketplace and purchase a theme for $60–$499.
  • External Magento theme vendors and support communities: You can consider purchasing ready-made designs from third-party vendors. For instance, you can buy a theme from ThemeForest for $17 – $499.
  • Custom-built Themes: Starting cost: $5,000. Depends on UI/UX requirements and mobile compatibility.

Tip: Start with pre-built themes to minimize initial costs and consider custom themes as your store growtables.

Development Costs:

  • In-house Developer: $60,000 – $120,000/year
  • Dedicated Team of Magento Developers:
    • US: ~$100/hour
  • Costs include:
    • Store and catalog setup
    • Theme development and customization
    • eCommerce feature configuration (payment gateways, taxes, etc.)
    • Sales and marketing costs

Tip: Evaluate your technical requirements and choose between hiring in-house developers or outsourcing.

Extensions and Add-ons:

While calculating the total Magento pricing, you need to consider the sum you will pay for different extensions and integrations that will enhance your store’s functionality.

  • Ready-made extensions: $0 – $10,000
  • Custom eCommerce development: Minimum $6,000 per add-on

Tip: Budget for extensions to enhance store functionality and consider the cost of custom development if needed.

Fees Related to Payment Transactions:

Regardless of which Adobe edition you selected, you will still need to cover transaction fees if you want your customers to be able to pay online on your web store. This amount covers credit card processing fees and payment platform fees.

  • 2% – 4% per transaction value
  • PayPal and Stripe: 2.9% transaction fee

Tip: Account for transaction fees in your pricing strategy to maintain profitability.

SEO and Digital Marketing:

All three Magento editions include search engine optimization functionality and support marketing campaigns to some degree. Magento Open Source only includes the basic features while the other two editions offer more advanced capabilities.

You will still need to hire a marketing professional for a comprehensive SEO audit and website optimization consultation.

  • SEO Expert Consultation: Hourly Rate: $15 – $35. 20-40 working hours required.
  • Advanced SEO Add-ons for Magento Open Source

Tip: Invest in professional SEO services to maximize your store’s visibility and traffic

Artificial Intelligence:

Research shows that customers will spend 40% more time shopping on your website if their experience is personalized, which is a strong incentive to invest in AI. Even if you opt for one of the two Adobe Commerce editions, you will still need to pay for AI-related development and configuration costs.

  • Adobe Commerce & Adobe Commerce Cloud: Business intelligence dashboards and AI capabilities via Adobe Sensei.
  • Magento Open Source: Custom AI implementation required. Intelligent Recommendation Engine: $20,000 – $35,000

Tip: Leverage AI to enhance customer experience and drive sales, considering the development and configuration costs

Maintenance:

Another factor affecting Adobe Commerce pricing is ongoing store maintenance, which includes routine code audits to discover and eliminate any bugs, performance optimization, certification and licensing renewal, new feature implementation, migration between platforms, and addressing security vulnerabilities.

  • Adobe Commerce & Adobe Commerce Cloud: Technical support included. Server-side maintenance, updates, and security patches (Cloud only).
  • Magento Open Source: Monthly maintenance: ~$7,500

Tip: Plan for ongoing maintenance costs to ensure your store remains secure and performs optimally.

So, how much does an Adobe Commerce store cost?

To summarize, Adobe Commerce (Magento) pricing depends on the selected Magento/Adobe edition, hosting options, the degree of customization, the level of post-deployment support, and more. If you opt for Magento Open Source, you will not pay license fees, but you still need to factor in all the other expenses. The table below summarizes which expenses you need to consider while calculating the total Adobe Commerce pricing.

Magento Open Source
Adobe Commerce
Adobe Commerce Cloud
Licensing costs
No
Yes
Yes
Hosting fees
Yes
Yes
No
Domain name costs
Yes
Yes
Yes
SSL costs
Yes
No
No
Development costs
Yes
Optional
Optional
Transaction fees
Yes
Yes
Yes
SEO costs
Basic options are included
Offers advanced options but you might still need to hire an SEO expert
Offers advanced options but you might still need to hire an SEO expert
AI
Not included. You can build AI capability for additional costs.
Included in licensing fees, but you will still need to pay for additional development and configuration
Included in licensing fees, but you will still need to pay for additional development and configuration
Maintenance
Not included
Included
Included

There is no one general answer to how much an eCommerce website costs. Drop us a line if you want to receive an accurate cost estimation for your eCommerce project.

Is It Better to Manage Your Magento Website In-House or Hire an Adobe Commerce (Magento) Agency?

When it comes to maintaining your Magento website, you have two primary options: managing it with internal Magento experts or hiring an external Magento agency. For many merchants, having an in-house team is impractical due to the high costs of payroll, training, benefits, and hiring. Partnering with a Magento agency can simplify your overhead and give you access to their extensive experience with various eCommerce industries and retailers.

Practical Tips & Reality Checks

When deciding which Magento version is best for you and what options fit your budget, consider the following tips and best practices:

  • Be aware of your spending limits: Set a clear budget and stick to it.
  • Ask for assistance when required: Don’t hesitate to seek help from experts when needed.
  • Prioritize quality over expediency and cost: Invest in quality solutions to avoid future issues and expenses.
  • Consult an Adobe Commerce agency or specialist: Leverage their expertise to make informed decisions.
  • Be selective while considering a partner: Choose a partner committed to your success with a proven track record.

Send us an email at info@i95dev.com if you need assistance choosing which Adobe Commerce version is best for your company.

Wrap Up

These are just a few of the many critical factors that will determine the pricing for your Adobe Commerce Store. To get a complete overview of the pricing for your Adobe Commerce-based eCommerce store, get in touch with i95Dev and benefit from our experts’ advice without any additional charges.

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