How Much Does an eCommerce Website Cost to Build

Knowing how much an eCommerce website costs to build can have a significant impact on a business's budget, making it crucial to have a clear understanding of what to expect when it comes to expenses. The final cost of an eCommerce website can vary greatly depending on factors such as the size and complexity of the site, the features and functionality required, and the region and experience level of the development team.

For a basic Ecommerce website built on an existing platform like Shopify, you could spend a few thousand dollars to get it set up correctly and usable. If you're looking at a custom built eCommerce site then the sky is the limit but likely costs will exceed $10,000 if you employ a development company to do the development, branding, content, seo etc.

Whether you're starting a small online business or launching a large-scale eCommerce platform, it's vital to consider all the costs involved in order to make an informed decision. In this article, we'll take a closer look at the factors that determine the cost of developing an eCommerce website, as well as provide some average cost estimates to help you plan your budget.

Prior Considerations for an eCommerce Website Cost

Before beginning the process of developing an eCommerce website, there are several essential considerations to keep in mind.

1. Your Purpose And Goal

The purpose and goals of your eCommerce website are critical to its success. They serve as a roadmap for the design, functionality, and overall direction of the project. When defining the purpose and goals of your eCommerce website, consider the following questions:

What are you trying to sell through your website?
Who are your target customers, and what are their needs and wants?
What do you hope to achieve with your eCommerce website (e.g. increased sales, higher customer engagement, better brand recognition)?
What are your key metrics for success

2. Target audience

Knowing your target audience is a crucial part of developing an eCommerce website that meets the needs and expectations of your customers. Think about the following factors while determining your target market:

Demographics: What is the age, gender, income, education level, and location of your target customers?
Interests and Hobbies: What do your target customers like to do in their free time?
Purchase Behavior: How do your target customers typically shop for products and services? Do they prefer to shop online, in-store, or through a combination of both?
Pain Points: What problems do your target customers face when trying to purchase the products or services you offer?
Communication Preferences: How do your target customers prefer to receive information about products and services (email, social media, or advertising)?

By understanding your target audience, you can make informed decisions about your eCommerce website's design, functionality, and marketing strategies to better meet your customers' needs and expectations. This can result in a better user experience, higher conversion rates, and increased sales.

3. Budget

Budget is a critical consideration when developing an eCommerce website. It's important to have a realistic understanding of how much money you have available to spend on the project, as this will influence the scope and scale of the website as well as the design and development team you choose to work with. Think about the following factors while setting your budget:

Initial investment: How much money do you have available for the initial development of your eCommerce website? This will cover the cost of design, development, and testing.
Ongoing expenses: What are the ongoing expenses associated with maintaining and updating your eCommerce website? This can include hosting, security, and marketing costs.
Revenue projections: How much money do you expect to make from your eCommerce website? This will help you determine the return on investment for the project and make decisions about the level of investment required.
Cost-saving measures: Are there any cost-saving measures you can implement to reduce the overall cost of the project? (e.g. using a pre-built platform, working with a freelancer instead of an agency)

Having a realistic budget in place will help you make informed decisions about the design, functionality, and development team of your eCommerce website, and ensure that the project stays on track and on budget. It's also a good idea to consider a contingency budget for unexpected expenses that may arise during the development process.

4. Design

Design is a critical aspect of any eCommerce website, as it impacts the overall user experience and can influence the success of the site. When considering the design of your eCommerce website, consider the following:

Brand Identity: How do you want your eCommerce website to reflect your brand identity and values? This can impact the visual aesthetic and overall look and feel of the site.
User Experience: How do you want your customers to interact with your eCommerce website? Consider the navigation, layout, and overall flow of the site.
Mobile Responsiveness: How will your eCommerce website look and function on different devices (e.g. desktop, tablet, mobile)?
Custom Design: Do you want a custom design for your eCommerce website, or are you open to using pre-built templates or themes? Custom design work can be expensive but may provide a unique and tailored user experience.
Color Palette: What color palette do you want to use for your eCommerce website? This can impact the overall look and feel of the site and should be considered carefully.
Typography: What type of typography do you want to use for your eCommerce website? This can impact the readability and overall design of the site.

Design is a critical aspect of any eCommerce website and can have a significant impact on the overall success of the site. It's essential to consider the design carefully and make informed decisions about the look and feel of the site. This can result in a better user experience, higher conversion rates, and increased sales.

What Steps Are Involved In Creating An eCommerce Website?

Developing an eCommerce website can be a complex and time-consuming process, but by following these steps, you can ensure a smooth and successful outcome:

1. Choose a platform

Choosing a platform is an unneglectable step in the development of an eCommerce website. A platform refers to the underlying technology or software that powers the site. There are many options available, including:

Shopify: A popular eCommerce platform that offers a user-friendly interface, customizable themes, and a range of built-in features and integrations.
Magento: An open-source platform that offers a high degree of flexibility and customization. This platform is best suited for larger eCommerce sites with complex requirements.
WooCommerce: An open-source platform that integrates with the WordPress content management system and offers a range of features and integrations for eCommerce sites.
BigCommerce: A cloud-based platform that offers a range of features and integrations, including SEO tools and integrations with popular payment gateways.
Salesforce Commerce Cloud: A cloud-based platform that offers a range of features, including personalized customer experiences, multi-channel commerce, and advanced reporting and analytics.

When choosing a platform, consider your specific needs and requirements, including the size and complexity of your site, the level of customization you need, your budget, and your technical skills. It's also essential to consider the scalability of the platform, as your eCommerce site may grow and change over time.

With the Open-source edition, Magento allows you to create your own selling website, at zero cost. Although it has fewer features built-in compared to the premium version – the Commerce edition, Magento Open-source’s capability is enough to help you with starting an eCommerce business.

2. Develop the site

This step in the process of developing an eCommerce website involves the actual building of the website, incorporating the design, functionality, and other features identified in the planning phase. Here are some of the tasks involved in this step:

Content Creation: Writing and creating content for the site, such as product descriptions, blog posts, and about us pages.
Site Architecture: Defining the structure and organization of the site, including the menu, categories, and subcategories.
Product Setup: Setting up the products, including the product descriptions, images, prices, and options.
Payment Integration: Integrating the site with payment gateways, such as PayPal, Stripe, or Authorize.net, to process customer payments.
Shipping Integration: Setting up shipping options, such as flat-rate shipping, calculated shipping, or free shipping, and integrating with shipping carriers, such as USPS or UPS.
Tax Configuration: Configuring tax options for the site, including sales tax, VAT, or GST.
Customer Accounts: Setting up customer accounts and profiles, including account registration, login, and password recovery.

3. Test and launch the site

The “Test and Launch the Site” step in the process of developing an eCommerce website involves thoroughly testing the site to ensure that it's functional, user-friendly, and secure before making it publicly available. Some tasks involved in this step include:

Functional Testing: Testing all of the site's features and functionality, including the shopping cart, checkout process, payment processing, and shipping options, to ensure that they are working as expected.
Usability Testing: Testing the site's user experience and ease of use, including navigation, content presentation, and product images and descriptions, to ensure that the site is user-friendly and accessible.
Security Testing: Testing the site's security, including the protection of sensitive customer information, to ensure that the site is secure and that customer data is protected.
Performance Testing: Testing the site's performance, including page load speed, response times, and overall reliability, to ensure that the site is fast and responsive for customers.
Cross-Browser Compatibility Testing: Testing the site in different web browsers, including Google Chrome, Mozilla Firefox, and Internet Explorer, to ensure that it's compatible and functional in all major browsers.
Mobile Compatibility Testing: Testing the site on mobile devices, including smartphones and tablets, to ensure that it's optimized for mobile users and that the mobile experience is good.

eCommerce Website Costs – the Build

The costs associated with building an eCommerce site can vary greatly depending on a number of factors, including the size and complexity of the site, the platform used, and the services required. Here are some of the main cost factors to consider when building an eCommerce site:

Designs

The cost of designing an eCommerce website can vary greatly, depending on the complexity of the design and the type of designer you choose to work with. Here are some of the factors that can impact the cost of design for an eCommerce website:

Custom vs. Template Design: Custom design work, where a designer creates a unique look and feel for the site, can cost several thousand dollars to tens of thousands of dollars while using a pre-made theme or template can be much less expensive.
Type of Designer: The cost of design can also be impacted by the type of designer you choose to work with. Hiring a professional design agency can cost several thousand dollars to tens of thousands of dollars, while using a freelance designer may be less expensive.
The complexity of Design: The complexity of the design can also impact the cost of design. A simple, straightforward design with minimal customizations will typically be less expensive than a complex design with multiple customizations and unique features.
Number of Pages: The number of pages on the site can also impact the cost of design. A simple, single-page site will typically be less expensive than a large, multi-page site.

It's vital to carefully consider the cost of design when building an eCommerce site, as this can have a significant impact on the overall cost of the project. It's recommended to work with a budget in mind and to discuss the cost and scope of the project with the designer beforehand to avoid any misunderstandings or surprises.

Development

The cost of developing an eCommerce website can vary greatly, depending on several factors, including the size and complexity of the site, the development team's experience and expertise, and the number of features and functionalities required. Here are some of the factors that can impact the cost of development for an eCommerce website:

Site Size and Complexity: The cost of development will depend on the size and complexity of the site. A small, simple site with a few pages and basic functionality will typically be less expensive to develop than a large, complex site with multiple pages, custom features, and integrations.
Development Team: The cost of development will also depend on the development team's experience and expertise. Hiring a professional development team can cost several thousand dollars to tens of thousands of dollars, while using a freelance developer may be less expensive.
Features and Functionality: Adding additional features and functionality to the site, such as a blog, custom product options, or a loyalty program, will increase the cost of development.
Integrations: Integrating third-party services, such as payment gateways, shipping providers, or analytics tools, can also impact the cost of development.
Timeframe: The cost of development can also be impacted by the timeframe for completion. A shorter timeframe will typically result in a higher overall cost, as the development team will need to work more quickly to meet the deadline.

It's crucial to carefully consider the cost of development when building an eCommerce site, as this can have a significant impact on the overall cost of the project. It's recommended to work with a budget in mind and to discuss the cost and scope of the project with the development team beforehand to avoid any misunderstandings or surprises.

Maintainance and hosting

The cost of maintaining and hosting an eCommerce website is an ongoing expense that should be factored into the overall budget for the project. Here network error

be less expensive, while dedicated or cloud hosting plans can be more expensive.

Maintenance: The cost of maintenance will depend on the frequency of updates and changes required for the site, as well as the type of maintenance plan chosen. A basic maintenance plan may cover simple updates and bug fixes, while a more comprehensive plan may include site backups, security updates, and performance optimization.
SSL Certificates: An SSL certificate is necessary for an eCommerce site to securely process payments and protect customer data. The cost of an SSL certificate will depend on the type of certificate and the length of time it's needed.
Domain Name: The cost of a domain name will depend on the specific name chosen, as well as the length of time it's needed. Domain names typically cost a few dollars per year to register and renew.
Email Services: An email service may be necessary for an eCommerce site to send marketing and transactional emails to customers. The cost of an email service will depend on the type of service chosen and the number of emails sent per month.

It's important to budget for maintenance and hosting expenses when building an eCommerce site, as these costs can add up over time. It's recommended to research different options and compare costs to find the best solution for your needs and budget.

Total cost estimation

The total cost of developing and maintaining an eCommerce website can vary greatly, depending on the factors mentioned above, such as the size and complexity of the site, the development team's experience and expertise, the number of features and functionalities required, and the cost of hosting and maintenance.

On the low end, a small, simple eCommerce site developed by a freelance developer with basic features and a shared hosting plan could cost as little as a $1000. On the high end, a large, complex eCommerce site developed by a professional development team with many custom features and a dedicated hosting plan could cost $10,000 or more.

FAQs

Can I develop an eCommerce site for free?

No, it is not possible to develop a fully functional eCommerce site for free. While there are some free platforms available for building basic eCommerce sites, these platforms typically have limitations in terms of features, customization options, and scalability.

Additionally, even with a free platform, there will still be costs associated with the domain name, hosting, SSL certificate, and any paid plugins or themes required to enhance the site's functionality.

Is it worth it to hire a professional development team for my eCommerce site?

Yes, it can be worth it to hire a professional development team for your eCommerce site, especially if you are looking to build a complex, feature-rich site that can handle a large volume of traffic and transactions.

A professional development team has the expertise and experience to build a high-quality, secure, and user-friendly eCommerce site that meets your specific requirements. They can also provide ongoing maintenance and support to ensure that your site stays up-to-date and runs smoothly.

We recommend you check out Tigren, one of the best eCommerce development agencies on the market.

What should I consider when budgeting for eCommerce website development?

When budgeting for eCommerce website development or even buying an existing one, consider the following factors: platform and tools, development team, features and functionalities, design, hosting, and maintenance costs. These factors will determine the overall cost of developing your eCommerce site and should be taken into consideration when setting your budget.

How can I control costs when building an eCommerce site?

To control costs when building an eCommerce site, choose an affordable platform, consider hiring a freelancer or smaller development team, prioritize essential features and functionalities, keep the design simple and straightforward, use cost-effective hosting and maintenance services, and plan for ongoing costs such as website updates and security.

Wrap Up

In the conclusion, we've explained the parts and eCommerce website costs involved in developing an eCommerce site, including platform and tool costs, development team costs, design costs, hosting and maintenance costs, and other ongoing costs.

They may also offer tips for controlling costs when building an eCommerce site, such as choosing an affordable platform, hiring a freelancer or smaller development team, prioritizing essential features and functionalities, and planning for ongoing costs.