Is Magento Free? The
Complete Guide to Magento Pricing.

What is the Magento Pricing Package?

Calculating how much Magento will cost for your business depends largely on what type of licence you are looking at purchasing. At present, the Magento pricing package involves three separate licences: Magento Open Source, Adobe Commerce, and Adobe Commerce Cloud, which all offer different price points.

Magento Open Source

Magento Open Source, previously known as Magento Community Edition, is the free and open-source version of the Magento platform. As such, it is ideal for small to medium-sized businesses looking to establish their online presence without significant upfront costs.

Although it lacks some of the advanced features of paid licences, Magento Open Source provides essential e-commerce functionalities that will give your site a simple setup. These features include mobile-optimised shopping, global selling capabilities, catalogue management, and integrated checkout options for payment and delivery.

Adobe Commerce

Adobe Commerce, formerly known as Magento Commerce or Magento Enterprise Edition, is a premium, enterprise-level e-commerce platform designed for larger businesses. These are businesses that will typically require substantial customisation and capacity for growth.

With this licence, you’ll find all the capabilities of Magento Open Source and several enhancements like customer segmentation, advanced marketing tools and detailed analytics.

Adobe Commerce is typically priced based on your annual gross merchandise value (GMV) and your average order value (AOV). However, it is usually in the $22,000-$125,000 per year range.

Adobe Commerce Cloud

In a similar vein to Adobe Commerce, Adobe Commerce Cloud offers a fully managed, cloud-based solution for enterprises needing robust e-commerce capabilities combined with cloud hosting benefits.

This licence includes all the features of Adobe Commerce along with additional benefits like automated backups, enhanced security, and seamless integrations with other enterprise-level systems. As a result, it’s perfect for businesses seeking an all-in-one solution for their expanding e-commerce store.

Like its non-cloud counterpart, Adobe Commerce Cloud’s pricing also depends on your annual gross merchandise value (GMV) and average order value (AOV).

The pricing for Adobe Commerce Cloud also depends on the annual gross revenue of the business. This package will cost $40,000-$200,000 per year, although this will include website hosting.

Magento Hosting Cost

Another key factor to consider when choosing your Magento setup is hosting. Here, costs can vary significantly based on the type of hosting you choose and the specific needs of your e-commerce site.

For self-managed hosting, prices can range from as low as $10 to $250 per month, depending on the provider and the level of resources required. This option is typically more affordable – however, it requires a higher degree of technical expertise and makes you responsible for maintenance and security.

In contrast, managed hosting services generally start at around $190 per month. This option offers benefits such as server setup and configuration, performance optimisation, and advanced security measures. While generally pricier, it can save you time and reduce the risk of technical issues.

Other E-Commerce Site Costs

Building a Magento e-commerce site doesn’t just involve the costs of hosting and licensing. There are other fundamental aspects to consider, such as:

Domain Costs

The domain name is the web address of your store. It costs money to register your name, the amount of which depends on the domain name chosen and the registrar you use. You can typically find domain names for around $10-$20 per year, but premium names can cost significantly more.

Themes

Themes control the look and feel of your Magento store. There are free pre-made themes available, but it’s worth noting that they may offer limited customisation options. For more premium options, you may need to pay anywhere from $50 to $1,000, with custom-designed themes potentially costing upwards of $5,000.

Web Design

Once you have your theme, you’ll need to design each section of your site to your specifications. The cost of performing web design will rise or fall based on how complex the design is, and the amount of development work that is required. Substantial design work may require an outlay of up to $10,000.

Extensions

If you want features like payment gateways, marketing tools, or loyalty programmes to appear on your site, you’ll need to employ Magento extensions. Free extensions are available, but some with advanced features require a one-time purchase fee of up to or above $1000, or ongoing subscription.

Development

Magento development generally refers to any custom coding required for your store. This may include the integration of third-party services, building unique features, or modifying core functionalities. Again, the level of costing here will differ depending on how much custom code you’ll need and the complexity of the task, but fees may rise above $20,000.

SEO

Search Engine Optimisation (SEO) is the process of improvement of your store’s ranking in search engine results pages (SERPs) like Google. The cost depends on the competitiveness of your target keywords and the level of ongoing SEO work required. It can be free if you choose to do it yourself, or you’ll likely pay a monthly fee of $1000 or above if you work with an agency.

Magento Pricing Table