E-commerce is booming in recent years has taken over the market. This is because a lot of people like the comfort of ordering stuff online without having to go anywhere. While it is quite comfortable for the user side, it is a big business opportunity for businesses. And any given web development company can make an e-commerce website for you. But that is not the problem, the reason question is, what is the cost to make an e-commerce website?
If you are one of the many people who are looking for the answer to this question, then you have come to the right place. In this blog, we shall be answering the question and looking at the price of different aspects of the development process as well as the factors which can affect the cost of the same.
Table of Contents
What is an Ecommerce Website?
An eCommerce website is a web-based platform that enables businesses to sell goods or services to clients through the internet. It functions as a virtual storefront, allowing customers to explore, search for, and purchase things from the comfort of their own homes.
Product catalogs, shopping carts, secure payment gateways, and order processing systems are all vital components of eCommerce websites. Businesses may use them to reach a worldwide audience, provide tailored purchasing experiences, and track customer preferences and behavior.
With the increasing popularity of online purchasing, eCommerce websites have become an essential component of modern retail, providing a smooth and effective means of conducting digital commerce.
Market Stats of Ecommerce Website
- Global retail e-commerce sales were estimated to be at 5.2 trillion dollars in 2021. By 2026, this amount is expected to have increased by 56%, totaling roughly 8.1 trillion dollars.
- In 2023, the eCommerce market is anticipated to generate US$3.64 trillion in revenue.
- By 2027, it is anticipated that revenue would expand at an 11.16% annual rate (CAGR 2023–2027), with a market size of US$5.56 trillion.
- The largest market volume, estimated at US$1,319.00 billion in 2023, is produced in China
- By 2027, there should be 5.29 billion users active in the eCommerce market.
- User penetration is projected to reach 57.2% in 2023 and 66.6% in 2027.
- It is anticipated that the average revenue per user (ARPU) will be $827.40 USD.
Types of E-Commerce Developers
When it comes to e-commerce website development, the business has a really hard time due to making different things. For instance, you have considered cost, what goes behind it, inventory management, and a lot of other things. However, before you get into all of that, something that needs to be done is to create a website.
Well, speaking of that, there are different modes of service when it comes to e-commerce website development. There are freelancers which are readily available from various platforms. On the other side, there are out-sourcing companies that can do the work for you, and this is also the most popular option these days for long-running projects.
Apart from these two, there is yet another option, and that is assembling an in-house team. Depending on the option you choose, the cost to make an e-commerce website can differ. So, let’s look at all of these three different modes of services recommended by python web development company:
1. On-Site Website Development
On-site website developments mean exactly what it sounds like. It is when you as the business hire ecommerce web developers, designers, and all the other concerned people.
This team will work in your office and will be dedicated to your work only. The top management can directly discuss the requirements and needs with the team of developers and get it done on the very spot.
This is all nice and fine, especially when you see it through the lenses of advantages. However, it only lasts till you look at the price of all this. Firstly you need to hire a team of IT professionals which in itself isn’t cheap by any means.
After this comes the cost of paying their salary, and if you know anything about the IT world, developers don’t have the world cheap in their dictionary.
Nevertheless, the factors which affect the cost of creating e-commerce are, as mentioned below:
- If you don’t already have one, you will need to rent out an office.
- Developers will need computer systems to work on and that is too powerful. You will need to buy all of this.
- To hire IT professionals, you will need to get a recruiter first.
So, these are the things that would happen if you built an in-house company. So, would you rather do this or hire an eCommerce Website Development company?
2. Freelance Developers
Freelancing is an option that clients love the post. This is also probably the first thing that would come to mind when someone talks of “Hire website developer”. And why not, freelancers have good time management skills, along with amazing development prowess. Not to forget their soft skills.
In addition, there are a lot of freelancers, and by a lot, we mean seriously a lot. But if you are working with a team of freelancers you would also need to hire a project manager to keep track of all things. Also, you need to choose the best ecommerce platforms for developing a robust website. This adds to the cost even more.
If you go on analyzing the cost of hiring a JS developer you will find that the price varies somewhere between $35 and $70 per hour. And this is only for the common ecommerce web developer, if you are talking about specialists they can cost you as much as 250 $ per hour. But then again, some developers charge you as low as 20$ per hour.
So, this freelancing option is only recommended if you can devote time to interviewing several different freelancers and investment money project that works like this. If that is something you are comfortable with and aligns with your project needs, this can be a good option.
Now, this is one of the most anticipated options as it is one of the most popular methods for getting website development services. There is a whole industry in IT that thrives on outsourced work. And here we are not working with individual people like in freelancing. Rather you are hiring a whole team from a SaaS Development Company.
This is a good option for small as well as larger companies. Even market leaders are often taking advantage of this service. The reason is that this isn’t only economical in the long run, as well a quite viable option for e-commerce development.
Since the outsourcing companies have quite experienced what they do and have all the required hardware and software. In addition to this, you won’t need to interview each developer. This saves a lot of effort and time on your side. And as we all know, in the world of business, time means money.
But you will need to sign a few documents and make some agreements. Not to forget the NDAs or the non-disclosure agreements so that you don’t have issues on the legal side. Nevertheless, it is also recommended that you check reviews, previous work, portfolio, and other things along those lines.
Even here, multiple factors can affect the cost of their services. Speaking of the factors that affect the cost, we shall be discussing the very same thing in the next section of the blog.
Factors That Affect The Cost to Make an E-Commerce Website
Various factors can affect the cost of Laravel website development services or any other kind of e-commerce website development services. Now, regardless of which kind of service you choose, these factors still matter. This is the reason why we shall be discussing the same in detail in this section of the blog.
Some of you might be thinking about how the location can affect the price of the service, however, it can. You see, it is quite common for someone in the United States of America to charge quite high for said services. And when you compare the price of the same service in an Asian country like India, it would be considerably less.
This is also the reason why market-leading companies usually outsource their work much like one to e-commerce development companies in Asia. However, the quality of the service might or might not be affected by the transaction. This is the reason why you should also consider this feature while hiring someone to work on your e-commerce website development.
The features you will include in your e-commerce will affect the price of the development. The more complex feature you include in this project, the cost of the work will be considered hiring. And this is quite an important factor as that website is going to have many features.
If you go into the domain of customized features, the price will go even higher. For instance, payment gateway integration is quite common these days. But if you like to tweak it or customize it in some way, it might cost you double the average cost. This remains the same in a different mode of services i.e. outsourcing and freelancing.
This is probably the factor that affects the cost of development the most. This is the reason why you should keep a track of things that you are going to include in your e-commerce website and you should avoid the inclusion of any features that don’t add to the value and main purpose of the website.
3. Design and UI/UX
This is one of the most discussed aspects of PWA web development when you are in a talk with developers. These are the things that drive that e-commerce. This is the reason why the design of the website is so expensive.
The better design you move towards, the more expensive it is. And this isn’t just about matching some good-looking colors. For you have to make it interactive and functional. Nevertheless, you get the gist of it.
4. Payment Gateways
In the case of e-commerce, payment is one of the important aspects. Because a user cannot buy something that they cannot pay for. Nevertheless, adding a payment gateway with the help custom website development service provider to an e-commerce website isn’t all that simple.
There are a lot of things that can go wrong, that you do not want to go wrong. If your website is a victim of a cyber attack, your customers will lose faith in your website. And this is something no business wants.
This is why setting up a payment gateway takes so much time, and can add to the cost to make an e-commerce website. The cost can go higher if you are providing different methods of payment.
Chatbots are one of the technological trends that have become a big part of website development in recent years and there is a good reason behind this. These things can provide users 24/7with customer service without actually hiring a person to do that. As such, several benefits come with it too. That is apart from cost reduction and automation.
We have talked about it several times, and we have to talk about it again. You see, the complexity of a website does matter on so many different levels. It affects the cost of the website, it can affect the function of the website, and it affects the development time. This is one of the reasons why full stack web development companies care so much about the complexity of the e-commerce website.
In simpler words, the more complex a website is, the more costly it is going to be for you. And you cannot blame the developer for this, because the reason behind it is simple. The more things there are to work on, the more time is required to work on them.
Speaking of e-commerce, these kinds of websites are usually more complex than other types of websites. This is due to the things that get behind making it work.
Different Stage of E-Commerce and Their Cost
The E-commerce website development process is quite a complex one. As such, it can be divided into several different stages of the same. Within these different stages, there are several different steps. All in all, it is quite a long and expensive process. But the point that concerns us is that all of these cost you money, more or less. These are, namely:
- Initial Stage
- Active Development Stage
Therefore, we shall be discussing all of these reasons and the different steps between them. With this being said, let’s start:
1. The Initial Stage
The initial stage is when the website development hasn’t started yet. This stage mainly included preparations for the later development stage. Nevertheless, the different things that are included in this stage are, as mentioned below:
- Domain Name
Well, buying a domain name is as important as naming a newborn child. Because you want your e-commerce to be recognized and to be reachable. In other words, you can say that a domain name is like the address of your house. It is only through a domain name that people can find your e-commerce store.
There are several domain name providers on the internet. This includes Bluehost, google domain, GoDaddy, etc. As far as cost is concerned, the price of the domain starts from $8.
Now that you have a domain name for your e-commerce store, the next thing you need is hosting. It is often said that hosting keeps your website alive. This is the place where all your data and website itself are stored and if the hosting is working, the website cannot be accessed.
So, it is quite simple that hosting affects the website in many ways. When choosing a hosting you need to make sure it is compatible with the complexity of your website and can handle the load you are expecting. Unlike domain that is quite cheap, hosting can put you back from anywhere between several hundred to a few thousand dollars annually.
2. Active Development Stage
This is the second stage of development, as it takes you much closer to answer the question “what is the cost to make an e-commerce website?”. Much like the first stage, this one includes multiple different steps like website design, development and testing cost, and how functionality.
Therefore, let’s start with Designing services:
- E-commerce Website Design Services
To make an e-commerce store that keeps customers engaged, you need to make sure it looks as beautiful as it is functional. This is the reason why website designing servicing is so crucial part of the development process.
The whole process of designing a process consists of extensive research wireframes creations, UI/UX designs, and so on. Now, the design can be really simple or it can be complex, and it can also be something between them. The complex ones with a lot of animations beautifully done designs take a lot of effort and also cost a lot of money. Speaking of money, e-commerce design can cost you anywhere between $2,000–$8,000.
- Building Website
Now that we have everything ready, we are going to discuss full stack web development companies like to call “creating a website”. Jokes apart, it can be divided into three different parts. These are namely: Front End, Back end, and testing. So, let’s see what are these three steps will cost you.
Front-end –$3,000–$10,000 or more.
Testing specifics –$2,000–$5,000
The cost of the same might go even higher when we include CMS web development.
After the active development, it is time for marketing your website. And needless to say, marketing costs a lot of money. Let’s see how exactly these are:
After web portal development, it’s time to promote the website and there is no better way to do it than SEO. The process of promotion and optimization is aimed at improving the ranking of the website, and getting it up to the top. Strengthening the position of the e-commerce website on the search result is going to drive traffic and in turn revenue. So, as far as the price of Search engine optimization would be $300–$1500 per month.
Now, if you can’t wait for the results of SEO, you can opt out for advertising. But unlike SEO, you have to pay for marketing. Know there different kinds of paid marketing. For instance, you can pay for showing advertisements on Google.
You can advertise your e-commerce store on Facebook and Instagram. Meaning you have to pay for everything starting from python web development services to marketing. Nevertheless, we cannot put a price badge on advertising as it depends on the marketing campaign itself.
4. Maintenance Stage
This is the last stage of the whole process. And most of the CodeIgniter web development services, don’t provide these services as at this point development work is finished. But why do you need maintenance? Because even after the work of development for e-commerce development is done, it needs changes and problems need fixing. This takes much of the time and costs you somewhere around $600–$12,000 annually.
Cost to Make an Ecommerce Website
The ecommerce website development cost varies based on various aspects, including the site’s complexity, the amount of items or services to be offered, the level of customization necessary, and the eCommerce platform used.
A basic eCommerce website can cost between $8,000 and $12,000, while more complicated and feature-rich websites can cost between $12,000 and $18,000 or more. The cost of large-scale eCommerce projects with complex functionality and interconnections might exceed $25,000. To ensure the success and professionalism of your eCommerce website, it is recommended that you hire an ecommerce development services provider.
These professionals specialize in developing user-friendly, aesthetically appealing, and secure online stores while also providing a variety of services such as web design, development, payment gateway integration, and continuing maintenance.
Finally, the cost of developing an eCommerce website can vary greatly depending on aspects such as complexity, personalization, and platform selection. While a basic eCommerce site may be less expensive, investing in a feature-rich, user-friendly online shop may provide significant long-term rewards.
It is essential that you work with a reputable ecommerce website development services provider to create a professional and effective eCommerce website. These professionals have the skills and expertise required to design aesthetically appealing, safe, and effective online stores suited to the unique demands of organizations.
Businesses may improve their online presence, attract more clients, and eventually increase their sales and income in the competitive world of digital commerce by cooperating with a skilled development team.