An eCommerce website can help you launch your business more quickly and hassle-free. It allows you to avoid dealing with inventory, shipping, and other headaches without any tradeoffs in profit. But there’s no denying that setting up an eCommerce website is not cheap. You’ll need a high-quality eCommerce website design, professional hosting and security, customer support, and more to develop e-commerce. The cost of an eCommerce website has come down by orders of magnitude over the past few years. But it’s still daunting for first-time entrepreneurs. In the USA, the average price to build a website for an eCommerce site is $1,000 – $5,000. Generally the cost depends on CMS like WooCommerce, Shopify, Magento, Prestashop and any custom based eCommerce website.

How is Price Determined in E-Commerce?

E-commerce pricing is determined by how you want to run your business. You’ll need to pay for two main categories: infrastructure and functionality.

1. Infrastructure:

E-Commerce infrastructure covers the back end of your online store. It consists of software, hosting, domain names, and SSL certificates. These provide a foundation for the functionality and accessibility of your store. These things make it possible for people to see your products and buy them.

Back-End Infrastructure Costs For an E-Commerce Platform

The back-end infrastructure is the engine that powers your eCommerce website. It’s comprised of the four major parts I mentioned above:

– E-Commerce Platforms:

E-Commerce platform is a big business. With so many players in the market, it can take time to decide which one to go with. Most stores nowadays use a pre-built, off-the-rack platform because:

• It’s a lot more affordable

• You can handle security. Because there’s an entire team dedicated to maintaining the software.

These platforms help you create a store in slightly different ways:

• WooCommerce plugin is the most popular e-commerce plugin in the USA. Because it’s so flexible and easy to use. WooCommerce is a free, open-source, and self-hosted platform powered by WordPress. The core WordPress software is also open source and free. You can install the WooCommerce plugin on any WordPress site. That means you’ll have complete control over your store and data.

• Shopify is a paid and hosted platform/service. This means the Shopify team will host and maintain your store for you. The Shopify platform has many powerful built-in tools. Those tools allow you to create an online store without knowing much about coding or web design.

• Wix’s e-commerce platform provides merchants with all the necessary tools. Wix makes it simple with customizable templates. And makes easy drag-and-drop editing to on-demand hosting with SSL security. Customers will not face any problems while buying your products. Because it is deeply integrated with payment gateways. 

• Magento is an open-source eCommerce platform. Hundreds of thousands of online retailers use it. Users can control their store’s design, features, and content. It is a powerful eCommerce platform that provides valuable tools and features. It is capable of handling large orders per second.

• PrestaShop is an affordable and customizable e-commerce platform. The platform is built for beginner to intermediate users. It is equipped with several features and allows your business to grow as it does. Its built-in features make it an excellent choice for an entry-level e-commerce solution.

• BigCommerce is an e-commerce platform offering extensive customization options for enterprise-level businesses. As with Shopify and Wix, BigCommerce doesn’t offer a domain registration service. But it provides a website builder that can be used to create and manage your store.

• Squarespace offers many website-building features, such as Wix. It consists of a choice of templates and a drag-and-drop editor. Squarespace also includes some apps and templates, hosting, and eCommerce tools.

There are more E-Commerce platforms you can use to establish your business.

– Domain Name:

A domain name is your company’s home online. It’s part of your overall brand; without it, you can’t make a website. You can buy a domain for as little as $5 per year, with most costing between $0.95 and $12 per year. Once purchased, they renew automatically. You need to pay for it.

It’s essential to set up automatic renewal on your domain name to avoid losing it. Some services allow you to use your bank account info. That can be helpful if you’re running out of funds on your credit card. You need to renew the domain before the expiration date.

– Hosting:

Once you have a custom domain name, it’s time to find a place to host it. Hosting services allow Internet users to access your website. They provide space on their servers for your website so that you can develop it. Support is crucial for keeping your eCommerce site running smoothly. Especially if you have a big site and complex products.

– SSL Certificate:

An SSL certificate encrypts data transfer from your website to visitors’ browsers. It makes them more trusted and can help improve search results pages. You can get free SSL certificates. But from a strict security perspective, you might want to pay for an Extended Validation Certificate. These certificates need verification and are usually more trustworthy than free alternatives.

Website Infrastructure Cost Summary

Here is a rough estimate for eCommerce website infrastructure costs. These depend on whether you’re going the hosted or self-hosted route. It will take approximately $10-$100 yearly.

As your store grows, hosting will be the biggest expense. At $30/month, that’s $360/year (assuming you don’t do anything like offer discounts on coupon codes and promotions). Higher-traffic sites will likely operate at a fixed capacity if this number fluctuates.

2. Design and Functionality: 

E-Commerce Design and functionality includes everything for people interaction. For example, the design of your store or the social coupon you offer to get customers to join your email list.

Here is a rough estimate for eCommerce website infrastructure costs. These depend on whether you’re going the hosted or self-hosted route. It will take approximately $10-$100 yearly.

As your store grows, hosting will be the biggest expense. At $30/month, that’s $360/year (assuming you don’t do anything like offer discounts on coupon codes and promotions). Higher-traffic sites will likely operate at a fixed capacity if this number fluctuates.

– Website Design:

How much does an eCommerce website cost? The answer will differ widely depending on what you’re looking for and how much you want to put into the project. Hopefully, this blog will help you understand the cost of building an eCommerce store.

You can get a premade theme for as little as $0. But premium themes can easily cost $100-$200 to buy from an online marketplace and $500+ if you hire a designer. These are prices for one-time purchases (and they include support rights). If you want to pay less, choose a professional theme already installed on your site.

– Website Functionality:

Aside from being great for your store design, there are other types of plugins or apps. You can use those to help improve your store’s functionality. These include extensions that make it easier to manage inventory. Also, handle customer accounts, integrate payments, and transfer funds. Manage shipping costs and even add features like wishlists and product recommendations.

Cost Summary of Website Design and Functionality

You can get an e-commerce website up and running for $60-$200. However, if you want something more advanced, you’ll need to invest at least $200+ per year. And for more complicated stores, it’s not unheard of to get closer to ~$1,000 for premium extensions.

Here’s an approximate estimation for a premium eCommerce theme:

• WooCommerce: $70-$200 is the average price of a WooCommerce theme. Though it will vary depending on the theme, you’re looking at.

• Shopify: A well-designed and functional Shopify website costs around $5000-$20000.

• Squarespace: usually it costs $100+

• Magento: A Magento store generally costs $10,000 to $100,000 with many functionalities in the USA.

• Wix: $29.95/ – In the USA, it will cost around $269.96 monthly.

• BigCommerce: You need to pay around $180-$295 for a BigCommerce website development. 

• Prestashop: The basic version of this platform costs nearly $0. But its professional and enterprise versions are available for $180-$195 and $270-$295, respectively.

Cost Estimation of Hiring Developers to Build an E-Commerce Site?

You’ve probably heard some wild numbers thrown around and have no idea what to believe! You might wonder about your options if you’ve never worked with a web designer or developer. And how much eCommerce websites cost.

The average price to build a website for an eCommerce site is $1,000 – $5,000. If a website has a lot of products and traffic, the price will be higher. Some companies have proposals on their site that explain how much it’ll cost to build an eCommerce site. So you can get an idea of the price range before you talk to anyone.

Making an eCommerce site from scratch is great and will cost far less than you expect. Some of these pre-made solutions and templates are so easy to use. You can build your entire site from start to finish in just a few hours. When outsourcing that work, the price will vary depending on the specifications.