E-commerce websites give you the opportunity to reach large Internet audiences with your products. By making your items available to purchase online, you enjoy access to a wider array of customers than would be possible through a brick-and-mortar store alone. However, before you commit to developing an e-commerce website, you need to know how much money to budget. The answer will depend largely upon the model of e-commerce website development that you adopt. Following is an overview of a few common options so you can make an informed decision for your own site.
Hosted, Subscription-Based Applications
The least expensive but also the most limited option for e-commerce web design is the hosted, subscription-based model. This option is represented by businesses such as Shopify and BigCommerce.com.
With hosted, subscription-based applications, you typically pay a monthly fee in order to use their software, templates, and built-in tools to create a simple e-commerce website. The cost for these types of applications can vary from $9 or $29 a month to more than $100 a month, depending upon the size of the plan, the number of sales it allows, and the capabilities that come with it. For instance, you are likely to pay less for a subscription that accommodates $50,000 in annual sales than for one that accommodates $150,000 in annual sales.
While these applications offer you a low-cost option for building and maintaining your e-commerce website, you do need to be aware of extra charges you may incur with these services. For instance, you can typically expect fees for credit card services or retail features. Some of these applications also encourage you to purchase an add-on or upgraded features that you may not strictly need for your particular business.
Because these applications usually involve the use of templates to create your e-commerce web design, it can be more difficult to build a website that stands out from your competition. While many of these applications give you the opportunity to customize your site, you often need to pay for customized features or other professional assistance.
Finally, before opting for a hosted, subscription-based service, be aware that your e-commerce website will be tied to that service. Unless you maintain your subscription, you risk losing your site and needing to start over elsewhere.
Community/Open Source Software
If you want a more customized look and greater ownership of your e-commerce website, you may enjoy using a community or open-source software to build your online store. Businesses that provide this kind of software include Zen Cart, Magento, and WooCommerce.
Community/open source software is software that is available to anyone for use. This means that you can use, develop, or change this software however you want in order to create the custom e-commerce website that best fits your business. For instance, Magento gives you the opportunity to use the Magento software in a variety of ways to create your ideal e-commerce store.
Enjoying the benefits of completely customizable software does come with a price. Typically, the cost for e-commerce website development based on community/open source software is calculated on a project basis rather than a subscription. You can expect to spend between $5,000 and $10,000 for a simple e-commerce website built with this type of software.
While community/open source software gives you many options for customizing your website, there are still some features that might cost you extra. For instance, special features or non-traditional shopping experiences may cost more than the flat project rate. In addition, integrating other services with the software (such as PayPal, or shipping options) can also carry fees.
As with hosted, subscription models, you can also expect to pay fees for credit card services. These fees can be charged either as recurring fees, as fees per transaction, or as both. As a result, make sure you know what your project cost covers and what it does not, and be aware of any credit card fees for which you will be responsible.
Enterprise-Level Software Solutions
Larger e-commerce websites often need features and support that exceed what is available through subscription or open-source options. These sites often benefit from the help of enterprise-level software solutions such as those offered through the Magento Enterprise version of the Magento software.
Enterprise-level software solutions typically require the business to work with the software company to receive a custom quote. Some companies may pay more than $10,000 per month for the level of support and customization they need for their large numbers of sales and their many product offerings. As such, enterprise-level software solutions are typically not within the needs or budgetary abilities of small businesses.
SEE ALSO: E-Commerce Web Design Trends
Custom E-Commerce Web Development
Perhaps the best combination of professional support and customization is available through custom e-commerce web development. This process involves using a professional web development company to build a website that fits the vision and needs of your particular business. For instance, instead of limiting your online store to a template, you can craft exactly the combination of features that works for your specific brand and business goals.
Custom e-commerce web development involves the help of developers and consultants. These professionals work with you to determine exactly how the site should function in order to meet your business goals. As a result of these consultations, these professionals will determine how many programming and design hours will be needed to complete the website. You will then receive a project-based fee based upon that estimate. If you are charged an hourly rate instead of a project rate, you can expect to pay between $125 and $350 an hour for a quality web developer.
These websites can cost about $25,000, though interactive sites and large online stores can cost significantly more. Examples of features that might increase the overall cost include store locator directories, custom searching tools, special registration features, high-quality design, and/or great user experience. These features could cost you upwards of $200,000.
Ultimately, the option you select for creating your e-commerce website will depend both upon your budget and upon what you want to achieve with the site. However, custom options, such as community/open-source software and custom e-commerce development, can help you to implement all of the features you need and fewer of the ones that you do not. The result should be an effective, eye-catching, and profitable online store that accurately reflects your unique brand.
