Average Cost of an eCommerce Website Explained + Factors Affecting Online Store Price

Average Cost of an eCommerce Website Explained + Factors Affecting Online Store Price
Article by DesignRush DesignRush
Last Updated: November 25, 2022

While numerous considerations affect the cost of an e-Commerce website, you can take steps to gain adequate insights into e-Commerce website costs. Through these, you can arrive at smarter business decisions that are more favorable for your brand, budget, and bottom line.

With 12 to 14 million e-Commerce websites visited 119.9 billion times across the globe, it only makes sense for you to have an online shop in a competitive market.

Let’s look at the cost of an eCommerce website and the considerations associated with it before you build your own.

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Considerations Before Creating an Online Store

E-Commerce website costs are an essential part of your decision-making process. You should ensure you choose the right solution to meet your business needs.

These are the top factors to take into account when calculating e-Commerce website prices:

Type of Online Shop

Envision the online shop you want for your business. Be specific with your vision. It is a significant factor in the design and development processes. An e-Commerce site selling products will differ from that which offers services.

Figure out the answers to the following questions:

  • Will you sell to individual consumers (B2C) or other businesses (B2B)?
  • What features and functionalities do you prefer integrated into your site?
  • Which e-Commerce platforms do you consider using?
  • Will your pages be available in multiple languages?
  • Do you prefer for your shop to have independent login capabilities?

Product or Service Offers

You may already have a physical storefront and want to expand your reach via an e-Commerce website. If this is the case, you can provide your clients the option to purchase online with in-store pickup. Otherwise, you need proper inventory and shipment management that works for your brand. In addition, you should be certain if you will sell retail or wholesale.

If you provide services, follow these guide questions:

  • What services will you offer?
  • What are your service fees?
  • Will your website be the main channel for booking services?
  • What are the payment methods?

Budget Allocation

When researching e-Commerce website solutions, ensure you nail down your budget for the building and maintenance processes ahead of time. While it can be easy to get sidetracked by the customization and other design features, you should focus on the essentials:

  • The features mandatory for online order fulfillment
  • Necessary add-ons to guarantee a seamless buying experience for your customers
  • Excellent site interface and easy navigation system

Make a list of the most important aspect of website-building and stay within your budget.

Shipping Options

Here are the considerations when deciding on your shipment selection:

  • What is your capacity to handle shipping demands?
  • Will the shipment management be in-house or outsourced?
  • Are you shipping locally or globally?
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How Much Does an e-Commerce Website Cost?

Setting up an e-Commerce site will cost a few hundred thousand dollars. These are the variables contributing to the overall cost of an e-Commerce website design and development:

Domain Name

You need to pay for your domain name annually. You also have the option to pay for several years upfront.

A domain name typically ranges from $3 to $20 every year. The price will depend on the provider and the extension you get, such as .shop, .co, or .com. Buying from a private seller or through an auction can be more expensive.

Hosting

After registering your domain name, you should find a web host. There are cloud-based hosting providers offering web hosting as part of your subscription. In this case, you do not have to look for a third-party host or face the challenges of handling it.

However, if you prefer to self-host your e-Commerce shop, the costs can go from $80 to $730 monthly. The prices will be based on the amount of traffic your web pages get, their features, and other automated services, like backup.

Secure Sockets Layer (SSL) Certificate

An SSL certificate is priced at $25 to $75 per year. It gives your website network security that enables visitors to make purchases.

There are instances wherein search engines consider SSL certificates for ranking.

Payment Processing

Fees associated with payment processing pile up fast and should not be overlooked. These costs will depend on the payment gateways you offer during checkout, the currency you choose to accept, and the regions where you are selling.

Here is a sample breakdown of what you will be charged by the top money transfer companies for e-Commerce:

  • PayPal: 2.9% + $0.30 for transactions of more than $10
  • Stripe: 2.9% + $0.30 for each transaction
  • Authorize.net – 2.9% + $0.30 for every transaction + $25 fixed monthly fee

Note that bank fees are not yet included in the abovementioned.

Design Costs

Web design costs start at $2,000 and can go up to $8,000. It is essential to invest in design because it plays a significant role in attracting your target customers and in turn, the success of your business.

Website design requires a skilled creative team. The process involves the following:

  • In-depth research
  • Wireframe creation
  • UI/UX design

The more unique and complex your website’s animations and visual effects, the higher your e-Commerce costs will be.

Front-end Construction

Creating an e-Commerce product’s interface costs around $3,000 to $10,000 or higher. The technologies used, i.e., JavaScript, React, Angular, or Vue, will impact the price.

Back-end Construction

This is on the server’s side—the part of website development is not visible to end-users. It takes effort and time to build and complete. And it can be more expensive, with prices spanning from $5,000 to $20,000.

The quality of your entire site depends on the quality of the back-end construction, as the latter will define how the whole system works.

It is recommended not to trim costs for this process component.

Testing

Thorough testing, quality assurance, and quality control are necessary for the creation of the perfect e-Commerce website solution. The investment for these areas of the process will start at $2,000 and can go up to $5,000.

SEO

Site promotion and optimization are other ongoing processes that come with a monthly price tag. Their costs can be between $300 and $1,500 each month.

These services will help you increase and strengthen your search results position. You need these to reach a more extensive client base.

Content Marketing

Post appealing and informative content on your site, like articles, trivia, insights, and tutorials, and convert interested visitors into satisfied paying customers. These are critical points in marketing and can help boost consumer trust while influencing your brand reputation positively.

Every content piece can be priced from $50 to $200.

On-going Maintenance

Website maintenance involves these on-going tasks:

  • Constant improvement
  • Updates
  • Bug fixing

These should be taken care of during the entire lifetime of your website.

Their costs are based on the time spent by your software engineer on product maintenance. It can range from $600 to $12,000 each year.

Tips for Managing E-Commerce Website Costs

Note these pointers when building your online store:

  • Find a host that is appropriately priced for your business type and needs. Otherwise, you can make do with free hosting options.
  • For a content management system (CMS), go with what can provide you with flexibility and versatility. You can choose a basic plan if you only have to add and remove a product sporadically.
  • Maximize database integration and functionality to give end-users control over personalization. If not, just store usernames and passcodes for minimal control.
  • If you only need a few product pages, ensure to downgrade appropriately.
  • Get adequate SEO support to distinguish your enterprise from the global competition. However, basic SEO can suffice if you want to sell and compete practically.

Bottomline: How Much Do E-Commerce Websites Cost?

e-Commerce website price should be based on three crucial factors, namely:

  • The development team’s professional fees, location, and expertise
  • Software and tools you will utilize
  • The site's complexity and functionalities
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