How to choose right budget for an e-commerce site

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How to choose right budget for an e-commerce site

E-commerce platforms have recorded great popularity in growth over the last decade. With this increasing pace, online sale is expected to jump only higher without looking back. An e-commerce site is an essential technology that would capitalize on the sales growth for online retailers.

Hiring a web developer may cost you delayed growth of your business but with the option of an e-commerce platform, you are rescued. Let us discuss the most important outline for your business when the search comes to the best e-commerce network.

Budget and Payment

E-commerce development pricing is the first and foremost thing that no business can afford to miss. Whether you run an already established business or you are beginning with a small business, the right information about the pricing and payment must be known to you.

Some platforms charge a fair amount of monthly cost and you can weigh the pros and cons to decide the platform that fits your needs. You must also consider the payment options available to your customers. However, if any such platform denies the payment via the third party, your customers might end up abandoning you for the severe inconvenience caused.

Basic needs of a website

Before we reach the approximate cost for an e-commerce site rightfully, it is important to understand your business terms and your expectations or demands from a new website.

If your industry boasts greater requirements such as that of a brochure-style website or e-commerce platforms for online promotion of the products or marketing site to win over new clients/customers, remember that more e-commerce website development will take more time to finish the work and thus, the price will be higher.
In many cases business owners have no expectations because they have the  insufficient knowledge about the technical side of ecommerce website development. It is difficult to get the information on ecommerce platform from forums or social media groups. That is why we recommend to contact experts because the have the experience.
You can start from the estimate of your business volume:

  • Small business. If you have a limited range of products, a small customer base, and no intention to expand in the near future, it’s better to keep things simple. There are many possibilities to design your e-store investing not so much.
  • Mid-size business. If you have a decent range, an average customer base and you consider increasing your sales in the future, it’s better to search for solutions that can help you to reach your goals. You will need to have robust features and advanced functionalities and might require implementing a few plugins or extensions. Also you have to take into account the cost needed for custom web development.
  • Enterprise business. If you have a wide range of products, a large customer base and you’re well-established in the market you need to choose a perfect solution. This solution should provide scalability, manage large inventories, unlimited categories, multiple sales channels, and product attributes. Enterprise store development requires a considerable budget and professional developers.

A man is using the laptop to create ecommerce website that based on readymade template

A view on cheap websites

A cheap website will always be an option for someone but don’t fool yourself by making it your choice. The cheap tag of the site itself is sufficient to reflect the resources, time, and effort put into its development. It is experienced that a cheaper website moreover fails to engage the visitors and fails to turn them into a list of paying customers. The poor effectiveness of the website makes the business look cheap eventually.

Some DIY platforms are great for a small business or any individual running the business but its downsides cannot be avoided by a glance.

However, professional e-commerce website development meets the goal ultimately and succeeds in attracting a good number of visitors and converting them into potential customers by a great deal. In result you will save money and reduce the cost to market your business.

Essential addressing of a website

Before we dive into the development part, let us learn about some of the essential addressing for a website.

  • If your site doesn’t have any domain name currently, you can visit registers like GoDaddy, etc.
  • A dedicated hosting environment is a necessary requirement for your website so that it can be accessed by others. You would need to pay something between $2,000 to $5,000 per annum which promises an inclusive service of server maintenance and site backups.

The cost of the ecommerce development

F5 Studio web agency provide ecommerce development services, so we gathered some useful information to share with you.

Website Designing

It is important to focus on web designs because it grabs the attention of your visitors and engages as well as encourage them to convert into clients. The color palettes, graphic design, layout, navigation, etc. make the website fully responsive from the user’s end. It contributes a great way to the overall e-commerce website development cost.

Of course you can choose readymade themes to save money. But these themes don’t take into account the characteristics of your business. So, it is better to invest money in the customization. For enterprise business it is better to choose a custom-made design.

The cost can range from $250 to $25,000 depending on the design’s complexity and your requirements.

The image symbolizes a bunch of products before checkout page on the ecommerce wensite

Ecommerce functionality development cost

Usually, ecommerce functionality makes the greatest cost of an online store. An ecommerce website should provide the latest, efficient, interactive functionalities to navigate and interact the website easily.

These functionalities demand extensive programming and thus only bigger budgets can sustain the design and development of these features. That is why it is cost-effective to use an ecommerce platform.

Professional web development agencies help business owners to choose the right platform.

Ecommerce platforms offer various solutions and can be applied to your online store. But, in any case you will need additional functions. That is why development companies create extensions or modules for ecommerce platforms and sale these modules. It allows you implement functions for a much lower price than you could build on your own.

You need to check what extensions are available before you hire a developer to write custom code. Quite often extensions are incompatible with certain online stores.

Professional web development agencies always evaluate extensions for effectiveness, security, features, and integration before advising them to our clients.

The cost of functionality development can range from $1,000 to $70,000 without cost of 3d party plugins or extensions.

Ecommerce fulfillment cost

Ecommerce fulfillment cost is a part of a total ownership cost. They include basic expenses such as inventory receiving, order picking and packing, storage, shipping, and returns. Fulfillment services can be outsourced or done via self-fulfillment.

In any case you need to pay for integration these services on your ecommerce website.

The cost of integrations depends on an ecommerce platform and partners. For example some ecommerce platforms use built-in payment systems like PayPal.
Usually the cost of fulfillment integration can be from $100 to $4,000.

Analytics tools integration

Analytics tools allow you to understand better how visitors to interact with your ecommerce site. It helps you to improve a website to get more conversions. Many ecommerce platforms provide basic integrations for the most popular analytics tool, like Google Analytics or Facebook Pixel. But you will need to use advanced functions of analytics tool. So, it is better to hire specialists who can help you make it in the right way.

The cost of analytics tool integration from $50 to $1,500 without cost of plugins or extensions.

Ecommerce marketing cost

Ecommerce marketing is specific thing that includes the marketing strategy creation, SEO, PPC or online advertising, the content marketing and marketing events creation.

The success of ecommerce project depends on the marketing strategy and how this strategy was implemented in website design, functionality. The strong marketing strategy will help you to reduce the marketing cost.

Content is King! A website without any content is an empty page. Though images and texts are undoubted, the critical components of any site but the ones who have found the engaging content are the topmost appealing websites in the world.

The ecommerce marketing cost can vary between $1,000-$10,000 at an early stage and you can spend from $6,000 to $300,000 per year.

Ecommerce site maintenance cost

Ecommerce maintenance is important because it all about your visitors. The support and maintenance package includes new feature development, systems integration, troubleshooting, bug fixing, performance optimization, extension updates, security patches installation, website audit, quality assurance, and server setup.

The budget of e-commerce development from a website size

Out of the many aspects required for budgeting an e-commerce site, we narrow down our considerations to available resources, time, and future maintenance. Usually the cost of ecommerce development depends on a website size.

Small-sized ecommerce website

A small-sized ecommerce website is determined by a few aspects: small product catalog (100-250 products), some custom programming light traffic, basic design. Small websites have under 25 pages and out-of-the-box functionality. Estimated small business ecommerce website cost: $2,000 to $10,000.

We provide fixed price model for ecommerce website, so you can choose ecommerce business package for your online store.

Medium-sized ecommerce website

A medium-sized ecommerce website is built using an average product catalog, medium traffic, customized template-based design themes, unique functionality, design, and development of “pro” features. Medium-sized online stores usually have less than 100 pages and a content management system. Estimated medium business ecommerce website cost: starting with $10,000 – $30,000.

Custom ecommerce website

A custom ecommerce website is built from scratch and usually has a large product catalog, high traffic, custom layouts, and imagery. In addition, it has a custom design, custom programming, system integration, a great variety of payment methods, multiple shipping options, a content management system, unique functionality, order tracking, refund processing, and other advanced features.

Estimated custom ecommerce website development cost starts from $50,000.

Also it can be the enterprise ecommerce website but it too expensive. For example, the cost of Magento 2 Enterprise Cloud Edition can range from $22,000 to 125,000 per year without the cost of development.

So the ecommerce website cost can be from $4,000 to $70,000 and even more.

Conclusion

The requirements of each business are different from the others. It takes an intellectual mind to gather the requirements altogether during the discovery phase so as to be able to outline the business goals of your e-commerce collaboration.

Depending upon the size, strategy, status, and deadlines of your business, you may lead your way to pretty numbers i.e., budget. So in precise words, there is no one-stop solution whenever it comes to talking about costs. Therefore, if you want your online business to run ahead of time, don’t expect things for free as it will definitely cost you some good amount of money.

Professionals know how to convert your expenses into success of an online store. You can read more detailed info about our ecommerce website development service to hire our web specialists.