Web Development
Mobile Development
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Low code development
Web Development
Mobile Development
UX/UI Design
Staff Augmentation
CTO as a Service
Dedicated Team
Low code development
Solutions
Industries
Technologies
E-commerce
Oct. 03, 2024
16 min to read
Table of Contents
Factors That Influence E-commerce Development Cost
Custom development
Key Components of E-commerce Website
E-commerce Website Development Cost
Custom Development vs. CMS Solutions
E-commerce Development with Stubbs
By 2028, the e-commerce market is expected to reach an impressive $5.02 trillion, with a strong compound annual growth rate (CAGR) of 10.15%. This growth highlights the growing significance of e-commerce platforms in the global retail industry, driven by emerging technologies like voice search, AR, and AI.
But the key question remains: What is the cost of developing an e-commerce website?
In this article, we will explore e-commerce development and provide a comprehensive overview of the costs involved in building an e-commerce website in 2024.
Determining the average cost of an e-commerce website can be quite challenging due to the various factors that influence the price. Here are the key factors to consider:
Website Size and Traffic:
A larger website with a higher traffic load will generally require more complex infrastructure and resources, potentially increasing the overall cost.
Developer Rates:
The cost of hiring developers based on their expertise and location.
Development Approach:
Whether the website is built using a CMS or through custom development.
The complexity of an e-commerce platform depends on its user roles, functions, features, and how they interconnect within the website. The smaller and less complex the application, the less time and money will be required for its development. Let's take a closer look:
Small e-commerce websites are simple and typically come with essential features such as a product catalog, product detail pages, user reviews, ratings, and a straightforward checkout process. They are designed for a relatively small number of users and are not optimized for handling large volumes of simultaneous requests. For these smaller websites, using website builders like Webflow or basic plans on Shopify is often both cost-effective and efficient. For example, a small microbusiness that sells handmade crafts could benefit from this approach.
Midsize e-commerce websites include all the features of a simple site but also offer additional functionalities such as advanced search and filtering options, personal accounts, custom promotion features, and multiple payment gateways. An example of an e-commerce site in this category is Mebelmarket. These websites typically serve around 100,000 monthly visitors, providing an improved user experience that often requires a higher investment. They are usually developed using custom development and CMS (Content Management System).
These are large e-commerce websites that require extensive server capacities and the implementation of complex features, like AI-driven recommendations, AR for product visualization, multi-language support, real-time inventory tracking, dynamic pricing, and detailed analytics and reporting. Examples of such platforms include major marketplaces like eBay or Amazon, where individual sellers can showcase their products. These platforms handle hundreds of thousands of visitors monthly and require custom development due to their complexity and the extensive range of technologies involved.
Website Size | Monthly Visitors | Features | Development Approach |
Small | Up to 1,000 | Product catalog, product detail pages, basic checkout, user reviews | Website builder (e.g., Webflow, Shopify) |
Midsize | Up to 10,000 | Advanced search, multiple payment gateways | Custom Development or CMS |
Complex | 100,000+ | AI recommendations, AR, real-time inventory, dynamic pricing, customizable user accounts | Custom Development |
Please keep in mind that all numbers and functionalities mentioned are approximate and may vary depending on specific project requirements.
The cost of hiring developers also significantly impacts the overall price of building an e-commerce website. This cost varies based on several factors, including the location and experience of the developers, as well as the type of team (outsourced, in-house, freelancers).
Developer rates can vary based on the following factors:
Location:
Developers in different regions charge different rates based on local market dynamics and living costs. For example, developers in North America and Western Europe generally charge higher rates than those in Eastern Europe or Asia.
Experience and Expertise:
More experienced developers with specialized skills tend to charge higher rates.
Project Scope:
Larger projects with more complex requirements will naturally result in higher costs.
Here's a table outlining the average outsourcing costs across different regions:
Region | Average Hourly Rate |
North America | $100 - $150 |
Western Europe | $80 - $120 |
Eastern Europe | $30 - $60 |
Asia | $15 - $50 |
These rates are approximate and may vary based on the specific developer or agency, their expertise, and the project's complexity. At Stubbs, the average rate is $35 per hour.
When working on a project, it's important to remember that the whole team is usually involved. This team includes not only developers but also a tech lead, project manager, and QA specialists. It's essential to consider their rates when calculating the overall project cost.
As mentioned previously, there are various approaches to website development. In this section, our focus will be on the costs associated with custom development.
Custom development is well-suited for midsize to enterprise-level clients who require a tailored solution that goes beyond what off-the-shelf CMS platforms can offer. This approach is perfect when a business operates in a niche that doesn't align with standard CMS options or requires a highly specialized website. Furthermore, custom development is the optimal choice for businesses with unique ideas that demand a tailored solution built from scratch.
Benefits
However, custom development also has its drawbacks:
Another crucial aspect of e-commerce development is selecting the right technology stack. This involves choosing appropriate front-end and back-end technologies that meet the needs of the website and its expected performance requirements. A well-selected technology stack ensures scalability, component reusability, and the ability to handle high volumes of traffic.
It is also important to consider various integrations that connect e-commerce platforms with external services and systems, such as payment gateways for transactions, logistics systems for shipping, and marketing tools for tracking and campaigns. They also link with resource management systems for inventory and order handling, ensuring smooth and efficient operations.
The same goes for the cost of e-commerce design development: the more complex the design, the more time it takes. Ultimately, design is not only about appearance but also about simplifying and streamlining the customer's selection and purchasing process. This includes processes such as design research, wireframing, prototyping, UX design, and UI design.
The two main aspects are:
Wireframes:
These are basic layouts that outline the website's structure and functionality. They provide a visual guide for arranging content and features, helping to plan the user experience and interface design before moving on to more detailed work.
Design:
This includes creating the visual elements of the website, such as color schemes, typography, and imagery. It transforms wireframes into a visually appealing interface that reflects the brand’s identity and enhances the user experience.
Let’s break down the components of an e-commerce platform and estimate the time and effort involved in its development.
To determine how much it costs to build an e-commerce website, you need to outline the functionalities you want to include in your solution. Here are the key components that influence the cost of custom development:
Catalog:
The catalog displays all available products, organized into different categories to make it easier for users to navigate and find what they are looking for.
Categories:
Products are grouped into sections based on their attributes, making it convenient for users to locate specific items quickly.
Filters & Sorting:
Users can refine their search results by applying filters based on criteria such as price range, brand, size, color, and popularity. They can also sort the products based on relevance, price, or other parameters.
Product Page:
Each product has its own dedicated page with comprehensive information, including multiple images from different angles, detailed descriptions, specifications, and customer reviews to assist users in making informed decisions.
Checkout Flow:
The checkout flow guides users through the process of completing their purchases, including entering payment details, selecting shipping methods, and providing shipping addresses.
Buy in One Click:
This convenient feature allows users to purchase items instantly with just one click, streamlining the buying process and minimizing the number of steps required to make a purchase.
Admin Panel:
The admin panel provides a comprehensive backend interface for managing products, orders, and user accounts, enabling administrators to efficiently oversee and maintain the e-commerce platform.
User account features let customers create personal profiles, manage their information, and access customized options to simplify their shopping experience.
As e-commerce websites evolve, so do user expectations. Advanced functionalities enhance the user experience and drive sales. Here are some advanced features to consider:
Elastic Search:
Elastic Search is an advanced search feature that helps users find products quickly and easily. Amazon uses Elastic Search to help customers navigate its large product selection. This technology allows users to filter and refine search results in real time, leading to a more accurate and satisfying shopping experience.
AI Helper:
An AI helper can give customers personalized recommendations and guidance while they shop. H&M, for instance, uses an AI-driven chatbot that assists customers in selecting clothing items based on their preferences and past purchases.
Machine Learning:
E-commerce platforms can provide a more personalized experience by using machine learning algorithms. For example, Zalando uses machine learning to improve product recommendations and search results, adapting to customer behavior over time.
This is just a small part of the many features you can add to your e-commerce site. We've highlighted some popular ones that users enjoy, but they're not essential for the initial MVP phase.
Effective integrations and technical elements are vital for a complete e-commerce solution:
These components outline the diverse functionalities and integrations necessary for a comprehensive e-commerce solution, each contributing to the overall development cost.
The total cost for developing a basic midsize e-commerce website typically falls between $45,000 and $50,000. Keep in mind that this is just a rough estimate to give you a general idea of what to expect. The purpose of this estimate is to provide an overview of the potential costs. However, the final price can change depending on your specific requirements and the features you'd like to include. More advanced functionality will naturally increase the cost.
Feature Category | Feature | Hours | Price (USD) |
Design | Wireframes | 80 | $2 800 |
Design | 120 | $4 200 | |
Project setup | 8 | $280 | |
Essential Features | Catalog | 36 | $1 260 |
Filters & Sorting | 32 | $1 120 | |
Product Page | 64 | $2 240 | |
Checkout Flow | 48 | $1 680 | |
Buy in One Click | 16 | $560 | |
Admin Panel | 80 | $2 800 | |
User Account Features | Payments | 16 | $560 |
Personal Account | 72 | $2 520 | |
Product-Related Features | 16 | $560 | |
Marketing and Communication Features | Marketing Features | 40 | $1 400 |
Emails & SMS | 6 | $210 | |
Chat/Online Help | 2 | $70 | |
Localization | 6 | $210 | |
Integrations and Technical Considerations | ERP Integration | 40 | $1 400 |
CRM Integration | 40 | $1 400 | |
SEO Optimization | 4 | $140 | |
Server Solutions | 8 | $280 | |
Security Measures | 3 | $105 | |
Non development activity | Quality Assurance | 161 | $4 028 |
Bugfix | 138 | $4 831 | |
Project Management | 207 | $5 181 | |
Technical Management | 166 | $5 797 | |
Total | 1409 | $45 631 |
It's also important to remember that designers and developers aren’t the only specialists involved in building an e-commerce website. A complete team of specialists is needed to ensure the project runs smoothly from start to finish. We determine the percentage allocation for these roles based on our experience and industry benchmarks to ensure the best distribution of resources and project efficiency. In our estimate, we've included:
QA Specialist: Their role is to test the website at different stages of development, ensuring it functions as expected and is free of bugs before it goes live.
Project Manager (PM): The PM handles all communication between you and the development team, ensuring that tasks are completed on time and that everyone stays on the same page throughout the project.
Team Lead: The team lead oversees the technical side, reviewing the code to ensure it meets quality standards and guiding the development team to ensure the best practices are followed.
Of course, you can choose different collaboration models, such as staff augmentation instead of full outsourcing. While this choice can offer more control and flexibility, it's important to bear in mind that it could potentially impact the overall quality of the end product. In general, building an e-commerce website requires a well-rounded team that includes:
Content Management Systems present a compelling alternative to custom development for building e-commerce websites. These platforms are particularly well-suited for small to midsize businesses seeking robust functionality without extensive customization needs. CMS solutions offer a versatile range of built-in features and plugins, making them an appealing choice for businesses aiming to launch their e-commerce sites quickly and efficiently.
CMS-based e-commerce solutions are well-suited for:
Nevertheless, it's crucial to consider the potential advantages and disadvantages of using a CMS platform. While CMS platforms can be cost-effective and user-friendly, they may not always offer the same level of customization and flexibility as a custom-built solution.
Several CMS platforms are widely used for e-commerce development, each with its strengths and use cases:
The cost of developing an e-commerce website using a CMS can vary based on the platform chosen and the specific requirements of the business. Below is a general overview of the costs associated with some popular CMS platforms:
Platform | Initial Setup Costs | Monthly Fees | Development Cost (Approx.) |
Shopify | $29 - $299 | $29 - $299/month | $5,000 - $30,000 |
WooCommerce | Free (WordPress) | $0 - $50/month | $1,000 - $50,000 (plugins, themes) |
Magento | Free (Community Edition) | Varies by hosting | $10,000 - $100,000+ |
These costs can vary significantly based on the specific requirements of your e-commerce project, such as the level of customization, design complexity, and additional features needed.
Another aspect influencing the overall cost of e-commerce development is the chosen approach to building the website. The methodology, whether Agile or sprint-based, can significantly affect project efficiency and alignment with objectives. This method involves frequent planning sessions, retrospectives, and active involvement of project managers to maintain team focus and adaptability, ultimately leading to a more efficient and organized development process.
By breaking the project down into smaller, manageable sprints, development teams can better identify and address potential challenges, optimize resource allocation, and make real-time adjustments to the project scope or priorities. This flexibility allows for a more streamlined and cost-effective development journey, as compared to a more rigid, waterfall-based approach. Additionally, the collaborative nature of Agile methodologies encourages continuous feedback and user input, helping to minimize the risk of costly rework or feature creep. Overall, the adoption of an Agile development approach can significantly contribute to the overall cost-effectiveness of an e-commerce website project.
At Stubbs, we specialize in e-commerce development and have over five years of experience. Below, you'll find a few examples of our successful projects:
Mebelmarket is a leading furniture e-commerce platform that specializes in sofas, beds, and sleeping accessories. Designed for a Ukrainian company, the site features a minimalist and intuitive design that enhances the overall user experience.
Its key features include an easy-to-navigate catalog, customizable ordering options, and a wishlist for keeping track of preferred items. Additionally, the platform includes a promotions page for exclusive deals, a partners page highlighting reputable manufacturers, and an articles page providing insights on furniture and home decor.
We are continuously exploring ways to further enhance site performance and user convenience. Detailed case study here.
Anabolic Pharmacist is an online platform that specializes in pharmaceutical products. The website offers a wide range of items with detailed descriptions and a straightforward checkout process. It accepts various payment methods, including cryptocurrency, and provides store credits, promotions, and an affiliate program. The admin panel allows easy product management, warehouses, discounts, and user accounts, making it a valuable tool for administrators.
Got a project in mind? At Stubbs, we're ready to bring your vision to life. With our proven expertise in e-commerce development, we create tailored solutions that deliver results. Whether you need a full-featured platform or a clean, user-friendly site, we have the experience to help your business succeed online.
To summarize, the cost of developing an e-commerce website varies based on multiple factors such as website size and traffic, developer rates, and development approach. Small, midsize, and complex e-commerce websites each come with their own set of cost considerations and development requirements. It's important for businesses to carefully assess their needs and budget constraints before embarking on an e-commerce development project. Additionally, understanding the various development approaches, including custom development, can help businesses make informed decisions about the most suitable solution for their specific requirements.
Ultimately, while the cost of building an e-commerce website can be significant, it should be viewed as an investment in offering a seamless online shopping experience and driving business growth in the long term. By choosing the right development approach and considering the factors that influence e-commerce development cost, businesses can position themselves to capitalize on the immense opportunities presented by the booming e-commerce market.
Oct. 03, 2024
16 min to read