WHAT'S THE COST OF AN E-COMMERCE WEBSITE
date:17th May, 16 | by: Joe Karanka | views:
Earlier, I had discussed the cost of making a website and though i outlined the pricing costs, I felt it would be substancial to extensively focus on eCommerce websites. As you will realise, attempting to start an eCommerce project can be daunting, and may I say that there are loads and loads to consider especially when you factor in your budget.
E-commerce website pricing varies widely depending on the level of sophistication you want to have, and e-commerce success often depends on those solutions working effectively together. In lay-man terms, the sophistication and efficiency of your project depends on how much you are willing to spend.
WHAT SHOULD I CONSIDER WHEN BUDGETING FOR AN E-COMMERCE SOLUTION?
There is often a dilemma that people face when planning their E-commerce business, which is whether they should buy pre-made themes for their website or have one custom made. There are benefits to both options.
On one hand, pre-made themes are cheap and may average for about €60 for an off-the-shelf theme exclusive of the necessary plugins that need to be programmed to have the shopping carts operational. Evidently, you would probably need to hire a designer to install it for you and that should see you cough up another €1,000 - €1,500.
Oh, thats not all! There are a bunch of further questions that a designer/ developer should/ could inquire.
In short: clients shouldn't get too excited about the potential cost savings of pre-built themes. They always end up being overly expensive.
Custom designs on the other hand cost more, but from my experience, you are better off opting for a custom design rather than a pre-built theme.
So, how much should a custom design cost?
Can you get a custom website for under €3,000? Yes, but be very careful, and know your risk of getting something imperfect is high.
If you work with a good freelancer, I think ~70% of custom websites for average folks and average businesses will cost between €3,000 and €15,000.
If you work with a good agency in a medium market, I think ~70% of custom websites for average folks and average businesses will cost between €8,000 and €40,000. This difference from freelancers is because larger sites will naturally gear toward agencies, and agencies will be less likely to take on smaller projects if they can take bigger ones instead. That said, some agencies love the small jobs, because they get really good over time at doing quality work in less time than the competition.
2. HANDLING OF PAYMENT SOLUTIONS
E-commerce happens through payment gateways that connect your bank account and your customers' credit card accounts. You'll need a shopping cart solution and a Merchant Bank Accountthat can accept your processed payments. Shopping carts and payment gateways are typically low-cost in terms of an upfront investment, but ongoing transactional fees can range between 1% and 5% based on volume.
Acquiring the right certification especially for a small business start-up can prove daunting as you will need to prove your site's level of security and by that provide appropriate certification. Think of it this way, you are going to be processing your customers' credit info so, why shouild you be trusted?
On the contrarily, you could always consider employing the use of third-party payment gateways for instance PayPal though PayPal charges a small amount for any transactional withdraws on a business account. Other payment gateway services such as Internet banking Services for instance, Paytrail can also be easily configured to suit these purposes.
Projecting unique visitors to your website is a matter of marketing analysis. You'll need to determine an average Cost Per Visitor (CPV) based on the CPV of other similar e-commerce sites. A good way to guess the CPV of your competition is to see which are running ads when you conduct a Google search for your products. Then, use Google AdWords to estimate the CPV for the key phrases you used in your Google searches to pull up the competition.
Visitors won't come to your site unless you spend money or time on marketing your site, so don't expect to see heavy traffic without running lots of promotions until you have established your brand and a loyal customer base of repeat visitors.
Conclusively, E-commerce can be very expensive but so is setting up shop (your physical store) so if you are still ready to take up the venture, contact your designer for a personal detailed quote or simply fill out this form.