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If you’re launching a new online store, you’ll discover a variety of solid ecommerce platforms to help you reach your goal. Digging through the cost structure of each option is a little more challenging.
My favorite software for launching online stores is WooCommerce. This free ecommerce plugin is the perfect for solution for both new and growing ecommerce businesses. But don’t let the word “free” confuse you. The base software for Woo is free, but in most cases, that isn’t enough to run a robust store. You’ll need a number of plugin extensions and ancillary items to obtain the right functionality, and this comes at a price. But don’t let that scare you. You can have an amazing online presence with WooCommerce and it can be far cheaper than other ecommerce options.
In this article, I’ll break down the components of setting up, customizing, and managing your WooCommerce store. This breakdown will help you calculate a true cost of ownership and better plan for future success.
My recommendations are made from first-hand experience and years of working with WordPress. I’ve owned and operated a WordPress agency for fifteen years and I’ve run a large WooCommerce store for five years. I know the good, the bad, and the ugly of ecommerce, as well as the thrill of selling online. And for me, all roads always route back to WordPress and the amazing possibilities it offers business owners.
WooCommerce was created back in 2011. I’m an old enough WordPress user who was an early adopter of the software. In 2012 I launched my own WooCommerce store for selling WordPress themes and in 2014 my agency began developing WooCommerce themes. Even though WooCommerce was in its infancy, I could see the potential and I was excited. Really excited.
Why was I so excited? WooCommerce provides an open-source plugin backed by the growing ecosystem of WordPress. This single plugin enables store owners to enhance website functionality, streamline processes, and optimize their online stores for conversions. It allows users to start with basic product pages and checkout features and then advance to features like abandoned cart recovery and email marketing integration.
The combination of WordPress and WooCommerce allows feature-rich, customizable online stores without limitations from other ecommerce platforms. And unlike alternative ecommerce platforms, WooCommerce imposes no restrictions on sales volume, inventory size, or staff accounts. It allows users to grow when and as they need it.
Back in 2011 I could see that WooCommerce offered so many possibilities. In 2024 those opportunities seem endless.
And make no mistake, WooCommerce has delivered. There are 3.6 million online stores built with WooCommerce and it powers 31% of the top 1 million ecommerce stores online. It is used by both aspiring entrepreneurs and enterprise level organizations.
WooCommerce is adaptable in both functionality and price, which makes it such a powerful tool.
Launching a WooCommerce store is exciting, but it’s important to understand the initial costs involved. While WooCommerce itself is free, creating a fully functional ecommerce store requires investments in domain registration, website hosting, SSL certificates, themes, plugins, and payment gateways.
I’ll break down the pricing involved in setting up your WooCommerce store so you can effectively plan your budget as you set up or expand your online business.
Securing a memorable domain name makes it easy for customers to find your WooCommerce store. Domain registration is an annual expense that varies based on the domain extension (.com, .net, .org, etc.) and the registrar you choose.
Domain registration costs range from $10 to $100 per year for popular extensions like .com, .net, and .org. The price for domain names in high demand or with a strong brand association can range from several hundred to thousands of dollars.
When choosing a domain name for your WooCommerce store, prioritize clarity and brand relevance. Select a domain that reflects your business, is easy to remember, and simple to type. Avoid hyphens, numbers, or unusual spellings that can confuse customers or make it difficult to find your store. Along with this, consider purchasing variations of your primary domain, including different extensions (.com, .net, .org) or slight spelling variations, to protect your brand and prevent competitors from using similar domain names. Securing these additional domain names can protect your online identity and prevent customer confusion.
When registering your domain, be cautious of registrars with low prices or bold claims. Choose a reputable registrar with reliable service, security, and customer support. Look for registrars with a proven track record, positive reviews, and transparent pricing.
Some web hosting providers offer domain registration services as part of their packages, which can be convenient. Make sure you have full control over your domain and can easily transfer it. Read the terms and conditions carefully and retain ownership rights to your domain name.
Domain registration is an ongoing expense, in addition to the initial expense. Most registrars offer multi-year registration for price savings, but be cautious of committing for too long due to changing business needs.
Choosing a reliable and performance-oriented hosting provider is essential for your WooCommerce store. Trust me when I say a quality host will make or break your online store.
I originally launched my store on one host, only to move it to another, and then I needed to move it again. I not only struggled with slow-loading pages for users, but I was also having trouble with Google being able to crawl my large store. And when I would reach out to the technical support of the subpar hosting providers, I was just given option after option to increase my costs by 10 fold. Not ideal and I kept moving until I found the right solution. I want to save other business owners from that hassle.
When you look for ecommerce hosting, do your homework and compare your options thoroughly. Here are some items to watch for:
Although staying within budget should be a factor when choosing a hosting provider, quality and reliability should factor in as well. Investing in a reputable provider with strong performance, security, and support can contribute to your WooCommerce store’s success.
All WooCommere store owner will need to take measures to secure their site and their customers from online threats. Online stores are attractive targets for hackers, who will search for vulnerabilities and seize what they find.
Fortunately, there are several ways to keep your site safe, such as SSL (Secure Socket Layer) certificates, security plugins, and using a trustworthy hosting provider:
Watch for Red Flags: There are also some security-related red flags to watch out for with hosting providers – for example, you should check to make sure the host only allows the use of supported PHP and WordPress versions. If they allow the use of depreciated versions, that’s a clear sign they don’t security as seriously as they ought to.
You can add security measures to your site piecemeal, or you can invest in a security plugin, secure managed hosting provider, or a combination thereof. This means the price can vary significantly when it comes to how much you can expect to invest in security measures. However, unless you’re covered by your hosting plan – or you have the coding know-how to secure your site alone – you’ll likely at least need a plugin. This means you could expect to pay between $70 and $200 per year on security measures.
The visual appeal of your WooCommerce store depends on the theme you choose. A good theme will attract customers and enhance user experience and conversions. While there are quality free themes out there, premium themes offer advanced features, customization options, and dedicated support.
I’d recommend getting started with free themes like Astra and Neve. These offer options specific to customizing WooCommerce stores, and they make it super easy to set up and configure your shop. For example, Astra offers a variety of free, pre-built WooCommerce templates you can easily import to your store and customize. They’re responsive right out of the box and make it easy to preview mobile versions of your site.
As you grow, you may want to upgrade to the premium versions of these themes or another WooCommerce-optimized theme. Astra, mentioned above, does have a WooCommerce specific module, but only at its premium tier, which starts at $49/year. Premium WooCommerce themes can run anywhere from around $50 to $200 or more. They offer various layouts, advanced product filtering, built-in mega menus, and enhanced product quick view. They also provide priority support, regular updates, and extensive documentation for setup and maintenance.
Look for a user-friendly customizer or page builder that allows you to modify colors, fonts, layouts, and design elements without extensive coding. Creating custom templates for pages or products can enhance your store’s branding and functionality. Remember, before buying, review theme demos, customer ratings, and support forums to gauge quality, performance, and developer support.
One thing that might surprise new WooCommerce users is the need for extensions. It is difficult to operate a WooCommerce store without adding extensions. Don’t view this as a lack of features in the core software. Instead, look at this as your opportunity to customize your store without adding unnecessary bloat.
Plugins extend WooCommerce functionality and tailor your store to meet your specific business requirements. And this is what I love about WordPress. It allows you to start with the basics and add only what you need when you need it.
WooCommerce offers a core feature set, which will be enough to get a basic store up and running. Installing plugins allows you to add advanced capabilities, streamline processes, and enhance the user experience. They also cover important areas, from inventory management and shipping calculators to marketing automation and customer loyalty programs.
WooCommerce offers both free and premium plugins. Free ones provide basic functionality for stores with limited requirements. You can review and download these from the official WordPress repository or from WooCommerce’s free extension library.
Premium plugins offer advanced features, regular updates, and dedicated support, making them a good investment for growing businesses. I like to compare the annual cost of a WooCommerce plugin to the time I save or the sales I’ll add. Once I can see the financial impact I know if the plugin is worth purchasing. In many cases, I find the purchase price is much less than my time or the lost sales in not having it installed.
When evaluating plugins, consider functionality, compatibility with your WooCommerce version and theme, user reviews, and update frequency. Reading user reviews, support forums, and change logs can provide insights into its performance, reliability, and developer support.
Premium WooCommerce plugins can cost from a few dollars to several hundred, depending on their complexity and features. While budget-friendly options may be tempting, investing in high-quality, well-maintained plugins can save time and money. They offer functionality, regular updates for security and compatibility, and priority support to resolve technical challenges promptly.
When thinking through what plugins you might need, think of these functional areas:
The important takeaway is your opportunities are endless when you combine WooCommerce with the large pool of extensions available!
I said earlier that I’ve operated WooCommerce stores since 2012. The extensions I used back in 2012 for my digital products are very different than the extensions I installed for my physical products store in 2019. Two different stores with two very different types of products. WooCommerce had me covered in both instances.
My physical store couldn’t operate at peak performance without a few plugins I consider key drivers for driving my online presence and managing customer transactions with ease.
Here is my list of must-have plugins for WooCommerce stores with physical products:
Payment gateways connect your store to payment networks, allowing customers to shop using their preferred methods. WooCommerce supports payment gateways such as WooPayments, PayPal, Google Pay, Apple Pay, Stripe, Square, and Authorize.net.
When choosing credit card payment gateways, consider transaction fees, supported payment methods, security features, and WooCommerce integration. Transaction fees vary by gateway and transaction type, ranging from a flat fee to a percentage of the sale. Some gateways charge extra for cross-border transactions or currency conversions.
PayPal is a trusted payment gateway with free and premium options for WooCommerce integration. The free PayPal Checkout plugin allows PayPal and credit card payments, while the premium PayPal Pro plugin enables a checkout on your website. Transaction fees range from 2.9% + $0.30 to 4.4% + $0.30 per transaction, based on the country and transaction type.
Google Pay and Apple Pay both make it easy for shoppers to quickly approve payments from their phones or web browsers using stored credit card information. These come with added security benefits for the users since they typically include some level of 2FA or biometrics verification to approve the payment. You can set up Google Pay and Apple Pay for your users with WooPayments, as well as many other payment gateways.
Stripe is a popular payment gateway with developer-friendly APIs and security features. It offers a free WooCommerce plugin for accepting credit card payments directly from your store. Transaction fees are similar to PayPal, at around 2.9% + $0.30 per successful card charge.
In addition to transaction fees, some payment gateways may charge monthly or annual fees for premium features or dedicated support. For example, the WooCommerce Payments plugin by Automattic offers competitive transaction fees but requires a monthly subscription for advanced features and priority support.
Consider your target audience and common payment methods in your market. Offering multiple options, like credit cards, digital wallets, and local methods, can improve customer convenience and reduce cart abandonment. Also, regularly review your payment gateway setup for any changes in fees, features, or security requirements.
Once your WooCommerce store is up and running, it’s important to account for ongoing expenses necessary to ensure its continued success and growth. These are often forgotten when calculating the overall cost of operating an online store.
These ongoing costs encompass various aspects of maintenance, optimization, and promotion tailored to meet the evolving needs of your online business:
When it comes to choosing an ecommerce platform, there are several popular options, each with its unique features, pricing structures, and target audiences. Let’s take a closer look at other well-known platforms like Shopify, BigCommerce, Magento, and Squarespace.
Four alternatives to WooCommerce:
When it comes to pricing, WooCommerce stands out for its cost-effectiveness. The core plugin is free, with optional paid extensions and themes available to enhance functionality and design. Users have full control over their hosting, domain registration, and plugin expenses, allowing them to tailor their budget to their specific needs. Altogether, yearly site costs can run anywhere from a couple hundred for a small shop to a thousand or more for a mid to large-scale WooCommerce shop. There’s a lot of flexibility in pricing here, and it largely depends on which functionalities you need and how you add them to the site.
In contrast, Shopify and BigCommerce operate on subscription-based models. Their monthly fees include hosting, domain registration, and access to a range of features and apps. However, it’s important to note that transaction fees may apply, especially on lower-tier plans, which can add up as your sales volume grows. With Shopify, you’re looking at a minimum of close to $350 per year, and up to a whopping $2,300 a month in some cases, such as if you want to use the platform’s B2B features. BigCommerce can come with an even heavier price tag, with pricing plans that start at $468 per year.
Magento offers two distinct options: the open-source edition and the enterprise edition. Magento Open Source is free, but needs the same kinds of themes, plugins, and extensions WooCommerce does. Adobe Commerce (formerly Magento Commerce), comes with a far heavier price tag – but we’ll talk about that more in the enterprise-level section below.
Squarespace offers subscription pricing that you can tweak based on the services you need. For example, you can opt to host with Squarespace or elsewhere, making the final costs of running a Squarespace shop relatively flexible. Pricing can cost as little as a couple hundred dollars a year for very basic plans and services, and up to several thousand a year for more advanced plans.
WooCommerce is great in terms of flexibility, allowing users to choose their hosting provider, payment gateways, and plugins. Its open-source nature and extensive community support make it highly customizable and scalable.
Shopify and BigCommerce offer scalable solutions with built-in features for online stores, but users may encounter limitations in terms of customization and flexibility compared to WooCommerce.
Magento provides unparalleled customization options but requires technical expertise to manage and scale effectively, making it less suitable for beginners or small businesses.
Squarespace offers simplicity and ease of use but may lack the scalability and customization options required for ambitious ecommerce ventures.
While each ecommerce platform has its strengths and weaknesses, WooCommerce stands out as a cost-effective and flexible solution for businesses of all sizes. Its open-source nature, extensive customization options, and vibrant ecosystem of themes and plugins make it an ideal choice for those seeking full control over their online store without breaking the bank.
WooCommerce is super scalable, meaning that a company can start small with the platform and expand from here. Pricing is still highly flexible, even at this tier: Enterprise-level businesses can cost anywhere from a couple thousand to ten thousand or more a year – however, some of these costs, like developer fees, are likely to be one-time fees.
This puts WooCommerce at a huge advantage over the subscription-based enterprise tiers. We’ve already discussed Shopify Plus’ shocking $2,300 monthly fee. Adobe Commerce, Magneto’s professional version, is less expensive ($22,000 a year, or about $1,800 a month). BigCommerce, in particular, can get very pricey, charging up to $15,000 per month.
As with the others on this list, Squarespace offers an Enterprise-level plan. This has custom pricing, and there’s no clear source online estimating how much this level costs. However, it’s reasonable to assume that it’s competitively priced with the other enterprise-tier plans and configurations mentioned above.
Make sure you think long-term as you dig into your ecommerce options. What you find might surprise you. When I looked at Shopify I was pretty shocked to discover I would have to pay $2,300 per month to be able to sell my products to both consumers and wholesale. I currently do this now with WooCommerce and it was accomplished with two free plugins. Imagine my surprise when I compared this cost to the Shopify price tag of $2,300 per month.
Before I wrap up, I think it is important to look at a real-world example. I’ll provide my online store as a tangible pricing example and I’ll give you the true costs for running my WooCommerce store.
Something to keep in mind is that my business is an alpaca farm that offers livestock for sale, sells traditional alpaca products online, has a physical store where I have a point of sale system (POS) integrated into the website, and we offer on-site tours and events. I also sell at regular pricing to consumers and at wholesale pricing to other farms, so I need to have the ability to have multiple pricing structures and sales tax exemptions. To increase sales during the holidays, I added gift cards and gift wrapping.
My business needs a lot more than a startup ecommerce business would require, which means I tend to purchase more premium plugins than the many WooCommerce customers. That said, this is a great example of the true cost of ownership for a robust WooCommerce store that requires a lot of functionality.
Here are the website costs broken down into a monthly amount:
Total Monthly Costs = $179.36
When my husband and business partner first saw how much I was spending on the website he was a little surprised. Once I explained to him why I wanted all of these premium upgrades, and how they helped increase our online sales exponentially, he understood and actually asked what else we should be adding. He’s a smart man.
And when I explained to him this $179.36 would be at least $2,300 per month at Shopify, he could quickly see WooCommerce offered a ton of functionality and flexibility at a fraction of the cost of other ecommerce solutions.
He is a numbers guy, and this type of discussion was speaking his language. He is now a WooCommerce fan and he knows we could not have our successful and thriving business without it.
I love WooCommerce and I think you will too. When you compare the functionality and price of a WooCommerce store to its competition, you’ll quickly find that there is no question on which route you should take.
Here are my final recommendations as you embark on your ecommerce journey:
If you are rethinking your hosting plans, I’d encourage you to consider Pressable. Pressable is owned by the same great folks who bring us WooCommerce, so you know your store will be in good hands. If anyone knows how to host a WooCommerce site, it’s the Automattic team.
Take the first step towards ecommerce success by exploring Pressable’s managed WordPress hosting plans. They’re expertly crafted to help you build, launch, and scale your dream WooCommerce store!
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