What are WooCommerce transaction fees

What does a WooCommerce shop cost?

ECommerce is booming. Sure, who doesn't like to order from the comfort of their own home - especially now, in times of Corona. Because despite lockdowns and restrictions, experts see good chances that eCommerce sales can reach up to 80 billion euros gross in 2020.

Perhaps you are also thinking about getting into the eCommerce business? Done right, it can really be worth it. But before you start daydreaming about bathing in money à la Dagobert Duck, you must of course first invest in an online shop.

But how much actually?

You have probably already asked Google about this. But the articles and information on the Internet are rather vague. They explain What Incurs costs (domain, hosting, plugins, Paypal, SSL, design, development, to name a few), but not quite how much.

In this article, we'll take a closer look at this question:

How much does it cost to set up a WooCommerce shop based on WordPress and get it up and running?

We share our experiences here, which we have had since 2012, and combine them with public data and assessments from colleagues. You can have a very simple shop for € 1,000 net, setting up a theme from € 2,995 net and completely creating from scratch from € 9,000 net.

For more details on the costs of a WooCommerce shop - especially interesting for do-it-yourself - read on.

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numbers, data, facts

According to forecasts, a market volume of almost € 100,000 million is to be achieved in 2024, which corresponds to an expected annual sales growth of 6.5%.

Forecast has been adjusted to reflect the expected effects of COVID-19. As of August 2020

The numbers speak for themselves: now is a great time to start trading online. More and more people are taking advantage of the opportunity to order their goods and products online and have them delivered to their homes.

Why not yours too?

Online shop systems

Before we go into WooCommerce as our favorite, I would also like to briefly inform you about a few alternatives. Because depending on which type of shop you need for your online trade, some systems are better or worse.

Gambio

Gambio is a "real" shop system that can be hosted itself and is not a plugin for WordPress, for example. However, this also means that the total costs increase over € 149 per year due to in-house developments.

Gambio is very easy to use, offers an individual shop layout and interesting features, which makes it well suited for smaller companies and start-ups.

Magento

Magento is one of the most popular eCommerce platforms for online shops worldwide. It offers a wide range of functions. Magento is extremely adaptable, which, however, requires at least simple, better still advanced programming knowledge - it is not a system for the enthusiastic novice.

With its huge selection of features, the many customization options for individual business requirements, its modularity and high scalability, Magento is suitable for companies of all sizes.

The license costs are between zero and five-digit euro amounts, depending on the version.

OpenCart

OpenCart is a platform-independent online shop system without user restrictions on an open source basis, suitable for small companies up to large organizations. It can be adapted very flexibly with individual pages and templates, as well as many free and paid add-ons.

However, like Magento, OpenCart also requires extensive programming knowledge in order to be able to make adjustments and is therefore unsuitable for beginners.

Shopware

Shopware is a modular online shop system developed in Germany that is available both as open source software and in commercial editions.

The simple handling, the high operating comfort, the good support with a professional training center make it suitable for beginners as well as companies of all sizes.

oxide

Oxid also offers several shop system editions with different functional ranges, for which the license costs are between zero and five-digit amounts.

With over 300 extensions, high modularity and scalability, a large number of interfaces and a high quality standard, Oxid is suitable as a shop system for companies of all sizes.

Shopify

Shopify ranks third among online shop systems in Germany and is therefore very popular alongside WooCommerce and Shopware. Shopify provides an easy way to quickly start an online store.

In addition, you don't need any technical expertise for Shopify to open a simple shop; all software and hosting are provided by Shopify. However, this also means that you can outsource your IT and influence it less - in contrast to WooCommerce, for example, where you can leave IT in-house. It is a matter of philosophy whether or not you want to keep these corporate functions in the company.

Another question of attitude: Shopify also hosts the shops of right-wing extremist organizations like Breitbart and earns money with them. You have to decide for yourself whether you want to support a clear conscience.

WooCommerce

WooCommerce is a WordPress extension for connecting an online shop to your WordPress homepage. As an open source system, the basic version of the software is available for download free of charge. In Germany, WooCommerce ranks second among online shop systems with 10%.

With his

  • 4,000 free and paid extensions
  • ease of use
  • great community
  • easy connection to external systems
  • easy setup and configuration
  • Suitability for beginners as well as advanced users
  • wide range of WordPress plugins

WooCommerce is especially suitable for small and medium-sized companies or small and medium-sized online shops.

WooCommerce is suitable for selling both digital and physical products. It has a solid SEO foundation, including SEO-friendly links and built-in metadata. As an extension option, it offers connection options to marketplaces such as Amazon and Ebay, and uses PayPal as the standard payment method.

How to set up WooCommerce in WordPress

Integrating the WooCommerce plugin into WordPress is no rocket science at all. Your hosting needs to meet a few minimum requirements, but the actual installation is done in two clicks.

Minimum requirements

Before you install WooCommerce and possibly WordPress first, you should know the minimum requirements for your systems. Then you avoid problems with the installation and use of WooCommerce from the outset.

In order to use WordPress and WooCommerce together, the following requirements are recommended by your host:

  • PHP version 7.4 or higher
  • MySQL version 5.6 or higher OR MariaDB version 10.1 or higher.
  • HTTPS support (instead of HTTP)
  • WordPress memory limit of at least 64 MB (I recommend 256 MB or higher)

Installation

The WordPress admin area is the easiest option to install WooCommerce on your WordPress site. It takes care of inserting the plugin all by itself.

  1. Log into your WordPress site
  2. Go to Plugins> Create New
  3. Type "WooCommerce" into the search plugin. The first thing the search spits out is the WooCommerce plugin from Automattic
  4. Select "Install Now"
  5. Select "Activate" and you are ready to go

Hosting

Web hosting is the provision of web space and the placement of websites on a web server of an Internet service provider. WooCommerce recommends these hosts who install WordPress, WooCommerce and the Storefront Theme for you. They also have eCommerce-specific features that protect your shop, such as IP and SSL certificates.

I also recommend the German operators Alfahosting and All-Inkl, as well as the international operators Cloudways and WPEngine.

Setup wizard

As soon as WooCommerce has been activated for the first time, the WooCommerce Setup Wizard will help you set up your online shop. Click “Let's go” to get started, or select “Not now” if you prefer to set up your shop manually.

Costs for installing a WooCommerce shop

You hardly believe at all what actually comes together, for which you pay monthly or annual fees in such a WooCommerce shop. Since WooCommerce shops can be put together from so many diverse features, you usually pay for these features individually.

In addition, there are of course the fees for your WordPress website: domain, hosting and SSL. If you already have a WordPress site up and running, you are already paying these fees. But since they are also part of the running costs of the shop, we also include them in this case.

In the following we will go into detail about the minimum and maximum prices that a WooCommerce shop can cost. It should be noted that the prices can vary greatly depending on the type and size of the shop.

Many prices are also given in US dollars instead of euros; in many cases there are simply more comparable providers on the American market. Since the exchange rates can fluctuate, we have not carried out any conversion here, but always explicitly point out the respective currency.

domain

The domain is the address of your website on the Internet. For example, the domain name of this website is franzsauerstein.de. You have to buy this domain name.

A domain usually costs between $ 8-20in the year.

Hosting

In order to be able to create a website of any kind on your domain, it must be housed on a web server and web space must be provided for it. This is called web hosting and is made available by Internet Service Providers (ISP) such as Bluehost and WP-VIP. WooCommerce automatically suggests some possible providers you trust.

The costs for hosting are billed monthly, but amount to approx $ 60- $ 400 a year.

SSL certificate

SSL stands for "Secure Sockets Layer". SSL certificates are used to encrypt the data on your Internet pages and emails. If, for example, the connection to your provider is SSL-encrypted, no third party can read your emails. SSL certificates to protect customer data are essential, especially for eCommerce shops for which the trust of your customers is the top priority.

The costs for SSL certificates vary greatly depending on the type of use. For eCommerce purposes you should use between $ 50- $ 400 a year calculate.

WooCommerce plugin for WordPress

With the costs for domain, hosting and SSL certificate, your WordPress website is now ready to go. Now you can insert the WooCommerce plugin as described above under “How to set up WooCommerce in WordPress”.

The plugin itself is free; You will only be asked to pay for most of the themes and extensions that you need to customize your shop.

WooCommerce themes

WooThemes offers a choice of 14 storefront themes, some of them free. One of them is “Storefront”, the official WooCommerce theme. The optical customization options and the features of free WooCommerce themes are limited compared to the premium versions.

The free Themes are Storefront, boutique and Deli.

All other themes cost $ 39.00 per year: Galleria, Homestore, ProShop, Outlet, Bookshop, Pharmacy, ToyShop, Stationary, Petshop.

In addition, WooCommerce is compatible with many other WordPress themes. For the cost overview sought here, we stick to these 14 WooThemes.

WooCommerce Theme Extensions

WooCommerce offers a variety of so-called extensions to supplement and individualize your themes. In terms of costs, these amount to between zero and approx. 150 US dollars per year.

For our cost statement, we will go into some basic extensions that definitely make sense for a WooCommerce shop in terms of customer satisfaction.

WooCommerce calculates costs depending on the number of your websites, i.e. for Single site, 5 sites and 25 sites, which we describe in more detail as Single Site / 5 Sites / 25 Sites USD will represent. The package prices are especially interesting for agencies.

PayPal Pro allows you to accept credit card payments via PayPal directly in your shop. Cost factor: 7999 / $ 199 a year

Sofortüberweisung As the name suggests, it allows your customers to pay for the goods via instant transfer. Cost factor: 7999 / $ 199 a year

Amazon Pay allows every Amazon buyer to buy your products directly in your online shop. It uses the payment and delivery information in their Amazon accounts for this. Cost factor: $ 0

Print Invoices & Packing Lists makes it very easy to print and edit order and delivery documents and enables your customers to view their invoices. Cost factor: 4979 / $ 149 a year

Another 38 useful WooCommerce plugins for 2020 are listed here.

German Market Plugin (MarketPress)

The German Market Plugin from MarketPress supports you in making your WooCommerce shop in Germany and Austria as legally secure as possible.

We strongly recommend this (or a similar) plugin, as Germany has special legal requirements!

The plugin helps you, for example, to protect yourself from warnings. With a few clicks it adds the necessary legal texts and functions - it is really worth gold as a support for penetrating the German legal jungle.

Depending on the type of license, the plugin costs between 75 - 149 euros a year.

WooCommerce Germanized

WooCommerce Germanized is an alternative to German Market Plugin. WooCommerce Germanized allows you to easily create legal notice pages and integrate them into your checkout and emails.

In addition, the plugin offers many setting options that are specific to the German market. From delivery times to small business regulations, there are countless functions that protect your shop against warnings.

  • The basic version is available free of charge.
  • The Pro "Standard" version for a domain is available for 69 euros, with annual renewal costs of 49 euros / year.
  • The pro version "Developer" for five domains is available for 99 euros, with annual renewal costs of 69 euros / year.

Labor costs

When making a cost statement for the installation of a WooCommerce shop, one thing should of course not be forgotten: the cost of the work involved in planning and designing the shop structure.

Planning & design

Before you get started and set up your WooCommerce shop in WordPress, it makes sense to plan its structure and content. To do this, you should answer the following questions:

  • What kind of shop do I need?
    Wordpress offers different themes that are ideal for different types of shops: from hotel above Bookshop up to bistro find the right theme for your shop.
  • How many products do I want to sell? Or how many product lines?
    The answer to this question leads you straight to the next question, which is:
  • Which extensions does the shop need?
    Think in advance what you would like to offer your customers in terms of service. The more comfort for the customer, the more WooCommerce extensions you have to expect in general.
  • What should the layout of the shop look like?
    The layout of a shop can also contribute a lot to customer satisfaction. The product page layout developed by Amazon is so well known that it can be described as the ideal and most intuitive layout. Make a draft of the layout to determine the individual elements in advance.
  • Which texts and (product) images do you need to start the shop?
    At the very least, you need product descriptions and images for your products. Usually there are also texts for landing pages, about pages and maybe for a blog. Either write them yourself and take your own photos, or hire a copywriter and product photographer (more on this in the later chapter Marketing & Sales). If you outsource the texts and photos, you should order them as early as possible so that you have all the necessary elements at hand for the design of the shop.

If you answer these questions before you actually start building the shop in the WooCommerce plugin, you can save yourself a lot of time and effort for later changes or a lot of trying out and "playing around". The better and more detailed the plan and design of your shop, the easier and faster the design.

Of course, a well thought-out plan can still change during the design process; You may discover elements, extensions or other options that you never considered when planning. Answering the questions asked above serves as a common thread so that you don't lose sight of the essentials of your shop.

The above questions are only the essential ones; This conceals many more in-depth aspects that have to be clarified individually for each online shop. Web designers can give you wonderful support in planning and designing your WooCommerce shop.

Design

Once the plan and design for your WooCommerce shop is in place, you can start designing in the plugin. You choose your theme and buy the extensions you want.

WooCommerce works on the modular principle; You can place individual elements (for example, images, shopping carts, descriptions and ratings) exactly where you would like them according to your layout plan.

You insert product images and descriptions, set prices and add the extensions.

Cost overview workload installation

Even if you set up your online shop completely yourself, you can put in many hours of working time. After all, a web designer would also have this working time paid for.

Of course, we want to include this effort for planning and design in the calculation of the cost statement and put concrete figures behind it. For this we charge a flat-rate hourly wage of 100 euros per hour.

If we assume a simple online shop with only the basic WooCommerce extensions, the time required for its planning and design is of course less than for a huge shop that wants to offer the customer every possible service. Then of course it also depends on how much experience you already have; If you are setting up a WooCommerce shop for the first time, you are guaranteed to need a lot more time than a WooCommerce web designer, for example.

So there are an unbelievable number of factors that make it extremely difficult to precisely limit the workload for planning and designing your WooCommerce shop. If we assume empirical values ​​and the two extremes (very simple versus very extensive shop), we get the following range as a rule of thumb:

Workload for a simple shop: 63 hours. Total power 6,300 euros.

Workload for a complex, extensive shop: 325 hours. Total power 32,500 euros.

Overview of costs for the installation of the WooCommerce Shop

In order to give an insight into possible costs for different WooCommerce shops, we calculate three different scenarios from these costs.

Minimal costs for installing a small, simple WooCommerce shop

For the installation of your single-site WooCommerce shop with the extensions PayPal Pro, PayMill Gateway and Sofortüberweisung (79 USD per single-site extension) the following minimum costs result:

  • Domain 8 USD
  • Hosting 60 USD
  • SSL certificate 50 USD
  • WooCommerce plugin 0 USD
  • Theme 39 USD
  • Extensions (3x) 237 USD
  • German Market Plugin 69 euros
  • Planning and design 6,300 euros

A simple WooCommerce shop costs you at least 394 USD plus 6,339 euros per year to install. At the current exchange rate, the total costs amount to at least 6.670 Euro.

Cost of installing a medium-sized WooCommerce shop

For the installation of your 5 ‑ site WooCommerce shop with the basic extensions PayPal Pro, PayMill Gateway and Sofortüberweisung (99 USD per 5 ‑ site extension), as well as five other extensions, the costs below result. We also assume mediocre costs for domains, hosting and SSL certificates.

  • Domain 20 USD
  • Hosting 150 USD
  • SSL Certificate 150 USD
  • WooCommerce plugin 0 USD
  • Theme 39 USD
  • Extensions (8x) 792 USD
  • German Market Plugin 89 euros
  • Planning and design 14,650 euros

A medium-sized WooCommerce shop costs you at least 1,151 USD plus 14,739 euros per year to install. At the current exchange rate, the total costs amount to at least 15.720Euro.

Maximum costs for the installation of a large WooCommerce shop

For the installation of your 25-site WooCommerce shop with the basic extensions PayPal Pro, PayMill Gateway and Sofortüberweisung (199 USD per 25-site extension), as well as ten other extensions, the costs below result. We also assume mediocre costs for domains, hosting and SSL certificates.

  • Domain 50 USD
  • Hosting 400 USD
  • SSL Certificate 400 USD
  • WooCommerce plugin 0 USD
  • Theme 39 USD
  • Extensions (13x) USD 2,587
  • German Market Plugin 149 euros
  • Planning and design 32,500 euros

A large WooCommerce shop costs you at least 3,476 USD plus 32,649 euros per year to install. At the current exchange rate, the total costs amount to at least 35.590 Euro.

Summary installation

  • Minimal cost: 6,670 euros
  • Medium cost: 15,720 euros
  • Maximum cost: 35,590 euros

Annual fixed costs of a WooCommerce shop

The installation is only the beginning of your WooCommerce shop. With this you have covered the costs for the construction and operation in the first year.

In the years after that, there are of course fixed costs to keep the shop running:

  • domain
  • Hosting
  • SSL certificate
  • Theme
  • Extensions (13x)
  • German Market Plugin

The annual fees are usually the same as at the time of installation, unless you expand and enlarge the shop over time, for example by adding more extensions. If your WooCommerce shop is running well, such extensions can happen very quickly - and may even be necessary to satisfy the growing number of customers or to be able to cope with them at all. More on this in the next chapter.

But if we stick to our basic arithmetic for a moment, the following results annual fixed costs depending on the type and size of the online shop (at the current exchange rate):

  • Small, simple shop: 394 USD + 69 euros = 420 euros / year
  • Medium sized shop: 1,151 USD + 89 euros = 1,112 euros / year
  • Big, complex shop: 3,476 USD + 149 euros = 3,239 euros / year

Running costs of a WooCommerce shop

In addition to the installation and annual fixed costs, the running costs of a WooCommerce shop are unfortunately often forgotten. In other words, those that do not arise in the same amount every month or year, but can vary - and become higher over the life of your shop and as your shop grows.

Support and maintenance costs

Studies show: eCommerce shops give on average 3 - 10% of your online income for the care and maintenance of the online shop out. Converted this means that if a shop generates 1 million euros, at least 30,000 euros must be expected for the maintenance of the shop.

Possible support and maintenance costs are:

  • Technical aids: From a certain size of the shop and the WooCommerce site, you can no longer take care of the shop yourself. As the shop operator and owner, you have other tasks than “tinkering” with the site - as easy as it may be with WooCommerce. You will have to hire IT developers (recommendation: Via Codeable) and web designers to take care of the technical aspects of support and the further development of the shop.
  • Updates and backups: Both WordPress and WooCommerce regularly update their systems and plugins; these usually do not cost anything themselves. The import of the updates as well as the implementation of the regular backups mean cost and time expenditure here as well.

These costs are easily forgotten - also when calculating the price of the shop's products.

Growth and development costs

As already shown, the cost of WooCommerce Extensions varies depending on the size of the website.Perhaps you are starting out with a single-site shop, which you want to expand to 5- or 25-site size at some point. The annual fixed costs for the extensions that are already in use increase, and necessary new extensions start at the same time as the higher prices.

The bigger the shop, the higher the maintenance costs described in the previous chapter, as well as the expenses for the technical aids.

Also the Documentation falls under growth and development costs: shop owners show how to use their shop. For larger shops, for example, training is provided for each role in the shop (shop manager, logistician, etc.). You either create these training courses yourself or pay someone to do it.

To find out how your product pages or marketing efforts are performing, test them; for example with A / B tests that you can use to optimize your shop. Carrying out such tests is also costly and time-consuming. But they are worthwhile in order to improve the user experience for your customers and thus customer satisfaction.

Marketing & Sales

With the installation and operation of a WooCommerce shop, you are not yet selling any products, or at least most likely not in the quantities that will bring you big profits. In order to generate high sales, you also need to invest some money in the marketing and sales of your shop and products.

There are of course a myriad of ways to market your products and your shop, which makes it difficult for us to put a price behind them. Regardless of whether it is on social media, in relevant trade journals or via your own blog: Advertising costs money.

Facebook

Used correctly, can Facebook be an inexpensive marketing tool with a high ROI. Facebook offers many opportunities to market different types of business. There are, for example, lead ads, dynamic ads and link ads that capture leads, highlight products for the right people and refer people to your shop.

Here, too, the prices for Facebook Ads vary depending on the type and scope of the ads placed. However, Facebook advertises that you can advertise with any budget - there are people who spend more on coffee every day than on their advertising campaigns.

The average cost per click (billing per click) is around 0.97 euros per click.

Copywriting

Even after installing a WooCommerce shop, you often need good, SEO-optimized texts; not only for your product descriptions or website texts, but also, for example, for traffic-generating blog articles or advertising texts.

In most cases, good texts that encourage people to buy or generate traffic are not written down so briefly. They take a lot of time, research, and ingenuity. If you don't have the time or talent yourself, you'll need to hire a copywriter or copywriter.

The prices vary depending on the type and scope of the texts. Usually between 0.08 and 0.5 euros is charged for each word submitted. Text portals such as text brokers can be cheaper, but in terms of quality it is often better to work with freelance copywriters or agencies.

I can warmly recommend Pia Newman as a copywriter: she is very reliable and quickly familiarizes herself with topics that are unknown to her in order to deliver great texts on them. Give her my best regards.

Image composition

You should also invest in the photos on your product pages, because the better your product images, the more valuable your products will appear.

If you only run a small shop with few products, you may be able to take on the hassle of taking the photos yourself. In larger shops, however, it is worth hiring a product photographer at some point.

Prices for product photos according to Amazon and Ebay guidelines with a plain white background start from 6 euros per product (for example for 24h product photography).

 

Alternative: commissioning an agency

Now you know the costs of installing and operating your WooCommerce shop if you build and operate it yourself. Of course, there is always the option of hiring someone else to do this, both for the installation and for ongoing operations afterwards.

A WooCommerce agency like us or our colleagues at the WooCommerce agency pictibe or freelance web designers can support you either completely or with individual parts of your WooCommerce shop. The costs for this then vary depending on the type and size of the order and the shop, as well as what the agency or web designer charges for it.

Webkalkulator.com can give you an estimate of the cost of the installation. Web calculator finds offers from WordPress or WooCommerce agencies for you. We have tested the web calculator for you, based on the minimum requirements for a simple, small WooCommerce shop.

To do this, we have entered the following basic data in the product calculator:

The result: Measured against the market environment and specific requirements, the standard budget of a small, simple WooCommerce shop lies betweenn 6.100 and 9.100 Euro for the installation.

This is usually a little higher than our price calculation for a simple, small online shop if you were to do everything yourself (6,689 euros). Please keep in mind, however, that our price calculation assumes that you already know to some extent what you are doing and that everything runs smoothly from the outset with planning, design and implementation - which experience has shown that this is hardly the case in any project.

You would also have someone on hand to provide support after installation who knows the system that you have built yourself inside and out, and who can help wonderfully with maintenance and any growth. If you do not plan to look after and maintain the shop forever yourself, but want to hand it over to someone else at some point, it is worthwhile to get support from a web designer or agency during the installation.

Think tank

As already mentioned, there are countless questions that have to be clarified individually for each shop. Professionals can support you wonderfully and save you a lot of time and stress; whether completely or only in individual steps in the planning, design and implementation of your WooCommerce shop.

Schwungvoll (formerly Xciting Webdesign) offers free advice as a first step to find out more about you and your shop.

If we are a good match, in the next step we will run a think tank with you, in which all questions regarding the design, planning and implementation of your WooCommerce shop are answered. You can read how successfully these think tanks work in our portfolio.

Let us discuss your ideas and potential costs for your own WooCommerce shop together in a free initial meeting! Just contact me here.