In 2024, global e-commerce sales crossed $6.3 trillion, and over 75 percent of shoppers judge a business by its website experience before making a purchase.
In Canada alone, online retail sales continue to grow every year as more businesses move online.
This rapid shift has made e-commerce website development a critical investment rather than an optional one.
Yet one question stops many business owners right away; what will be the actual cost to develop an e-commerce website?
The answer depends on several factors, from platform choice to features and long-term goals.
This guide breaks everything down in simple terms so you can budget wisely and avoid surprises.
What Is E-Commerce Website Development?
E-commerce website development is the process of building an online store that allows customers to browse products, add items to a cart, make payments, and track orders.
It includes design, coding, integrations, security, and performance optimization.
A well-built e-commerce site does more than sell products. It builds trust, supports marketing efforts, and grows with your business.
Because every business has different needs, e-commerce website development costs can vary widely.
Average Cost of E-Commerce Website Development
In Canada, the cost of e-commerce website development usually falls into three main ranges.
These ranges depend on complexity, customization, and long-term goals.
A basic e-commerce website often costs between CAD 3,000 and CAD 7,000.
This suits small businesses with a limited product catalog and standard features.
A mid-range e-commerce website typically costs between CAD 8,000 and CAD 20,000.
These sites include custom design, better performance, and added integrations.
A large or enterprise-level e-commerce website can cost CAD 25,000 to CAD 60,000 or more.
These projects involve custom development, advanced security, and complex workflows.
It is important to remember that these are development costs only. Ongoing expenses come later.
Key Factors That Affect E-Commerce Website Development Cost
a. Platform Choice
The platform you choose has a big impact on cost.
Hosted platforms like Shopify are easier to set up and usually cost less upfront.
Whereas, Open-source platforms like WooCommerce give more flexibility but may cost more in development and maintenance.
Fully custom platforms are the most expensive but offer complete control.
b. Design Requirements
Using a ready-made theme is cheaper than building a custom design.
Custom design improves branding and user experience but adds to development time and cost.
Mobile responsiveness is no longer optional and must be included.
c. Features and Functionality
Basic features include product pages, cart, checkout, and payment processing.
Advanced features like subscriptions, product filters, custom shipping rules, and loyalty programs increase cost.
The more complex the logic, the higher the development effort.
d. Number of Products
A store with 20 products costs less than one with 2,000 products.
Large catalogs need better performance optimization, structured data, and search functionality.
e. Integrations
Many businesses need integrations with inventory systems, CRMs, accounting software, or marketing tools.
Each integration adds time and cost to e-commerce website development.
f. Development Team
Freelancers often charge less than agencies, but agencies usually provide better project management, testing, and long-term support.
Canadian agencies typically charge higher rates than offshore teams but offer local expertise and compliance support.
Cost Breakdown by E-Commerce Website Type
| Website Type | Typical Cost Range CAD | Best For |
| Basic Store | 3,000 to 7,000 | Startups and small shops |
| Mid-Size Store | 8,000 to 20,000 | Growing businesses |
| Enterprise Store | 25,000 to 60,000+ | Large brands and B2B |
| Custom Platform | 40,000+ | Unique business models |
Note: These prices are just an average estimate and can vary as per project needs and budget
Ongoing Costs After Development
Building the website is only the first step. Running an e-commerce business involves ongoing expenses.
Hosting can cost between CAD 20 and CAD 300 per month, depending on traffic and performance needs.
Domain names usually cost under CAD 20 per year.
Platform subscription fees for Shopify or similar tools range from CAD 50 to CAD 500 per month.
Plugins and extensions may add another CAD 30 to CAD 200 per month.
Maintenance and updates are often overlooked.
Businesses typically spend CAD 1,000 to CAD 5,000 per year on updates, security, and bug fixes.
Marketing, SEO, and paid ads are separate costs but closely tied to how well your e-commerce website performs.
Hidden Costs You Should Know About
Many businesses underestimate hidden costs in e-commerce website development.
Payment gateways charge transaction fees that range from 2 to 3 percent per sale. Premium plugins often renew annually.
Scaling also costs money.
As traffic grows, you may need better hosting, caching, or a content delivery network.
Security upgrades and compliance tools can add extra expenses.
Planning for these early helps avoid budget stress later.
Custom vs Template-Based E-Commerce Websites
Template-based websites cost less and launch faster. They work well for simple stores with standard needs.
However, customization is limited.
Custom e-commerce website development costs more but offers flexibility, better performance, and unique branding.
It also supports complex business rules and future growth.
If your business relies heavily on online sales or has unique workflows, custom development often provides better long-term value.
How to Reduce E-Commerce Website Development Costs?
– Start with a clear project scope and focus only on essential features in the beginning
– Build a minimum viable product first and add advanced features later as your business grows
– Choose an e-commerce platform that fits your current business size and budget
– Avoid overbuilding or adding complex features that are not immediately needed
– Reuse reliable tools and plugins instead of custom-building everything from scratch
How Much Should You Budget for Your Business?
If you are a small business just starting, budgeting CAD 4,000 to CAD 6,000 is realistic.
Growing businesses should plan for CAD 10,000 to CAD 15,000 to support scaling.
Enterprises or B2B companies often need budgets above CAD 30,000 to handle security, integrations, and performance needs.
Your budget should reflect your revenue goals, not just current size.
Conclusion
E-commerce website development is an investment that shapes how customers experience your brand online.
The cost depends on your goals, platform, features, and growth plans.
By understanding where the money goes, you can make smarter decisions and avoid hidden expenses.
For businesses planning their next steps, teams like Adsagenz often recommend starting with clear goals, realistic budgets, and scalable planning so the website supports long-term growth without unnecessary complexity.
FAQs
a. How long does e-commerce website development usually take?
Most basic e-commerce websites take four to six weeks to complete. Mid-size projects usually take two to three months. Large or custom platforms can take four to six months, depending on complexity and testing requirements.
b. Is e-commerce website development a one-time cost?
No, it is not a one-time cost. While development is a major upfront expense, businesses must also pay for hosting, maintenance, updates, and platform fees over time. These ongoing costs are essential for security and performance.
c. Can I lower costs by building the website myself?
DIY platforms can reduce initial costs, but they often limit customization and scalability. Many businesses later spend more time fixing performance issues or redesigning the site. Professional e-commerce website development usually delivers better long-term results
d. Why do e-commerce website development prices vary so much?
Prices vary because every project is different. Platform choice, features, integrations, design complexity, and developer experience all affect the final cost. There is no single fixed price for all businesses.
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