How to Calculate Total Cost of Ownership for Your Ecommerce Platform

Many brands choose an ecommerce platform based on monthly subscription fees alone. The problem? That figure can be just the tip of the iceberg.

To make a sound decision – especially when comparing Shopify, WooCommerce, Magento or custom builds – you need to calculate the total cost of ownership (TCO). This gives you the real price tag over time, not just the initial outlay.

Here’s how we recommend calculating TCO for ecommerce platforms.

Step 1: Start With Core Platform Costs

Begin with the obvious figures:

• Monthly or annual subscription fees

• Hosting costs (if self-hosted)

• Domain registration and SSL certificates

For example, Shopify Plus might start around USD 2,000 per month, while WooCommerce hosting and maintenance could be USD 300–1,200 depending on traffic and complexity.

Step 2: Factor in Development and Implementation

This is where brands often underestimate. Include:

• Initial build or migration costs

• Custom theme development or bespoke design

• Plugin or app integrations

• Data migration and testing

For larger builds, development costs can easily exceed USD 30,000–100,000.

Step 3: Include Maintenance and Support

Ecommerce platforms need regular upkeep:

• Bug fixes and security patches

• Plugin or app updates

• Ongoing design and feature improvements

• Retainers for agencies or freelancers

A support retainer might be USD 1,000–3,500 per month depending on scope.

Step 4: Account for Transaction and Payment Fees

These can add up quickly:

• Payment gateway fees (e.g. Stripe at ~2.9% + fixed fee)

• Shopify transaction fees if not using Shopify Payments

• Currency conversion charges for international sales

Review your payment mix and forecast these based on projected sales.

Step 5: Don’t Forget Internal Resourcing

Even if you outsource, your internal team will spend time managing:

• Product uploads and merchandising

• Content updates and campaign launches

• Customer service tied to platform features

• Data analysis and reporting

Labour costs should be included, even if they’re internal salaries.

Step 6: Add Training and Onboarding

New platforms require:

• Staff training on backend systems

• Process documentation

• Possible external workshops or consultancy

These can be one-off costs but still impact your first-year TCO.

Step 7: Project Over a 3–5 Year Period

The most accurate TCO view comes from modelling costs over a multi-year horizon. This captures:

• Predictable recurring costs

• Planned upgrades or redesigns

• Expected increases in hosting, app or licence fees

It also makes it easier to compare options fairly.

Why TCO Matters

Choosing a platform based on subscription price alone risks locking you into a system that’s expensive to maintain or scale. TCO helps you:

• Avoid budget surprises

• Justify investment to stakeholders

• Choose the most cost-effective platform for growth

• Align tech choices with your long-term business strategy

How Atlas Studios Approaches TCO

When helping clients choose or migrate platforms, we:

• Build a full TCO model across 3–5 years

• Compare multiple platform scenarios

• Include both hard costs (subscriptions, development) and soft costs (internal labour, training)

• Use historical data to forecast transaction and payment fees accurately

The result is a decision based on total impact – not just headline pricing.

Final Word

Your ecommerce platform is the foundation of your online business. Calculating the total cost of ownership ensures you know exactly what you’re committing to and avoids costly surprises down the track.

The cheapest-looking option today might be the most expensive over five years – TCO shows you the truth.