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Magento 1 to Magento 2 Migration Cost: What You Need to Know


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There are many reasons why you should migrate from Magento 1 to 2. The new releases have better designs and improved performance. Five years ago, few people would have wanted to migrate to Magento 2, because Magento 2 had been relatively new. By getting constant tweaking and improvements, merchants get used to running their store on Magento version 1.9 and below. Now, things have changed.

You should know that Magento stopped providing support for versions 1.9 and below, as of June 2020. Setting aside these reasons, the migration takes time. Getting started early means that you can be up and running on the new platform, sooner.

Let’s get into the details of what will cost you to migrate from Magento 1 to 2, and what advantages you will get.

Differences Between Magento 1 and Magento 2

There are several points that we should look at before we start talking about migration costs.

Security

The first important thing to consider is the difference in security. Magento 1 requires security patches to be protected from malware, bots, and hacking. Fixing and supporting M1 requires quite a lot of development time. Thanks to supporting packages and professional teams this option is available. However, even if you choose to stick with earlier versions and continue to use them, your actions directly violate PCI’s security standard and compliance. This means that your store would be unable to accept credit card payments, and you would have to pay penalties for being non-compliant.

Performance

Magento 1 had a slower loading speed. To speed up your store, your team needs to check the code quality, JS files, images resolution, server, and also other parts of the store. Magento 2 has speeds of up to 50% faster than the earlier versions. Also, new technologies such as the React-based PWA theme and PWA studio are able to increase site performance and engagement rates significantly. It’s flexible structure and app-like experience allow it to create a fast and responsive mobile version of the store.

Checkout Speed

Magento 1’s slow loading rates contributed to an increased cart abandonment rate. A slow-loading checkout can lead to customers exit from the checkout and even site. Magento 2 is reported to have a checkout experience that is 38% faster than its predecessor.

Catalog Page Views

The range of page views per hour has been improved in Magento 2. Now, it can handle 2.1 million more page-views-per-hour.

These four are not the only improvements that you will find in the new version. You can expect to see improvements in:

  • Analytics.
  • Features;
  • Integrations.

Let’s continue with the most important question: why should I migrate Magento 1 to Magento 2?

Reasons for Magento 2 Upgrade

We’ve already mentioned that Magento 1 end of life has already come. However, this is not the only reason to look towards the upgrade.

The Purpose of the Store

First, you need to look at your current results and future goals. If your business is growing, you have a significant amount of products and orders, your product requires special delivery options or you need custom features to track, analyze and make reports of your store’s activity then Magento 2 is the best option.

High Scalability and Performance

Magento 2 has lots of great features, plus it’s highly scalable because of its core. There are many useful extensions, and also more certified developers who work with Magento 2 and could implement the functionality of any complexity and needs. Besides a vast amount of features out-of-the-box such as different payment methods and shipping, intuitive admin panel, there are many additional programs to connect with your store. Magento 2 won’t get slower if you have a clean code, optimized images, and up to date modules.

Magento 1 loose in all the points above. Now, it requires constant monitoring and support of features, security patches, and the overall amount of work needed to keep your site up to date. So, it’s time to think about Magento 2 versions and compare their costs and capabilities.

Cost of Magento Packages

To get a clearer picture of Magento 1 to Magento 2 migration costs, we need to look at a few factors.

The License Fee

Magento 2 comes in two editions; the Open Source Edition and the Commerce Edition. The Open Source Edition is free and does not cost you anything in terms of licensing fees. The Commerce Edition has an annual fee. It starts at $22,000 per year.

You can also opt for services like cloud hosting, provided by Magento Commerce Cloud. It is the cloud-hosted version of the Community Edition. The license fee ranges from $40,000 to $190,000 a year.

Requirements for Data Import

Data migration is a crucial part of your move to Magento 2. It includes orders, customers, products, customer wish lists, profile details, and more. You need to get the data import right or risk losing valuable information.

Migrating Third-Party Plugins and Extensions

The extensions you used in Magento 1, cannot be reused in Magento 2. You have to identify replacements for your extensions and plugins on Magento 2. If you cannot find similar extensions already available on Magento 2 as you had in 1, the only option is to build them from scratch.

The more extensions you will have to replace, the more customization you will have to do. That will increase the cost of migration and extend the time frame.

Building Themes

The existing Magento 1 themes, much like the extensions, will not work in Magento 2 due to differences in coding. You have to build a theme for Magento 2. It could take weeks and stretch your timeline further.

You have the option of either building it from scratch of buying a new one. Spending on the theme is an important part of the entire store. So, you have to look at the costs of making a new one and buying a new one, to determine the best course of action. Buying a fast and responsive theme could save time.

NOTE: Any customizations you made to Magento 1, cannot be directly migrated to Magento 2. You will need developers to create the same customizations from scratch. As we mentioned, the reason is that they can be compatible with the code used in Magento 2.

Top 5 Key Costs

To make this simpler, let’s look at the five main areas that will need your focus.

1. Requirements for brief creation

This is the first stage of migration in most cases. It helps to clarify your exact needs and requirements regarding your store functionality, data that needs to be migrated, and the final look and feel of the store.

2. The User Experience

The process of migration could take 2 to 4 months, depending on your store’s size and complexity. But that’s just an average. You might spend much longer to finish everything. It all depends on how many features you want to include to make the UX awesome.

You need to rework everything from graphics to HTML to make it work in a new architecture. You are looking at an average of 80 to 250 hours, just for UX work. The costs could range from €1,000 to €20,000. On average, you might be paying the UX specialist an average of €80. These figures vary.

3. Getting an Attractive Theme

A good theme ensures your site looks good and has an attractive interface. If you are looking to make everything more appealing at a manageable cost, then lookout for new trends that are coming. Magento specialists could also guide you with that. Building a new theme usually takes from 40 to 160 hours. Setting up and configuring a ready theme will take less time, and can be a good option for your site.

4. Frontend and Backend Changes

Here’s where you spend most of the time when migrating. The 2-4 months mentioned earlier, could all be spent here. The labor costs to install, test, and make new features compatible, will be higher. Where a single feature took 10 hours on Magento 1, it will take approximately 70% more time on Magento 2.

Keeping the design simple will reduce costs. The best way to proceed is by considering all the options available, their suitability, implementation period, and their cost.

A rough estimate for Frontend and Backend work could be anywhere between €5,000 and €68,000. You are looking at 200 to 1000 hours of work, depending on size and complexity.

5. Store Data Migration

We mentioned it earlier, without details. Data migration could take 20-40 hours, depending on how much data you have collected and want to move with. The cost could be anywhere from €300 to €2000.

6. The Cost of Going Live and Support After That

The last step is about polishing what you have worked on, up until this point. The costs here will vary widely. So, it is thoughtless to come up with an estimate, no matter how rough.

You could be spending anywhere from close to €8,000 to over €100,000.

Examples of Real-World Brands Using Magento 2

According to Builtwith stats, there are more than 67 thousands of sites that use Magento 2. Among them, there are many leading brands, such as:

Also, we have clients who have their store migrated successfully to the latest Magento 2 versions:

If you want to learn more about these successful cases, please check our Portfolio.

Final Thoughts

Remember that every store is different, and the costs will depend on various aspects; the choices you make, features you want, the availability of specialists, the size and complexity of the store, and other details. Depending on who you work with, the costs could be ten times higher than normal. The point is to find the best specialists without breaking the bank.

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  1. Thanks for this helpful information!
    Cheers Mike

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