New York vs Los Angeles - Where You Get a Better Price For Ecommerce Development

Ecommerce development services are on high request around the world and the US is not an exception. We’ve researched two of the largest cities in the US - New York and Los Angeles and compared them to where you can get the best price for eCommerce development services. 

The first thing when doing the research was deciding on the pool of registered IT companies on TechBehemoths.  So we got a total of 1655 vendors providing all kinds of IT services, including eCommerce development. The highest share was for New York, where 1134 IT companies are registered on the platform, and Los Angeles with 541 IT companies. 

Out of each location, New York has the highest number of eCommerce development companies 168, while on Aug 10, 2022, Los Angeles has 59 eCommerce development companies. This means that 14.8% of IT companies in New York provide eCommerce development services, while in Los Angeles for the same criteria, 10.9% of IT companies provide eCommerce development services. 

Ecommerce Development Prices in New York

The theory that competition lowers the price proves to be wrong in New York. But the reason behind this is the demand. When it comes to eCommerce development most of the companies specializing in this service charge less than $30/hour, or to be more specific - 31.5%. 

At the same time, companies in New York that charge between $30-70/hour for eCommerce development services consist up 27.2% of the poll. Also, the rest of the companies providing eCommerce development services for a price of $70-250/hour are about half of the entire pool - 49.5%. And only 2.2% of New York eCommerce developers charge more than $250/hour. 

 

Ecommerce Development Prices in Los Angeles

In Los Angeles prices for eCommerce development services are a bit lower compared to New York, but it may be more difficult to find a company that charges less than $30/hour. That’s because the number of companies in Los Angeles compared to New York is significantly lower, and the share of companies charging less than $30/hour is  27.8%. 

The number of eCommerce development companies in Los Angeles that charge between $30-70/hour is also lower compared to New York. Only 9.7% of companies charge that cheaply. More than half of IT companies in Los Angeles charge for eCommerce development services between $70-150/hour, and only 1.4% of these companies charge more than $250/hour. 

 

New York vs Los Angeles - Average Hourly Rate for Ecommerce Development

Considering the number of companies both in New York and Los Angeles and their hourly rates, we’ve come to the conclusion that Los Angeles eCommerce development companies are cheaper when compared to the ones from New York. As of Aug 9, 2022, the average hourly rate for eCommerce development services in New York is $77.1 while in Los Angeles is $84.3. 

 

Wrapping things up

As the numbers show, the cheapest eCommerce development companies are in New York, but so may be the demand, while for an extra $5/hour you may easily find a Los Angeles-based company that could handle the project. 

It all depends on the project's complexity and that’s why it is difficult to get a precise estimation of the average price for an eCommerce website. The cheapest could take up to 4 hours to set up, while a custom eCommerce website with options such as tracking systems, support services, and more complex integrations lasts around 2 months or so. Based on this, the cheapest eCommerce website in New York would cost $308 while in Los Angeles the cheapest eCommerce website would cost $337.  At the same time, an average eCommerce website in New York would cost $27,139 while in Los Angeles $29,673.