Magento vs Shopify: The Ultimate eCommerce Platform Showdown
Magento and Shopify are currently the two best eCommerce platforms that thousands of e-merchants select to settle in. Despite several weaknesses, both platforms get their names on the score sheet by offering superior functionalities for a feature-rich online store.
In this article, we will provide you with a comprehensive Magento (Adobe Commerce) vs. Shopify comparison that will help you decide which one is best for your business.
Keep reading to grasp all the features of Magento eCommerce vs Shopify:
Pricing & Costs
Themes & Templates
Ease of Use
Apps & Extensions
Marketing Features & Sales Tools
Payment Options & Transaction Fees
Reports & Analytics
Help & Support
Other Functionalities
Magento vs Shopify – Overview
Magento is a powerful open-source eCommerce platform that provides a flexible and scalable solution for building online stores. It also has a paid version: Magento Commerce (Magento Commerce Cloud or Adobe Commerce Cloud), which is a comprehensive solution for larger businesses with advanced needs. It provides all the features and functionality of Magento 2 Open Source but offers additional and exclusive capabilities and support.
Meanwhile, Shopify is a hosted solution that allows businesses to create and manage their online stores easily. It provides a user-friendly interface and a wide range of customizable templates. And if you’re a bigger business, Shopify Plus is an enterprise plan for Shopify’s larger and high-growth businesses. It offers all the features of Shopify but with additional capabilities and scalability to meet the needs of enterprise-level merchants.
Below is a brief on the key differences between Magento Adobe Commerce vs Shopify:
Shopify vs. Magento: In-Depth Comparison
Ease of Use
Shopify: Shopify is a fully-hosted e-commerce platform, so everything from website servers and domains to templates is pre-built for you. All you need to do is to add things like products, collections, or navigation menus and start selling.
Magento: On the other hand, Magento requires some technical knowledge to set up your store or install themes or plugins. You will, in return, have more flexibility in customizing your store.
Verdict: Shopify undoubtedly wins this round thanks to its intuitive UI, built-in servers and domains, and templates. Shopify is more straightforward to use when compared to its rivals, which is perfect for those who are just starting out with e-commerce.
Pricing & Fees
Pricing is one of the critical factors when selecting an eCommerce platform. Shopify features fixed subscription tiers, while Magento offers flexibility in pricing to fit your business needs and volume.
Shopify Pricing & Fees
Pricing Plan: Shopify has five pricing plans to choose from, with the following monthly rates (these fees cover hosting and domain costs):
- Starter Plan: $5 per month
- Basic Plan: $39 per month
- Shopify Plan: $105 per month
- Advanced Plan: $399 per month
- Shopify Plus: Around $2000 per month
Note: These prices apply to the USA and Canada. Pricing varies depending on your store’s target country. For the latest region-specific pricing details, you can visit the pricing section of the Shopify website.
You can get 25% off your subscription charge if you are willing to pay for one year of service upfront. There is also a Shopify free trial, which lasts for three days. After that, you can pay $1 for three months of full access to Shopify’s features.
Transaction Fees & Credit Card Fees: Transaction fees are imposed by Shopify for each online and in-person purchase. And credit card fees are charged by your payment gateway provider. These fees vary depending on the Shopify pricing plan you sign up for.
If you use Shopify Payments, Shopify’s built-in payment system, you do not have to pay any transaction fees on all plans. Meanwhile, a credit card fee applies to any online and in-person transaction.
Shopify POS (Point of Sale): Basic Shopify POS features come bundled with all Shopify plans, except the Starter one, enabling in-person sales at your physical locations. A Shopify POS Pro add-on costs $89 per location per month and unlocks more advanced functionality.
Shopify Themes: Shopify Themes determine how your Shopify store looks. Over 100 free and premium themes are available on the Shopify Theme Store. Paid-for themes cost between $180 and $350 (one-time purchase).
Shopify Apps: There is the Shopify App Store that offers a huge number of apps (over 8,000) – both free and paid-for – that add new features to your Shopify store. Most Shopify apps charge you on a monthly basis, ranging from $4 to over $300 per month. Therefore, it’s always better to check out the Shopify App Store for pricing details of your apps.
Magento Pricing & Fees
Magento Pricing: Magento does not have fixed pricing plans. The platform offers a free option to download and set up your store. But, you will need to pay for web hosting, domain, extensions, license, and more.
Three editions of the Magento platform are available, including:
- Magento Open Source (Free)
- Adobe Commerce
- Adobe Commerce on Managed Services
There are no fixed prices for these Magento editions. But how much you pay will depend on your sales volume each year.
Annual Sales Adobe Commerce Pricing (Yearly):
- Less than $1,000,000: $22,000
- $1,000,000 – $5,000,000: $32,000
- $5,000,000 – $10,000,000: $49,000
- $10,000,000 – $25,000,000: $75,000
- More than $25,000,000: $125,000
Adobe Commerce Managed Service Pricing (Yearly):
- Less than $1,000,000: $40,000
- $1,000,000 – $5,000,000: $55,000
- $5,000,000 – $10,000,000: $80,000
- $10,000,000 – $25,000,000: $120,000
- More than $25,000,000: $190,000
Note: Magento does not give explicit pricing details on any plans. You will need to provide your contact details and wait for a sales representative to reach out and provide you with a personalized quote.
Magento Fees:
- Hosting cost: The Magento hosting price varies depending on your hosting provider, averaging between $10-15 per month.
- Domain name: The annual domain name prices change based on which domain type you choose:
- A brand new domain: $10-20 per year
- An expired domain: $20-40 per year
- SSL Certificate: Use an SSL certificate to improve your Magento website’s security and protect your data from leaks. The average annual cost is $5-300.
- Web design cost: The average cost for an e-commerce website design ranges between $0-180. Cost for creating a custom-made theme: More than $5000.
- Magento 2 development cost: The average rate for building a Magento 2 website is around $1,800. This process involves creating a Homepage, Product page, Shopping cart, Checkout page, and Category page.
- Extensions: Magento provides a wide range of extensions to enhance your store functionality, like improved layered navigation, advanced search, or one-step checkout. These extensions do not come free, as their prices range from $60-600.
- Payment providers fees: Magento does not impose any transaction fees. You’ll only pay the payment processors themselves. For instance, PayPal now charges 2.59% +$0.49 per transaction for credit and debit cards.
- SEO & digital promotions: The average cost for SEO and promotion services ranges between $10,000 and $40,000 per year.
- Magento point of sale: Unlike Shopify that offers built-in POS for merchants, Magento doesn’t. However, retailers who both sell online and manage multiple brick-and-mortar stores can use Magestore POS for Magento 2 to streamline store operations and sync real-time data.
Verdict: There is no doubt that Shopify wins this round. Shopify offers a perfect way for new merchants who want to start their online store without paying too much for domains, servers, or templates.
Magento, on the other hand, targets enterprises that are willing to spend a large amount of money on building websites or hiring web developers.
Inventory Management
Both Magento and Shopify allow you to create catalogs of unlimited products. You can integrate extensions or adds-on to enhance your store’s shipping and fulfillment.
If you have a large inventory, Shopify will encourage you to upgrade your plan before you experience an overload in your server. Magento does not behave the same way, as you might run into performance issues in no time if you do not upgrade your hosting.
However, a stand-out point of Magento is that you can import bulk products from your database, receive revenue reports, and view your total visitor count.
Verdict: Shopify wins if you are a small or medium business. You can add as many products as possible and let Shopify take care of your host servers.
Magento wins if you want more freedom to manage your inventory. You can choose your own hosting provider and get full control over your inventory.
Sales Tools
Both platforms offer excellent sales tools for merchants. However, there is one that sets them apart. Below are some key sales tools that each offer.
| Built-in sales tools | Shopify | Magento |
|---|---|---|
| Up-sell and Cross-sell | Yes | Yes |
| Creating promotions and discounts, gift cards | Yes | Yes |
| Point of Sales (POS) | Yes | No |
| Abandoned cart recovery | Yes | Yes |
| Multi-channel selling | Yes | No |