Shopify vs Magento – which eCommerce platform should you choose?

Choosing a sales platform is one of the key decisions in eCommerce – it affects not only costs but also the way of working, scalability, and further business development. Magento and Shopify are two popular but different solutions: the former offers full flexibility and access to the code with a higher investment, while the latter provides a ready-made infrastructure and a quick start within a more boxed solution. In this article, we compare both solutions.

Table of Contents:

• Before you make a choice… Types of eCommerce platforms
• Shopify in a nutshell
• Why Shopify?
• Magento in a nutshell
• Why Magento?
• Shopify vs Magento - who will win the final battle?
• Magento - for larger, demanding businesses and B2B sales
• Shopify - mainly for small and medium businesses
• The final choice of eCommerce platform depends on you

Starting a new business? Entering the online world? Wanting further development? The motivations for implementing a completely new platform for eCommerce can vary. Regardless of the reasons for this decision, it is crucial to ask yourself a few key questions at the beginning. Knowing the answers will allow you to choose a solution that best meets your needs and expectations. This way, you will be able to accurately assess which platform is worth choosing. Consider issues such as:

• What scale are you currently operating at and do you plan to expand your eCommerce?
• How much time and what budget can you allocate for the platform implementation?
• What are your needs regarding basic functionalities?
• To what extent do you care about the ability to customize and adapt the platform to your needs?
• Are you able to adjust some of your internal processes to the platform, or do you expect the platform to always adapt to them?

Currently, there are three most popular types of software for creating online stores. What characterizes SaaS tools (with Shopify at the forefront) and Open Source (to which Magento belongs)? We explain all these concepts below in the comparison of Magento vs Shopify.

SaaS (Software-as-a-Service)

SaaS platforms are one of the most popular solutions. Why? They are often considered a good choice at the very start of an eCommerce business when we want a quick and low-cost market entry. They also allow you to understand your needs and requirements from the online platform. Their biggest advantage is the relatively short time needed to implement the store. Depending on the complexity of the project, the entire process can be completed in just a few weeks, or even days (for really modest implementations).

Boxed solutions are generally cheaper than custom ones - maintaining the platform usually requires periodic subscription fees. However, the biggest disadvantage of SaaS platforms is the severely limited ability to modify and expand. If you plan to continuously develop your business, you must consider that reconciling it with the technical capabilities of the online store with a SaaS solution will eventually become impossible or unprofitable. The same may apply to required atypical and complicated integrations with external systems. Manufacturers of such software do not provide access to the code, so if the platform ceases to be sufficient, you will have to start building the store from scratch.

Open Source

Open Source, simply put - platforms built on an open license, are also a frequent choice among eCommerce representatives. This includes Magento, among others. In practice, an Open Source solution is one where we have access to the code, with the possibility of making modifications. It allows for the development and adaptation of the software to individual needs.

Using this type of platform in its basic version is free in most cases (however, one should consider additional costs such as specific plugins, extensions, or additional modules, as well as costs related to implementation). Open code allows for any configuration and customization, thus achieving functionality and external integrations. Additionally, the technological independence offered by Open Source in terms of hosting gives the client a lot of freedom in choosing the appropriate server and infrastructure.

However, knowledge of programming is required for integrations and changes, and most often support from an external agency. An additional advantage of Open Source solutions is the surrounding community and the ability to draw from the knowledge and experience of other users.

You now know the differences between the various types of platforms - it is high time to make the final choice. Companies in the eCommerce industry offer dozens of SaaS or Open Source platforms. In this article, we compare the most popular of them, namely Shopify vs Magento.

Shopify is a solution offered by a Canadian company based on the SaaS model. It was created in 2004 and has since gained popularity, especially among small and medium eCommerce representatives, although Shopify Plus is also gaining recognition among larger players. The solution is particularly attractive to them because it allows for simplified and automated management. Additionally, it does not require advanced technical skills and allows for a quick start from scratch, while also enabling visual customization of many elements of the site. How is this possible?

Platforms built on Shopify are primarily based on the Liquid template created in the Ruby programming language. When creating an online store on Shopify, the owner cannot interfere with the code (nor is he the owner of it). The process of editing the site involves selecting a template and customizing it to one's needs using the provided editing tools. This way, it is possible to customize, among other things, the presentation of products, configuration of payment and shipping methods, or tax rates. Pages can also be expanded with applications that implement new functionalities. The range of possibilities varies depending on the chosen plan.

Cost of implementing and maintaining Shopify

The scenario in which the eCommerce owner or their team implements and configures Shopify from scratch is still rare. In practice, this means the need to account for implementation costs and optimization settings, determined individually with the implementation agency. The platform operates on a subscription model, which involves regular fees (from $29 to $2500 per month). Shopify users are required to pay a recurring commission on sales, which can be high for large businesses. Additional fees may also occur for international transactions and currency conversion. Other unexpected costs may arise from the desire to add plugins or modules to the platform - each of them must be purchased, and its integration with the basic version of the platform takes place via API.

Flexibility, customization, and scaling of Shopify

It should be noted that Shopify is not a fully customizable solution. If you plan to expand your business in the future on a large scale (e.g., increase your product range or enter new markets), you must know that at some point, your technological capabilities will start to be limited. Making minor changes to existing functionalities to adapt them to your needs may also be unfeasible or difficult and unprofitable - often we have to accept them "as is."

Technical support and community

As part of the subscription, Shopify provides technical support – available 24/7 via chat, email, and phone. Users can access official documentation, guides in Shopify Academy, as well as the Shopify Community forum, where an active community shares solutions and experiences, making it easier to solve problems independently.

Security

Centralized security management within Shopify removes the responsibility from the user. An SSL certificate is enabled by default, and the platform meets PCI-DSS requirements - without user intervention. There is no need to implement updates independently, which is particularly valuable for non-technical individuals managing the store.

Integrations and add-ons

The variety of applications dedicated to Shopify is a catalog of functionalities that users can use to expand the operation of their online store. In this way, the provider enables development in areas such as sales, accounting, or marketing.

Ease of use

The simple "drag and drop" interface of the admin panel makes Shopify a particularly attractive platform for beginner users. The admin panel is intuitive, and most functions can be configured without knowledge of code.

Marketing and SEO

Shopify provides basic SEO and marketing tools – editing meta data, simple sitemap configuration, or integration with Google Analytics in a ready-made model. Additional, more advanced features, such as campaign automation, are available through apps from the App Store.

Although Shopify has many advantages in terms of ease of use, a wide selection of extensions, and 24/7 support, it is a SaaS solution with a closed structure and technical limitations, which can pose a barrier to dynamic business scaling.

The history of Magento began in 2008 when the first version of the platform debuted. Since then, many changes have occurred - numerous updates have been implemented, and the second version - Magento 2 - has also been released. In 2018, the platform was acquired by Adobe. It is currently available in a free Open Source version and a paid Adobe Commerce license (the differences between them are presented in a separate article). The continuous development of the platform means that more and more customers are choosing to set up their online stores on it. In 2023, Magento was one of the main eCommerce platform providers in Europe (source: Statista - Most popular e-commerce platforms used in Europe in 2023). What distinguishes Magento from other solutions?

Cost of implementing and maintaining Magento

The Magento engine is built on the PHP language, and its capabilities are made available to users under an open-source license. Here lies the first significant difference between the presented solutions. Magento vs Shopify - installing the first tool (in its basic version) is free. However, the costs of programming work and building the functionality of your own store depend on the rate of the software house implementing the solution and are borne by the platform owner.

Choosing Magento means full access to the code and the ability to modify it freely. This allows the store owner to tailor functionality to business needs, both at the operational and strategic levels. Below we present the main features of this solution.

Flexibility, customization, and scaling of Magento

The freedom to create a store on Magento is evident from the very first stage, namely when deciding on hosting. The choice of server and its maintenance lies with the store owner - they can choose from external entities offering such services or use Adobe's cloud (as part of Magento Commerce). This way, they gain greater control over performance, security, and potential technical support in case of problems. However, maintaining the server independently requires constant technical monitoring and incurring costs. Due to the ability to scale the store according to their needs, Magento is chosen by both owners of large online stores from virtually every industry (including Samsung, Land Rover, or Coca-Cola) and medium-sized entrepreneurs focusing on future growth.

Magento, being a highly flexible solution, offers almost unlimited possibilities for code customization. Depending on your business needs, you can decide at any time to introduce new functionalities, modules, integrations, or updates, or completely change the software house you use, as in most cases you own the code. This arrangement allows for any scaling of the online store's capabilities. For this reason, Magento is used by entrepreneurs entering new segments of trade (e.g., B2B sales), significantly expanding their offerings, or starting their careers in foreign markets.

Technical support and community

Magento Open Source does not provide official technical support. In practice, this means the need to collaborate with an implementation agency and utilize the knowledge and experience of a large community - on forums, blogs, code repositories, and thematic groups, including a very active section on Reddit. The Adobe Commerce version additionally offers paid support from the manufacturer.

Security

Adobe provides official security patches for versions under active support - currently, these are releases maintained for two years from the date of publication (e.g., 2.4.4 and newer). In the case of Magento Open Source, the responsibility for security lies with the store owner or the implementation team. This includes regular updates, server configuration, SSL certificate implementation, and PCI-DSS compliance. Although this requires greater involvement, it allows for the adaptation of security policies to the specifics of a given business.

Integrations and add-ons

Magento allows integration with external systems such as ERP, PIM, or WMS. Users have access to thousands of plugins and templates, many of which are available for free (though

Ease of Use

Magento is more complex than Shopify – it requires implementation by specialists and basic technical knowledge for daily operation. However, it allows for much greater configuration and expansion possibilities, such as managing multiple stores within a single admin panel (the so-called Multistore) or supporting multilingual versions of the store.

Marketing and SEO

The advantage of Magento is its wide range of SEO features, such as full editing of meta tags, managing redirects, controlling URL structure, and generating sitemaps. The platform also enables the creation of advanced promotion rules and customer grouping. However, it is worth noting that implementing advanced marketing activities often requires technical support.

From store management to user experience – Magento offers a wide range of features at your disposal. Before starting work on your project, it's worth taking the time to carefully analyze your current and future needs. Magento is renowned for its unmatched capabilities in terms of customization, flexibility, and overall performance. However, when choosing this solution, it’s important to keep in mind the relatively high implementation cost and the responsibility for ensuring security. In this regard, a conversation with a software house that specializes in such implementations and understands their specifics can be extremely helpful. That’s exactly how we’ve been building projects for over 15 years – and we’ll be happy to answer any questions you may have!

Your expectations, your customers’ needs, the type of products you offer, and ultimately the budget you can allocate – choosing the right eCommerce platform depends on many factors. To help you decide, we’ve prepared a brief comparison of the key features of Magento vs Shopify, which may prove useful when making your final decision.

	Shopify	Magento
Type of platform	SaaS (Software as a Service)	Open Source
Fees	Monthly subscription fees depending on the chosen plan.	No subscription fees in the basic version (some advanced plugins are paid).
Additional commissions	Shopify charges a commission on each sale. The amount depends on the plan you have.	Magento does not charge commissions (they may occur at the payment provider level).
Customization	Limited store modification options.	Full store customization options.
Ready-made templates	A wide catalog of ready-made templates.	A wide catalog of ready-made templates.
Use of developer support	Designing the platform does not require programmers' work.	Designing the platform requires programmers' work.
Integration with external systems	Limited.	Extensive.
Hosting	Server managed on Shopify's side.	Maintenance in Magento's cloud or on your own server.
Usability	Easy, intuitive even for non-technical users.	Requires basic technical knowledge.
Technical support and community	Available as part of the subscription 24/7.	Technical support and failure handling are the responsibility of the software house. Support from a large community on forums and thematic groups.
Marketing and SEO	Basic marketing tools.	Advanced marketing tools.

Magento is suitable where there is a need for flexibility, individual solutions, and full control over the infrastructure. It is a good choice for companies with an extensive product offering, complex sales processes, such as in B2B, requiring integration with external systems (ERP, PIM, CRM), brands conducting international sales, or dynamically growing businesses. Magento will also be more cost-effective for large stores, where high implementation costs are spread over the scale of operations.

Shopify is the answer to the needs of companies that want to quickly launch a store, do not have IT support, and require a ready-made system. Therefore, it works mainly in small and medium stores and in eCommerce based on simple sales processes.With a ready-made and easy-to-use template and numerous integrations, Shopify simplifies the start and management of the store without involving developers, making it particularly attractive for startups and D2C brands. However, it is worth noting that Shopify is not just a solution for beginners. The Shopify Plus version - aimed at companies with greater requirements - offers extended capabilities, such as larger API limits, access to advanced checkout customization, or individual pricing catalogs, making it an interesting option for B2B businesses as well.

You already know both the "pros" and "cons" in the Shopify vs Magento showdown. You know that the first platform is most often chosen by representatives of smaller companies (due to low technical complexity and easy start). In contrast, the second option is more popular among large enterprises focused on growth (due to high scalability).

It is important to remember that choosing an eCommerce platform is an investment that should allow you to successfully run your online store for years. In the article above, we present the most important elements you should pay attention to when making your decision. If you need support in choosing and implementing technology - let's talk!