What is Magento (Adobe Commerce) and how can you leverage its advantages for online sales?

Table of contents:

• What is Magento?
• A Brief History of the Platform: from Magento to Adobe Commerce
• Key Advantages of Adobe Commerce (Magento)
• Is Magento free?
• Is Magento a CMS?
• What is Magento Development?
• Is Magento the right solution for your online store?

More than 146,000 online stores in operation (according to a storeleads report) - this statistic applies to Magento (now Adobe Commerce), one of the most frequently used eCommerce platforms in the world. Want to know the history of this phenomenon and what actually makes Magento such a popular choice for entrepreneurs? Read this article and see if Magento is the right choice for you too!

Magento is the original name of the Adobe Commerce platform, which allows for the creation and management of online stores. The platform stands out with its open-source code, providing users with extensive possibilities for customising and scaling the store to individual needs. It offers a rich catalogue of functionalities (such as advanced product management tools, reporting tools, multilingualism, and multi currency support), integrations, and advanced customization options, supporting in the building and management of online stores, scaling operations, and delivering smooth shopping experiences to customers, which translates into success in online sales. In practice, the platform exists in two versions:

• Magento Open Source - the free version - is an ideal solution for companies looking for a flexible sales platform, ready to be tailored to their needs without incurring additional licensing costs. However, it should be noted that designing the platform itself requires investment.
• Adobe Commerce - dedicated to large enterprises - offers advanced features and support, ideal for companies that need a comprehensive and scalable eCommerce platform capable of meeting high market requirements and handling large amounts of data and transactions. It is also worth mentioning that Adobe Commerce is available in two versions: on-premise (hosting provided externally by another provider) and cloud (cloud hosting provided by Adobe).

The Magento platform attracts the attention of companies of various sizes and types of business due to its flexibility, scalability, and wide range of features. With the ability to adapt to individual needs and support for both B2C and B2B, Magento becomes an indispensable tool for businesses aiming to develop in the world of eCommerce.

Magento debuted in the market in 2007 as a PHP-based engine. Initially, it was intended to complement another eCommerce system, osCommerce, which had many limitations. However, Magento quickly gained popularity, evolving into a full-fledged system. In its first year after launch, Magento was downloaded over 500,000 times. The platform developed rapidly, adding new features and gaining support from a growing community.

During this time, the first strategic partnerships (e.g., with PayPal) emerged, along with a change in ownership (Magento was acquired by eBay). However, the real revolution came in 2015 when Magento 2 was introduced - a completely revamped version of the platform. This event forced many entrepreneurs to migrate to the new version to maintain access to innovative solutions and technical support.

Another milestone was the acquisition of Magento by Adobe in 2018. As a result of this transaction, the platform was renamed Adobe Commerce, and Magento Enterprise was rebranded as Magento Open Source. Despite these changes, the Magento name still remains vibrant among users.

What Directions Will Adobe Commerce Take in the Future? Currently, Adobe Commerce continues to evolve, focusing on artificial intelligence, omnichannel solutions, marketplaces, and data security. With its rich history and innovative approach, Adobe Commerce remains one of the most frequently chosen solutions among entrepreneurs aiming to grow their online sales.

Flexibility, scalability, and almost unlimited functionality - these are common terms you’ll encounter when discussing Magento and its technical capabilities. But what exactly translates into these advantages? Adobe Commerce stands out from other available solutions with features such as:

• multichannel support - Magento provides responsive design and mobile optimization, allowing customers to shop conveniently from anywhere, at any time.
• plugins and extensions in the Magento library - the platform offers a wide selection of plugins and extensions, enabling customization of the store to individual needs and expanding its functionality according to business requirements.
• Management of multiple store versions - Magento allows managing multiple store versions within a single administrative panel (known as multistore). This enables creating different store versions for various customer groups or markets, including support for multiple languages and currencies.
• Integrations with external systems - Magento offers extensive integration capabilities with external systems, such as ERP (Enterprise Resource Planning for managing business processes), CRM (Customer Relation Management for improving customer service), payment systems, and analytical tools. This approach helps create an integrated eCommerce system that streamlines and automates company operations.
• security - Adobe Commerce provides frequent updates, contributing to increased security and delivering new features and improvements.

Moreover, Magento boasts a large and active community of users and developers who are eager to share their knowledge and experience, as well as provide additional extensions. This means that in case of any problems or doubts, help and support are readily available. In summary, Magento is an eCommerce platform that offers a wide range of features and possibilities. It is a noteworthy choice for companies that want to create a functional, feature-rich, and secure online store that can scale with their growth.

Magento, being an open-source platform, does not require users to pay any upfront fees or regular licensing fees. Users get full access to the source code. However, this does not mean that using Adobe Commerce is entirely free. On the contrary, creating a fully customised solution with additional functionalities is a significant investment. The final cost of Magento depends on various factors, such as the size of the store, the number of products, the required features, and the level of customization needed. If an external team (e.g., a software house) is working on the design of the Magento platform, the implementation cost will depend on the number of development hours required.

The lack of licensing fees applies only to the Magento Open Source version. For Adobe Commerce, licensing costs vary depending on the chosen package and individual pricing. On average, the annual licensing fees in 2024 start at around $20,000.

Running an online store involves many daily challenges, one of which is content management. Product information, technical data, photos, and videos - updating these types of content can be very time-consuming. An external system like a CMS (Content Management System) can help streamline this process. A CMS serves to comprehensively manage content, including publishing and editing changes on the website. Can Magento fulfil the functions of such a system?

Yes, Magento can effectively function as a CMS. The platform offers a range of content management tools, such as a WYSIWYG editor (allowing content formatting without knowledge of HTML), blog management, and editing metadata (e.g., additional descriptions or keywords) necessary for maintaining high SEO rankings (search engine visibility).

However, it's important to note that Magento's capabilities extend far beyond a typical Content Management System. It is primarily a comprehensive platform for managing all areas of eCommerce, with one of its advantages being its extensive content management capabilities.

If you're interested in creating your own platform on Magento, sooner or later you'll encounter the term "Magento development." This term refers to the process of creating, developing, and customising online stores using the Magento platform.

Magento development encompasses a wide range of tasks - from installing and configuring the platform, designing the site at a graphical level, to creating custom features and integrating with external systems. Due to the diverse nature of these tasks and often high technical level required, managing a Magento platform is typically entrusted to specialists.

Choosing an eCommerce platform is not an easy decision. You need to consider many elements such as available functionalities, future scalability, security, and ease of daily system management. If these are the features you value, you should consider choosing Magento. However, before making a decision, it's worth thoroughly analysing your business needs and consulting with professionals to choose the best solution for your online business.

Do you have questions about Magento? Contact us!