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Magento vs. Shopify: What's Best for Your Online Business?

Is Magento or Shopify better for your online store? Read this blog to learn the differences between each platform to choose what works best for you.
Magento vs. Shopify: What's Best for Your Online Business?
Alexandra Ortolani

By Alexandra Ortolani

 

April 11, 2022

Key Points:

  • Shopify is an all-in-one eCommerce platform that allows you to create your website and store
  • Magento requires more website building and coding knowledge, while Shopify doesn't need this type of knowledge
  • Magento users have to manage hosting costs, website setup, and other configurations on their own

Magento vs. Shopify are two popular eCommerce platforms designed to help you start your online store. There are over 1.75 million merchants that sell on the Shopify platform and 1.59 million live websites.

Shopify may have a more extensive user base than Magento, but Magento still ranks highly amongst users. More than 250,000 merchants worldwide use Magento as their eCommerce platform and account for 12% of all eCommerce sites.

Magento and Shopify may share similarities like basic web functionalities and search-engine optimization features. However, both eCommerce platforms differ on critical points such as being user-friendly and pricing fees.

However, one of the main differences is that Magento is an open-source platform while Shopify is a hosted platform. As a result, Magento users have to manage hosting costs, website setup, and other configurations. On the other hand, Shopify takes care of all hosting worries, and its intuitive design makes it simple to create and customize your online business.

This blog will go over the similarities and differences between Shopify vs. Magento so you know what eCommerce platform works best for your business.

Table of Contents

What's Shopify?

Shopify is an all-in-one eCommerce platform that allows you to create your website and store. The user-friendly website builder allows you to manage inventory, accept payments from customers, and other features such as the following:

  • Website and blog support
  • Multi-channel integration
  • 100+ payment options
  • Fast loading times and website performance

Businesses without an existing website can use Shopify to build their store from scratch for their online business. You don't need any previous website or technical knowledge to create your store.

What's Magento?

Magento is an open-source eCommerce platform to help merchants get their Magento store up and running. Magento is flexible and scalable with its extensive features such as the following:

  • Built-in functionality for international stores
  • Multiple payments features
  • Unlimited customization options
  • Powerful SEO features

Magento is best for enterprise businesses with previous technical knowledge and coding experience.

What Are the Differences Between Shopify vs. Magento?

Magneto and Shopify are two popular eCommerce platforms that vary significantly in features and functionality. For example, Magento requires more technical and coding knowledge. On the other hand, Shopify's intuitive design makes it easier to customize and create your online stores.

Shopify vs. Magento

Before we go over the different features of Magento vs. Shopify, we'll touch upon the similarities between the two eCommerce platforms:

  • Inventory management: Users can add an unlimited number of items to your eCommerce stores for Magento or Shopify
  • SEO capabilities: Both Magento and Shopify offer powerful SEO features to help your online store rank among competitors
  • Basic functionality: Magento and Shopify offer basic functionalities like online shopping carts, product pages, checkout modules, and the ability to install third-party applications and add-ons for your store

Now, we'll highlight the difference between Magento vs. Shopify to get an idea of the main feature differences:

  • Price: Magento or Shopify are split on the price. Shopify and Magento offer different pricing models because they're entirely different platforms. Magento is an open-source platform, and the costs will depend on the requirements for your business like hosting, apps, etc. On the other hand, Shopify has several pricing plans that may seem cheaper, but you'll still have to pay for apps and themes
  • Ease of use: Magento requires more website building and coding knowledge, while Shopify doesn't need this type of knowledge. Shopify is user-friendly and offers a quick and easy way to get your store up and running with little technical knowledge
  • Themes and templates: Shopify offers over 100+ free and premium themes, while Magento only offers under 100 themes. Shopify themes also cost less than Magento. For instance, you can pay $100 on average for Shopify themes, while custom-made Magento themes can cost $600+
  • App store: Shopify offers 6,000+ apps on their app store, while Magento only offers 5,000+ apps on their app store. Shopify apps also cost around $15 on average, but Magento apps can cost up to $15,000 since you'll have to build your store from scratch
  • User support: Shopify offers 24/7 customer support with live chat, phone, and email support. Magento doesn't offer live chat, phone, or email support unless you register for the Magento Commerce plan
  • Bulti-in security: Shopify offers built-in security features like fraud-analysis, while Magento does not. You'll have to install these security features for an extra charge

Overall, your choice between Magento vs. Shopify depends on how much you're willing to pay and the customization options you want. If you're looking for a user-friendly option and more third-party applications to customize your store, Shopify is your best choice. On the other hand, if you're more tech-savvy and have any technical knowledge or coding experience, Magento is better for you.

Related post: Shopify vs. Etsy - Understanding the Differences

Shopify vs. Magento Comparison of Price

Shopify and Magento offer several different pricing plans depending on the needs of your eCommerce store.

Shopify pricing plans

Shopify offers several different pricing plans depending on the needs of your eCommerce store. Here's a breakdown of the Shopify payment plans:

  • Basic Shopify Plan: $29 per month + 2.9% and 30¢ per credit card transaction
  • Shopify Plan: Costs $79 per month + 2.6% and 30¢ per credit card transaction
  • Advanced Shopify Plan: Costs $299 per month + 2.4% and 30¢ per credit card transaction
  • Shopify Plus: Costs $2000 per month + 2.15% per credit card transaction

Shopify Plus is designed for large enterprise businesses while Basic Shopify and Shopify Plan are better for smaller to medium-sized businesses. Below is a table of the main features of each plan.

Features Basic Shopify Shopify Advanced Shopify Shopify Plus
Staff Accounts 2 5 15 Unlimited
Number of Products Unlimited Unlimited Unlimited Unlimited
Fraud Analysis
24/7 Support
Website & Blog
Abandoned Cart Recovery
Gift Cards X

If you're unsure what Shopify plans work best, you can always contact their customer support to work out a pricing plan for your business.

Magento pricing and development fees

While there is no monthly subscription like Shopify, there are more costs involved since Magento is an open-source eCommerce platform. You'll have to pay attention to the following features for your online store:

  • Website theme and design cost
  • Third-party apps or extensions
  • Hosting fees
  • Support and maintenance fees

Here's a breakdown of how much your Magento store costs to set up and maintain depending on the Magento plan you choose:

Fees Magento Open Source Magento Commerce Magento Commerce Cloud
Magento License Cost $0 $22,000-$125,000 per year $40,000-$190,000 per year
Hosting $100-$500 per year $500-$6,500 per year $0
Domain Name $10-$400 per year $10-$400 per year $10-$400 per year
SSL Certificate $50-$300 per year $50-$300 per year $50-$300 per year
Design $0-$5,000+ $0-$5,000+ $0-$5,000+
Development $1,800-$10,000+ $10,000+ $10,000+
Extensions $60-$600 per extension $60-$600 per extension $60-$600 per extension
Payment Provider Fees 2.9% + $0.30 per transaction 2.9% + $0.30 per transaction 2.9% + $0.30 per transaction
SEO & Digital Promotion $10,000-$40,000 per year $10,000-$40,000 per year $10,000-$40,000 per year
Total Magento Development Fees $12,000-$57,000+ $43,000-$189,000+ $60,000-$247,000+

As we can see, you'll pay a hefty price tag for building your Magento store. So if you have coding experience and technical knowledge, Magento is a good option for you if you're a larger eCommerce business.

Magento eCommerce vs. Shopify Shipping Comparison

Shipping is vital for any eCommerce business. So whether you're starting a new online store or want to improve your shipping and fulfillment process, Magento and Shopify offer several options.

Magento shipping options

Magento offers users two ways to ship: third-party shipping integrations or self-service shipping.

Shipping integrations

Magento integrates with couriers like DHL, USPS, UPS, and a wide variety of other courier services and fulfillment options

  • Improve customer satisfaction when integrating with a shipping company
  • High-value shipping insurance for global orders
  • Save money and time with high-volume discounted rates when using a third-party shipping service for your Magento store
  • Reduce shipping errors with valuable shipping tools and features with a shipping platform

Magento dropshipping

Dropshipping is when a store doesn't keep the products it sells in stock and uses a wholesaler or manufacturer to fulfill orders. So if this sounds like something you want for your business, Magento offers dropshipping options for your online store.

  • Choose from dropshipping apps like SaleHoo, Megagoods, and AliExpress
  • Economical for eCommerce businesses of all sizes
  • Save time and money from shipping and fulfilling your orders

Shopify shipping options

Shopify offers its users three ways to ship with their platform. The following options are available for all users.

Shopify shipping

Users can ship orders for less with Shopify shipping. However, you can only ship with USPS, UPS, DHL, Canada Post, and Sendle. Any other courier outside the listed ones cannot ship with Shopify shipping.

  • Use Shopify shipping for free
  • Overnight delivery, shipping insurance, and package pickups are all included
  • Only available in the United States, Australia, and Canada

Shopify dropshipping

Dropshipping may be an excellent option for your online business. Instead of holding stock in a warehouse, you can use a wholesaler or manufacturer to fulfill and ships your orders.

  • Shopify offers many dropshipping apps like Oberlo
  • Economical for growing online merchants
  • Takes the stress away from storing your products and helps save money on warehousing costs

Shipping integrations

Shopify gives users the option to choose from shipping integrations via their app store so they can have more control over your shipping and fulfillment options.

  • Compare and contrast high-volume shipping discounts from major couriers
  • High-value shipping insurance for orders
  • Use shipping integrations like Easyship to ship your items to 220+ countries
  • Gain access to shipping tools and features like a shipping rates calculator to always receive the best, cheapest, and fastest rates

Shopify vs. Magento with Easyship for Online Stores

By now, you should be able to decide if Magento or Shopify is better for your business. If you're a small or large business looking to build your online store, Shopify is a cheaper and more user-friendly option for eCommerce merchants.

Magento is also an excellent option for eCommerce businesses, though you'll need prior web developer experience and coding experience. If you're a new online business, Magento may not be the best option since Magento can cost significantly more than Shopify.

Whether you choose Magento or Shopify as your eCommerce platform, you'll also need to adopt a shipping strategy for your business. Magento and Shopify may offer shipping options, though a shipping platform like Easyship can help optimize your shipping strategy and boost your sales.

Easyship also integrates with Magento and Shopify, so you can easily create a seamless shipping experience. In addition, with Easyship, you'll gain access to features and benefits such as the following:

  • Shipping Policy Generator: Our shipping policy generator helps merchants and crowdfunding campaigns generate their shipping policy by providing tracking and insurance options
  • Real-Time Shipping Rates at Checkout: Easyship shows the cheapest, fastest, and best value shipping options at your store's checkout. This feature makes it easier to be flexible with your shipping options while letting customers have a choice
  • Easyship Branding Suite: Easyship provides a delivery experience consistent with your brand. Add your logo and advertising materials to your packing slips, landing pages, and tracking emails

Ready to ship? Sign up for a FREE Easyship account and get instant access to high-volume discounts for your Magento or Shopify store

Magento vs. Shopify FAQ

Is Magento better than Shopify?

Magento or Shopify are both excellent options for your business. Your choice between the two eCommerce platforms is price and whether you want a self-hosted or hosted platform.

Is Shopify the same as Magento?

No, Shopify is a hosted platform, while Magento is an open-source, self-hosted platform. This comparison means that you'll have a lot more steps involved when building your online Magento store than Shopify.


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