When looking for a new e-commerce platform, most businesses put Shopify and Magento as the first two platforms to consider. That applies both to businesses launching brand new websites and to businesses transitioning from one platform to another. Shopify Plus and Magento 2 Commerce are versions of each platform aimed at medium to large sized businesses or those with eCommerce ambitions.
This guide presents an overview of each platform, compares Shopify Plus vs Magento 2 Commerce and the 8 most common scenarios businesses face between the two, and introduces how Shopify Plus and Magento Commerce will work together. processed to suit each case.
About Shopify Plus & Magento 2 Commerce
When a business chooses an e-commerce platform for its website, it either succeeds, or it fails because there are too few guidelines on how to choose it. Choose the right platform. For that reason, this guide is designed to solve the problem by offering advice on choosing between two of the most popular enterprise-level platforms in the UK at the moment: Magento 2 Commerce and Shopify Plus.
Magento 2 Commerce is the Enterprise version of Magento, a popular e-commerce platform long ago acquired by Adobe in 2018.
Shopify Plus is the Pro version of Shopify, a publicly listed e-commerce platform company based in Canada that started with serving small retailers and grew up.
While Magento 2 Commerce (formerly Magento Enterprise Edition) is strongly developed and is a hegemon throughout the west, Shopify Plus is also in the process of development and gradually gaining popularity alongside a strong presence in the US and Canada. . Magento 1 was a hugely successful platform and then gave way to Magento 2 in 2015. The transition between Magento 1 and Magento 2 was essentially a conversion rebuild, which means many retailers. on the Magento 1 platform is evaluating whether Magento 2 is really the most logical next step. Furthermore, Magento 2, especially Magento Commerce Cloud (hosted option) has had an extremely strong start, which affects the adoption rate of this platform in the market more. Partly thanks to this, Shopify Plus has gained popularity in the market with more and more businesses offering apps on the platform.
Shopify continues to innovate and constantly announce version updates. The accumulation of these features has created a balance for some retailers, keeping them away from the likes of Magento.
When choosing Magento, you will have to decide between data-hosted and self-hosted services while Shopify Plus offers full storage. After that, Magento was acquired by Adobe and whether this will have a positive or negative impact on businesses is still a mystery.
Take a look at the retailer’s considerations below to decide which platform best suits your own requirements. Instead of a full set of comparisons, we’ve picked out the top 8 questions that retailers care most about.
- Cost (Construction, storage and permits)
- Dealer community / development partners
- Sell Offline & Online
- Reports & business information
- Feature flexibility
- Ability of extension
- Future path
Consideration 1: Cost
All in all, the ‘Total Cost of Ownership’ of a website built on Shopify Plus tends to be cheaper than a site built on Magento 2 Commerce. For businesses that are in the lower stages of revenue, Shopify Plus will be a better choice. The cost for each platform is divided into 3 main parts: Construction, maintenance and licensing:
Construction cost: Shopify Plus & Magento 2 Commerce
Shopify Plus builds tend to be cheaper than Magento Commerce builds. This is especially true of the North American market, where Shopify is still little known in the e-commerce world.
One major reason Shopify Plus builds are cheaper is that they tend to involve less backend development (databases, complex functionality, etc.) build Magento Commerce. As a result, the number of hours required to build a website is greatly reduced
Most enterprise-grade development agencies charge by the hour. Therefore, by shortening the construction process, the total construction cost can often be much cheaper. (This can often happen even if the average hourly rate for Shopify Plus resellers may be higher than for Magento Commerce resellers).
Raw construction cost
Roughly speaking and subject to the exact functional requirements decided between you and the agency, Here is the cost for a website building or rebuilding project: Magento 2 Commerce: $150-$500k . (Amounts tend to be similar in quantity across most currencies, for example in the UK, £150-500k and in the EU €150-500k)
Shopify Plus: For Shopify Plus build costs over $100k. (<£100k in UK, <€100k in EU).
Maintenance cost: Shopify Plus & Magento 2 Commerce
Shopify Plus is usually cheaper in terms of bug fixes and monthly updates, due to the fact that it stores data on its own so security patches are handled for you. If you want to add more backend functionality to the platform then you will be charged base per hour and this will make you more likely to notice Magento. If you are not too tight on costs, you should choose Shopify Plus. Both platforms have a thriving open market where you can find the features you need that other platforms don’t.
Licensing Cost: Shopify Plus vs Magento 2 Commerce
Both Shopify Plus and Magento Commerce require you to pay a license fee to use the platform. They are usually charged monthly for Shopify Plus and on a yearly upfront basis for Magento Commerce.
Both Magento Commerce and Shopify Plus licenses are usually based on how much money you receive online through the platform. Magento invoicing comes first every year based on the total value of the merchandise, while for Shopify Plus the invoice is $2,000 monthly, plus payment fee cuts in some cases $2,000 as well. equivalent to the absolute lowest monthly fee you pay for Magento Commerce.
And if you don’t have the budget of $2,000 a month, you can try other versions of these platforms.
Shopify’s other plans (‘Shopify Basic,’ Shopify, and ‘Advanced Shopify’ are all significantly cheaper than ‘Shopify Plus’).
The open source Magento (Community Edition) has no license fees, although of course you will still incur development and hosting costs.
Shopify Plus is a hosted platform and Magento will offer 2 options: Magento Commerce Cloud which includes live hosting features and Magento Commerce, where retailers choose their own hosting partner and work online. continue with them.
Shopify Plus Hosting
If you are looking for the cheapest option between Shopify Plus and Magento Commerce, we recommend Shopify Plus. Currently, hosting costs are included in the $2,000 per month fee, and you won’t have to worry about downtime, SSL certificates, PCI compliance, or security patches.
Magento 2 Commerce – Third Party Hosting
If it’s important to you to have a relationship with a hosting expert (some retailers like this, for the flexibility and full control) then you can opt for Magento Commerce. Your hosting company will then bill it separately, usually monthly. An average Magento Commerce retailer can be paid around $1,000 per month. For small and medium-sized retailers, Magento Commerce and self-hosting will cost a similar amount overall to choose for Magento Commerce Cloud. In general, the larger a website is, the cheaper it will be to host by using a third-party Magento hosting provider, rather than opting for the Magento Commerce Cloud.
Consideration 2: Reseller/developer partner
At the time of writing, the number of businesses you have to choose from varies considerably between Shopify and Magento.
Shopify Plus Agency has a total of 60 Shopify Plus partners globally. (12 in the UK, 4 of them in London)
Magento Agency has 256 Solution partners. (44 in the UK, 11 of them are Magento Commerce Cloud experts).
This of course reflects Magento’s longer history in the world market. (Canada is probably the exception because it is considered the home of Shopify.)
If you want you to be able to choose from a wide range of businesses to compare approaches, launch times, pricing, and if you can be based in the UK, then you should choose Magento Commerce as your business solution. his career.
“Community” is an extremely important phrase for Magento and there have been many regular Magento meetings held. These things happen around the world, especially in the US and UK. Shopify Plus meetings are also growing in frequency in the UK and both platforms are gaining ground. pretty solid.
Consideration 3: Sell Online & Offline
Shopify Plus offers offline payments called omni-channel capabilities included in the total monthly cost. This is thanks to Shopify POS (‘Point of Sale’ solution), integration with Shopify’s own card readers, as well as a range of receipt printers, cash drawers and all-in-one point of sale systems. . Shopify also recently announced a series of enhancements to this, including the ability to return online and exchange online in-store, and introduce a solution to manage inventory across multiple locations, with can be a store or a warehouse (in the past, only one inventory location was possible, which meant established retailers had to use more third-party tools than handle the goods directly). inventory via Shopify). These changes are a big step forward for ‘endless aisles’ (the concept of allowing in-store retailers to access your online inventory through kiosks), but the exact date when All of these features being released are unconfirmed.
For retailers looking to synchronize offline and online sales, Magento has 2 options:
The first option is to go with MOM (Magento Order Management) with annual licenses starting at $36k (a huge spend especially for smaller retailers).
The second Magento option is a third party extension. There are several of these available and one of them is the Ebizmarts POS app which is quite popular. The monthly rates are significantly cheaper than Magento order management, but you’ll need to make sure the app and API are up to date and that orders processed on the app need to be returned on the same iPad . You will also be charged per iPad so if you are a retailer with more than a few stores this will add up.
In short, no platform can completely solve the offline/online situation. Large retailers will likely use integrations with their own or other third-party systems. When Shopify’s multi-location tool is active it could potentially help balance the benefits of Shopify Plus, especially since it already includes a royalty fee unlike the cost of MOMs, but beware that Function scrolling can always be delayed.
Consideration 4: Business management and reporting
It is quite common for smaller e-commerce businesses to manage most of their entire business directly through their e-commerce platform – from holding inventory data to products. , sales reports and product performance reports directly through the reporting suite on your platform.
Unfortunately, neither Shopify Plus nor Magento Commerce have a complete set of reports.
The Magento standard report hasn’t changed much since Magento 1 (i.e. in at least 5 years) and that’s a huge missed opportunity.
Magento cannot run a report on something as simple as a best seller category or a transaction based order coupon report, only at the top level is the coupon information collected, for example coupons price XYZ has been used x times over x days.
However, anyone working on Magento 2.2.x (i.e. anyone learning about Magento now) has access to a second set of reports: Advanced Reports. This reporting suite is free and includes minimal setup with no developer required. It can be set up directly through the Magento Dashboard (which has some basic charts but is rarely used in our experience) and is based on Magento BI (Business Intelligence).
Magento BI is a cloud-based subscription service powered by Magento. This was integrated after they acquired a business called RJMetrics (in 2016). Not only can Magento BI report on Magento stats graphically and through a variety of customizable dashboards, but it can also pull in data from other sources, such as Google Analytics, ERP ( Enterprise Resource Planning) or CRM (Customer Relationship Management). Magento BI’s cost is also based on total merchandise value and can set you back anything from $100 to $2,000 per month. The service usually has a developer agency that connects, so even if you take advantage of the free trial of BI, you’ll still have to pay a small fee to make sure it’s all connected correctly. We only recommend signing up for Magento BI if:
1) You do not have access to insights reports from any other source e.g. Power BI or JET Reports
2) You have a big budget
3) Magento’s advanced reporting doesn’t meet your needs.
Shopify Plus Reports has better pricing with 13 detailed sales reports and included in your monthly fee includes information about product type, i.e. category. There’s also a reporting and analytics API if these aren’t enough
Shopify Plus & Magento: Report Summary
In short, while both platforms go a long way to being your sole source of reports, Shopify Plus has a large number of reports available and is free.
Consideration 5: International retail market
In terms of product maintenance, historically this has always been much easier for Magento because Magento has multi-store functionality meaning that multiple stores can be managed from the same admin, e.g. one products are located in one French store, one German store and one Italian store, e-commerce managers can control each product independently where needed, be it product description , size or price. Similarly, you can make global changes without having to update each change individually. Multi-store is not yet available in Shopify Plus and so is still a huge benefit of Magento 2 over the competition.
However, Shopify also announced at Unite this summer that some local currencies will finally be rolling out this year. Up until now, customers could see prices in their own currency using a currency converter, but ultimately they still have to transact in the store’s base currency, which can be confusing are not properly explained and certainly not what the customer actually pays as they depend on the bank’s exchange rate. Only 9 currencies will be launched by the end of the year, so if your top converting country doesn’t fall on this list, you can still wait a while.
Thanks to Magento’s multi-store capabilities, local currencies can be obtained easily, as long as there is a store for each currency. Despite Shopify’s recent announcement, we still recommend Magento 2 because it’s been tested, available now, and unlimited currency selection.
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Consideration 6: Flexibility
Flexibility is one area where Magento Commerce has been successful and Shopify Plus is still lacking. If your business is within the realm of an average e-commerce website, Shopify Plus might be enough for you. On the other hand, if you have specific requirements around product attributes or promotional options, Magento Commerce is the more affordable option.
Example: Cambridge Satchel Company is a UK-based business currently using Shopify Plus. Their main product attributes are color, size, and price, and they have an inventory of only a few hundred products.
Shopify Plus allows customers to showcase those products, take photos, and basic product features. It also allows some extra features like personal initialization etc.
Design Bestseller is a business based in Germany that sells around 80,000 skus across a wide range of products, in a wide range of colors, materials and with a wide range of product options. Each category is organized differently on a product type unit
Magento allows customers to define different types of products with different attributes including other options like buying specific products in small/medium/large size compared to others by length due to customers choose to the exact millimeter and more.
This is a simple example of comparing two retailers, but it illustrates a trend that extends to other areas: The wider or closer your product set is to ‘unique’, the more features your store offers. Your product needs to take into account that Magento Commerce will be even more likely to be a good fit than Shopify.
Consideration 7: Scalability
Scalability is a rather vague term. It can mean high revenue scalability or model scalability to different business needs.
From a revenue standpoint, Magento Commerce would traditionally be seen as the logical option. That’s changed a bit recently with the much-loved sales numbers from Kylie Cosmetics, a Shopify Platform-based beauty brand with an estimated 2017 revenue of $330 million.
Market intelligence tool SimilarWeb cites Kylie Cosmetics’ current traffic of just over 2 million visits per month.
In this and similar cases like Gymshark or Palace Skateboard, there doesn’t seem to be a limit to the revenue or traffic a Shopify store runs.
On the other hand, very few of these examples are very small retailers using Shopify. And the businesses that choose this solution are all leading brands with a limited set of products and product features.
In contrast, Magento is recognized by major research bodies like Gartner as a leader for its ability to execute and fulfill its vision. From this point of view and the aforementioned feature, Magento Commerce offers a greater degree of extensibility to support an expanding e-commerce business.
Consideration 8: The future path
One of the most important considerations when choosing an e-commerce platform is the future path of the business and the platform itself. Shopify Plus licenses tend to have no long strings attached and Magento Commerce’s license term can last for a year, but can also be as long as 5-7 years. With this in mind, it is extremely important to be aware of each person’s condition.
Magento vs Shopify: Brief History
Shopify’s history is pretty simple: Founded in 2004, as a turning point from trying to build an online retail business. The company grew at its lowest rate for several years before becoming the most recognized small business e-commerce platform in the last 6 or 7 years.
Historically, Shopify has focused on the low end of the market, bringing simplicity to small retailers. The current CEO is one of the original founders. The business launched on the New York Stock Exchange in 2015. Shopify Plus launched in 2014, as a white glove solution. At the time, Shopify said that its SME core solution would remain its primary focus. Shopify Plus prices have been going up recently and they have been rapidly aiming to push larger businesses over the past few years and Shopify Plus will probably be the primary solution for large businesses.
Magento has a more complicated past. Launched in 2007 as an alternative to a then-popular platform called osCommerce, it grew in popularity fairly quickly, until the business was bought by Ebay in 2011. Magento moved from the collection. focus on all sizes of e-commerce businesses to more focus on mid-size businesses and above. The company later changed hands twice more and is now owned by Adobe, who completed the acquisition in mid-2018.
Magento 2 Commerce & Shopify Plus: Current Status
Magento had a particularly rough couple of years when they tried to launch Magento 2 about 5 years after it was first announced. The early release of Magento 2 was particularly buggy and the results were extremely bad, which meant that some Magento 1 customers left these platforms for other platforms. Recently, the platform has stabilized and with the acquisition from Adobe it is clear that Magento is in a more secure state.
Both Shopify and Magento are very stable from a financial perspective. Shopify has a history with smaller sites and has stepped up the supply chain over the past few years and is likely to continue to do so. Magento has a recent history with mid-range websites.
Shopify’s growth has accelerated in recent years, while Magento has been beaten down in part by uncertainty. The trend lines on these charts (source: Built), show very close how many sites use each page.
The future of Shopify
Shopify Plus has the potential to further accelerate the supply chain, increasing the sophistication of the platform and the types of e-commerce businesses it serves. Flexibility has increased especially in features around B2B and multinational options. Some functions have specifically reduced access to elements such as the Payments API, indicating that they intend to maintain the current restricted access path to development directly on the platform, while also allowing Enable simple add-ons through the app marketplace.
Future of Magento Commerce
Magento Commerce is now in a much more stable position after the launch of Magento 2, now the platform is owned by Adobe. They have recruited a strong sales team in recent years and are now in a position where it is likely they will integrate with other Adobe features such as Marketing Cloud. On this basis, we anticipate a significant increase in sales, and that – in the next two to three years – they will most likely push their target towards larger businesses than they are now. We believe it is likely that the focus will be more on the Magento Cloud and Adobe’s analytics, personalization, and campaign management tools.
Shopify Plus & Magento 2 Commerce
It’s hard to say that no platform will do everything you need without developer time or included in the license fee. These are the eight criteria we often hear retailers argue about, but there are plenty more, including visual merchandising, CMS capabilities, B2B, and shipping options.
To decide between the two platforms, it would be helpful to make an in-depth list of the functional requirements and use some MoSCoW (Must Have, Should Have, Possible and Don’t) approach to prioritizing needs your own business.
If you have multiple inventory locations, multiple integrations with other systems, or ambitious plans for international expansion, then it’s likely that Magento 2 Commerce will suit you best. If sophisticated reporting is required, your product suite is simple and budget and time are the real constraints. Shopify Plus will be a great fit and will still scale to your needs, especially as more and more features are rolled out making it a more affordable contender compared to Magento 2.
Every business is unique. Coming to an informed decision about which platform to choose is not a straightforward process, but through this guide we strive to provide core guidance in 8 key areas to help you make your choice. Choose that on the basis of where your business is now and what you plan to do for your business.
In case you need further advice on which platform is most suitable, please contact SmartOSC – Magento partner in Vietnam. SmartOSC will help you find the best option for your business.
Article source: https://www.smartosc.com/