Magento vs Shopify - which webshop system is better?
- By Erik Holflod Jeppesen
- September 1, 2024
- 6 minutes reading time
When either switching e-commerce systems or launching your first online store, you need to consider several factors, including scalability, price and functionality. Two of the most popular e-commerce platforms on the market are Magento and Shopify.
In this article, we will dive into the comparison between Magento and Shopify and help you figure out which platform best meets your needs. Magento can do something that Shopify cannot - and vice versa.
Magento and Shopify: Statistics
Before we look at the pros and cons of the two systems, it is worth looking at the size of both Shopify and Magento. Shopify has over 4,500,000 online stores in 2024, compared to Magento, which has 140,921 online webshops operating on their platform, but a total of 677,000 if you also count those that redirect.
Shopify: A hosted solution
Shopify is a fully hosted solution, which means that all technical aspects like hosting, security and updates are included. You do not need to be a developer to create your Shopify store - the platform makes it easy to get started with its user-friendly templates.
Shopify is ideal for small to medium-sized businesses, startups, and companies that want to focus on growth rather than technical maintenance.
Advantages of Shopify
- Usability: Shopify is designed so that everyone can use it without technical skills.
- Apps and integrations: Shopify has a large selection of apps,
- Security and stability: The platform offers high-quality hosting and 24/7 support so you are never alone with technical issues.
- Scalability: Shopify works just as well for small webshops as it does for large, growing businesses.
- Shopify Plus: Shopify is known for this solution for large businesses that want an enterprise solution with extra features and customization options.
- SEO: The technical SEO in Shopify works great and Shopify allows you to quickly create redirects if you change the URL or title of a product, category, page or blog post.
Disadvantages of Shopify
- Limited checkout customization: Unless you opt for Shopify Plus, there are limited options to change the checkout process.
- Transaction fees: Shopify charges transaction fees if you are not using Shopify Payments.
Magento: Open Source solution
Magento is an open source solution that gives you complete freedom to customize and control your webshop. However, creating and maintaining a Magento store requires technical skills. Magento is ideal for larger companies that have their own development team or work with an external developer.
Advantages of Magento
- Fully customizable: As an open source platform, Magento provides access to the source code, which makes it possible to make many customizations
- Advanced functionality: Magento is made for larger businesses with complex needs, such as advanced inventory management and scalable solutions.
- No checkout restrictions: Magento allows you to customize all aspects of your online store, including checkout, giving you full control over the user experience.
Disadvantages of Magento
- Complex setup: Magento requires significant technical knowledge and hiring developers for setup and maintenance can be expensive.
- Hosting and security: As an open source solution, you need to find an external host and take care of security and update yourself, which can be a challenge for smaller businesses.
- Higher costs: Although Magento is free to download, the technical costs can add up quickly.
Magento vs Shopify: technology and accessibility
Magento uses PHP, while Shopify uses Liquid as their template language. Magento is fully open source, while Shopify is closed source with parts of the code being locked in place. If you plan to work with an external development team, it is important to understand which language the platform uses, as this will affect how easy it is to find the right skills and the price level for developing and maintaining your online store.
Expenses: Shopify vs Magento
When faced with the choice between Magento and Shopify, it is important to understand that the pricing models are very different. Shopify works as a Software-as-a-Service (SaaS) where you pay a monthly subscription. With Shopify, you are guaranteed a stable platform and dedicated support.
Magento is free on the surface, but requires developers and there are external costs, which can result in significant costs over time.
Shopify's Prices (2024) with Annual Payment:
- Basic Shopify: 29€ (216 DKK / month)
- Shopify: 79€ (590 DKK / month)
- Advanced Shopify: 299€ (2230 DKK / month)
- Shopify Plus: 2,300$ USD (15,300 DKK / month)
Magento costs
As mentioned, Magento requires a separate hosting provider and development hours. Although Magento is free in theory, it can quickly become expensive when you factor in development, hosting and maintenance costs.
Hosting and performance
Shopify is a hosted solution with a built-in CDN (Content Delivery Network), which ensures fast load times and stable operation. Magento, on the other hand, requires you to choose an external host and the performance of your online store will depend on your hosting provider.
Conclusion: Should you choose Magento or Shopify?
Your choice between Magento vs Shopify depends on your needs and goals. Shopify offers a range of features that make running a webshop super easy and efficient compared to a Magento webshop, which can quickly become very complex and expensive to run, whereas Shopify is often cheaper.
If you are a start-up or want an easy solution with minimal maintenance, Shopify is the best choice. However, if you have complex requirements and a team of developers who can handle an open source platform, a Magento solution may be right for you.
When choosing between Shopify or Magento, you should always make a note of your specific needs to better determine the best fit, as the two platforms support different features. Both have successful e-commerce businesses on their resumes, but also with different budgets and needs that can often be difficult to assess from the outside. We get frequently asked questions about Magento and Shopify and our recommendation would also be to consult with several agencies before choosing a platform.