Magento or Shopify – Which eCommerce Platform best suits your Business?

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As an ERP implementers, we all know that “one size does not fit all”. There is a big range of ERP/accounting solutions from QuickBooks to D365 F&O and SAP each catering to a different segment of the ERP market. The same applies to an eCommerce solution.

Objective:

The objective of today’s blog is to enable the partners to do a basic assessment for the clients interested in integrating ERP with eCommerce, that which of the eCommerce solution is the best fit for their needs.

Magento or Shopify – Which eCommerce Platform best suits your Business?

Market Positioning:

It may be an oversimplification, but, if one has to draw parallels with the ERP world, the difference between Shopify and Magento is like the difference between QuickBooks and Microsoft Dynamics:

  • Shopify is not only economical but also easy to set up and use, is self-hosted, and usually does not always require a professional to set it up. With minimum help, Shopify can be up and running practically in no time.
  • Magento, on the other hand, is more of an Enterprise solution, it takes weeks or months to set up and is hosted by Magento professionals.
Market Share:

Market Share Comparison of eCommerce platform

Shopify has about 6 times bigger install base than Magento. This is very similar to QBO vs Microsoft Dynamics. Though the majority of the Shopify users are smaller size organizations but with a big aspiration to grow. Shopify Plus, the higher version of Shopify (like QuickBooks Enterprise) is being used by some top brands like PepsiCo and Unilever.

On the other hand, Magento is used by market giants, usually the enterprise-level businesses with a high volume of traffic requiring scalable and robust websites which are flexible in terms of design, features, and functionality. Some of the Magento clients include Coke, Ford, Jaguar, Olympus, and Mr. Burger.

 Scalability:

Image Source: https://docs.magento.com/user-guide/stores/stores-all-stores.html

Magento allows the setting up of multiple websites. Also, Each website can have multiple stores and under each store, there can be multiple store views:

  • Multiple websites like for Apparel, Jewelry, Fabric, etc.
  • Under each website, there can be multiple stores in the US, Canada, EU, etc.
  • Under each store, there can be multiple storefronts like English, French, and Spanish.
Customer types and Price Levels:

Magento allows the setting up of different customer groups with their price levels and price breaks. For example, there can be a price for walk-in customers, registered customers, wholesale customers, retail customers, and distributors. Magento will automatically offer the applicable prices to the customers when they log in.

Shipment and Payment Options:

Unlike Magento, Shopify requires basic and regular clients to use Shopify’s shipping carrier and payment gateway. For instance, If the client wants to use the shipping integration with say FedEx, UPS, etc., they have to opt for the higher version. Same way, the Payment Gateway available to regular clients has to be the one provided by Shopify.

Selling in Fractions:

One other major product differentiator between the two solutions is the ability to sell infractions. With Shopify (without the third-party extensions), the client can only sell in whole units. If your client requires selling infractions like 3.25 yards of fabric, then please consider this fact when choosing the eCommerce platform.

Solution Cost:

Shopify starts from $29 a month and goes up to $299 a month. Whereas, Shopify Plus costs a few thousand dollars per month. Moreover, Shopify cost includes hosting, and the client does not need to pay for a separate hosting service.

Magento Open Source is available free of charge. The annual fee for Magento Enterprise is based on the sales volume and can go up to a couple of hundred thousand dollars, a year.

Hosting Options:

Shopify is self-hosted. Clients do not require to host it themselves. On the other hand, Magento is a very big product and requires specialized hosting. Magento hosting is not cheap and costs a lot more than the cost of a monthly subscription for Shopify.

Implementation Cost:

Shopify is very easy to set up and use. In many cases, the business owner can start with the low-cost Shopify and set it up themselves. Furthermore, Shopify offers all the features that a small and medium-size business requires. With the powerful features and the low cost, no wonder why Shopify is the most popular eCommerce solution in the market, today.

Implementation of Magento usually requires professional Magento implementors. Also, the cost of Magento implementation, depending on the complexity of the setup varies from a hundred thousand dollars to about a quarter-million-dollar or more.

So, You want to find more?

We can help you decide the best solution for your client at no charge or obligation. Please feel free to reach out to us. Please visit www.x2xecommerce.com, email us at [email protected], or call us at 877 927 2927

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