Shopify vs Magento
Total Cost of Ownership (TCO) is used by enterprises to assess the direct and indirect costs incurred with a given purchase or platform. Costs are 41% higher on Adobe Commerce (Magento) than on Shopify, on average. Combined with Shopify’s checkout converting 5% better than Adobe’s, it becomes evident that choosing Shopify can save money and increase conversions.
We'll cover the following points in this comparison
1. Platform Fees and Ecommerce Stack Costs
2. Operational Costs
3. Implementation Costs
Platform
Shopify respondents report lower platform costs, thanks to competitive fees and fewer thirdparty application needs. Adobe has a less flexible pricing position and higher costs for their platform, about 41% higher as compared to Shopify.
41%
higher as compared to Shopify.
Operational
Shopify’s operational simplicity on its front and back end operations, leads to lower costs and less developer support. Adobe requires additional infrastructure like hosting and scalable computing, which increases expenses. Maintaining Adobe also demands more internal IT resources for updates and enhancements. They have 24% higher operating costs when compared with Shopify.
24%
higher operating costs when compared with Shopify.
Implementation
Shopify is easier and cheaper to set up, with a user-friendly back-end. Adobe's configuration complexity and integration requirements, such as API gateways and ERP systems, drive up implementation costs and need more internal resources.
42%
Their implementation costs are 42% higher than Shopify's and its easier and faster to launch a storefront on Shopify than it is on Adobe
Conversion
In some TCO calculations, a difference in conversion rates can be considered an “additional cost” because it represents value that businesses would otherwise capture if they were on Shopify. Assuming a 10% margin on goods sold, Shopify’s average 5% higher checkout rate than Adobe’s translates to a roughly 0.5% TCO offset when expressed as a percent of TCO.
5%
higher checkout rate
Conclusion
When comparing Shopify and Adobe Commerce (Magento), Shopify offers a more cost-effective and efficient ecommerce solution. With lower platform fees, reduced operational expenses, simpler implementation, and better conversion rates, Shopify stands out as the preferred choice. Opting for Shopify not only reduces costs but also enhances overall business performance and profitability.