Shopify vs Magento 2 for Your E-commerce Business

According to expert opinion, by 2040, more than 95% of all purchases will be made online. The very concept of "electronic commerce" is likely to lose its relevance since no other commerce will be left. And if you take the proper steps today, you'll have more chances to conquer your rightful place in the online shopping environment.

Choosing the right e-commerce solution is not a simple decision, as it's the foundation of your online store. Just like building your dream home, the platform you select will determine the strength and success of your business.

Of course, listing all the available options would take a long time (there are so many of them!). Still, Shopify and Magento 2 are the two leading contenders in the e-commerce arena, each catering to distinct business needs.

OK, what should you pick for e-commerce store development? Shopify vs. Magento 2—let the battle begin!

The Future of Sales: What Should We Expect?

A full e-commerce platform comparison is coming soon; stay tuned, as they say! We don't want to rush, as there is no point in discussing this topic if you don’t understand the very basics. That's why we'll start by clarifying the connection between Shopify, Magento, and other similar solutions and an online store that works for your income and allows you to compete successfully in the market.

We guess it's no secret to you that 2020 was a turning point for eCommerce. The coronavirus and the lockdown it caused resulted in explosive global growth in online sales: 46% compared to 2019. As shoppers became accustomed to online shopping during the pandemic and had no intention of giving it up, the industry continued to proliferate.

To finally convince you how important choosing the right e-commerce platform for building an online store is, we’d like to share a few useful Insider Intelligence predictions with you:

• The global eCommerce market will reach $8.1 trillion by 2026, up from $6 trillion in 2023.
• Today, there are 2.6 billion consumers buying goods and services online, representing a third of the world's population. And this figure continues to grow.
• By 2027, about 25% of all retail purchases will be made online.

We hope we've convinced you that sales of the future will inevitably be online, which is why you should take your niche in the digital world while it's still possible. The best place to start is by selecting a platform that can ensure your e-commerce business growth and become a long-term investment.

Deep Dive: Choosing Your E-commerce Engine

So, Shopify vs. Magento 2, what should it be? To help you make an informed decision, we’d like to provide some statistical facts.

As of 2024, Shopify has more than 3.7 million active stores, which is a lot (the same figure for Magento 2 is lower). But this doesn’t say much because Shopify is for those who strive for a simple solution, don't need advanced customization options, and have no plans for future project scaling. Magento, on the other hand, is the choice of major market players with a long-term perspective and high leadership positions.

Another statistic, provided by Littledata Blog, says that Shopify might have a higher average conversion rate due to its user-friendly approach, while Magento 2 stores offer a higher average order value. Both criteria are extremely important, don't you agree?

The decision is tough, so it’s time to delve deeper into the core functionalities of Shopify and Magento 2 and give you more food for thought.

Let’s start our e-commerce platform comparison with Shopify.

Shopify: Simplicity and Ease of Use

How about creating your online store with the intuitiveness of dragging and dropping building blocks? Sounds pretty good, right? If you think so, then Shopify is what you need.

Shopify is a fully hosted Software-as-a-Service (SaaS) system that requires no extensive technical knowledge or management of your own server environment. For many businesses, this becomes a decisive factor when choosing the right e-commerce platform.

Here are some key benefits of Shopify:

• Minimal technical knowledge required: Shopify is for beginners and business owners who are comfortable with a point-and-click approach.
• Quick setup and launch: Get your online store up and running quickly without extensive technical configuration.
• Easy product management: Add, edit, and manage your products with a user-friendly interface.
• Drag-and-drop customization: Customize your storefront's theme without coding knowledge.
• Automatic software updates: Therefore, you're always equipped with the latest e-commerce features.
• User-friendly interface: The drag-and-drop functionality empowers you to effortlessly build product pages and customize themes to match your brand identity.
• The Shopify Theme Store: As your business evolves, you might require functionalities beyond the scope of pre-built themes. This is where the Shopify App Store comes into play, which resembles an extensive marketplace brimming with apps that extend Shopify's capabilities.

While this app store offers incredible flexibility, it's important to consider the potential cost implications. Adding numerous apps can increase your monthly expenditure, so it's crucial to choose them strategically based on your specific needs.

Magento 2: Unleashing Customization Power

Magento 2 takes a different approach, offering an open-source platform that grants you unparalleled control and flexibility. Unlike Shopify's SaaS model, Magento 2 enables you to self-host your store, giving you complete power over your server environment and data security.

The main secret of this solution lies in its ability to transcend the limitations of pre-built themes and apps. Magento 2 customization capabilities empower you to craft a completely bespoke online store that perfectly reflects your brand vision, caters to your specific customer needs, and ultimately creates a truly unique shopping experience.

Here's why you should choose Magento 2:

• Unmatched design flexibility: Create a completely unique storefront that reflects your brand identity.
• Highly customizable product pages: Tailor product pages to showcase your products in the most compelling way.
• Advanced functionality through integrations: Integrate with a vast array of third-party tools for unique features.
• Top-level Magento 2 scalability: Customize your server environment to accommodate future business growth with a highly scalable Magento 2 nature.
• Enhanced e-commerce security: Take full advantage of Magento 2 security features to ensure robust data protection and industry-standard compliance.
• Marketing and SEO Tools: Enjoy advanced SEO features that provide greater control over search engine optimization and better flexibility for marketing automation.
• The highest speed possible: Use all the tools of Magento 2 to achieve incredible website performance. For example, implement the innovative Hyva Theme to provide a seamless frontend in addition to a fast-running backend.

Magento 2 is a go-to choice for businesses seeking a high degree of scalability and customization. However, this also translates to a more technical platform requiring Magento 2 development expertise to unlock its full potential.

But there is no need to worry: you can always hire professionals to build and maintain your online store while you focus on what matters most—business growth. By the way, we're happy to offer our services! The Laconica team has over 15 years of experience with Magento and Shopify projects.

Cost Considerations - Breaking Down the Numbers

Choosing the right e-commerce platform for building an online store involves not just functionality but also financial considerations. Both Shopify and Magento 2 present distinct cost structures, impacting your initial investment and ongoing expenses.

Let's break down the cost models for each platform:

Shopify: Predictable Monthly Fees

Shopify offers a tiered pricing structure with varying monthly fees. These plans provide access to a core set of features, with higher tiers unlocking additional functionalities and transaction volume limits.

Remember, while Shopify has a vast app store for extending functionalities, these apps require monthly payments. Carefully evaluate the cost-benefit of each application before integrating it into your store.

Magento 2: Upfront Investment and Ongoing Costs

As an open-source platform, Magento 2 eliminates licensing fees. However, there are other costs to consider.

For instance, Magento 2's extensive functionalities require development expertise for customization, theme creation, and integration with third-party tools. So, you'll probably have to hire a professional team to support your online store and keep it running smoothly. As you can imagine, this IT team won't work for free.

Long-Term Investment Perspective:

While Shopify might appear more budget-friendly upfront, especially for smaller businesses, Magento 2's scalability can be a worthwhile investment in the long run.

Remember, the ideal cost model depends on your specific business stage and future vision. By carefully evaluating your budget and long-term goals, you can choose the platform that offers the most cost-effective solution for your online store's success.

Making the Right Choice: A Tailored Approach

There's no one-size-fits-all answer, as both Shopify and Magento 2 excel in different areas. The ideal platform depends on your specific needs, resources, and long-term vision.

Before diving into platform specifics, take a step back and assess your current and future business goals. Here's a simplified breakdown:

Ideal for Shopify:

• Businesses with limited technical expertise seeking a user-friendly platform.
• Companies with a smaller product catalog and straightforward sales approach.
• Businesses prioritizing quick setup and launch with a predictable monthly cost structure.

Ideal for Magento 2:

• Established businesses with a large and complex product catalog requiring extensive customization.
• Companies seeking a high degree of control over design, functionality, and integrations.
• Businesses with a well-defined budget for development resources and long-term growth plans.

The best platform is the one that empowers you to achieve your unique business objectives.

At Laconica, we have expertise in Shopify and Magento 2 development and can be your trusted partner in navigating the ever-evolving eCommerce area. Contact us today, and let's build your e-commerce dream together!