Last Updated on January 21, 2022

In this post, we would be learning how Magento Commerce delivers value over the building blocks of Magento Open Source.

Magento commerce & opensource

Read this Article:

  • If you are using Magento Open Source and wants to know the potential of Magento Commerce over it
  • Need help to choose between OS and Commerce and understand the compromises you have to make if you choose Magento OS
  • Understand what you will lose if you choose to migrate to Magento Open Source

This article has been split up into 3 different sections

  • Understanding the value of Magento Commerce
  • Sales Guidance
  • Appendix with product details

The vision of Magento Commerce

In the upcoming future where the customer experience is paramount, and all retailing commerce would be ecommerce,

Adobe enables the world’s best brands to deliver the world’s best commerce experiences.

The founding principles of Magento are:

  • Open
  • Agile
  • Innovative

It is a global force in commerce with $155B in GMV, Top platform as an internet retailer, Gartner Magic QuadrantTM for Digital Commerce, and largest e-commerce system.

Why Magento is a market leader in ecommerce?

Magento commerce

The leadership position of Magento is due to its open-source availability. It is a strong, and global developer ecosystem which leads to a lower total cost of ownership. It is a lucrative economy for business which results in faster time to market. It can act as an external contribution to the product which leads to rapid innovation and support growth.

Magento Commerce Magento Open-Source
No need for a license Comes with license and support
No customer support Can develop an enterprise-level application
Foundational building block for small businesses Build on the foundational Magento OS for delivering premium capabilities to support growth

Common Myths Related To Magento Open Source

                                     But

  • Open Source is not always a cheaper solution
  • Merchants have more operational burdens in Magento OS in comparison to Magento Commerce

Pain Points in Magento Open Source

1. Limited Growth

  • There are no features that support growth such as content, promotion personalization, and B2B commerce capabilities
  • When traffic on the site increases it can lead to performance issues

2. Long Term Cost

  • Easy to set up in starting but require more customizations and extension in the future
  • Implementing capabilities of Magento Commerce and ongoing maintenance can result in more Time to Market (TTM) and Total cost of ownership (TCO)

3. Operational Inefficiency

  • You will require Magento Developers for daily operations
  • Manual processes for implementing content or changing prices
  • Don’t come with Adobe Sensei powered capabilities

4. Business Risk

  • No technical support for fixing issues or bugs
  • DIY cloud infrastructure with DDoS protection, WAF, and PCI compliance
  • Lacks Business Intelligence

Magento Commerce Abilities

1. Superior Shopping Experiences

Get best level B2B and B2C customer shopping experience which can accelerate the sales on every channel

2. Intelligent Commerce

Optimize Business outcomes, insights, processes, and intelligent experiences.

3. Business Agility

Agile omnichannel commerce which comes with the flexibility to sell & delivery anywhere, and support many different digital business models.

4. Open & Scalable

Highly innovative and grow with lower Total cost of ownership (TCO). It is a highly scalable, reliable, and secure platform.

Magneto Commerce and Magento Open Source Features Comparison

comparison between Magento Commerce vs magento Open Source

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Magento Commerce Magento Open Source
Capabilities
Page Builder
Product Recommendations
Inventory Management
PWA Studio
Instant Purchase
Global Selling
Mobile-Optimized
Customer Segmentation
Visual Merchandising
Loyalty
Business Intelligence
B2B Commerce
Content Staging & Preview
Support
Technical Support
Account Manager
Cloud Onboarding
Magento Services ✓(Paid)
Cloud Platform
Infrastructure
Availability SLA
Content Delivery Network
Image Optimization
Security Tools
Performance Monitoring
Frequent Updates

Also Read: Magento Commerce VS Open Source

What Extra Features You Get with Magento Commerce that Magento Open Source Lag?

Here are some features:

1. Account Management & Support

  • Tech Support for custom engineering
  • Customer Success manager
  • Cloud Onboarding Specialists
  • 3rd party claims protection for copyright infringement or patent

2. Growth Driving Capabilities

  • Smart Product Suggestions
  • Drag-and-drop content management with Page Builder
  • Content Staging, Preview & Scheduling
  • B2B & B2E eC4ommerce strengths
  • Visual Merchandising
  • Upsell, Cross-sell, and advanced segmentation
  • Business Intelligence

3. Scalable Cloud Infrastructure

  • Magento Optimized Cloud Infrastructure
  • Hosting based on AWS or Azure
  • Database Scalability & Split Architecture
  • Fastest CDN
  • Performance Monitoring Tools

4. Platform Security

Open Source Customers which Migrated to Magento Commerce

1. Cabinets.com

Cabinets.comHow Cabinets.com creates Dream Kitchens with Magento Commerce?
With Magento, Cabinets.com feel they’re still out in front in a competitive marketplace, offering customers what they can’t get elsewhere.

  • $1M Sales on Cyber Monday
  • 363K SKUs + Custom Options
  • -8s Avg. Time on Checkout

2. Devlyn

Devlyn OpticalEyewear Retailer Devlyn Achieved their Omnichannel Vision
Learn how Devlyn used Magento to sell glasses online through multiple channels and increased their mobile conversion by over 271%

  • +163% Conversions
  • +271% Mobile Conversions
  • +25% Session Duration

3. DC Thomson

dcthomsonshopWhen DC Thomson, one of the oldest media creators in the UK, upgraded to Magento, they reduced 84 extensions to just 18, introduced personalization, and increased their Average Order Value by 23%.

  • +30% Online Sales
  • +23% Average Order Value
  • +13% Average Page Views

4. Sugarfina

sugarfinaThe Sweet Success of Sugarfina’s Rapid Online Growth
Discover how Magento created an irresistible Valentine’s Day shopping experience for LA’s favourite candy boutique, Sugarfina.

  • 3 Global Websites Run on 1 platform
  • $25 million Revenue
  • +15% Black Friday Sales

Another Example

Industry West: Furniture Retailer

Challenges

  • Require capabilities to enable merchants to manage projects
  • Managing pricing and catalogs for preferred partners
  • Creating advanced customer journeys

Solutions

  • Upgraded from Open Source to Commerce
  • B2B and B2C online sales channels with personalized B2B
  • Customers can select a color palette and add project timelines, then add pieces to their project and easily fill up their cart
  • Set up accounts for preferred partners, who receive discounts and can invite colleagues to the furniture site.

Outcomes

  • 40% increment in the revenue
  • 30% increase in customer phone calls
  • 35% increase in AOV

Commonly Asked Questions

1. Do you use Magento OS and if yes then which version?

If you use Magento 1 then you must immediately migrate to Magento 2. If you are using Magento 2 then you can focus on business growth and long-term goals.
In case you are not using Magento Commerce, then you must focus on steer conversation towards goals, strategic vision, and what is your mission in this business.

2. Do you have any partner or you are handling all development & implementation in-house?

Recommendation by agency will influence your decisions and Open-Source merchants working with non-certified developers will be a challenging opportunity.

3. How do you operate your business?

Identify the aligns of your business with the Magento Commerce strength such:

  • By which channels you sell through?
  • In which demographic regions you operate?
  • Which business model do you operate such as B2B/B2C or Hybrid?

4. What is your aim for your business after 5 years?

Magento Commerce is not a short term solution. It meets your long-term needs. It will prioritize your growth and will help in expanding to new markets.

Magento Commerce & Open-Source Debatable Points

1. Why to pay for Magento Commerce when you can accomplish everything through Magento OS

Ans.   Obstacles you will face while using Magento Open Source:

  • No tech support for any technical issue
  • No dedicated customer manager
  • Manage the hosting infrastructure
  • Doesn’t come with advanced commerce features
  • Database is not scalable

2. Why pay more when I don’t need advanced features?

E-commerce is not a short-term business. Do you feel the same way after a year? If your business will grow so does its requirements which can’t fulfill by Magento Open Source

3. Magento Commerce Cloud is not true cloud service but run in a cloud environment

Magento fully supports cloud deployment and still allow the customer to have control over their customer experience and site performance. Magento Commerce Cloud is a fully hosted platform with optimized, pre-provisioned infrastructure.

4. Magento Upgrades are costly and get worse by the poor quality & poorly supported extensions while with SFDC you will always be in the latest version

The modular approach in Magento allows you to quickly add features & functionalities without waiting for a multi-tenant system. In SFDC the upgrades are made forcefully while in Magento the merchants can choose their upgrades timing. The extensions of Magento are going through different QA stages to ensure compatibility and security.

Brief Overview: Magento Open Source Vs. Magento Commerce

Area of Expertise How Magento OS differs from Magento Commerce Why consider?
Support No Customer support, no customer success manager, or cloud onboarding specialist Merchants need customer support to resolve issues, product roadmaps, or new developments
No Protection against any 3rd party claims for patent or copyright You are on your own for protection against any such claims
Capabilities No Out-of-the-box capabilities Feature gaps require customization, extensions, implementation & maintenance costs with more time-to-market.
No Page Builder You have to rely on developers for changing or editing the site content which in turn makes it difficult to reach to market or business conditions
No Content Staging, Preview & Scheduling IT manual site pushes dependent and QA with no advance scheduling.

Slower approval process as you can’t easily view, edit, and approve changes

No native B2B capabilities B2B features in the site require customization, use of extensions which can increase the maintenance cost. The performance of the site can also suffer.
No Drag & Drop visual merchandising Merchandising in open-source is less intuitive so the merchant can’t optimize and increase the error chance.,
No upsell, cross-sell, segmentation automation Merchants need to use extensions in Open Source for increasing conversion
No Magento Business Intelligence For Business Intelligence you will require 3rd Party Services at an extra cost. Even Google analytics can’t give such Business Intelligence services like Magento BI

Wrapping Up

When you are taking your traditional business online, you can’t suffer to degrade the customer experience or reduced sales through any aspect. Magento Commerce may initially seem expensive in comparison to Magento Open-Source but in the long run, it is much better. At Emizentech, the most reputed Magento Development Company in India, we provide services for both Magento Commerce and Open-Source. Let us know your requirements.

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Author

CTO at Emizentech and a member of the Forbes technology council, Amit Samsukha, is acknowledged by the Indian tech world as an innovator and community builder. He has a well-established vocation with 12+ years of progressive experience in the technology industry. He directs all product initiatives, worldwide sales and marketing, and business enablement. He has spearheaded the journey in the e-commerce landscape for various businesses in India and the U.S.

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