Migrating your commerce store to a new platform isn’t just about the tech upgrades. It goes beyond that!
It’s a strategic move that will either set you up for success or a severe downfall. Naturally, we understand the hesitation merchants have while choosing a new platform and we also realize that this process can feel overwhelming.
The Real Talk: What’s stopping you?
However, the real challenge isn’t the process. It’s the uncertainty.
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Will the platform integrate seamlessly?
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Will it truly support business growth?
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Will it help me scale further?
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How much will it cost me?
In 2024, Shopify experienced a growth rate of approximately 20%, nearly three times the global eCommerce growth rate of 8.4%, with Shopify Plus averaging a remarkable 126% year-over-year increase. In contrast, since 2018, Adobe Commerce (Magento’s) market share has grown by 300%, with a 5.9% increase in the number of Adobe Commerce (Magento) stores in Q4 2023 compared to Q3 and a 25% year-over-year rise in Q2 2024.
Those numbers are great but can increase the confusion. In this article, we’ll take a look at the Total Cost of Ownership (TCO) when it comes to choosing a platform between Shopify Plus or Adobe Commerce (Magento)
The Real Talk: Why does TCO matter?
A lower TCO helps cut costs, which will always stand true. However, it goes beyond that. It helps with maximizing resources for strategic growth, innovation, and long-term profitability. The choice of platform impacts everything from implementation to operations, maintenance, and ultimately, your future scalability. According to Ambab, to effectively calculate TCO, you need to take into account the following:
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License
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Hosting
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Extensions
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Third-party Services
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Maintenance and Support
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Features Development
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Platform Upgrades and more
While both Shopify Plus and Adobe Commerce (Magento) have their strengths, let’s put the hard facts on the table for you to decide on the one that truly aligns with your goals.
On average, Shopify’s TCO is up to 36% better than its competitors and 29% better than Adobe Commerce (Magento). With over 60,268 websites on Shopify Plus and 128,864 on Adobe Commerce (Magento), let’s ask the real question:
The Real Talk: What do you need to analyze?
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Platform Fees and Licensing Costs
Shopify Plus follows a transparent pricing model that includes hosting, security, and essential features. In fact, Shopify users reported the lowest platform costs on average, 23% lower than competitors, with Adobe Commerce users experiencing 42% higher costs on average due to less flexible pricing.
Shopify Plus follows a transparent pricing model, starting at a flat rate of ₹1,90,000 per month for a 1-year term or ₹1,75,000 per month for a 3-year term, with a variable platform fee for complex business structures. This predictable pricing allows enterprises to forecast expenses accurately.
With Shopify Plus, businesses also gain access to powerful tools, including:
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B2B on Shopify
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Headless commerce
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Shopify POS Pro
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Checkout extensibility
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ShopifyQL Notebooks
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Shopify Functions
Magento, on the other hand, has a more complex pricing model based on annual Gross Merchandise Value (GMV) and Average Order Value (AOV). Adobe Commerce (Magento) offers two basic packages, Adobe Commerce Pro and Managed Services. According to Litextension, the total pricing can range from 1,22,000 to 4,50,000/year, based on the workload and customizations. Magento Open Source is free but comes with significant hidden costs for hosting, development, and maintenance.
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Implementation and Setup Costs
Shopify Plus offers a quicker, more streamlined setup process, with implementation timelines typically ranging from a few weeks to a couple of months. Many businesses opt for Shopify’s in-house tools and pre-built themes, which minimize initial development costs. On average, Shopify’s implementation costs are 33% better than other platforms while Adobe Commerce (Magento) is 42% higher than Shopify.
Adobe Commerce (Magento), however, requires extensive custom development, which can take several months. On average, businesses can expect to invest between $40,000 and $250,000 for a comprehensive Adobe Commerce (Magento) implementation with additional costs often recurring for specialized developers.
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Operational and Support Costs
Shopify Plus offers a fully hosted SaaS solution, as part of its monthly subscription, covering hosting, security, and updates. Businesses don’t need to worry about server maintenance, PCI compliance, or uptime, as Shopify manages these aspects. Shopify’s operating costs are 19% better than other platforms while Adobe Commerce (Magento) is 24% higher than Shopify.
With Adobe Commerce (Magento), operational costs can be significantly higher. Businesses must handle their own hosting, security patches, and performance optimization. On average, operational and support costs on Adobe Commerce are 24% higher than on Shopify. This is largely due to Adobe’s complex legacy commerce platform, which often requires more internal IT resources or external partners for ongoing updates and enhancements.
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Third-Party Integrations and Ecosystem
Shopify Plus has a vast app ecosystem with thousands of plug-and-play integrations, allowing merchants to extend functionality easily. There are 9701 apps on the Shopify app store and 40.52% of Shopify apps offer at least one free plan or free trial. This flexibility enables businesses to tailor their platforms to specific needs efficiently.
Adobe Commerce (Magento) does not provide specialized apps. However, with many third-party extensions accessible, there is also an additional cost required for development work. In fact, around 1365 vendors have contributed towards 5,731 Magento extensions in the Magento App Store.
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Scalability and Performance
Shopify Plus is a fully hosted SaaS solution, offering automatic scaling during high-traffic periods without merchants needing to manage infrastructure. Shopify Plus’s bandwidth ensures about 99% uptime and integrates seamlessly with existing tech stacks. This is ideal for growing businesses that require reliability without the burden of performance tuning.
Adobe Commerce (Magento), being self-hosted, requires dedicated server resources and performance optimization. High-traffic stores may need cloud hosting solutions like AWS or dedicated Adobe Commerce (Magento) hosting providers. Businesses must also invest in caching solutions, CDN services, and database optimizations to maintain site speed and uptime.
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Maintenance and Upgrade Costs
Shopify Plus automatically manages updates, security patches, and compliance requirements. This reduces the burden on internal IT teams and eliminates unexpected expenses related to system upgrades.
Adobe Commerce (Magento) requires manual upgrades, which can be complex and costly. According to Magestore, the cost of maintenance on Magento can be divided into several categories. Additionally, security patches and bug fixes need to be applied regularly, which can further increase long-term costs.
The Real Talk: Which one will make the cut?
Both Shopify Plus and Adobe Commerce (Magento) are platforms many enterprise merchants often choose between, however, when it comes to the critical pointer of TCO, Shopify Plus always takes the lead. With its cost-effective approach, it is often the go-to for businesses with a stronger focus on maximizing operations. Add to it its predictable pricing, lower implementation and maintenance costs, extensive ecosystem, and fully managed infrastructure, and Shopify Plus minimizes financial unpredictability while maximizing business potential.
In contrast, Adobe Commerce's (Magento) open-source flexibility makes it a strong contender for businesses requiring highly customized experiences, but this often comes at the cost of higher maintenance, operational complexity, and unpredictable long-term expenses.
At the end of the day, your choice depends on your store’s unique requirements.
If you’re still confused, our team of experts can help you choose the correct platform.
