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SHOPIFY PLUS VS ADOBE COMMERCE: KEY DIFFERENCES 2023
Shopify Plus and Adobe Commerce are platforms that mid to large-sized companies consider when it comes to eCommerce development due to the customizability and scalability of the two.
Still, there are some major differences between Shopify Plus and Adobe Commerce that business owners should be aware of before making a start.
Overview
What is Adobe Commerce?
Adobe Commerce (formerly Magento Commerce) is an open-source eCommerce platform for medium, large, and enterprise-level businesses with high growth rates and customization demand. Adobe Commerce offers two versions:
- Adobe Commerce on-premise: a self-hosted version
- Adobe Commerce on-cloud: a hosted version
Both are paid-for versions, which provide unlimited website development and customization opportunities. The difference is the on-premise version doesn’t provide hosting, while the on-cloud does. In addition, the on-cloud version provides a certain level of automatic updates, so the cost is higher compared to Adobe Commerce on-premise. Therefore, you can decide based on your specific needs.
Beyond this, there’s a free version offered, Magento Open Source, which comes with many essential features.
What is Shopify Plus?
This is considered an upgraded version of the standard Shopify plans specifically for mid to large-scale businesses with rapid growth. Due to its nature as a SaaS platform, Shopify Plus is designed to be easy to use, allowing businesses to quickly implement it without the technical skills required.
Relating Article: The Pros and Cons of Shopify Plus
KKey differences between Shopify Plus and Adobe Commerce
Pricing
- Shopify Plus:
- License fee: Start at $2,000/month and the charge will turn into a revenue-based model after you reach $800,000/month in sales. This means you have to pay Shopify Plus 0,25% of your monthly revenue. However, this percentage will not cross $40,000/month or $480,000/year.
- Transaction fee: Credit card processing fee will range between 1,5% to 2,5%/transaction. Third-party payment processing fee like PayPal, 2Checkout, and Skrill is 0,15% on every transaction but if your business uses the Shopify Payment service, this fee is waived.
- Hosting fee: the platform fee you pay to Shopify Plus includes a hosting fee, so you don’t have to pay any extra fee for hosting, maintenance, updates, or security as it is Shopify’s responsibility.
- Development fee: Typically, you can use Shopify’s built-in themes to build your eCommerce website ranging in price from $0 to $180. In reality, you need to seek solutions that maximize the customization and scalability of Shopify Plus. So, the costs, based on your specific requirements, will range from $10,000 to $250,000. To streamline your development cost, you should consider your needs and wants for the eCommerce website.
- Adobe Commerce:
- Platform fee: For the on-premise version, the fee will range from $22,000 to $125,000 per year. For the on-cloud version, the fee is from $40,000 to $190,000 per year.
- Transaction fee: It depends on the payment service providers you intend to use, ranging from around 2,9% per transaction. However, you should contact Adobe for more details.
- Hosting fee: For the on-premise version, you have to find a hosting provider yourself and the fee depends on your provider. For the on-cloud version, the hosting will be provided to you at prices ranging from $500 to $10,000 per month and the fee will vary based on your business scale and customization demand.
Development fee: Building a website on open-source platforms typically incurs higher costs compared to SaaS platforms. Therefore, the development costs with Adobe Commerce are higher than Shopify Plus, ranging from $100,000 to $500,000 per project, but it offers more scalability and custom features.
Customization & Scalability
- Customization:
Adobe Commerce is an open-source platform, meaning developers can access the source code and easily customize it. This allows you to create specific features and custom integrations to meet your needs.
Shopify Plus also offers high customization with a wide range of available themes, plugins, and apps. However, as a SaaS platform, Shopify Plus doesn’t have the same level of customization as Adobe Commerce.
- Scalability:
Both platforms have scalability and can handle huge traffic and transaction volumes. However, Adobe Commerce has higher scalability than Shopify Plus, especially for businesses with large, complex product catalogs or extensive inventory management needs.
The robust Adobe Commerce platform enables businesses to scale easily, handle increased website traffic and achieve high sales volumes. Moreover, Adobe Commerce provides you with a lot of advanced features to manage product catalogs, pricing, and promotions. This way, it benefits large-scale businesses.
In general, Adobe Commerce offers higher customization and scalability compared to Shopify Plus but its development process is complex and requires technical expertise and experience. On the other hand, Shopify Plus is known for its easy-to-use platform, allowing businesses without strong technical skills to quickly deploy their websites.
Multi-store support
The ability to support multiple stores is a crucial factor for many large-scale eCommerce businesses operating in multiple locations when choosing a platform.
Shopify Plus offers up to 9 additional stores to track inventory and fulfill orders in different locations based on the main store, with a maximum of 20 locations. This means you can manage all stores from a single dashboard that contains all user data, staff accounts, sales analytics, etc.
On the contrary, Adobe Commerce allows you to manage an unlimited number of stores on a single admin panel. You can synchronize inventory and share product catalogs among the stores. The platform also allows you to freely make changes at different levels as well as set up ranges to manage product attributes at a local or global level. These features make Adobe Commerce a popular choice for multinational corporations and global B2B, B2C retailers.
Therefore, the choice between Shopify Plus and Adobe Commerce for multi-store support depends on the business model, scale, and specific development needs.
Hỗ trợ triển khai Omnichannel
Adobe Commerce offers two main options for implementing Omnichannel:
- Order management: This helps you manage orders, shipping, returns, and inventory across numerous channels
- Third-party extensions: The platform provides a range of third-party extensions and integrations to implement Omnichannel strategies effectively.
Shopify Plus also supports businesses to implement Omnichannel. One notable feature of Shopify Plus is its robust point-of-sale (POS) system called Shopify POS, which seamlessly integrates sales points across various channels, from online to offline.
In a nutshell, Shopify Plus is for mid to large-sized businesses with rapid growth and a demand for highly customizable and scalable solutions. However, Adobe Commerce offers even more flexibility, scalability, and customization than Shopify Plus. In fact, the more flexible and customizable platform, the more complex and costly the implementation process becomes. As a result, you should consider your business scale and development needs to make the right decision.
Contact or call the SECOMM hotline (02871089908) to get a free consultation.
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ECOMMERCE WEBSITE FOR MOBILE RETAIL WITH MAGENTO
In 2022, the mobile phone retail market is predicted to reach sales figures of up to 1.39 billion units, marking a 3.8% annual increase (according to Trendforce). The Covid pandemic has significantly altered consumer interactions and shopping habits, shifting the purchase of mobile phones from offline to online. Traditional retailers have now caught up with this trend by embracing eCommerce to enhance their competitive edge and sustain growth regardless of the pandemic.
To enter the eCommerce market and seize competitive opportunities, businesses need to identify a suitable eCommerce platform aligned with their business objectives. Apart from popular names like Shopify, BigCommerce, Haravan, and WooCommerce, Magento is recognized as a platform chosen by major players in the mobile phone retail industry in Vietnam, such as CellphoneS, Phong Vũ, and Bạch Long Mobile. So, why is Magento the preferred choice for these businesses?
Advantages of Building a Mobile Phone Retail Website with Magento
Advantages of Building a Mobile Phone Retail Website with Magento
eCommerce Feature System from Basic to Advanced
Basic Features
As a specialized eCommerce platform, Magento naturally offers a full range of basic features such as category management, content management, sales, customer management, marketing, inventory management, as well as reports and analysis. These features allow businesses to easily embark on their eCommerce journey in a short period.
Magento also possesses an ecosystem with many features supporting the development of in-depth mobile phone business systems.
- Category Management: Manage, develop, and control all data and functions related to products, attributes (brand, price, type of phone, performance, memory, special features, design, screen, size, etc.), pricing system, inventory, images, and videos to maintain efficient business operations.
- Content Management: Develop and refine necessary content and detailed information about products, such as place of origin, brand, instructional videos, and product reviews.
- Marketing Management: Deploy and manage various marketing campaigns according to seasons (Tet, Black Friday, Cyber Monday, Christmas, Flash Sale), and special occasions (launch of new products by Samsung, Apple, Oppo, etc.). These marketing campaigns need to be continuously updated as the product lifecycle shortens, and mobile phone products are constantly innovated.
- Sales Management: Easily set up and operate proactive sales processes through various methods such as barcode sales, item code sales, and brand-based sales (iPhone, Samsung, etc.). Businesses can also integrate customer management to ensure timely warranty service for purchased products.
- Customer Management: Manage comprehensive information about customers to improve marketing efficiency, enhance the shopping experience, and elevate customer satisfaction. This information helps create suitable customer care policies, such as value-added order discounts and gift appreciation for loyal customers, turning ordinary customers into loyal ones.
- Inventory Management: Proactively control the number of phones in each warehouse (by product group, brand, item code, and country of origin), making it easy to supply accurate and fast goods.
- System Management: Administers administrative privileges, uses tools for regular management, and maintenance, and supports the system to operate stably and efficiently.
- Reporting & Analytics: Effectively analyze data after marketing campaigns or accumulate sales data day by day through comprehensive and detailed reporting features to improve and enhance business efficiency. Includes Marketing Reports, Sales Reports, Customer Reports, Product Reports, Review Reports, and Performance Reports.
Advanced Features
The Magento platform is known for its advanced features and extensive extensions developed to meet the rapid development of the eCommerce market and the specific requirements of each business. Thousands of advanced functions related to themes, add-ons, products, marketing, payment, shipping, etc., have been built with flexibility and high availability, delivering outstanding results when integrated into systems, meeting every operational need, and supporting the sustainable development of eCommerce for businesses.
Some advanced features for mobile phone retail that Magento supports include:
Flash Sale Feature: a discount mechanism for certain items or products within a specified time. The strategy of appealing to the customer’s psychology of “buy quickly, get a good price” is being effectively applied by many major mobile phone retailers. With Magento, businesses can easily create multiple Flash sales with countdown timers.
Buy Now Pay Later Feature: This is a popular payment method in the international online mobile phone retail industry but is relatively new in the Vietnamese market. After completing the order, customers will receive the product immediately, and the payment will be gradually made over a certain period with low or 0% interest. Breaking down the payment into instalments will reduce financial pressure on users when buying high-value products such as mobile phones, boosting the number of orders and revenue for businesses.
Advanced SEO Feature: In addition to supporting keywords, meta tags, descriptions, product titles, and searching for appropriate URLs, the Magento platform also updates ranking factors, provides URL structures, and offers meta deployment options to enhance SEO for eCommerce websites, increasing traffic and competitiveness in the market.
Flexibility in Interface Design
Mobile eCommerce is one of the industries that require an eCommerce website to have a sleek, standardized UI/UX interface with high aesthetics to convey brand and product values, attracting customers to shop within the system. Although Magento does not possess an extensive theme repository like some other platforms, each theme on the platform is meticulously and uniquely designed.
Businesses can choose to use these themes in the initial stages to save costs. To further refine the interface to better align with the brand’s positioning, businesses can customize based on the chosen theme or design a unique interface. However, this process will require more investment in terms of cost and time.
High Scalability
Magento supports stable system operation even when the website experiences a gradual increase in traffic over time or a sudden surge during business campaigns, with the capability to handle up to 500,000 products and thousands of transactions within an hour.
Furthermore, Magento also supports business expansion into multiple websites for various countries, all manageable on the same “dashboard.” This means that businesses can access and manage data for multiple websites/stores simultaneously using a centralized Magento system. With built-in language conversion support, businesses can build an eCommerce system with content and language tailored to diverse global customer demographics.
Moreover, the Magento system allows for easy conversion of currencies, supporting businesses in expanding their market presence across multiple countries and providing customers with a seamless transaction experience for optimal shopping.
Easy Integration Capability
Diverse Payment and Delivery Integration
In the eCommerce industry, especially in online mobile retail, having a variety of secure and flexible payment methods is crucial. Common payment methods include card payments (ATM, Visa, Mastercard), e-wallets (Momo, Zalo Pay), payment gateways (OnePay, VNPay, PayPal), cash on delivery (COD), etc. For delivery, Magento seamlessly integrates with various delivery services available both internationally and in Vietnam, such as FedEx, DHL, Giao Hàng Nhanh, Giao Hàng Tiết Kiệm, Viettel Post, along with popular shipment tracking applications. This ensures efficient handling and optimization of delivery processes. Furthermore, businesses can develop and customize new delivery features to align with customer preferences.
Integration with Enterprise Management Systems
Aside from stable system operation during online business, efficiently managing products and orders is a crucial consideration for businesses. Integrating the website with enterprise management systems (ERP, CRM, etc.) minimizes manual operations and automates operational processes, ensuring high accuracy and operational efficiency for business development. Magento is highly compatible with various management software, such as POS (Square), CRM (Salesforce), and ERP (SAP, Oracle, Odoo), making it a preferred choice for many businesses.
Integration with Marketing Software
One of the challenges in online mobile retail is intense competition, making it difficult to attract customers and climb the ranks on search engines. Magento can be seamlessly integrated with various marketing management software, ranging from email marketing tools (Mailchimp) to advertising platforms (Facebook, Google). Having a unified system for all sales channels on Magento enables businesses to easily control and leverage data, seamlessly transitioning business processes from offline to online. Consequently, businesses can develop and manage corresponding multichannel marketing strategies to personalize the customer experience and optimize eCommerce business.
Challenges in Implementing eCommerce on the Magento Platform
High Development Costs
Despite Magento being highly rated for its eCommerce features and performance, cost remains a significant barrier, preventing businesses from choosing the Magento platform for building e-commerce websites. It is estimated that a well-developed and efficient system on the open-source Magento e-commerce platform typically incurs deployment costs ranging from $10,000 to $250,000 USD.
Usage Cost Table for the First Year of Three Magento Versions:
- Magento Community: Free
- Magento Enterprise: $22,000 – $125,000
- Magento Enterprise Cloud: $40,000 – $190,000
Extended Development Time
Typically, a complete Magento project requires an implementation time frame of 3-6 months, sometimes extending up to a year. One reason for the prolonged development time is the complexity of the system’s functionality, demanding time to build suitable development solutions.
Need for an Experienced Specialized Team
A fully functional and effective Magento website needs to be developed by an experienced team well-versed in Magento to build a comprehensive system and provide suitable solutions for the various long-term business requirements.
In summary, Magento is a comprehensive open-source eCommerce platform, specialized and suitable for various business models in the mobile electronic industry, including B2B, B2C, B2B2C, and D2C. Online mobile retail businesses can fully customize and control the system, from interface to features, providing the best experience for consumers through rich eCommerce features, a diverse ecosystem, and high flexibility and scalability.
However, budgetary constraints, time considerations, and the requirement for a highly skilled team also make it challenging for many businesses to utilize Magento for deploying eCommerce websites.
Contact SECOMM for a free consultation on developing an eCommerce system for mobile retail!
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