Magento 2 remains one of the leading eCommerce platforms for medium and big sellers and manufacturers as proved by Gartner’s Magic Quadrant for Digital Commerce. The platform is cost-optimal for developing reliable retail software that helps you sell more on a grand scale in both B2C and B2B segments.

However, Magento Open Source, Magento Commerce, and Commerce Cloud aren’t equal as each solution is tailored to different demands.

In this article, we summarize the differences between Magento’s products to help you decide on the most relevant solution for your business.

Magento Open Source

Previously known as Community Edition, Magento 2 Open Source is a free self-hosted eCommerce platform. Self-hosted means that you will be responsible for establishing a network and server for your retail software.

  • Magento Open Source offers a basic toolkit for building an online store. It includes the following features:
  • Integrated checkout, payment, and shipment
  • Mobile optimized shopping
  • Global selling
  • Catalog management
  • Access to additional functionality via the app marketplace
  • Instant purchase
  • Site search

It may seem like a lot, but the toolkit provides a bare-bones eCommerce functionality. Out of 16 features listed for Magento Commerce, only 7 are included in Magento Open Source. It lacks some essentials that are vital for growing and closely monitoring your online business.

As Magento itself masterfully puts it, ‘“Free, but at what cost?”

An Open Source solution may be great for getting acquainted with the platform or building a small online shop. However, medium and big retailers and manufacturers won’t find Open Source a sufficient option.

Not to say that it’s impossible to build a successful business with Magento Open Source. With an experienced tech team, you will have a nice shot at developing a reliable B2C online shop.

Nonetheless, the amount of effort and the number of potential risks are significantly higher than during Magento Commerce development.

It’s also important to note that unlike Magento Commerce, Magento Open Source does not include customer support.

Magento Commerce

Previously known as Enterprise Edition, Magento 2 Commerce comes with plenty of additional features on top of the Magento Open Source functionality, such as

  • Business Intelligence Dashboards
  • B2B Functionality
  • Advanced Marketing Tools
  • Content Staging and Preview
  • Customer Loyalty Tools
  • WYSIWYG Page Builder
  • Visual Merchandising
  • Product Recommendations
  • Customer Segmentation

These features present the golden standard of modern eCommerce. For example, it’s difficult to imagine a successful online shop that does not have a product recommendation engine or customer loyalty tools.

ai-driven product recommendation engine

And even though all the features are crucial, the first three are particularly interesting and important for medium and big-sized businesses aimed at growth and efficient digital expansion.

Business intelligence dashboards grant a heap of insightful data and statistics regarding sales and customer behavior. Such information is essential for the proper strategic development of a company as it helps to make informed decisions and business development course corrections.

B2B functionality is essential for businesses that want to expand to a new niche. Moreover, unlike Magento Open Source, Magento Commerce offers a seamless blend of B2B and B2C functionality. You can manage both B2B and B2C online stores on one Magneto instance. It’s convenient, useful, and quite unique for eCommerce platforms.

Another important benefit of Magento Commerce is the availability of tech support. You can submit support tickets, and expect timely professional help from Magento itself. In addition, the platform provides access to quick-built express packages, which are “special design and implementation packages for businesses to go live quickly and cost-effectively.”

Price for Magento Commerce starts at $1500/month if paid annually, and grows as your income does. Nonetheless, the price is well-justified considering the out-of-the-box features that Commerce grants as well as the increased potential for business growth. For example, “Norwegian retailer Get Inspired sees 30% growth YoY after migrating to Magento 2.

Magento Commerce Cloud

Previously known as Enterprise Cloud, Magento Commerce Cloud offers the functionality of Commerce with cloud infrastructure hosting. Besides scalability and enhanced security, the solution offers rapid development and continuous deployment processes.

In addition to the features of Commerce, Magento Commerce Cloud offers

  • Cloud Onboarding Support
  • Global Availability
  • Cloud availability SLA up to 99.99%
  • Fast Page Loading with Content Delivery Network (CDN)
  • Performance Monitoring Tools
  • Web Application Firewall
  • Enhanced Security with Fastly WAF and DDoS services
  • PCI Compliance
  • Easy deployment
  • Streamlined updates and testing

Magento Open Source vs Magento Commerce

With the extensive set of features and the ability to adjust everything down to the tiniest details, Magento stands out as an ultimate eCommerce platform for custom retail software. Magento Open Source, Commerce, and Commerce Cloud cover all the demands of retailers and manufacturers.

Which eCommerce Integration Approach is Right for Your Business

If you don’t want to invest in Magento as of yet or simply require the bare-bones functionality, Magento Open Source will do the job. However, if you present a medium or a big-sized retail business that wants to quickly expand its digital operations, Magento Commerce is a bang for your buck. Finally, if you’re interested in the power of the cloud on top of Commerce capabilities, you can choose Magento Commerce Cloud.

Speaking from experience, online store development supported by the power of Magento is a straightforward task. If you happen to lack the last piece of the puzzle — an experienced tech team, we can help you. For 10 years now, we’ve been developing software for international retailers. Feel free to get in touch.