Magento Versions and Comparison of Magento Pricing: Which One Should You Choose?

Are you just getting started with Magento? Your future success depends on the decisions you make today.

For newcomers, it can be difficult to understand the differences between Magento versions and pricing. GoMage can help you sort this out. We will answer the most common questions in this article:

  • What versions of Magento should you be looking at?
  • Magento Open Source VS Commerce – What is the difference between paid and free Magento editions?
  • What is Adobe Commerce (Magento) Commerce? How is it different to Magento Commerce Cloud?
  • Which Magento pricing options would be most appropriate for your business?

These questions are partially covered in the video below. Let’s get into the details if you need a better comparison.

Overview of Magento Versions: Magento Commerce Versions vs Open Source Versions

Magento, the most widely used eCommerce platform, has been available for over a decade. There were two editions of Magento: the paid Magento Enterprise edition, and the free Magento Open Source edition (a so-called Magento Community Edition).

Adobe Commerce was officially renamed after the acquisition of Magento Enterprise by Adobe in 2018. It is still called Magento Commerce by some. We will use all of those names in this article for the paid version Magento.

Magento Open Source was also launched under the Adobe umbrella, but it kept its name. It’s still free to use and there is no cost to you.

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Adobe Magento Commerce is Magento Open Source on steroids. The company took the open-source version of Magento Commerce and added some extra features. Adobe Commerce Cloud and Adobe Commerce On-Premise are the two versions of Adobe Commerce. The first version comes with Amazon Web Services hosting. This is not included in the standard Adobe Commerce licence.

There are fundamental differences between Magento Open Source and Adobe Commerce when it comes Magento features.

Page Builder

Magento Page Builder is a popular drag-and-drop tool that allows you to edit and manage the content of your website. This feature will make it easy to edit your website without having to contact developers. Your non-technical team members can use this tool intuitively.

The Magento Page Builder allows users to create pages, add textual information and position many visual elements by simply dragging them onto the page. See more about Page Builder.

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This feature was introduced in 2018 only to Adobe Commerce users, Magento’s paid customers. The company has since added Page Builder to their Magento Open Source version, but only because of its popularity.

This is great news, you might think. We must warn you that Magento Page Builder for Open Source is missing some important content elements like Page Hierarchy, Dynamic blocks. Dynamic blocks are only shown to selected customers, as opposed to static blocks which are visible on the website all the time.

Those who do not have an Adobe Commerce license are also unable to preview or stage content.

Magento B2B Features

Magento is the best platform for launching a website to support your B2B business. Magento B2B features can be used to communicate with clients and sell bulk quantities of different products. You can sell products worldwide using both Magento Open Source or Adobe Commerce.

Magento Commerce offers merchants more B2B tools. This version allows your clients to create company accounts and establish inner team hierarchies. You can assign certain team members with managerial roles, and allow them to approve large orders. Only registered employees can ask for approval.

This feature allows clients to create their own approval process while placing large orders on your site. You can also assign shipping or payment types to each company account.

Adobe Commerce also allows you to place large orders using CSV files and create customer-specific pricing . You can show certain prices to specific customer groups, or you can choose not to display them at all. Customers can instead request quotes and negotiate prices. This communication is vital in B2B sales because it strengthens the connections between buyers and sellers.

Magento Search

Every eCommerce website must have search. It can be a huge problem for both the client and the website. Magento Open Source and Adobe Commerce offer two search options. For someone serious about eCommerce, the choice between these two tools will be easy.

Magento Open Source uses Magento Native Search, also known as Elasticsearch. It is a basic search function that doesn’t offer much speed and requires additional third-party tools such as Algolia or Klevu. And, most importantly, it lacks search flexibility. Magento Native Search will not be able catch typos in search requests and guess what the customer meant when they said “momjwans”. Such search requests will be rejected.

Adobe Commerce comes with the AI-based Live Search that can detect misspellings and do much more. Live Search also offers Synonyms, which predicts customer needs by showing them additional searches based on previous searches and their behavior. Live Search gives you more control over the products you sell. Rate filters allow you to hide non-available products, boost seasonal items, and show customers additional requests based on their past searches.


See also  Overhead Costs

Not sure?
We compared the two types of Magento search, along with Algolia or Klevu. Read more in our previous article Magento search: Which solution to choose in 2022.

Marketing Features

Your marketing efforts will get your business in front of the right audience. This is how they find you out among the many stores on the Internet. You can turn ordinary website visitors into customers by using effective marketing.

Magento Commerce and Magento Open Source can assist you in all your marketing needs. You can set up discount logic, create promotions conditions, and send newsletters with both versions. You can also use SEO best practices. You can easily edit your meta titles or descriptions.

Adobe Commerce offers more marketing tools and goes further. Magento Open Source requires a lot custom coding, as well as the installation of paid extensions.

Adobe Commerce has a reward points system that you can use to create a loyalty program . Customers may earn points that can be used to reward them for transactions. This tool is essential for anyone who wants to establish lasting relationships with customers.

Adobe Commerce can make your store the go-to place for most clients’ shopping needs. It allows them to make gift registry or gift cards for their personal holidays. This results in more people visiting you website.

Another way to build brand loyalty is creating private Sales. Adobe Commerce allows you to make certain sales only available to your chosen customer groups.

Adobe Commerce Cloud vs Adobe Commerce On Premise

Both Adobe Commerce versions have the same features and are customizable. The main difference lies in the hosting. Adobe Commerce Cloud is hosted on Magento’s Amazon Web Services stack. On-premise editions are hosted by the merchant.

For businesses that have a lot of website traffic or plans to grow, both versions will be useful. However, Adobe claims that the Magento Commerce Cloud offers greater flexibility and scalability. It provides 24/7 support, enhanced security and eliminates the need for self-hosting. All maintenance is handled by AWS.

Magento Pricing

Last but not least, Magento eCommerce pricing. You must consider three factors before budgeting for website investment. These are Magento Open Source pricing and Magento commerce pricing. Count in

  • Magento license type (Adobe Open Source/ Adobe Commerce/ Adobe Commerce Cloud).
  • Hosting for your eCommerce store
  • You may also need extensions or themes from third parties
  • Agency fees or freelancers’ rates

Annual Magento Enterprise pricing starts from $22,000 and can go up to $125,000. Magento Cloud pricing ranges from $40,000 to $190,000. What can you do to find out where your company falls within this range? Magento Cloud pricing and Magento Enterprise edition pricing are based on your company’s revenues. If it is less than $1M, you can lean towards Magento Cloud pricing, but if it is more than $25M, you can lean toward Magento Cloud pricing.

Magento Open Source license can be used for free but it will require more extensions budget because it does not include many tools that are part of Magento Enterprise pricing plan.

No matter what license you choose, when calculating Magento eCommerce pricing you’ll need to account fees for custom development services. Magento development costs start at $15 an hour and can go up to $200 depending upon the developer’s location, experience, and expertise. Either a freelancer or an agency can be hired. The choice you make will impact your Magento eCommerce pricing in different ways. Agency rates are usually higher. Their inner working process is well-established, they have a variety of expertise, and are fully responsible for the project.

You can find out more about hiring a Magento developer by visiting our guide. It includes detailed pricing information and other important points.

Use this table to calculate Magento Commerce and Magento Open Source prices.


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Final Verdict: Magento Commerce or Open Source Versions

Your eCommerce requirements will determine which Magento Commerce Cloud, Magento Open Source or Adobe Commerce to choose from. While Magento Commerce Cloud is affordable for some, others may be more concerned about marketing and search tools.

If you value the latter, Adobe Commerce and Magento paid, as well as the more advanced tools, will be useful. It will allow you to build strong relationships with customers, and will also help you spend less time developing and maintaining it. The free license provides all basic eCommerce functionality and options. You can also create a unique and custom experience with plugins and additional development.

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