15 Min

Magento Community vs. Magento Enterprise: Which One is Right for Your Business?

Written by Jigar Shah

Sep 20, 2024

Magento Community vs. Magento Enterprise: Which One is Right for Your Business?

Summary :

Should you choose Magento Community Edition or Magento 3 Enterprise Edition? Most entrepreneurs face this dilemma when building an online store. In this blog post, we compare these two editions, their features, and critical differences to help you make an informed decision.

There’s no doubt that digitalization has revolutionized the world completely and has one of the biggest impacts on shopping. Now, online shopping has become the biggest market size and affects the brick-and-mortar businesses.

As per the stats, global digital commerce retail sales are expected to hit $8.5 trillion by 2026. It clearly shows how big the online shopping market has become and keeps going forward with growing demand.

Especially after the pandemic, online shopping has become an integral part of shoppers’ lives. Many local stores shut down during the pandemic, while some stores consider this to be a first-mover advantage, shifting their business online and running an online store and getting huge success. However, many local store owners still need to know why their business needs to go online.

Did you know? Almost 90% of consumers are using the Internet to search for stores online, and if your store is not showing up, then there’s a huge business loss to not going online. Still, if this fact is not enough, then keep reading.

In this article, we have handpicked the top 10 reasons why your local store needs to go online immediately and how it will transform your business.

Introduction

Businesses that aim for high performance and efficiency can benefit immensely from a tailored Magento development approach. But what’s even more important is choosing the right Magento version.

While Magento Community is free and has just enough features to run an ecommerce store smoothly, it is unsuitable for a growing business. Then there is the paid version–Magento Enterprise. It coConclusionmes with diverse features and capabilities suitable for enterprise ecommerce stores.

But how do you choose one over the other? What are their differences and benefits? Let’s find out in this blog post.

What Is Magento Community Edition?: An Overview

Magento Community Edition is the free, open-source version of the Magento ecommerce platform offered by Adobe.

The version has recently been renamed Magento 2 Open Source. Although the platform comes with a range of features, they are very limited. However, don’t let the limitations of the open-source version fool you. Any Magento 2 development agency can customize it to meet your specific ecommerce needs.

Magento CE is also suitable for small and upstarts taking the first steps into the world of ecommerce business.

Key features and benefits of Magento 2 Open Source

Here are a few top features and benefits an ecommerce business can enjoy with Magento 2 Open Source.

  1. Basic features like shopping carts, product segmentation, currency exchange, etc.
  2. A score of tools for marketing, order management, reporting, product management, etc.
  3. Transform your mobile app built on Magento CE into a Progressive Web App for better performance.
  4. Customize the store with additional features and capabilities you need with the help of a Magento 2 developer.

Also Read:

Add custom block in cart summary on checkout and cart page in Magento 2

What is Magento Enterprise Edition?: An Overview

Magento Enterprise is the paid version of the ecommerce platform offered by Adobe. It is also called Adobe Commerce.

It comes with a range of features you need to start, run, manage, and grow an ecommerce store. The best part of this edition is that it is suitable for large ecommerce businesses and stores.

Magento Enterprise also brings you all the capabilities your store needs to attract and manage customers. It helps you improve sales and generate reports for data-driven decision-making.

 

Key features and benefits of Magento Enterprise

Let’s check out a few key features and benefits that Magento Enterprise brings its users.

  1. Create AI-driven content personalized for your users to enhance user experience and conversion rates.
  2. Utilize Adobe Commerce data and AI-driven merchandising for personalized purchase journeys.
  3. Cater to customers from diverse traffic sources using omnichannel personalization for higher conversion.
  4. Easily integrate apps and extensions to your ecommerce store to improve your Magento 2 store’s performance.

Key Differences Between Magento Community and Enterprise

We hope that you have a fairly strong idea of what Magento Community and Enterprise versions are.

In this section, let’s look at the core differences between these two.

1. Cost

The most glaring difference between these two is the cost. While Magento Open Source is free to use, Magento Commerce requires a licensing fee. Although a free ecommerce platform may have a nice ring to it, there are several limitations to the free version. However, you can hire a Magento 2 development company to build custom ecommerce stores for your business.

At the same time, Magento Commerce is a beast in terms of features, benefits, and performance. And yes, it all comes at a price. These features and benefits are worth every penny you invest.

The Magento Commerce licensing fee also depends on the store’s revenue. Here is a breakdown of the licensing fee and revenue.

Now, if you are planning to build a Magento store, remember that the cost of developing a Magento 2 ecommerce store includes various other elements. Web design and development, domain name, SSL, hosting, and third-party extensions also contribute to the overall cost in addition to the Magento Commerce licensing fee.

2. Features

Another area where Magento Open Source and Magento Commerce significantly differ is the features they offer. The open-source version only offers basic features that may be sufficient for a small ecommerce store or upstart. 

Let’s look at the features of Magento Community Edition first.

  • Magento CE offers basic features to improve your site’s search engine visibility. It lets you add sitemaps and customize URLs and meta details, like tiles and descriptions.
  • Run promotions on the platform using various pricing rules and conditions to make the most of festival opportunities.
  • Use free shipping options available on the free version to ship products for free and enhance customer satisfaction and sales.
  • Bundle products together on the Magento store based on user behavior, purchasing behavior, etc., to increase the overall cart value for increased revenue.

However, the enterprise edition can take your store to the next level with an extensive list of features exclusive to paid members.

  • Extensive SEO features to customize metal details, URLs, and sitemap. You can also manage indexing, optimize navigation, add canonical tags, and more with Magento 2 Commerce.
  • Use Magento analytics to create personalized shopping experiences for your visitors and understand user behavior, trends, etc.
  • Cross-sell and upsell related products to your customers by creating product relation rules to improve the cart value and revenue.
  • Encourage customers to continue their shopping with the help of persistent shopping which lets customers pick from where they left.

Set up reminders with automated emails for abandoned carts, offer personalized discounts and offers, order follow-ups, etc.

3. Security

For an ecommerce store, security is among the most crucial elements. It is something you must never compromise on.

When it comes to security, the Magento Community Edition drops the ball royally. It is not compliant with PCI standards and does not allow credit card tokenization capability. Using third-party apps can help you resolve most of these issues, but all these vulnerabilities make it a less appealing option for stores. 

On the other hand, Magento Enterprise Edition comes with a plethora of security features and protocols. It offers in-built payment gateways, like CyberSource, Paypal, WorldPay, etc., assuring secure online payments.

Apart from this, Adobe Commerce also offers regular security updates, newer features, and testing to keep the platform secure.

4. Performance and Scalability

The enterprise edition wins without a challenge in terms of performance and scalability.

While the open-source platform offers basic functions and performance, it cannot meet the growing challenges of a large business. Scaling a business using Magento CE is beyond impossible.

This is where Magento 2 Enterprise Edition can make all the difference. We can say that the platform is designed for performance and growth. You can ensure the best user experience across devices no matter how many users access the store.

In addition, you can also expand the store by adding new capabilities and functionalities as you grow.

And you can scale your store without any hassles or development headaches.

Also Read:

Why Should You Migrate Your eCommerce Store to Magento?

When to Choose Magento Community?

Go for the Magento Community Edition:

  1. When you have limited budgets and are looking to launch an eCommerce store without licensing fees.
  2. If you are a business that wants access to a large community of developers for support, extensions, and continuous improvement.
  3. When you need extensive customization and have access to developers to create tailored solutions.
  4. If you are a business that values an open-source platform that allows full control over the codebase and integrations.

When to Choose Magento Enterprise?

Go for the Magento Enterprise Edition:

  1. When you are a large business with high traffic, complex needs, and the resources to invest in a premium solution.
  2. If having dedicated customer support and faster issue resolution is critical to your business operations, 
  3. When you need enterprise-level security, PCI compliance, and advanced data and privacy protection capabilities.
  4. If you need extensive customization and enterprise-grade features like loyalty programs, customer segmentation, and marketing tools.

Conclusion

The decision to pick the right Magento version is crucial for the growth and success of an online store. Before finalizing a version, look at your business goals and objectives to understand what version will serve you better. Understand your store’s challenges and what you want the ecommerce platform to help you with. Take your time and talk to similar businesses, as well.

You can also hire Magento experts to help you make the decision and develop your store. And if you are looking for a reliable Magento development agency, Dolphin Web Solutions is a great choice.

Contact us to discuss your project.

Jigar Shah

Author

Jigar Shah leads the operations of Dolphin Web Solution as the Chief Operating Officer(COO). His expertise extends to various aspects of the tech industry, including strategic planning, project management, and innovation implementation. He has consistently delivered results and optimized internal processes for maximum efficiency. Beyond his professional accomplishments, he is also passionate about writing, reading and playing chess.

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