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What is Magento? Should You Pick Magento for Your Business?

Vinh Jacker | 03-27-2024

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Picking the right eCommerce platform is the first thing you do when you want to start selling online. There are many options out there, but if you want a platform that lets you customize how your online store looks and works, Magento is a good choice.

Magento is designed to help businesses grow, and it comes in different versions for small, medium, and big companies. So, exactly what is Magento ecommerce, and how does it work? Let’s unlock this powerful platform for ecommerce success in our analysis below.

What is Magento?

Magento is a platform that uses PHP coding language to help developers build eCommerce websites. It was first launched on March 31, 2008, by a company called Varien, and it’s built using the Zend Framework.

Since then, many businesses, both large and small, have used this open-source platform to set up their online stores. Some notable names include Nike and Samsung.

In 2018, Adobe acquired Magento for $1.68 billion. This acquisition was aimed at strengthening Adobe’s offerings in the realm of commerce. It’s expected to help Magento expand further, particularly in the enterprise market.

In 2020, LitExtension’s data revealed Magento as one of the top three platforms that merchants migrated to, with only a small number opting for other carts. Additionally, Techliance listed Magento among the top 10 leading eCommerce platforms globally for 2021.

Read more: Magento 1 vs Magento 2 Comparisons

What is Magento 2?

Magento 2

Magento 2 is the newer and improved version of Magento 1, boasting several significant enhancements over its predecessor.

Magento 1 faced certain drawbacks like security vulnerabilities, limited payment options, and inadequate support for development. Additionally, it had a steep learning curve, potential performance issues, and lacked features compared to its competitors, particularly in terms of mobile responsiveness.

Magento 2 improves upon Magento 1 in several ways:

  • Updated Technology: Supports newer PHP versions and modern web technologies like CSS3, HTML5, and MySQL.

  • Faster Performance: Offers around 20% faster page load speeds.

  • Mobile Responsive: Ensures optimal functionality across devices.

  • Improved Admin Interface: Enhances user experience, especially for non-technical staff.

  • Simplified Checkout: Reduces checkout stages from six to two for smoother transactions.

Magento 2 offers three distinct editions:

  • Magento 2 Open Source: Formerly known as Community Edition, it’s a free version available for download from the Magento website. Users handle hosting, support, and development costs themselves.

  • Magento 2 Commerce: This premium on-premise option caters to enterprise-level needs with additional features and support. It’s best suited for large businesses with robust financial resources.

  • Magento 2 Commerce Cloud: The most expensive plan, offering features similar to Magento 2 Commerce but eliminating the need for self-hosting. It’s ideal for businesses dealing with high volumes of data and traffic.

The platform was rebuilt based on feedback and objections, resulting in a quicker, safer, and more scalable website.

Key features of Magento

As mentioned earlier, Adobe Commerce stands out from the open-source version by offering extra features such as business intelligence dashboards, advanced marketing tools, and customer segmentation. This version also includes technical support and a dedicated customer success manager.

Now, let’s explore some key features of Magento ecommerce that can benefit your business:

  • Connect multiple channels for customers to shop conveniently.

  • Build mobile-friendly websites.

  • Easily create and publish content using a page builder.

  • Utilize AI for personalized product recommendations based on buyer behavior and trends.

  • Efficiently manage orders and inventory for real-time product availability.

  • Centralize customer accounts with detailed order information.

  • Improve B2B buying with custom catalogs, pricing, quotes, and a self-service portal.

  • Organize and categorize all products effectively.

  • Access automated reports, various data export options, and assign different user roles.

  • Ensure PCI compliance with certified Level 1 Solution Provider status.

  • Offer multiple payment services, including local currencies and various methods like credit cards, PayPal, and Venmo.

These are just a selection of the platform’s features; you can find more on the Adobe Commerce website.

Why use Magento?

Given the abundance of choices, you might wonder, “Why should I opt for Adobe Commerce to create my website?” Here are some advantages and also challenges of adopting this platform for your website.

Benefits of using Magento

One of Magento’s standout features is its ability to be highly flexible and customizable. This means you can tailor your online stores to match your unique branding and requirements, regardless of the type of products or business you have. With Magento, you can easily scale your online stores according to your goals and preferences, making it adaptable to changes as your business grows.

All-in-One Platform

Magento provides everything you need to set up an online store in one convenient platform. You can manage multiple brand accounts through channel partners simultaneously and easily integrate your Magento eCommerce shop with your ERP and CRM systems. This eliminates the need for multiple systems or platforms, streamlining operations and improving efficiency.

All-in-one platform

Easy Integrations

Magento allows seamless integration of third-party add-ons and modules into your online store, offering limitless customization options. You can add various third-party connections like Google Analytics, eBay, PayPal, and more to help with data analysis. The robust integration framework ensures smooth data exchange between your online store and external systems, enabling you to leverage additional tools and technologies for improved performance.

Freedom in Hosting

With Magento, eCommerce businesses have the freedom to choose their preferred hosting platform, offering flexibility in file management and hosting provider selection. This allows businesses to choose a hosting provider that fits their budget, scalability needs, and performance expectations, contributing to overall efficiency.


Magento’s SEO-friendly content management system includes a range of SEO tools such as optimized URLs, sitemaps, layered navigation, meta tags, and more. It keeps up with the latest SEO ranking factors, offering excellent URL structure and meta-implementation options for SEO, along with built-in analytics for tracking web visits.

Efficient Customer Experiences

Magento excels in attracting customers with features like page builder CMS, headless commerce, segmentation, multi-site capabilities, and reference themes for visually appealing and functional website designs. Intelligent searches, layered navigation, and AI-driven product suggestions based on purchasing history enhance the customer experience, increasing satisfaction and loyalty.

Client-Based Catalog Management

Magento allows you to manage millions of products and thousands of categories from a single dashboard. You can create custom catalogs for different client groups or B2B customers, defining unique product offerings, pricing, and discounts. Third-party PIM integrations further enhance tailored experiences and streamline sales processes.

Mobile Responsive

Magento ensures adherence to mobile web design requirements, providing an optimized shopping experience across various screen sizes. With its HTML5 framework, Magento’s community and business editions offer a mobile-friendly experience. Additionally, you can establish a progressive web app (PWA) strategy for a more seamless shopping experience.

Limitations of Magento

Costly to Set Up

One of the main challenges with Magento is its cost. Compared to platforms like Shopify or BigCommerce, Magento is pricey. Even its basic version, Magento Open Source, requires a substantial budget for development, support, maintenance, and extras like extensions if you’re not tech-savvy. If you need more features, you’ll have to pay for licenses, which are based on your store’s earnings. This can strain the finances of smaller businesses.


Magento is powerful but complicated. It has thousands of files and database tables, making it hard to grasp, especially for newcomers. You’ll need advanced skills or professional help to unlock its full potential. If you’re new to online selling and lack technical expertise, Magento might not be the best choice for you.


Setting up and customizing a Magento store takes time due to its intricate structure. You’ll need to configure everything from the storefront to integrating third-party tools. Using Magento development services can speed up the process and ensure quality results.

Limited Hosting Options

Magento requires robust hosting, ruling out cheaper options. You’ll need VPS, cloud, or dedicated servers to handle its large database. This, along with domain registration and SSL certificates, adds to the overall cost of running a Magento store.

Who should choose Magento for their ecommerce business?

For International Businesses

Magento supports international business with built-in features like multi-language and multi-currency support, simplifying transactions across multiple storefronts. Whether you’re a multinational enterprise or planning global expansion, Magento helps achieve your international eCommerce goals.

For International Businesses

For Big and Enterprise-level Businesses

Magento is tailored for large enterprises, offering advanced features and scalability through Magento Commerce and Commerce Cloud plans. Its robust architecture and customization options suit the unique needs of enterprise-level businesses.

For Businesses Needing Customization and Flexibility

Magento provides tools for creating online stores with unique functionality and design. Its modular design allows extensive customization, while high-quality extensions from its partner community enhance scalability.

For Businesses with Extensive Product Catalogs

With robust multi-site and catalog management features, Magento efficiently handles diverse product catalogs, making it ideal for industries with numerous product options like fashion, electronics, and F&B.


In short, Magento offers a versatile eCommerce platform suitable for businesses of all sizes. While it provides numerous benefits such as flexibility and scalability, it also presents challenges like high setup costs. However, for businesses needing international reach, customization, or managing large product catalogs, Magento remains an ideal choice. Overall, Magento empowers businesses to thrive in the competitive eCommerce landscape with its robust features and adaptability.


Hello, I'm the Chief Technology Officer of Mageplaza, and I am thrilled to share my story with you. My deep love and passion for technology have fueled my journey as a professional coder and an ultra-marathon runner. Over the past decade, I have accumulated extensive experience and honed my expertise in PHP development.

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