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December 2020

Magento Commerce

Magento Commerce is the paid version of Magento Open Source version. It offers many options, but is pricey. In this blog we list our findings for you.

Pros

The benefits of Magento Commerce:

  • Easy content editing with the drag-and-drop page builder. You can adjust the appearance of your webshop in an instant without having to write any code.
  • Flexible customer segmentation and personalization so that you can give promotions to specific (groups of) customers.
  • Dynamic pricing. With this pricing strategy, you can use all kinds of factors such as current product costs, competition, customer profile and purchase history to find the best price that the customer is willing to pay at any given time.
  • Content staging and preview. In a protected environment you can edit, view, test and change your content before publication on the live server. Check, check, double check ;-)
  • Business to Business package with integrated B2B functionalities such as different catalogs and prices for different customers, quotation function and quick order and check out for large and / or recurring orders (based on sku).
  • Insight into sales data through reports from Magento Business Intelligence (BI).
  • Private sales. With this effective form of customer loyalty, you can invite regular customers to exclusive shopping moments or, for example, give them priority at the sale.
  • Standard functionalities such as in-store credits, rewards points, gift cards and private sales to increase loyalty and encourage repeat purchases.
  • Follow up emails.

Cons

The Cons of Magento Commerce:

  • The price. A license costs roughly between € 20,000 and € 100,000 per year, depending on the annual turnover of your webshop. Not a small thing.
  • Disappointing analyzes and statistics from Magento BI.
  • Support is slower than promised. Since there are still some bugs in the platform, that's a downside.

Commerce vs Open Source

Magento Commerce offers quite a few valuable extra features compared to the free open source version. Magento Commerce is interesting for the larger web shops with an estimated annual turnover of five million euros. However, for most small and medium-sized business retailers, the benefits won't outweigh the costs.

Fortunately, Magento Open Source, both with and without extensions, offers plenty of options to successfully roll out e-commerce activities. Moreover, various extra features can be purchased at a lower price from the more well-known module builders and we can also build them separately for you! Feel free to ask our experienced developers for advice.

Mike 01

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