Magento Open Source Vs Magento Commerce - Which Fits Your Business?

Ali Akram
Magento Open Source and Magento CommerceMagento

Magento is among the world's most popular e-commerce platforms. Enterprises, large and small, have entrusted this platform to build their online stores on it. It's available in 2 editions, Magento Open Source and Magento Commerce. To decide on an edition for their business, owners must dig deep into it. Understand this need, we've prepared an in-depth guide to explain the aspects of the 2 Magento editions.

What Are Magento Open Source and Magento Commerce?

Magento Open Source

Magento Open Source is the free Magento edition. So anyone can download, configure and start using it. Furthermore, users can customize the software to match their requirements.

This edition comes with essential e-commerce features that let startup, small and medium businesses operate and later expand their stores quickly.

Magento Commerce

The Magento Commerce Edition is much more than just a licensed version of Magento Open Source. Despite being based on the same code stack, the Magento Commerce platform is typically used by larger businesses.

In addition, businesses with higher consumer traffic throughputs, more extensive product catalogs, and more complicated business models prefer to use Magento Commerce.

Comparison of Magento Open Source & Magento Commerce?


When it comes to choosing between the two editions of Magento, most retailers consider the price. While Magento Open Source is free, Magento Commerce costs between $22,000 and $125,000 each year (the fee depends on the additional features included).


Magento Open Source is a self-hosted version. You can host it on your computer or hire a server from a hosting company. For On-premise hosting, it may endanger your company's scalability. On the other hand, for selecting a hosting provider for a Magento Open Source, you should consider memory limits and any other server configuration.

On-premise and cloud-based hosting are available for Magento Commerce. Magento Commerce Cloud is hosted on Amazon Web Services and can handle traffic spikes during peak seasons. Cloud hosting is a popular alternative among e-retailers looking to expand their operations.


Magento Open Source includes the essential features that an online merchant would require. For example, crucial features of this edition are Catalog Management, Marketing, Promotions, Customer Accounts, Integrated Checkout, Payment, and Shipping.

On the other hand, Magento Commerce expands on the feature mentioned above set by adding new features, such as Page builder, enhanced marketing tools, content staging, and product recommendations.

Although the two editions have the same essential functionality, Magento Commerce gives the business more power and flexibility.

Business Scalability

Magento Open Source has limited database scalability. If your website's sales or traffic outgrows the platform, you'll either need to upgrade to Magento Commerce or relocate to another e-commerce platform.

Magento Open Source also offers limited multilingual functionality. Therefore, if you want to sell products globally, you'll need to install additional extensions and language packs.

Magento Commerce provides a split database performance option, which allows for greater scalability. Specifically, this edition uses three separate master databases to manage different functional parts of the Magento shop, such as website checkouts, order management activities, merchandising, etc.


Basic security measures are included in all Magento editions, including Magento Open Source, such as Captcha protection, two-factor authentication, and substantial password restrictions.

For Magento Open Source, you'll have to use a third-party payment method that sends you to another site to complete the transaction (such as PayPal or or a SaaS PCI-compliant payment method (CRE Secure). Magento Open Source, in any case, necessitates the use of an IT team for support and maintenance.

On the other hand, Magento Commerce comes with more advanced security features out of the box. This edition appears to be a more secure option, with a shared responsibility security approach adding an extra degree of protection.

Which Magento Edition is right for your business?

Your budget and ambitions determine the Magento Edition you choose. A small to medium-sized business (SMB), a startup, a tiny store with a restricted budget, and a need for basic e-commerce functionalities but no plans to scale soon is the ideal Magento Open Source merchant.

Except for the relatively high price, Commerce Edition may avoid potential security and scalability issues that may arise in larger businesses. As a result, Magento Commerce is a good fit for B2B companies and significant market participants who want to sell internationally, have a lot of traffic and turnover and need extensive marketing and promotion features.

Wrapping Up

Hopefully, you have found this article about Magento Open Source and Magento Commerce easy to follow. With this article, you should be well on your way to choosing the best Magento Edition for your business.

Furthermore, it's not hard to find a Magento web development service provider in the market. However, the difference between these businesses is the quality they can offer and the price they will charge. You should consider using Magento web development packages if you have a modest budget. On the contrary, if you don't care how much it costs to build your online store, only the site quality matters, so custom services are the best options.

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Ali is a digital marketing expert that keeps himself updated on the latest business, e-commerce, and technology trends. He's a passionate content writer and SEO expert by day, a Netflix binging freak by night. You can catch him reading the latest works of J.K. Rowling and admiring Ogilvy's writing style.

Los Angeles, CA

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