Choosing the right ecommerce platform is a strategic decision that goes beyond the initial price tag. For large online stores, the total cost of ownership (TCO) over five years can include licensing or subscription fees, hosting or cloud costs, development and maintenance, app and extension expenses, and transaction fees. In this post, we break down these costs for Magento (Adobe Commerce), Shopify Plus, and BigCommerce. While a Shopify-commissioned study found that Shopify’s TCO is about 33% lower on average than Magento or BigCommerce, thanks to included hosting and lower maintenance, this lower cost may come at the expense of some flexibility. Let’s dive in to see where each platform saves or incurs costs.
Total cost of ownership refers to the overall investment needed to run your ecommerce platform over a set period. It goes beyond the upfront fees and looks at ongoing expenses that can significantly impact your long-term ROI. By examining TCO, CFOs and CTOs can make a well-informed decision that balances cost and capability.
Although Magento Open Source is free, the enterprise-level Adobe Commerce comes with high licensing fees that can start from tens of thousands per year. These costs can increase based on additional modules or support services required.
Shopify Plus operates on a subscription model with a base fee (starting around $2,000–$2,300 per month) and sometimes a revenue-based component. However, its pricing includes hosting and many integrated features.
BigCommerce offers enterprise plans with predictable monthly fees. While typically competitive, the costs can rise if you need additional features or customizations.
Magento is a self-hosted solution (or available via Adobe Commerce Cloud). Self-hosting provides flexibility but requires you to invest in premium hosting, infrastructure upgrades, and ongoing server management. These costs can add up significantly as your traffic and catalog grow.
As a fully hosted SaaS solution, Shopify Plus includes hosting in its subscription fee. This simplifies budgeting and reduces the need for extra IT resources, but limits flexibility.
Similar to Shopify Plus, BigCommerce is a cloud-based platform. Its hosting costs are built into the subscription, providing ease of management and predictable expenses.
Magento offers unparalleled customization, but that power comes with a steep development curve. Enterprises often require dedicated teams or agencies for ongoing maintenance, security updates, and performance tuning, which can lead to higher costs over time.
Shopify Plus offers a more streamlined development environment with easier app integrations and a lower maintenance burden. However, if you need advanced customizations, you might still incur extra development costs.
BigCommerce provides a balance between ease of use and customization. While its low-maintenance approach reduces development overhead, advanced integrations or customizations may require additional investment.
Magento’s robust extension ecosystem allows for extensive functionality, but many high-quality extensions come at a premium. Costs can quickly escalate as you add custom modules to tailor your store.
Shopify’s app store offers a wide range of integrations. Many apps are free or reasonably priced, but relying on multiple third-party apps can increase your TCO if they require monthly subscriptions.
BigCommerce offers a solid set of built-in features that reduce dependency on third-party apps. However, for advanced functionality, you may need to invest in additional apps, which can add to the overall cost.
With Magento, transaction fees are generally tied to your payment gateway and hosting setup. Although there are no built-in transaction fees, the costs can come from premium payment processing integrations.
Shopify Plus merchants benefit from lower transaction fees compared to lower-tier plans, especially if you use Shopify Payments. These savings can add up for high-volume stores.
BigCommerce’s fee structure is competitive, with no additional transaction fees when you use supported payment gateways. This can be a significant cost saving compared to other platforms.
When you compare these platforms over a five-year period, you must consider both the predictable and hidden costs. A Shopify-commissioned study found that Shopify’s all-in-one model can result in a TCO that is about 33% lower on average than Magento or BigCommerce, primarily due to included hosting and lower maintenance needs. However, that lower cost might mean sacrificing the flexibility and deep customization that Magento offers, which is crucial for certain enterprise needs.
Evaluating the total cost of ownership for Magento, Shopify Plus, and BigCommerce involves more than just looking at upfront fees. It requires a careful analysis of licensing, hosting, development, app expenses, and transaction fees over time. While Shopify Plus and BigCommerce offer predictable, all-in-one solutions with lower maintenance costs, Magento delivers unmatched flexibility at a potentially higher cost. The best choice depends on your specific business needs, technical resources, and long-term growth strategy.
Ready to build a better ecommerce shop? Contact MageMontreal today to get expert Magento, Shopify, and BigCommerce solutions that drive results.
