Magento is an e-commerce platform that enables the de­vel­op­ment of pro­fes­sion­al online shop solutions. The open-source system was released in 2008 and was acquired by eBay three years later. In 2015, the con­glom­er­ate sold the ownership rights to the British private equity firm Permira. Since 2018, Magento has been part of Adobe, which has continued its de­vel­op­ment under the names ‘Magento Open Source’ and ‘Adobe Commerce’.

Key Takeaways

  • Magento is an open-source e-commerce platform that has been part of Adobe since 2018 and is developed as ‘Magento Open Source’ and ‘Adobe Commerce’.
  • Unlike a CMS with shop add-ons, it was built for e-commerce from the start: SEO, marketing, catalogue man­age­ment, one-page checkout, multiple cur­ren­cies and mobile commerce are included as standard.
  • This power comes with com­plex­ity: beginners need time to get started, and the hardware re­quire­ments are higher than for many other shop systems.
  • Templates change only the design of your store, while ex­ten­sions add functions such as payment methods. Both are available, for example, in the Magento Mar­ket­place.
  • Magento Open Source is free but needs your own hosting and technical expertise. Adobe Commerce is the licensed en­ter­prise edition with B2B features, AI-powered per­son­al­isa­tion and cloud options.
  • Costs and effort are high, so Magento pays off mainly if you have the budget and the technical know-how (or a spe­cial­ised agency) to run it.

Magento Inc. no longer operates as an in­de­pend­ent de­vel­op­ment company. Today, all technical de­vel­op­ment and product main­ten­ance are fully managed by the Adobe Commerce En­gin­eer­ing Team. Since large portions of the Magento codebase are licensed under the Open Software License (OSL 3.0) and the Academic Free License (AFL 3.0), they remain freely ac­cess­ible—enabling a vibrant ecosystem of community-developed ex­ten­sions and Magento templates.

Modern Magento versions have sig­ni­fic­antly higher system re­quire­ments than older releases. They are no longer based on the pre­vi­ously dominant Zend Framework, but instead use the Laminas Framework as well as numerous Symfony com­pon­ents.

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What makes Magento different? Key features explained

Magento is not a tra­di­tion­al content man­age­ment system with added shop func­tion­al­ity. Instead, it was designed from the ground up as a dedicated e-commerce solution—and this focus is clearly reflected in its feature set.

While Magento shares some core char­ac­ter­ist­ics with a CMS, such as a modular ar­chi­tec­ture and straight­for­ward ex­tens­ib­il­ity, its primary purpose is not the man­age­ment of general website content. Rather, the platform is firmly centred on building and operating online stores. As a result, many functions related to marketing, product and customer man­age­ment, or payment methods—which often need to be added later in com­par­able shop systems—are included as standard. It is therefore no co­in­cid­ence that Magento itself is described by the man­u­fac­turer as an out-of-the-box solution for online stores.

These are the most important features of the Magento e-commerce platform:

  • Search engine op­tim­isa­tion: SEO is an important topic for online stores, which is why Magento includes numerous Magento features to help your store achieve an excellent search engine ranking. For example, the system auto­mat­ic­ally generates search engine-friendly URLs and sitemaps (a hier­arch­ic­ally struc­tured overview of all pages in your store) as well as stat­ist­ics on the most common search terms that brought customers to your store. You can also easily define meta in­form­a­tion for all product, category, and content pages. Via Google’s Merchant API (the successor to the Content API for Shopping), your online store’s products can be listed in Google Shopping search results. In recent versions, per­form­ance op­tim­isa­tion and improved indexing cap­ab­il­it­ies have also become a stronger focus.
  • Marketing and customer retention: Marketing a Magento online store is straight­for­ward thanks to a wide range of built-in tools. For example, you can create and export flexible coupons and coupon codes for different types of campaigns, such as news­let­ters or print pro­mo­tions. Magento also lets you tag related products and display recently viewed items to encourage ad­di­tion­al purchases. In addition, customers can recommend products or share wish lists with friends and family. A built-in cross-device shopping basket helps increase con­ver­sion rates by allowing shoppers to seam­lessly continue their purchase journey across multiple devices.
  • Catalogue and product man­age­ment: One of the standout features of the Magento e-commerce platform is the wide range of options for struc­tur­ing and managing your catalogue, including in­di­vidu­al products. For example, you can configure product cat­egor­ies in­di­vidu­ally or add filters by price or price range. Magento also includes a search function with auto­com­plete, as well as tagging and com­ment­ing features. Products in your catalogue can be enriched with multiple images, stock level in­form­a­tion, or tiered pricing. Ad­di­tion­al functions such as image zoom and social sharing options, for example via Facebook, make product pages more in­ter­act­ive and engaging for customers.
  • Checkout and payment methods: Magento also gives you the option to offer a one-page checkout, allowing the entire payment process to be completed on a single page. You can choose whether customers are required to register or can check out as guests. To secure the ordering process, Magento supports SSL cer­ti­fic­ates for both the frontend and backend. Customers can save their shopping baskets and view shipping costs and taxes in advance. Standard payment options include bank transfer, direct debit au­thor­isa­tion, credit cards, and PayPal. Ad­di­tion­al payment methods can be added at any time through ex­ten­sions.
  • In­ter­na­tion­al­isa­tion: Thanks to support for in­ter­na­tion­al cur­ren­cies and tax rates, as well as mul­ti­lin­gual content and right-to-left scripts, Magento makes it easy to sell products worldwide. Product and category de­scrip­tions can be created and displayed in multiple languages to reach customers in different markets. If, for lo­gist­ic­al or legal reasons, you want to limit sales to specific countries or regions, Magento lets you define target markets by re­strict­ing allowed billing addresses or con­trolling who can create an account in your store—unless guest checkout is enabled.
  • Mobile commerce: Selling via smart­phone also works through Pro­gress­ive Web Apps (PWAs) and not only through native apps for iOS/Android. The official ‘PWA Studio’ from Magento or Adobe Commerce is still being actively developed and optimised for mobile devices. This way, customers can shop in your store while on the go.

Magento combines advanced features with user con­veni­ence

The features outlined above highlight why Magento is such a popular e-commerce platform. At the same time, they also make clear just how complex the open-source software can be. For this reason, it may be worth con­sid­er­ing al­tern­at­ives to Magento.

Com­plex­ity and re­quire­ments

While ex­per­i­enced CMS users will feel at home working with Magento, newcomers may initially encounter a steeper learning curve—a common char­ac­ter­ist­ic of open-source software, where func­tion­al­ity takes priority and usability plays a secondary role. Magento can therefore be con­sidered an out-of-the-box solution for online stores, provided you have suf­fi­cient ex­per­i­ence with com­par­able systems and the time needed to become familiar with the platform. Only then can you fully leverage its extensive feature set and reliably maintain your Magento online store over the long term.

Mod­ern­isa­tion and per­form­ance

With Magento 2, com­plex­ity has increased further due to the in­tro­duc­tion of modern ar­chi­tec­tur­al com­pon­ents. In return, the platform delivers higher per­form­ance and improved security features. This added com­plex­ity also impacts hardware re­quire­ments, which is why Magento is con­sidered one of the more costly options among e-commerce platforms.

Benefits for user con­veni­ence

In return, the popular Magento software also offers numerous ad­vant­ages, es­pe­cially when it comes to user con­veni­ence. Through a central admin panel, you can manage multiple stores and assign in­di­vidu­al user roles and per­mis­sions.

Full control over orders and reports

Magento also gives you full vis­ib­il­ity into customer activity at all times. For example, the platform provides detailed reports on revenue, product reviews, most viewed or best-selling products, coupon code usage, and more. In addition, the open-source system supports efficient order pro­cessing by allowing you to review and edit incoming orders, generate and print invoices, and set up automated email no­ti­fic­a­tions for order updates.

Magento templates and ex­ten­sions

Ex­tens­ib­il­ity is one of Magento’s greatest strengths. Thanks to its open-source codebase and modular ar­chi­tec­ture, thousands of ex­ten­sions have been developed since the platform was released. A key dis­tinc­tion is made between Magento templates—commonly referred to as ‘Magento themes’—and Magento ex­ten­sions. Magento ex­ten­sions provide classic platform en­hance­ments, such as ad­di­tion­al payment methods or age veri­fic­a­tion features. Magento templates, by contrast, are in­de­pend­ent of core func­tion­al­ity and affect only the store’s design. They give you far greater flex­ib­il­ity when it comes to shaping the structure and visual ap­pear­ance of your online store.

Useful ex­ten­sions and themes for the current Magento version are available, for example, in the official Magento Mar­ket­place. New ex­ten­sions are often offered via the Mar­ket­place and GitHub (for open source).

Magento Open Source or Adobe Commerce?

On the man­u­fac­turer’s website, Magento is offered in two different versions:

  • Magento Open Source (formerly Community Edition) is a free, open-source version that provides core features for small to mid-sized online retailers. It offers a high level of flex­ib­il­ity and cus­tom­isa­tion through direct access to the source code. However, it requires your own hosting as well as technical expertise to handle main­ten­ance, security updates, and per­form­ance op­tim­isa­tion. Magento Open Source is best suited for busi­nesses with in-house de­vel­op­ment resources or those working with spe­cial­ised agencies.
  • Adobe Commerce (formerly En­ter­prise Edition) is the licensed, en­ter­prise-level version built on Magento Open Source and includes a wide range of ad­di­tion­al features. These include native B2B func­tion­al­ity, advanced marketing and analytics tools, business in­tel­li­gence cap­ab­il­it­ies, enhanced scalab­il­ity and security, and pro­fes­sion­al support from Adobe. The platform also in­teg­rates seam­lessly with other Adobe solutions such as Adobe Ex­per­i­ence Manager and Adobe Sensei, enabling AI-powered per­son­al­isa­tion and optimised customer ex­per­i­ences. For busi­nesses that prefer not to manage their own in­fra­struc­ture, Adobe Commerce is also available through various cloud-based hosting options.

In summary, the editions are suitable depending on company size and com­plex­ity re­quire­ments:

  • Magento Open Source for small to mid-sized retailers looking for flex­ib­il­ity and cost ef­fi­ciency, but who have the necessary technical know-how.
  • Adobe Commerce for companies with higher demands for scalab­il­ity, features, and support.

Because the Magento core does not auto­mat­ic­ally cover all legal and reg­u­lat­ory re­quire­ments in the United Kingdom, the community and third party providers have developed a range of solutions to help merchants meet key UK com­pli­ance ob­lig­a­tions. These typically address areas such as VAT cal­cu­la­tion and reporting, consumer pro­tec­tion re­quire­ments under the Consumer Rights Act and related UK consumer reg­u­la­tions, privacy and cookie com­pli­ance in line with UK GDPR and the Privacy and Elec­tron­ic Com­mu­nic­a­tions Reg­u­la­tions (PECR), as well as in­teg­ra­tion with PCI DSS–compliant payment service providers.

For current Magento 2 in­stall­a­tions, merchants in the UK commonly rely on ex­ten­sions and in­teg­ra­tions for VAT auto­ma­tion, consent and cookie man­age­ment, and data pro­tec­tion com­pli­ance. In addition, trust-building features such as security seals, customer reviews, and ratings modules are fre­quently used to improve trans­par­ency and cred­ib­il­ity. While these add-ons help support com­pli­ance with ap­plic­able UK reg­u­la­tions, they do not replace the need for pro­fes­sion­al legal advice tailored to the specific business model.

Magento as a long-term e-commerce solution

A Magento online store can be a strong option for both newcomers to e-commerce and ex­per­i­enced store operators. Supported by a highly active community and com­pre­hens­ive solutions from the vendor for busi­nesses of all sizes, the open-source platform makes full use of its modular software ar­chi­tec­ture. With a wide range of ex­ten­sions and modern, AI-driven features such as product re­com­mend­a­tions and per­son­al­isa­tion, Magento is well suited to today’s e-commerce demands.

That said, this flex­ib­il­ity comes with added com­plex­ity. Both the cost and the effort required to build and maintain a Magento store tend to be higher than average. If you have the necessary budget and can ac­com­mod­ate a longer learning curve, Magento is a powerful and future-ready choice for your online business.

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