What Is Magento and How Does It Work?

Initially released by Varien on March 31, 2008, Magento quickly gained traction, powering over 120,000 online stores and boasting over 2.5 million downloads. So, what is Magento, and what are all the myths around it? Let’s find out with LitExtension through this article.

What Is Magento?

Magento, now known as Adobe Commerce, is an open-source eCommerce platform that helps businesses create websites for online stores. It's designed to be flexible and scalable and gives users a lot of control over their site's appearance, functionality, and settings.

Magento includes some key features like:

  • Shopping cart
  • Themes, templates, extensions, plugins, and custom modules
  • Multi-platform integration with payment gateways, shipping providers, third-party marketplaces, CRM, and ERP systems
  • Analytics and reporting, catalog management, customer order tracking, multilingual and foreign currency support, and more

👉 If you're looking for a comprehensive and in-depth analysis of Magento, including expert opinions, check out our blog post on Magento 2 review.

What Are Magento Available Editions?

In 2018, Adobe acquired Magento, merging it with its existing commerce platform, Adobe Commerce (formerly Magento Commerce). This move aimed to create a more comprehensive eCommerce solution by combining Magento's open-source flexibility with Adobe's marketing and creative expertise.

Now, there are two main editions:

  • Magento Open Source, formerly known as Magento Community Edition, allows developers to customize and extend the platform's functionality through various plug-ins
  • Adobe Commerce Editions offers two primary pricing packages:
    • Adobe Commerce Pro: The on-premise version with advanced features for larger businesses.
    • Adobe Commerce Managed Services: The cloud-based version offers fully managed hosting and support.

Adobe Commerce now uses the branding, but the technology is still based on Magento's framework. Most core functionalities and features familiar in Magento still exist within Adobe Commerce.

✅ What's the key takeaway?

  • While Magento remains a part of the platform's foundation, Adobe Commerce is now the official branding used for the solutions.
  • The Magento community and ecosystem are still very active and continue to provide support for both Magento and Adobe Commerce.

How Much Is Magento?

Magento offers two main editions with different pricing models: Magento Open Source and Adobe Commerce.

Magento Open Source is free to download and use, making it a popular choice for small businesses and startups.

Adobe Commerce is the paid, enterprise-level edition, and its pricing varies based on your business's Gross Merchandise Value (GMV). The starting price for Adobe Commerce Pro (on-premise) is $22,000 per year, while Adobe Commerce Managed Services (cloud-based) starts at $40,000 per year.

However, please remember that additional costs for both editions may still include hosting, domain registration, SSL certificates, extensions, themes, and development/customization fees.

👉 Read more: Magento pricing - Is it really free & The actual cost.

What Are Magento System Requirements?

Now that you are familiar with all editions of Magento, let's delve into Magento's technical aspects, including its programming language and system requirements for each edition to install Magento.

❇️ Programming Language

Magento is primarily built on PHP, a widely used server-side scripting language. This means that Magento's code is executed on the server, and the results are sent to the user's browser as web pages.

❇️ System Requirements for each Magento edition

Magento Open Source (Community Edition):

  • Operating System: Linux (Ubuntu, CentOS, RHEL), Windows Server
  • Web Server: Apache, Nginx
  • Database: MySQL 5.6 or higher, MariaDB 10.2 or higher
  • PHP: PHP 7.2 or higher
  • Memory: At least 2GB of RAM, but more is recommended for production environments.
  • Disk Space: At least 20GB of free disk space, but more is recommended for larger stores.

Adobe Commerce (Pro and Managed Services):

  • Operating System: Linux (Ubuntu, CentOS, RHEL), Windows Server
  • Web Server: Apache, Nginx
  • Database: MySQL 5.6 or higher, MariaDB 10.2 or higher
  • PHP: PHP 7.2 or higher (specific versions may be recommended based on the Adobe Commerce version)
  • Memory: At least 8GB of RAM, but more is recommended for production environments, especially for high-traffic stores.
  • Disk Space: At least 20GB of free disk space, but more is required for larger stores and extensive data storage.

🚨 Important alert

The system requirements for Magento can vary depending on the version, number of products, expected traffic, and store complexity. For the most up-to-date requirements, consult the official Magento documentation.

👉 Further reading: Install Magento 2 via Composer in 5 steps.

How Does Magento Work?

Magento is a powerful and flexible eCommerce platform built on a variety of technologies to deliver a comprehensive solution for online businesses.

1. PHP and MVC Architecture

Magento utilizes the Model-View-Controller (MVC) architectural pattern. This structure separates the application's concerns into three distinct parts:

  • Model: Manages data and logic related to the application's core functionality (e.g., products, customers, orders).
  • View: Handles the presentation of data to the user, displaying information on the storefront and admin panels.
  • Controller: Acts as the intermediary between the model and the view, handling user requests and interactions.

2. Frontend (Storefront)

Magento storefront is the public-facing part of your online store where customers browse products, add items to their cart, and complete checkout. Magento's front end is built using HTML, CSS, and JavaScript, ensuring a visually appealing and user-friendly experience.

3. Backend (Admin Panel)

The Magento admin panel is the control center for managing your online store. You can use it to add and manage products, process orders, set up promotions, configure payment gateways, and customize the store's look and feel.

4. Database

Magento stores all data related to products, orders, customers, and configurations in a database (usually MySQL or MariaDB). This database acts as the central repository for all information needed to run the store.

💎 In summary, Magento creates a fully functional eCommerce website by combining a frontend (storefront), backend (admin panel), database, and PHP code. Understanding these core components and their interactions will help you gain a clearer picture of how Magento works and how it can be used to build a successful online store.

👉Additional resource: A complete Magento tutorial & guidelines for beginners.

What Is Magento eCommerce Feature List?

Adobe Commerce, formerly known as Magento, is a widely recognized cloud-based digital commerce platform designed to empower businesses in creating exceptional shopping experiences. With its adaptable and scalable architecture, it caters to the needs of both B2B and B2C businesses, while its headless approach facilitates seamless innovation and customization.

Key functionalities and features of Magento (Adobe Commerce) include:

  • Ability to efficiently manage multiple global stores and brands from a unified platform.
  • Seamless customer experiences across various digital touchpoints, such as web, mobile, and marketplaces.
  • Real-time data collection and sharing for personalized commerce experiences.
  • Cloud-based functionality that enhances total cost of ownership.
  • Seamless integration with various enterprise systems.
  • Headless architecture that enables the deployment of new front-end customer experiences and rapid updates to storefronts.

👉 Further reading: Magento 2 features list to support your growth.

Why Should You Choose Magento eCommerce?

Magento offers numerous compelling reasons to choose it as your eCommerce platform. Below, I will list the key benefits and why Magento might be the right choice for your business.

1. Scalability and Flexibility

Magento is designed to scale with your business. It can handle extensive and complex product catalogs, high traffic volumes, and complex transactions without compromising performance. Magento's modular architecture enables seamless additions of new features and functionalities as your business expands.

2. Customization and Control

Magento has an open-source nature which may give you complete control over the look, feel, and functionality of your store. You can customize virtually every aspect to create a unique brand experience. From design and layout to features and integrations, Magento allows for extensive customization to meet your specific business requirements.

3. Powerful Features and Functionality

Magento is equipped with a wide range of built-in features, including product management, customer management, order processing, marketing tools, and more. Furthermore, you have the option to access an extensive Extension Marketplace offering over 4,000 options to enhance functionality. These options include social media integration, advanced shipping options, and specialized integrations with other business tools.

4. SEO-Friendliness and Marketing Capabilities

Magento is built with SEO best practices to enable easy optimization of your store for search engines and to enhance your organic visibility. Additionally, this platform comes equipped with built-in marketing features such as promotions, discounts, email marketing, and customer segmentation, all geared towards helping you reach your target audience and drive sales effectively.

5. Strong Community and Support

Magento has a strong and supportive community of developers, users, and experts who provide assistance, valuable resources, and effective solutions. Additionally, a wealth of comprehensive documentation, tutorials, and guides are available to aid in learning and troubleshooting. For enterprise-level support, Magento offers dedicated support plans to address intricate issues and ensure seamless operations.

🧐 Who should choose Magento?

  • Businesses with complex product catalogs, custom requirements, or high-volume transactions.
  • Businesses seeking extensive control over design, functionality, and integrations
  • Businesses with development resources for customization and maintenance.

What Can You Sell On Magento?

Magento, now known as Adobe Commerce, is a flexible eCommerce platform that empowers you to sell a wide range of products and services online. Here's a table summarizing the Magento product types and their key characteristics.

Product Type

Description

Examples

Variations

Inventory Management

Simple Product A physical item with a single SKU. T-shirt (specific size and color), book, laptop model No Yes
Configurable Product Appears as a single product but includes options for each variation. T-shirt (various sizes and colors), laptop with different configurations Yes Yes (for each variation)
Grouped Product A collection of multiple standalone products presented as a group. Furniture set (sofa, loveseat, armchair), different flavors of coffee No (but includes multiple simple products) Yes (for each simple product)
Virtual Product Non-tangible product, no shipping required. Warranty, online subscription, consultation session Sometimes (e.g., different subscription tiers) No (usually)
Bundle Product Pre-packaged combination of simple or virtual products. Computer bundle, gift basket, travel package Sometimes (customizable options within the bundle) Yes (for each included product)
Downloadable Product Digital product that can be downloaded after purchase. E-book, software application, music album Sometimes (e.g., different file formats) No (usually)
Gift Card (*) A prepaid card that can be used as payment. Gift card with a specific value Can be physical or virtual Yes (tracking remaining balances)

(*) Adobe Commerce only

Magento Pros and Cons

We've explored Magento's core functionalities and potential challenges that provided a well-rounded overview of this powerful eCommerce platform.

To recap, let's summarize Magento's advantages and disadvantages in a concise table:

Pros

Cons

  • Open-source platform allows extensive customization to meet specific business needs.
  • Handles large catalogs and high-traffic volumes, suitable for businesses of all sizes.
  • Numerous built-in features, including advanced SEO capabilities and multi-store support.
  • A large community of developers and contributors provides support and resources.
  • Powerful analytics tools help track performance and customer behavior.
  • Requires significant technical expertise for setup, customization, and maintenance.
  • May be overkill for small businesses with limited technical resources or simpler needs.
  • Requires careful configuration and optimization to ensure optimal performance, especially for large stores.
  • Can be resource-intensive, requiring a more powerful server and more resources compared to some other platforms.

Bottom Line

In short, Magento is a powerful and highly customizable eCommerce platform best suited for businesses with complex needs and technical expertise. Its flexibility, scalability, and extensive features make it a top contender for building and managing successful online stores.

However, it's crucial to weigh the pros and cons carefully. Magento's complexity and potential costs might not suit everyone.Smaller businesses or those with limited technical expertise might find other platforms easier to use and more budget-friendly. You can always find our list of some best Magento alternatives for further consideration.

Frequently Asked Questions (FAQs)

What is Magento used for?

Magento is used to build and manage online stores. It provides a platform for businesses to sell products and services online, manage inventory, process orders, and engage with customers.

Is Magento owned by Adobe?

Yes, Magento was acquired by Adobe in 2018 and is now part of the Adobe Experience Cloud.

What is Magento now called?

The core platform is still based on Magento, but the official product name is now Adobe Commerce. Under Adobe Commerce, the commercially supported versions are Adobe Commerce Pro and Adobe Commerce Managed Services, while the free version is still called Magento Open Source.

Who should use Magento?

Magento is best suited for medium to large businesses with complex requirements, technical expertise, and a budget for development and maintenance. It's ideal for businesses seeking scalability, flexibility, and customization.

Is it difficult to learn Magento?

Magento has a steeper learning curve compared to simpler platforms. It requires technical knowledge of web development, PHP, and database management. However, ample resources and a large community are available to help.

Is Magento a CRM or CMS?

Magento is primarily an eCommerce platform. While it has some CMS (Content Management System) features for managing website content, it's not a full-fledged CMS like WordPress. It's not a CRM (Customer Relationship Management) system, but it integrates with various CRM solutions.

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