Magento vs. WooCommerce: 2023 Comparison

Magento and WooCommerce are open-source e-commerce website builders. The major difference between them is that WooCommerce is available only to businesses with WordPress websites. You can use Magento with any web host — though you may need a web developer to install it, since it comes with a steep learning curve.

As open-source software, both Magento and WooCommerce are free to download and install. But there are other costs associated with running an e-commerce website. To use plug-ins like WooCommerce, WordPress users need to be on the Business plan, which starts at $25 per month. And to use Magento, you’ll need to pay for small-business web hosting and buy a domain name.

Here’s how to choose the right open-source platform for you.

Magento is a good fit for large companies operating multiple brands, including across international borders. Magento Open Source is a traditional open-source tool, but its parent company, Adobe, also offers a hosted e-commerce website builder called Adobe Commerce.

» Learn more: NerdWallet’s review of Magento and Adobe Commerce

Thorough training for users

Magento isn’t easy to learn, but Adobe offers a set of online courses to help your team get started. You’ll find training for front- and back-end developers, administrators and business development staffers in Adobe’s course catalog. Many courses last multiple days.

That training requires an Adobe Learning subscription, which starts at $2,500 per person per year. For more budget-conscious users, there’s lots of free community support too, including a Slack workspace and recurring community video chats.

WooCommerce tutorials are available on LinkedIn Learning, Udemy and other online learning platforms, but the instruction offered by WooCommerce itself is primarily text-based.

Headless commerce

“Headless commerce” allows for your back-end order management system to be fully independent of your storefronts. That means you can use Magento to create storefronts not just on the internet, but on apps and augmented reality devices too.

The bigger your business is, the more useful headless commerce may be. Smaller businesses that focus on retail goods are probably better off pursuing omnichannel commerce — sales on third-party marketplaces, social media sites and retail stores managed in one order dashboard.

WooCommerce supports omnichannel commerce by letting you accept in-person payments via WooCommerce Payments, plus offering extensions to sell products on platforms like Amazon, eBay and Google.

Order fulfillment online and in stores

Magento is a good choice for businesses that have large brick-and-mortar footprints but also make online sales. Shoppers can place orders online, then use an app to let employees know when they’ve arrived at the store to pick up their purchases.

WooCommerce offers customers local pickup, but without those bells and whistles.

WooCommerce is a better fit for small businesses than Magento. Its tools aren’t quite as sophisticated, but they include conveniences like shipping label printing, which may make running your e-commerce business a little easier. WooCommerce also runs on WordPress, a popular website builder that offers hosting and domain names.

» MORE: How WooCommerce stacks up against Shopify

Runs on WordPress

One of the challenges of using an open-source online store builder is that you’ll have to build your website from scratch — including finding web hosting, designing the way the site looks and buying a domain name. WordPress can help you do all three of those things.

You could install Magento or other open-source tools on a WordPress website too. But if you currently use WordPress, WooCommerce may be more intuitive, since you’ve likely already used other plug-ins.

Discounted shipping rates

WooCommerce Shipping, a free extension created by WooCommerce’s developers, lets sellers print DHL and U.S. Postal Service shipping labels directly from their order dashboard. You or your customers can also choose commercial USPS rates, which are usually cheaper than retail rates.

There are Magento extensions that can help you manage your shipments, but they’re developed by third parties and may come with subscription fees.

Affordable hosted option

Feeling overwhelmed by open-source software? WooCommerce’s hosted plans start at $25 per month. These include web hosting and the option to purchase a domain name, plus drag-and-drop website builder tools and store management dashboards.

Magento’s hosted option, Adobe Commerce, comes with similar tools — but its quote-based pricing may be significantly more expensive.

Magento is best for businesses that:

• Manage multiple brands and physical locations.

• Make B2B sales.

• Want to sell not just on social media and marketplaces, but on other platforms like apps and internet-of-things devices.

WooCommerce is best for businesses that:

• Run their websites on WordPress.

• Are small or medium in size.

• Want the option to switch to an affordable hosted e-commerce platform in case development proves too difficult. 

Is an open-source platform the right choice?

Open-source e-commerce platforms require users to do most web development work themselves or hire someone for it. And while the code is free to download, you’ll still need to pay for web hosting and payment processing. Themes and extensions may come with additional fees.

In general, if you’re building an online store for the first time and lack web development experience, we recommend a hosted e-commerce platform that can help you build your whole website. Popular options include Shopify, Squarespace, Square Online and Wix.

If you want to stick with these brands, both Magento and WooCommerce can connect you to experts that they’ve vetted who can help build your website.

Magento and WooCommerce both offer hosted options, too. Adobe Commerce is a hosted version of Magento; pricing is quote-based. Woo Express, the hosted version of WooCommerce, starts at $25 per month.