Magic exists, but mages aren't ubiquitous (though I don't care if there are multiple in the party). A small town might have a mage, but probably won't. This also means that enchanted items aren't everywhere. They exist, and can be made, but there aren't shops for magic items on every street. A city will have one or two vendors. For the most part, if you need something enchanted, you need to go directly to the mage themselves.
Alchemy is a much more common avenue for people's magical needs. Every small town will have at least one alchemist (or hedge witch), and many people will dabble in it for around the home needs (cleaning solutions, fixing cuts and scrapes, etc).
The next most common type of magic is ritual magic, which can be performed by anyone with the knowledge (and patience). Ritual magic is slow, with basic ritual spells taking about an hour (including prep time).
The magic of actually casting a spell is fairly rare, with probably only one in hundreds capable, and not all of those choosing to practise.