Magento, OsCommerce, OpenCart, Zen Cart and WordPress are among the leading open source ecommerce platforms. Samsung, The North Face and Office Max are among the thousands of online retailers for whom the Magento e-commerce platform is the most popular. Over 240,000 merchants around the world trust Magento’s ecommerce software.
Have you ever wondered why Magento has left all others behind? Is it because it has more features, easy to scale, easier to customize, offers better support or perhaps all of this is true?
This blog is an attempt to explore the reasons for Magento’s phenomenal success and why it deserves to be the most popular e-commerce platform.
But let me first share the history of Magento which many people are not aware of:
Varien (now Magento and acquired by eBay) was co-founded by @royrubin05 who used to run a web development agency for six years building OS Commerce stores, content management systems (CMSs) customized intranets and point-of-sale systems before the Magento community was released.
To provide ease of customization and usability was the company’s purpose and focus. They gained more successful and larger clients as they continued to work with e-commerce. Even now Magento’s products have a similar focus. These have a lot of customizable features and flexibility. Magento has a product catalog more flexible than other e-commerce applications.
The demand for customized implementations increased and the OS Commerce in use was not adequate to handle implementation at a large scale.
As Magento began to explore alternatives, they found no appropriate platforms for use and thought of creating one on their own. In 2008, they came up with their first product with an open source license. The platform succeeded and its growth led to some of the world’s best companies coming on board. The requirements of these companies exceeded those that could be met by Magento’s free edition. So, a commercial level product was required and that led Varien (Magento) to provide Magento Enterprise in 2009.
Varien became Magento in 2010. In 2011, Magento introduced its first software as a service (SaaS) offering Magento Go. The rest is history and Magento has been the leader among ecommerce platforms for a long time now. Full story about Magento can be read here.
The value and benefits that Magento provides include the following:
- You can establish customized and professional stores
- Have functional and creative facilities and add value to stores
- Get an open source ecommerce framework and platform
- Use diverse extensions as part of a cost-effective solution
- Create and add custom extensions to the store
- Meet store owners’ specific requirements through the facilities and functions provided by Magento
6 statistics which prove why Magento leads the open source ecommerce space
These are some stats which prove that Magento is the most popular ecommerce platform:
- An analysis of Google Trends from January 2010 through July 2013 showed Magento’s leading position around the world. It was seen as miles ahead of other platforms and none were even close to beating the demand for Magento.
- According to the Internet Retailer 2014 Top 500 Guide, Magento, along with IBM and Oracle, is one of the three leading providers to the leading 500 internet retailers in Canada and the US. Magento has 34 merchants on the latest IR Top 500 list, which is twice the number of merchants it had on the 2013 list. Among the clients that Magento has, there are rapidly growing retailers and brands such as Signature Hardware, Zumiez and Alex and Ani, in addition to marquee brands such as COACH.
For midmarket merchants (those with $20 million to $75 million in annual sales online), Magento products are among the leading platforms. From the 13 midmarket merchants that Magento had in 2013, the number has jumped to 24 in 2014. Magento is now ahead of Oracle and has taken the leading place in this segment.
Along with the Enterprise Commerce Platform of eBay, the platforms owned by eBay (including Magento), taken together, have increased their lead among providers to midmarket merchants. In the 2014 IR Top 500, eBay Enterprise (with the two platforms combined) has the second position, behind Oracle.
- According to usage stats provided by builtWith, more than 7,000 of the top 1 million ecommerce sites are on Magento.
- According to Forrester Consulting, which created a composite merchant based on interviews with Magento merchants who migrated from other eCommerce solutions, the use of Magento led to about $40 million annual online sales.
- With 26% share of the e-commerce market a year ago, Magento has seen an increasing number of online stores using their software. Magento provides customizability that is almost unmatched among its competitors and offers more than 1,900 themes, along with thousands of modules available for download.
- According to the April 2014 eCommerce Survey by Tom Robertshaw, Magento has retained its leading position for the fourth successive year. According to the survey results, it is likely that 35% will be added to the site count of Magento. In addition to the growth, it has a 26% share of the market on account of growth witnessed by other platforms and the addition of software to the survey to improve accuracy and coverage.
The survey reports that the number of e-commerce sites among the Alexa top 1 million has risen by 34% to 46,859.
With 4524 sites, a sizeable competitor to Magento is the WordPress plugin, as shown by the addition of WooCommerce. It is the second most popular, even though it would typically be thought of as software for the smaller ones among e-commerce companies.
Magento broadens the gap when higher traffic ranks are considered. When you look at the top 250,000 sites, you find that 2,516 of those are Magento sites whereas WooCommerce has 692 sites.
Other forms of technology such as cache tools, analytics, CMS, CRM, and web servers have also been searched for as part of the survey. This is aimed at analysis in depth.
For example, the survey has found that five percent of Magento stores use Varnish as a mechanism for caching.
Looking at the 100,000 leading sites according to Alexa, 2,373 were found to be stores. Out of those, Magento had the most, i.e., 704 installations.
In what ways Magento is better than most of the e-commerce platforms
For a number of businesses, Magento website development is the preferred CMS for their ecommerce websites. The CMS is quite robust, user-friendly and open source (available for free). Ecommerce websites have acquired users like no other type of websites had before and have a substantial share of the online economy. Magento is the e-commerce solution which is searched for the most.
Among the reasons for choosing Magento for development are the following:
- Option to setup Multiple Stores: You can manage several stores at once from one admin panel in Magento. The ‘one click’ solution that Magento provides lets you manage stores very easily. You can have the same ease of use regardless of whether you have one store or many. Magento ecommerce development lets you have different security certificates, IP addresses and domain names.
- Good for Marketing: Magento offers effective tools like cross-sells and up-sells that provide inducement to the users to buy more products. So it helps in the generation of revenues and sales. Magento offers search-engine friendly URLs that are good for marketing. It becomes easier to attract customers using the flexible rules for pricing that Magento has.
- Customizable Themes: You can customize the store in any way you want and obtain any template for the look you desire. Magento lets you switch between a season-specific temporary design for your store and a permanent one. In accordance with whatever suits your business best, you can load a number of different themes.
- Google Analytics and Other Tracking Options: If you have an ecommerce website, tracking it regularly is among the significant aspects of managing it. You can understand the store’s overall performance in this way. Tax reports, best purchased reports, best viewed products reports and abandoned shopping cart reports are among the set of useful reports that Magento provides.
- Easy Options for Ordering: Your business can get a better return on investment because of the easy ordering options that you can provide users through Magento. A website developed using Magento lets you create, view, edit and fulfill orders from the admin interface. The CMS provides many things, such as several mailing addresses and several invoices. The users can also see their complete transaction history.
- Users Have Better Options For Browsing: Magento is user-friendly and offers advanced features that include product reviews, capability for zooming in and multiple product images. It improves the shopping experience as it has been designed to match customers’ temperaments. From the up-sell and cross-sell that the flexible merchandising engine allows to an anytime stock check, Magento provides a much greater call to action than other platforms.
Additional reasons include the following:
- A well-organized back end
- A shopping cart that is easy to update
- A nice default template
- Add-on modules that have new and significant capabilities
As you can see from the stats provided above, Magento is the leading open source ecommerce platform in the world.
Magento has a leading position because it deals with several stores, is good for marketing, has customizable themes, provides Google Analytics and other tracking options, offers easy options for ordering and provides users with better options for browsing, among other reasons.