24 Apr
The hype surrounding Magento Commerce’s official release has lingered for about a year. For those of you who haven’t been privy to the news - Magento Commerce is an open source eCommerce shopping cart platform brought to you by a company called Verian. The shopping cart is quite feature rich out of the box, and is positioned to be the de-facto standard for open source eCommerce platforms. As it stands, this product is expected to oust Open Source frontrunner OSCommerce along with a handful of other open source, PHP based solutions. I won’t get into much detail about what Magento Commerce is and its history, there’s plenty of coverage the company has had over the past year in anticipation for it’s release - which by the way, was March 31st.
What I do want to discuss in this post is my first take at Magento Commerce. Now, I’ll preface this by stating that I’ve only gone so far as installing the software (well, actually the Magento Commerce host Crucial installed it all for me), playing around with it, setting up some products, and toying with its features. My goal is to setup a fully functional production eCommerce site in the near future. But, before we go jumping onto the Magento Commerce craze, let’s tackle a few things we like about it, and a few things we don’t. I’m sure there will be more added to both sides of the table (hopefully in favor of the software) as we get more involved with the application, but for now, here’s our first takes.
Alright, it’s a new software, version 1, and for those of you with experience in the software industry understand - v1 of any software typically sucks. I usually recommend against anyone rolling out v1 of a software product in a production environment when it is a mission critical system. Hell, I won’t even install the latest Microsoft product until the first service pack is released (trust me, I’m not the only one and I have a Microsoft consulting background). Given that, I’d say that Verian has put forth a very strong first release. But, being the nit-picky software guy that I am, there are a few items that I identified that I have huge issues with that need to be addressed before I jump on board.
Ok, I admit, I’m quite a bit critical when it comes to eCommerce software, but don’t confuse constructive criticism with distaste. The reality is, Magento is a very powerful, feature rich shopping cart - and to top it off - it is free. The issues I list above I attribute to the product being new, and with any new software, there are always issues to work through - this is expected. I used to work for a software company and I can tell you firsthand that releases get pushed out before they’re ready, only a small percentage of features you want actually make the cut, and development always runs behind. That said, the folks at Verian have put forth an online bug tracking system, a product roadmap for planned features, and have a pretty aggressive development plan. I have total faith that these issues, and more, will be addressed by the Verian team over time.
I myself, am a fan of the software. Some of the features offered in this free shopping cart (did I mention that it was free?) are not found in 90% of the small to mid market offerings on top of all of the features you would expect from a strong solution.
Honestly, this is a small sampling of the many great features offered - most of which are considered “advanced” in the eyes of most small to medium sized eCommerce merchants. It’s these advanced features that really got my attention to them in the first place.
While Magento has been suggested to overtake the open source eCommerce market, I see them as more being competitive to the paid solutions ranging in cost from $500 to $2,000. Why? Well, I mentioned the performance issues above and with some beefy hosting setup, you’re looking at a monthly cost of $75-100 to get optimal performance from the application. Most developers and merchants coming from an open source application are used to paying for the dirt cheap PHP hosting available (as low as $5 a month) and having their sites perform just fine - there’s going to be some sticker shock there. On top of that, traditional open source software has been seen as an “entry level” choice for shopping carts. As websites mature, as sales and needs grow, many merchants look for a supported, more robust solution. I believe it is these merchants, that are looking for the next step up from traditional open source software, that are looking to improve their site and work with Magento partners on improving their presence through its advanced featureset and functionality, that will migrate to Magento. I still see a need for traditional open source applications to fill that entry level need.
So, there you have it, like it or not, my first reaction to Magento Commerce. Overall, I’m excited to see what’s to come, it looks very promising, and I can’t wait to transition some sites. That said, I still think there’s some very important issues to be worked through before I migrate anything here, but I’m confidant that shortly, these issues will have worked themselves out. We’ll be covering more about Magento Commerce in the near future, as we become more involved with the application. They have a great set of resources on the site for you to judge for yourself, but as with anything, I suggest to try it out for yourself - and let us know what you think!
10 Responses for "Magento Commerce - A First Look"
This is a very nice write-up and review of the recently released Magento eCommerce open source software.
As Magento continues to improve it’s overall processes you can be certain that the Magento community and hosting partners will also continue to improve upon the performance of the software.
Thank you for your insight regarding Magento and Crucial.
Nice detailed review. It’s great to see other bloggers discussing Magento.
The performance issue doesn’t seem as bad when caching is turned on. The frontend public part of the cart has been more optimized than the backend admin screens, but I’m sure there will be significant performance improvements released soon.
Please keep us posted as you transition sites over to Magento.
Magento Commerce released a new update 30/04/2008 (release 1.0 19700). Among others, this fixed many bugs, and the speed improved noticeable.
I run a hosted test site with SimpleHelix (they offer a one-click Magento installer), and after the update I am quite satisfied with the performance of my demo web shop (even though I am located in Europe and run on a server in US).
I am convinsed that Magento has the potensial to really become a major player for Web Commerce, and no one should overlook it.
Indeed, nice thorough post.
I’d have to disagree with the $80 - $100 per month hosting being deemed expensive. We have dozens of eCommerce clients and many are on dedicated servers, some at Rackspace, and paying $500+ per month. A serious online business making $20k per month plus should have no hesitation to pay for Crucial hosting. I don’t know of any online retailer, no matter how small, that has used standard shared ($5/month) Web hosting. Maybe if it’s someone just futzing around trying to sell a couple things online, I don’t know.
I think entry level online retailers should look to hosted solutions like Volusion, Shopify or Etsy. That’s the truly turnkey way to go these days, not open source imo.
I think Magento will come to replace OSCommerce unless OSC is drastically changed. And we have clients in the $1mm to $5mm per year range that are using OSC and are considering us switching them to Magento.
Thanks for chiming in Jason - I agree that hosting is a scaled cost and that $80-100 is not expensive. However, most merchants on OSCommerce use very cheap hosting even on sites making $20k per month (not that I’d recommend it, but I’ve seen it) and that making the leap from $10-$20 per month to $80-100 is a big step.
Also, while the hosted solutions you recommend are great for some users, I think their lack of flexibility is what drives most entry level online retailers to a solution like OSCommerce to begin with. I think OSCommerce will be around for quite some time, filling the need for the entry level merchants. Magento will fit in quite nicely for those that want to upgrade that experience, but most eCommerce startups are nickel and diming everything (most don’t realize that eCommerce sites are a business and as such need proper investment up front) and while Magento is “open source” - it’s associated costs are not cheap, like OSCommerce, or Zen Cart, or the others. But like you said, clients that are successful on OSCommerce are going to naturally look at Magento Commerce to upgrade their shopping experience, and that’s where I see most of the business from Magento Commerce. OSCommerce will lose a lot of its top-end users in favor of Magento, but there still will exist a following of small startups.
Hey BC,
What a great review, and thanks for the mention about Crucial
I’ve been to your site before and saw some traffic coming in from here, thought I’d drop by and say hello. Subscribed to your feed as well, some good stuff here!
On the topic of pricing, it’s actually quite interesting. We used to compete heavily in the budget hosting market, originally selling hosting as cheap as $1.99/month (crazy, eh) and that slowly went up until we introduced Split-Shared, which is now our cheapest plan at $25.
Whereas we used to compete with companies like Dreamhost, 1&1, and HostGator, we now deal with clients that are coming from companies like Media Temple and Mosso.
It’s refreshing for me personally, since more of our clients are developers and designers, and as a developer myself, I enjoy that kind of thing.
Magento Containers was a big leap of faith for us too, we had no idea what kind of interest there would be, if any.
We figured no one would spend $100-400/month on this product (or at least, not enough people to cover the cost of an empty server waiting for clients), and were just going to give it a trial run to see what kind of interest there was, if any.
Surprisingly, the interest has been incredible, and we’re actually looking to add a third tier to Magento Containers in the $1500+ range.
It’s really changed our direction and focus as a hosting company, and we’re looking more at specialized hosting like ecommerce and SaaS.
As Jason pointed out, there are a lot of people who make $20-30k+ per month from their online stores (and a lot pulling in 6-7 figures). When you have 100+ users online at once, do 1000+ orders per day, and see 20M pageviews in a month, the $100+ price range is a no-brainer, especially when you don’t want the hassle (and cost) of dealing with a data center, managing a server, and/or hiring an IT guy.
Even at $10k/month, a cost of business of $100 is really cheap. It is a business after all. Hell, if Crucial’s business costs were even at 10% of our monthly revenue we wouldn’t have much to complain about!
I’m actually shocked that there are people making a living with online stores like that, yet they still run on budget shared hosting accounts. They spend more money per month on their cable or phone bill, yet their store runs on hosting that costs the same as a pack of cigarettes.
This is a whole new arena for us though, since we typically deal with shared hosting clients, but Magento Containers and our partnership with Varien has opened the door to a market we never imagined.
We’re really excited about it and it’s nice to see an ecommerce blogger like yourself talking about Magento. I agree with your negatives about Magento too, and look forward to reading more of what you have to say and watching how Magento matures and evolves.
Cheers,
Kyle
I find it rather amusing that the hosting companies seem to think they understand the pockets of small business owners. You want our cash, and that’s the bottom line.
Thank you fr the review! I can’t wait to try Magento. I’m installing it myself…because I don’t spend money all willy nilly.
How does Magento compare with Voluson platform?
I liked the honest opinion write up. I have a question about your reluctance to migrate your shops to Magneto.
Q: For a newby to the ecommerce world, would you recommend continuing with OSCommerce and they eventually moving over to Magento, or rather sticking it out with the multiple URL’s SEO issue until the fix it if they do?
Thanks for the feedback!
Thanks for chiming in Jonah, to be honest, these issues aren’t necessarily preventing us from migrating to Magento - in fact, we already have projects to be deployed on Magento shortly. However, this is a big issue, there are some workarounds for the time being (search the Magento forums for details) and I’m confidant these issues will be resolved shortly.
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