28 October 2016
We find ourselves at a very interesting point in e-commerce history, a point where if we consider generic search interest over time - a relative newcomer to the e-commerce game, Shopify, has managed to surpass a number of more established open-source e-commerce platforms including the ubiquitous Magento. So what’s been happening?
Well, Shopify is a SaaS based online shop platform (closed), not an open platform like Magento and looking at the chart below we can clearly see a decline in open platforms. This is an experience mirrored in the latest e-commerce briefs we’ve been getting here at Brandnation.
This data, whilst not necessarily directly translatable to platform market share, is definitely is a good indicator of what the future is likely to hold.
With many of the world’s leading economies matching this trend, the rest of the world will surely soon follow.
Spotify, led by founder and CEO Tobias Luetke, claims to have a visionary, long-term focused, product-driven team of passionate, talented technologists. They must be right, as so far it’s working wonders for their stock prices with revenue growth 93% Y/Y according to their investors deck.
The general consensus is clear. If you''re looking to start a small shop and have to invest £3-5K for an entry level Magento shop, you are better off going for £20 a month commitment. This way if you fail, and apparently these days you need to fail quick… you can do so with no upfront cost, terminate your venture at any point and have 12 years before you reach the £3K investment.
Obviously, Shopify is by no means the holy grail of online shopping experience, and definitely has it’s shortcomings. However given the fact that you can get going in under an hour with a ready template and online help, we see a bright future for the SaaS e-commerce and stop to wonder how will the big players like Magento handle this unavoidable shift.