eCommerce is a bustling word that is driving today’s technologically-driven and highly competitive business world.
Electronic or online buying and selling of merchandise over the internet is a massive technological development that was never thought of a few decades ago.
Business owners are always on a look-out for eCommerce platforms to successfully launch and market their products for online shoppers.
Magento is one such eCommerce platform that strives to influx life into businesses across the globe.
Magento – A Leading Name In The World Of eCommerce
Magento is one of the world’s leading innovative eCommerce platforms that fulfills the requirements of business-to-business (B2B) and business-to-customer (B2C) online businesses.
The organization has managed to gain popularity as a successful enterprise eCommerce brand.
The reputation of Magento as the most admired eCommerce platform is due to the flexibility and affordability benefits that it offers to its valuable clients.
Magento platforms drive high impact online business deals to render the benefits of conversion uplift and improved website performance in a swift manner. The company is proudly associated with leading brands such as Audi, Punch Taverns, and Habitat.
Unlike its arch-rivals (such as Amazon, Shopify, WooCommerce, etc.), Magento provides eCommerce solutions to its partners without managing the cross-channel marketing strategy of a brand across various interaction points.
However, it surely has APIs (Application Performing Interfaces) to facilitate material to a wide range of sales and marketing channels.
Comparison Between Magento Open Source And Magento Commerce
From its inception, two of the most remarkable products offered by Magento are –
- Magento Open Source – a free edition that offers the right of admission to an enormous network of feature extensions.
- Magento Commerce – allows huge businesses to discover its complete utility and execute all levels of operations.
Comparison: Magento Open Source vs Magento Commerce
|Features||Magento Open Source||Magento Commerce|
|Basic Structure||An open platform available for free download and customization to users as per their requirements.||An instance-based platform that can be hosted on the cloud at the enterprise level for a subscription fee.|
|Utility||Tech start-ups and developing businesses easily use it to spin-up their eCommerce online stores.||Large and complex businesses use it for enhancing their global presence.|
|Accessibility||Provides access to a broad range of plug-ins, extensions, and themes completely free of charge||Provides access to premium services (such as advanced marketing, customer rewards, targeted promotions, and technical support) at a hefty price.|
|Magento Order Management and Shipping||The clients cannot avail these facilities||The premium clients can enjoy these facilities|
|Software-as-a-service (Saas) Model||Free and open access restricts the benefits of Saas eCommerce solution to the clients||Cloud-hosted environment completely offers the benefits of Saas eCommerce solution to the clients|
The Cost Involved In Magento eCommerce
As explained earlier, Magento Open Source (MOS) is available free of charge to users.
On the other hand, its counterpart Magento Commerce is a premium product that comes with a minimum annual cost of $22,000 (particularly for Magento 2.0).
A higher cost is paid by companies comprising more than $1 million in Gross Merchandise Value.
Other than this fixed initial cost, the company also charges some hidden costs for installing, running, developing, and maintaining the on-premise website of the business clients.
This encompasses the recurring operational costs that Magento Commerce incurs for adding value to the business. For example – costs incurred in precisely administering, testing, monitoring, and hosting the client’s website.
The support specialists at Magento also charge hefty fees for the ongoing support services for manually installing and managing the security updates.
The technical know-how for scaling up a business comes in the form of a heavy price charged from the client.
The accumulated figure for all the above costs is the Total Cost of Ownership that is charged by Magento from the businesses for investing in technology.
Magento Enterprise Cloud Edition (MECE)
In its formative years, Magento Commerce was introduced in two versions, namely Magento Enterprise and Magento Enterprise Cloud. The two versions have now been integrated to form a premium cloud-hosting eCommerce platform known as Magento Commerce.
MECE offers intricate technological operations laden with modern integrated cloud-hosting facilities and committed customer services.
It facilitates the creative teams of businesses to fabricate an exceptional shopping experience for the buyers of the products. It also aids in augmenting product sales through its incredible service tools such as Business Intelligence, marketplace extensions, and order management, and hence helps in realizing the eCommerce aspirations of its clients.
MECE has been successful in becoming the preferred choice of several leading manufacturers and retailers of leading brands such as Helly Hansen, Burger King, Munro Footwear, and so on.
In contrast to the Software-as-a-service (Saas) model implemented in Magento Commerce, MECE is a Platform-as-a-service (Paas) solution that permits swift operation of customized and secured web fronts, and a resourcefully managed infrastructure of technological services for increasing online sales.
It thus has revolutionized a new era of eCommerce technology that has surpassed the Saas period.
As an integral partner of Adobe Experience Cloud, MECE strives to easily create content and promotion functionalities on the eCommerce website. Drag-and-drop is one such tool that has been developed to provide an engaging shopping experience to the buyers.
It runs perfectly on Amazon Web Services Cloud platform to provide innovative, flexible, and expandable cloud computing services to eCommerce businesses and hence is more accessible and reliable.
An Outlay Of Magento Software Program
As implied from the name, MOS (previously recognized as Magento Community) is an open-source, free software program that developers and tech startups can easily download, modify, and self-host as per their needs.
Through this software, Magento provides free access to a wide variety of ready-to-use market extensions and themes to help businesses to set-up and expand their online store.
MOS software is a boon for emerging small businesses that cannot afford the exorbitant cloud computing and hosting costs charged by eCommerce solution providers.
It facilitates them in creating their eCommerce websites and online stores by following simple steps of download and installation.
Magento Commerce is a premium version that charges exorbitant prices from the clients based on the gross sales revenue of their online products.
The initial yearly license cost of installation of Magento software is flat $22,000, scaling up to $190,000 for businesses generating more than $25 million gross sales revenues.
The monthly hosting price of MOS starts from $10-$250 for an unmanaged host and $190 for a managed host. This price scales to $500 per month for dedicated servers hosted on Magento Commerce websites.
Apart from the free themes and extensions on MOS, paid versions are also available to increase the capabilities of online stores.
The custom-designed themes on the Magento template come with a price range of $29-$499, while the paid modules of extensions start at nearly $50.
Thus, Magento largely fits into the financial plan of online retailers and tech startups, depending on the services and features opted by them.
Functionality of Magento
Magento is a leading name in the eCommerce world that uses open source technology to provide vital online business solutions and a far-reaching support system to the owners of online stores.
It also gives them complete control over the manifestation, functionality, and theme of their online stores on the Magento eCommerce platform.
Intensive internet marketing, search engine optimization (SEO), elastic shopping cart structure, and content management are a few of the outstanding tools that are offered by Magento to its clients.
Several plug-ins and selling features to aid in developing the utility of the online store, and thus enable the sellers to augment sales of their products through this platform.
The functionality of Magento works on the model of Entity-Attribute-Value (EVM) to allow the sellers to migrate and sync the databases of their customers and products.
The company has strong servers to hold massive information about the client’s databases.
Search your .store domain NOW!
150 Brand Names for Magento Websites on .STORE Domains
Understand Magento Better: An Interview with Uwe Weinkauf, CEO of MW2 Consulting
As a special treat for you towards understanding Magento better, we spoke with Uwe Weinkauf, CEO of MW2 Consulting, the experts in Enterprise Application Development, eCommerce, IT Outsourcing, and IT Operations that deliver valuable solutions
for global business needs. MW2 has been a fully certified and trusted partner of the Magento platform since it’s inception. In this interview, Uwe talks about some amazing insights about Magento as well as some interesting insights that will help your online retail business immensely. Read on!
Tell us about MW2 and why several trusted brands chose your services to grow their eCommerce businesses?
We are a Global Magento Solution Partner, aligned to help leading B2B and direct-to-consumer brands produce better results across digital channels.
Our Fast2Commerce™ methodology allows rapid delivery and optimization of global, multi-language B2B and B2C platforms. We are an internationally trusted consultancy, delivering leading digital solutions for brands across the globe. MW2 has significant expertise helping B2B and B2C brands realize their commerce vision.
Tell us about your Magento partnership and expertise.
Our Magento Service and Solutions are very comprehensive. We engage with clients early on in the lifecycle and can guide or assist them with eCommerce roadmaps, user stories, digital strategies and an effective alignment with their customers.
What is Magento 2? How does Magento help eCommerce businesses scale?
Magento 2 is essentially everything businesses loved about the first Magento… but so much more.
The long list of new improvements begin with its platform, in which e-commerce merchants are able to innovate and create the best customer experiences available; regardless of the channels or devices, it’s being used on. Magento 2 is the ultimate experience for endless scalability, incredible performance, and rich functionality.
- Magento 2 & The Shopping Experience
Magento 2 offers some of the most advanced features so your customers can truly enjoy their shopping experience. The feature-rich program improves conversion, increases sales, and turns customers into honest advocates of your brand.
- Magento 2.2 or Magento B2B
With the latest Magento release, Magento Commerce 2.2 has pushed the boundaries of traditional commerce platforms. Now offered as an all-in-one cloud solution, it provides new and powerful capabilities.
What is Fast2Commerce methodology? How is it reducing errors, lowering costs, and resulting in timely market implementations?
MW2’s Fast2Commerce methodology™ helps our customers to get eCommerce stores
a) launched with confidence and on time and
b) with the right quality.
It is not unheard of that brands have spent a lot of money on eCommerce platforms which never get done or are very difficult to scale along with the business which makes the total cost of ownership prohibitively high.
Also, many brands want to hire agencies who can do the implementation. However, if the requirements are unclear or not well defined this can become a lengthy and frustrating process. MW2’s Fast2Commerce framework takes the guesswork out, provides predefined templates, well-defined user-stories, and the business can understand within a matter of weeks how the new site will function and can sign off with confidence.
How can early-stage and smaller eCommerce businesses strategically use digital marketing and social media marketing to build a strong target audience and increase brand awareness?
SEO is the most effective way to increase traffic and to get an early stage or smaller eCommerce business launched.
The advertisement needs to be considered as well but we advise caution (see below). We would recommend to do it at a later stage once a small business understands its business value better in terms of which products customers like and where they can create a niche.
Using channels initially may also be a good idea, i.e. selling through Amazon to establish brand recognition and funnel traffic back to your site.
So, let’s take a look at SEO from a super basic-high-level overview:
- Utilize Headers and Title Tags
- Optimize Product Page URLs
- Eliminate Duplicate Content
- Clean Code = Faster Performance
- Make Use of ‘Nofollow’ Links
- Add Relevant Keywords
- Make Sure Your Website is Accessible
- Set Up a Sitemap
- Don’t Use the Default Description
- Optimize Your Website’s Homepage Title
In the world of eCommerce, how is a stellar user experience entwined with web design? How can eCommerce businesses optimize conversion with beautiful designs that offer a cohesive brand experience?
User experiences are critical and consumers are getting more and more used to slick and modern UIs. The goal is to create beautiful designs that are simple, intuitive, and fast!
With this being said, here’s a look at how sites are providing incredible work that operates across all devices.
Magento is a leading eCommerce platform that offers an integrated approach to online businesses and tech startups to facilitate a seamless experience for its clients. The company takes pride in possessing a sturdy portfolio consisting of omnichannel solutions for cloud-based merchandising.