What is Magento?
Magento is one of the most popular open-source eCommerce CMS platforms at the moment. This might sound like a bunch of jargon, so let's break it down:
Magento = Open source + eCommerce + CMS Platform
Open source is software in which the source code is released under a license where the holder allows users the right to enhance, alter, and modify this code to meet their needs. In simple terms, it's essentially free code.
Ecommerce software, is software that allows commercial transactions to be conducted electronically. In other words, an application used to sell products and services online.
CMS stands for content management system. A CMS is an application used to manage all content related to a product or service in one central location.
Magento was started by Roy Rubin. Roy was an ordinary student just trying to make some extra cash on the side, but instead of waiting tables or pouring cocktails, he founded a company in 2004 to fund his student lifestyle. This Company was called Varien. Roy didn't have a vision for the company at the time, not really what they teach at business school, but for him, it was something he was doing to maintain his competency level while continuing to learn and grow professionally.
From 2004, Varien went from no master plan to launching Magento in 2008 which now powers billions of dollars in sales. Fast forward a few years to 2011, eBay buys 49% share of Magento followed by the entire acquisition a mere four months later. Roy remains CEO of Magento for two years before stepping down and leaving the company.
In 2019, Magento accounted for approximately 30% of the total market share. $155 billion worth of goods were sold through Magento based systems alone. Today, the platform source code has been downloaded more than 2.5 million times. And more than 100,000 online stores have been created on this platform. These online stores are a mix of B2B and B2C, small, medium and enterprise businesses. Some of these include: Coca-Cola, Nike, Ford, and Warby Parker. These are giant, dominant, multi-million and multi-billion-dollar companies, putting their trust in Magento to run their online businesses.
If Magento serves these types of companies, you can imagine the extent of their features, customization options, and scalability potential there is for small and medium-sized businesses. From the ability to engage with content to managing your orders and inventory, to shipping and even providing customer service, Magento is a one-stop-shop for all eCommerce business needs. They truly allow you to create an engaging full lifecycle shopping experience unique to your brand, no matter the size of the goals of your business.
There are two versions, one free version, and one paid version.
- The free version, called open-source, is perfect for most sized businesses. We have helped small startups through to large multi-million-dollar companies on this free version. You can do so much with it.
- The paid version of Magento, which goes by Commerce, is targeted at larger e-commerce companies generally doing more than a million dollars a year online.
So, if you're looking to start your e-commerce store or wanting to switch from your current platform, check Magento out. If you found this information helpful, or need some assistance with Magento, get in touch and leave us your feedback and comments. We'd love to hear from you!
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