Now that we’ve had a few months to play with Magento 2, including several eCommerce integrations and conversions, here are 6 major points of evolution that set Magento 2 apart from its illustrious predecessor.
Before we start: choosing an eCommerce platform is a big decision – one that you’ll be living with for 4 years, statistically-speaking. Often, we find that evaluation criteria takes many technical factors into consideration, sometimes at the expense of business requirements and potential.
Don’t get me wrong, it would be dangerous to implement a new platform without technical due-diligence. I’m just saying that the technical aspects are there to serve a greater set of needs; those of the organization and its business goals.
The Myth of the “Glorified Shopping Cart”
Historically, Magento was arguably perceived as mainly a glorified shopping cart (hey, we said arguably. We heard it through the grapevine). Pushback against M1 was that in some cases it was slow, that it had scalability limits and that it was ripe with limitations for the merchant who wanted to put in place a truly omnichannel experience.
True or not, those sticky points were addressed in the transition. Magento is now a comprehensive technological stack with advanced eCommerce capabilities; simply put, Magento2 delivers all the tools to deploy a truly omnichannel strategy, completely aligning itself to support the needs of merchants in these digital times. That, and a new It also offers a new cloud edition that has virtually no limitations in terms of scalability.
Speaking of tools: we’re really, really excited about Magento’s new products: Magento Order Management System (MCOM) and Magento Business Intelligence (BI). More on those later.
Newest Stack, New Features and Constant Improvements
As we write this, Magento2 has the most modern stack when compared with other major eCommerce platforms. First released in Q4-2015, it was built to be constantly enriched with new features.
Magento has an aggressive road map, with improvements and new features to be released on a quarterly basis (we’ve seen the plan and love it!). All Magento 2 clients will benefit from these new add-ons, regardless of when you signed on with the platform – for example, Magento will soon release a B2B package, as well as an advanced CMS feature, a direct client benefit of Magento’s acquisition and integration of BlueFoot CMS.
Order Management System (OMS) Delivers Value
First, here’s why merchants and businesses use an OMS:
- 20-30% more sales when you ship from stores
- In-store sales lift of 1-10% with endless aisle
- Online sales lift of 30-40% in average by offering Buy Online, Pick-Up In Store (BOPIS)
- Customer Lifetime Value (CLV) is 30% higher when interacting on more than one channel.
Magento unleashed Magento Commerce Order Management (MCOM) in 2016 with the intention of providing a powerful yet manageable OMS, providing retailers with better tools to compête and compare with some of the behemoth platforms and marketplaces.
Better Decisions With Magento Business Intelligence (B.I.)
A strong BI tool allows you to understand the behaviors and attributes of your most valuable customers, to optimize your targeting, merchandising, and strategy decisions to drive customer lifetime value, and to discover how customer acquisition expenses translate into revenue and margins, allowing you to optimize your spending and drive profitable growth.
You know; leveraging the data your customers are already providing you to generate growth and profit.
Magento recently acquired RJMetrics and rebranded the platform as Magento Business Intelligence. Offered as a cloud service, Magento BI helps you uncover the insight that helps grow your business, empowering your entire team to take decisions that are based on real, useable data.
As you can tell, we’re pretty excited about Magento BI’s potential.
Faster Time-to-Market + Flexibility = Lower TCO
Compared to other enterprise-level platforms, Magento2 is generally faster to deploy: the average project delivery period hovers between 6 to 9 months. When you incorporate the other eCommerce platform exploitation costs like development, licence fees, maintenance costs, etc., Magento2’s Total Cost of Ownership (TCO) tends to be lower than those of the main competing eCommerce platforms like Demandware, Hybris, Oracle, etc., based on an internal study.
Growth is its own reward. An Internet Retailer study concluded that online revenues for Magento merchants grew a market-leading 30% YoY; a faster pace than those of competing platforms. We like to believe that this is due to the fact that the technology, supported by the largest marketplace of extensions, gives more flexibility to innovate and quicker adaptability.
$250 Million is a Whole Lotta Money (Especially with Strong Leadership)
“Some have hopes and dreams, we have ways and means” sang Pras so many years ago (formerly of the Fugees). This past January, Magento announced $ 250 Million in new funding. This quarter-billion dollar investment will fund the global expansion of Magento’s sales and marketing operations, as well as bolster customer support, product development and to fuel potential acquisitions, all of which adds up to an ever-increasing series of reasons for customers to upgrade to Magento 2.