29th July 2014 by Yolanda Day
eBay is closing down Magento Go and ProStores, the E-commerce platforms which use software as a service. eBay invested $180 million in 2011 into the two platforms which were originally designed to target SMEs (Small to Medium-sized Enterprises).
The withdrawal of the hosting solutions will see 10 000 online stores needing to migrate their E-commerce shop. eBay’s Enterprise division justifies this decision by the strategy to focus resource on Magento Community and Enterprise editions; two platforms that can provide better support to small and medium online retailers. Another influencing factor includes the conditions of the changing market that demanded eBay to adapt.
Magento Go and ProStores will officially close on the 1st of February 2015, following the busy Christmas shopping Season. Until this date, all online stores will operate as normal and customer support will continue to be provided.
eBay has notified current merchants and have provided planning tools and resources on both product websites for clients to respond to the closure with minimal disruption. Customers are also directed to Migration Center Dashboards that are designed to aid in the transition process to other E-commerce platforms.
These product withdrawals had been anticipated as Magento were planning to release staff in 2014, where almost 50 jobs were cut from the E-commerce division earlier this year. Magento Go also did struggle to gain market traction in the SAAS market, as shop-owners placed preference on competitor E-commerce platforms including Shopify and BigCommerce.
If your E-commerce business is hosted using Magento Go or ProStores, the next step could be to migrate your online store to Bigcommerce, the official migration partner. eBay chose Bigcommerce partly because the major competitor has existing experience in transitioning 6000 merchants from ProStores to its platform, as well as Magento users.
Bigcommerce currently has over 50,000 users and will offer incentives to existing Magento users to migrate to their platform.
Alternatively, these product withdrawals from market can provide you with the opportunity to expand your E-commerce enterprise by upgrading your online store using Magento Community or Enterprise, which are predominantly aimed at growing retailers who require the flexibility to customise their store and make use of other features such as order management integration and ERP (Enterprise Resource Planning). The newer versions of these editions will offer features not available on Magento Go including payment options to streamline checkout.
Whichever progression you choose, expect a swift transition to a platform that fulfils your enterprises’ needs. If you require advice on how to best proceed this year, we are happy to be of assistance. Simply contact us to arrange a free consultation.
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