Interesting news today from Automattic – the people behind the most popular website cms ‘WordPress’ – that they’ve acquired WooCommerce. The release:
Since late last year we’ve been talking with Matt Mullenweg, CEO of Automattic and co-founder of WordPress, and his bridge team about what we could build together. Our plan is to leverage our combined wealth of knowledge, skills, vibrant community and joint infrastructure platform to reach new eCommerce heights.
So, the goal with WordPress + WooCommerce is to create the most open and easy way to sell on the Internet. You would imagine that this is quite plausible given the scale of WordPress. Today, WooCommerce is the second most popular ecommerce software behind Magento as detailed below:
Magento owned by Ebay appears to be in relative stagnation but it still represents 20% of total ecommerce solutions (both hosted and open source). Nevertheless, I do think we need a alternative solution for people that have outgrown a hosted platform like Shopify or BigCommerce.
Time will tell whether the new WordPress-WooCommerce acquisition fills this void but it’s exciting news for online merchants and developers.
One of the most popular hosted ecommerce platforms (arguably the most popular) is going public. Shopify has just released it’s SEC filing and it’s worth having a look at; especially if your business runs on the platform or you’re developing your own ecommerce software. An interesting note in particular:
We incurred net losses of $1.2 million in 2012, $4.8 million in 2013 and $22.3 million in 2014. We also incurred net losses of $6.4 million and $4.5 million in the three months ended March 31, 2014 and 2015, respectively. At March 31, 2015, we had an accumulated deficit of $33.6 million. These losses and accumulated deficit are a result of the substantial investments we made to grow our business and we expect to make significant expenditures to expand our business in the future.
So despite being in software and having thousands of customers – over 10,000 according to the company themselves – they’re still not making money. How does this make one feel running a business on the platform? Well, somewhat nervous I guess. Remember when Magento decided to abandon hosted stores and recommend switching to BigCommerce? The same could happen again and if you have a lot of code and SKU’s, it could be a massive headache having to re-platform.
It will also be interesting to see how being public changes the company’s philosophy as it’s built it’s business on supporting small merchants. Typically in ecommerce and in actual fact, all software, the real money is made in big, complex, enterprise accounts and so it could be tempting for them to go after this space.
Nevertheless, Shopify should be congratulated as they’ve really opened up ecommerce to thousands of people and created a fantastic ecosystem in a similar vein to WordPress in the blogging space. As a merchant, you have to start somewhere – be that Ebay, Amazon or indeed an entry level hosted service and Shopify is the best out there.
Do you use Shopify? What do you think of this move?