Is Magento Losing its Grip on the eCommerce Market Share?

There was a time back in 4-5 years when it seemed that Magento has established itself as the sole and undisputed leader in eCommerce Selling Management Platforms. Although there were several eCommerce platforms available at that time including Shopify, WooCommerce, PrestaShop, but none of them seemed to be even close to competing with Magento. You can get an idea about the market share of Magento by this statistics shown below:

Almost 43% Market Share was ruled by Magento but What happened now?

What Happened that Magento could not hold its position? Have the other technologies evolved more than Magento? Did Magento fail to capture new audience? Or Has eCommerce being redefined in the past few years?

Well, there are a lot of questions that come to mind but the biggest one of them is - Is Magento Losing its Grip on the eCommerce Market Share?

Let me show you a report published by Statista:

From the above figure it is quite clear how other eCommerce software platforms and technologies have taken over Magento.

Let me make things a bit more clear.

For the past 2 years, the growth of new websites on Magento platforms has almost stopped.

Here is data from Bulitwith which shows:

Up to this point, you must be thinking that it is all going downhill for Magento in the eCommerce Market Share.

Well, that's exactly not the whole picture.

What happened actually is that for the past few years Magento went for quality over quantity. Meaning, Magento has confined its target audience to be high quality eCommerce websites and has been working on improving its product and solutions as per their welfare.

Let me demonstrate what I am trying to say here.

Witness this data from Builtwith which shows top 10k websites on the internet:

Well, it's quite evident from here how the numbers of top website are shifting towards Magento.

Meaning that there has been a constant migration towards Magento of top websites in the World. Magento is trying to live up to its name by releasing the best possible technologies and features for eCommerce Selling and Management.

Magento has always been a trendsetter and has introduced technologies like Multichannel Selling, Customer Segmentation, Targeted Promotions, WYSIWYG editor, etc way before anyone else did.

The thing is that:

The eCommerce Market is Getting Segregated

Speaking of other technologies such as WooCommerce, Shopify, etc are able to grab new sellers who are just starting their eCommerce selling journey. While veterans like Magento are focused on top selling players.

The reason why new sellers are preferring these platforms is that they are releasing the features at more affordable rates and on a recurring basis. So new Sellers find it convenient to invest less since they are trying their luck in a whole new field.

Another reason why new sellers are preferring platforms other than Magento is that other platforms and technologies are easier to manage. In the case of Magento you need to have a sound technical knowledge or else you need to have funds to hire dedicated developers to manage your store. Whereas in the case of platforms such as Shopify and BigCommerce it is quite convenient to manage from their easy use dashboard. The development is also basically 'drag and drop' making it easier for a non tech person to manage things.

But when it comes to handling a large chunk of audience with world class features in store other platforms are still not very reliable compared to what Magento can do.

So coming back to our original question

Is Magento Losing its Grip on the eCommerce Market Share?

Well the answer is Yes and No.

Yes because Magento is unable to capitalise on the new audience where other platforms are doing very well. The eCommerce Seller numbers are constantly increasing and Magento is not a major part of this new Share.

And NO because Magento is constantly gaining the trust of top class websites and merchants who are preferring Magento on a long term basis due to the efficient features and ease to redesign the selling campaign as per their needs.