Net Solutions - Magento 2 Upgrade

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1

eCommerce Alert:

2
Magento 1 to 2
Upgrade
5 Reasons for a Timely
Magento 2 Upgrade
02 MAGENTO 1 TO 2 UPGRADE
Foreword
Since the birth of online retail and eCommerce business,
eCommerce players have had just one thing on their
minds – Higher Conversions!

eCommerce Conversions simply mean, more purchases


on your store which brings more revenue, and thereby
(hopefully) more profits. And who doesn’t want to earn
more profits?

But can an age-old platform produce higher conversions


in today’s dynamic market? Magento 1, is one such
eCommerce platform that has been in the market for over
2
11 years now and is soon going to meet an end of
support by the company, as early as June 2020!

The reason? Magento 2 platform is an advanced platform


that brings in additional capabilities and an efficient
system to support an eCommerce store, across multiple
channels in the current dynamic world. Adobe (Magento’s
parent company), recommends Magento 2 and is on a run
to phase out Magento 1 by the end of June 2020.
03 MAGENTO 1 TO 2 UPGRADE
MAGENTO 1

END OF LIFE
BY JUNE 2020

We went through innumerable discussions on various online forums to figure out how Magento 1 site owners are
concerned about the ending support. We also went through hundreds of Magento documents and other research
publications to figure out how an unsupported platform can lead to decreased site performance and lower
conversions.

We are bringing all of our findings to you in this document. Is it viable to continue a store on an unsupported
platform? Isn’t it rather advisable to move on to a better version?

This document addresses these concerns of eCommerce players by analyzing the risks of not upgrading to Magento
2 and understanding how Magento 1 to 2 Upgrade is a Do-or-Die situation!

04 MAGENTO 1 TO 2 UPGRADE
Magento 1 to 2 - Quantifying the Upgrades

Currently, there are as many as


209k+ live Magento websites in
2019 *

Magento1 56k+ Magento Stores


Magento 2 have already upgraded
to Magento 2
The clock is ticking for (2019) *
153k+ websites still operating on a
soon-to-be unsupported Magento 1
(2019) * https://trends.builtwith.com/shop/Magento
Stats Source: Magento Usage Statistics by Magento

Magento 1 live websites = Total Magento Live Websites - Magento 2 Websites. Thus, Magento 1 live websites = 209k-56k = 153k Magento 1 websites

05 MAGENTO 1 TO 2 UPGRADE
Clinging on to Magento 1
Most eCommerce players, using a Magento 1
platform are still unaware of the fact that Magento
1 end of support date is as near as June 2020!

Many fear it to be hard, challenging, and


insignificant to upgrade to version 2.

While many others have been pondering for long,


whether it’s profitable and viable to invest their
money, time and energy in upgrading to the new
Magento 2 platform.

Comprehend this: By not upgrading an obsolete system


you are exposing your business to serious risks.

06 MAGENTO 1 TO 2 UPGRADE
Advanced
Coding Structure

Improved Performance In-built SEO Features

Manage Your Products Benefits of Improved & Easy


Easily Magento 2 Backend Interface

Scalability Full Page Cache

Easy Checkout
Process

07 MAGENTO 1 TO 2 UPGRADE
Risks of not Upgrading to Magento 2
The hourglass is draining fast with no further innovation, and minimal-to-zero running support for Magento
1 platform. Sticking to Magento 1 platform exposes your digital business to some of the most potentially
crippling risks of this era.

Top Reasons to Upgrade to Magento 2

Deprived Crippled
Scalability Conversions
PCI Compliance Lack of Speed & Failing Integrations
Burden Performance & High Cost of
Maintenance

08 MAGENTO 1 TO 2 UPGRADE
1 The PCI Compliance Burden
The https://www.pcisecuritystandards.org/document_library?category=pcidss&document=pci_dss
PCI DSS (Payment Card Industry Data Security Standard) Requirement A3.3.2 summarizes a merchant’s key
responsibility to “review hardware and software technologies at least annually to confirm whether they
continue to meet the organization’s PCI DSS requirements.”

Review and upgradation of technologies that are no longer


supported by a vendor and that do not meet the security
standards - is mandated by PCI, non-compliance of which
can bring in heavy penalties.

In 2018, at least 1000 Magento websites were


hacked to steal credit card data.

This is indeed a huge security threat!

09 MAGENTO 1 TO 2 UPGRADE
Non-Compliance penalties for Magento 1 store owners:

1 to 3 Months in 4 to 6 Months in 7 Months & Upward in


Non-compliance Non-compliance Non-compliance

$10,000 a month for high- $50,000 a month for high- $100,000 a month for high-
volume clients/$5,000 a volume clients/$25,000 a volume clients/$50,000 a
month for low-volume month for low-volume month for low-volume
clients clients clients

PCI Non- Compliance fines can range from $5,000 to $100,000 per month

10 MAGENTO 1 TO 2 UPGRADE
On the contrary, Magento 2 platform encapsulates a number of advanced features to help achieve PCI
Compliance easily and saves you hundreds of dollars ($) in potential penalties and other costs.

Key Magento 2 Features for easy PCI Compliance

Direct Post Method The Direct Post Method allows for information to be transmitted directly
to the payment bridge, ensuring that no sensitive customer data is stored
in the Magento application – Making the Merchant PCI Compliant

The Hosted The Hosted Payment method allows merchants to offer a seamless
Payment Method checkout and integrated payment, keeping sensitive data outside of the
Magento Application server, easily making Magento 2 merchants PCI
compliant

Use of SaaS PCI Magento 2 automatically uses SaaS PCI Compliant Applications Like CRE
Compliant Applications Secure for card processing – hence making the merchant PCI compliant by
default
Like CRE Secure

11 MAGENTO 1 TO 2 UPGRADE
2 Deprived Scalability
While running an eCommerce store in a dynamic world
like today's, you just can’t afford to bypass the need for
scalability in your platform in order to incorporate Layered
growing types and number of users, across Architecture
geographies, languages, cultures, etc.

Staying on the Magento 1 platform means relying on a


system which is deprived of the key capabilities to
scale up and grow.

Multiple Database MySQL Cluster


Magento 2 on the contrary, is easy to upgrade and is
Masters Support
specifically optimized for scalability.

Advanced scalability features included in Magento 2.0


include : Layered Architecture, Multiple Database
Magento 2 lets you upscale
Masters, MySQL Cluster Support, etc.

12 MAGENTO 1 TO 2 UPGRADE
Multiple MySQL Layered
Database Masters Cluster Support Architecture

Magento 2.0 has Multiple For situations where additional The Magento 2.0 platform is a
Database masters. Each master database scalability is needed, layered architecture with four tiers
database can have multiple Magento Enterprise Edition 2.0 - the client, the page cache, the
slave databases to further scale also supports MySQL Cluster for application, and the database.
database read operations. checkout and order management This allows for different
databases-exponentially components of the architecture to
increasing scalability. be scaled independently in order
to meet the requirements of
different business use cases.

Magneto 2 platform is designed to Magneto 2 platform’s scalability is already


handle over 10 Mn+ views per hour 50 times more than Magento 1

13 MAGENTO 1 TO 2 UPGRADE
3 Lack of Speed & Performance
Magento 1 has been in the market for long, but staggers with extremely slow speed and page load time when
compared to the advanced version 2 of the platform. According to Benchmark Testing, Magento 2.0 beats
Magento 1.x through all metrics and use cases in terms of its speed and performance. We have talked about
these metrics in the upcoming sections of this document.

Magento 2 promises high-end performance for your eCommerce store by using key technologies like PHP 7,
Varnish cache, the popular HTTP accelerator technology, and enhanced indexer technology to – speed up
loading time, increase server response and improve efficiency of backend operations.

Running your old Magento 1 store will eventually cost you more than an upgrade to Magento 2 - making
the upgrade a good business decision.

Magento 2 platform, already processes Magento 2 platform, delivers nearly


135k more orders per hour than the instant server response times for catalog
Magento 1 platform browsing

14 MAGENTO 1 TO 2 UPGRADE
Heightened Store
Performance with
Magento 2
https://www.netsolutions.com/
Take for example, Legend Footwear which is a London
casestudy-legend-footwear

based store presence, offering high quality branded


footwear for 25 years now. They have been trading online
for over 10 years with millions of customers across the
globe.

Their online store was facing myriad issues like broken


functionalities, poor speed & performance.

The loading speed of the website was very slow and failed
to rank on Google, on both desktop & mobile sites. This
also resulted in low-performance scores in GTMetrix.

The existing Magento setup also had code bugs, causing https://www.netsolutions.com/casestudy-legend-footwear
the homepage to face the White Screen of Death (WSOD). https://www.netsolutions.com/casestudy-legend-footwear
View Legend Footwear Case Study
https://www.netsolutions.com/casestudy-legend-footwear
15 MAGENTO 1 TO 2 UPGRADE
Due to the loading speed issue, even the product image and catalogs along with the checkout pages didn’t
load in time, resulting in extremely poor store performance.

Net Solutions’ Magento experts helped Legend Footwear in upgrading the Magento platform to version
2.1.8 by customizing themes, plugins, and resolving the existing issues, optimizing and enhancing the
platform performance.

Reduced Page Load Faster Checkouts & Better Engagement


Time & Enhanced Increased Number of Through Other Digital
Site Speed and Orders Processed Channels too Like
Performance Mobile, iPad etc.

16 MAGENTO 1 TO 2 UPGRADE
4 Crippled Conversions
How many conversions do you think your
Magento 1 store can bring? Do you think it’s
better than the industry average eCommerce
conversion rates? why even continute using it?

According to a recent research, the average


conversion rate for Magento stores (for a
sample of stores surveyed) was barely 1.3%,
with the maximum number of stores surveyed
still running on Magento 1.

Another research shows, that the average


eCommerce conversion rate in the US alone is
at 2.63%, with the global average being as
high as 4.31%!

Further, anything more than 3.5% would put you


among the best of the eCommerce stores. But
how do you reach such a benchmark?

17 MAGENTO 1 TO 2 UPGRADE
The answer essentially lies in upgrading your
According to Benchmark Testing, Magento 2 processes 39% more orders per hour, and lowers server
response times ensuring 35 % higher conversions – easily leapfrogging your business into the best of the
eCommerce stores in terms of conversions.

Magento 1 Average Conversion Rate 1.3%

Industry Average eCommerce Conversion


Rate (US) 1.63%**

Magento 2 Upgrade Average Conversion


Rate 1.76%*

*Magento 2 Upgrade Conversion rate (approximation) = 1.3% * 135% = 1.76%


Sources : Little data, Monetate
** Q2 2018 data

18 MAGENTO 1 TO 2 UPGRADE
Higher Conversions with
Magento 2
One of our enterprise clients (name hidden due to NDA
norms), which is a US based luxury personal care service with
stores in London, New York, Milan, etc. and selling across the
globe.

Their store was built on Magento 1 and hence was facing


innumerable issues like depleted system support, poor
functionalities, slower checkouts, and poor conversions.

Net Solutions’ Magento experts helped the client with a


seamless upgrade to Magento 2 with add-on customizations High-End Performance & Scalability
and key enhancements. Features Added

Improved Check Out process ensuring


The results are just amazing! The Magento 2 upgrade has Increased Sales & Conversions
driven up the client’s site speed ensuring faster checkouts,
enhanced user experience and higher conversions. Easy Integration with Popular Payment
Gateways ensuring Higher Conversions

19 MAGENTO 1 TO 2 UPGRADE
5 Failing Integrations & High Cost of Maintenance
Magento has a huge number of integrations
available. 2
What if one (or more) of your store's
integrations stops supporting Magento 1?
1
With Magento 1 officially no longer being
supported, 3rd parties like payment gateways,
sms gateways, shipping methods, APIs or CMS
will be totally disinterested in maintaining
integrations with the platform. Even if they
continue support for the dwindling number of
sites running on Magento 1 will cause this work to
be deprioritized.

New services, integrations & features will only


launch for Magento 2 – making your age-old
Magento 1 platform obsolete.

Further, certain things like Mobile compatibility


20 are far more difficult to do on Magento 1 than MAGENTO 1 TO 2 UPGRADE
Further, certain things like mobile responsive design is far more difficult to implement on Magento 1 than on
Magento 2.

With everything combined, your costs of continuing to maintain a site on Magento 1 platform will increase with
time along with the compliance risk exposure – leaving it to be an overall highly costly platform to maintain!

Average Cost of Magento 1 to Magento


2 Upgrade with basic integrations =
Much Cheaper
Maintenance cost of Magento 1 Platform =
Maintenance Cost per Hr + Compliance
Penalties + Expensive Third Party
Integrations + Lost Revenues

21 MAGENTO 1 TO 2 UPGRADE
The ROI is Hard to Ignore
For those, who are still wondering whether to make the big move or not, here are some key quantitative
benefits - the ROI from this is hard to ignore:

Key Return on Investment Of the Magento 2 Upgrade

39% Checkout
Times made
Pages load
at a
Add to Cart
server response
66%
Or more orders high
processed per
faster by
50% time are up by
conversion
hour 51% faster speed 66% rates

22 MAGENTO 1 TO 2 UPGRADE
Dilemmas Suck
eCommerce players, running their stores on
Magento 1, have for long been hampering their
businesses with slow load time, poor checkouts, lack
of scalability, and lack of additional capabilities,
resulting in poor conversions and a sluggish growth.

This is where the entire money spent in the platform


goes in vain and rather brings in a very heavy
2
maintenance costs of maintaining an aged platform.
1
Staying in the dilemma to upgrade or not is a waste
of time, energy, and money.

Magento 2 upgrade is worth all your time and


attention, bringing in enhanced capabilities, speed,
performance, scalability, conversions and growth
like never before!

23 MAGENTO 1 TO 2 UPGRADE
How can Net Solutions help?
We’ll take away all your development worries.
We deliver the best of all worlds with our agile, end-to-end process. We get rid of your digital
development headaches by maximizing efficiencies to deliver transformative solutions that delight users
and drive revenue.

Net Solutions provides the perfect expertise to upgrade your eCommerce stores with a fully supported
Magento 2 platform.

20 3,000+ 10,000+ 275+


Years Customers Projects Employees
in business served delivered

24 MAGENTO 1 TO 2 UPGRADE
Our Magento Upgrade Services
Overview

Comprehensive Design & FED Upgrade Detailed Database Migration Paid Theme Upgrade
Complete UX, UI, Design Upgrade End-to end complete migration of Hassle-free Installation Services of a
& FED Development for delivering database from Magento 1 to ready-made Magento 2 paid theme
perfect user experience on Magento 2 Platform bought from Magento
Magento 2 platform
Seamless and hassle – free Complete migration support of data,
Use of top-notch tools like migration of data, themes, extensions etc. and end-to-end
stakeholder interviews and extensions and customizations to customization services of the upgraded
customer journey maps for design Magento 2 platform platform
upgrade

25 MAGENTO 1 TO 2 UPGRADE
Net Solutions is an award-winning eCommerce Design &
Magento Development & Migration Service Provider, for brands
and online retailers, with top Magento Certified Developers.

www.netsolutions.com
https://www.netsolutions.com/
Bookcontact-us
a Free Consult

Net Solution’s Key Recognitions

TOP DIGITAL EXPERIENCE CRM APPLICATION


SERVICE PROVIDERS 2017 SOFTWARE SPECIALISTS 2018
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TORONTO NEW YORK LOS ANGELES LONDON CHANDIGARH


111 Queen Street, East 101 Avenue of 11601 Wilshire Blvd, Aldgate Tower, Site No. 15, Phase 1,
South Building Suite 450 the Americas, 5th Floor Los 2 Leman Street, Rajiv Gandhi Technology
Toronto, ON - M5C 1S2, 8th Floor Angeles, Fourth Floor Park Chandigarh
+1 (416) 720-1790 New York City, CA - 90025, London - E1 8FA, UT - 160101,
New York, 10013 +1 (305) 767-3821 +44-(20)-8089-9359 +91 (172) 431-5000

netsolutions.com
https://www.netsolutions.com/

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