Sramana Mitra: What about the mid-market? Unless you’re an enterprise-scale company where you can afford very expensive software, can you afford to do complex personalization in the mid-market through platforms like Magento? Mark Lavelle: Not today. I think it’s the hardest thing out there. It’s still early for true personalization. We need to get modest
Mark Lavelle: The ability to launch and scale applications today is like electricity in your home. It’s getting cheaper and cheaper everyday. We’re entering an era where developers step back in and run these applications and create great experiences. This is a great era of software coming back. We have SaaS applications on the back end
Sramana Mitra: The model you’re talking about existed and Nordstrom is the one that pioneered it. The Nordstrom Personal Shopper was somebody who would have to curate something before you come in. You’re using digital technology to scale that. If you’re trying to do some commodity stuff, you really have no chance to compete. Mark
Sramana Mitra: Clearly, there has been a massive explosion of niche e-commerce. Platforms like Magento as well as a few others that we have covered extensively have played a big role in enabling these companies and built very substantial e-commerce companies. One of my observations is that the bar is going up in terms of
This is a comprehensive discussion on the current state of the union in e-commerce with the CEO of one of the most popular platforms on which thousands of e-commerce sites are built. The outlook is somewhat scary with Amazon dominating at an alarming scale. But democratization is also on the horizon. Very interesting conversation, and
Sramana Mitra: E-commerce has been a category where a lot of people have bootstrapped businesses to some scale. You talked about your sweet spot being this half a million to million range. A large portion of that is probably bootstrapped businesses right? Rick Wilson: Absolutely, I would say the vast majority. Sramana Mitra: What are
Rick Wilson: The trend we see there is that they want to go direct. They want to build a community around their product. I think Kickstarter has really brought that down even from the million dollar plus range to the zero dollar plus range where you can do a product video, get a personality out
Sramana Mitra: If you were to tell us what you’re seeing in your customer base, what are some of the big trends that you’re seeing right now? Rick Wilson: There are some broad industry trends that are fairly ubiquitous. Most online stores today are becoming multi-channel. They’re going to be selling through their own store,