Most Magento 1 users are aware that the platform officially entered “end-of-life” status in June 2020, meaning that Magento would no longer provide support, security patches, or quality fixes for these systems. Yet migrating from M1 to M2 is not always a feasible option for some merchants as replatforming is costly and time consuming. If you’re currently one of the 30,000 users still on M1, this article will help to identify your risk factors and demonstrate how you can use Bold’s composable commerce solution to mitigate your risk.
3 major risk factors for Magento 1 users
1. Security and compliance issues
Payment Card Security Standards (PCI DSS) are the global standards that “define security controls and processes for entities involved in the payment ecosystem”. This means that any business or organization that stores, processes, or transmits credit card data from major card brands (Visa, MasterCard, American Express, etc) is required to follow PCI DSS standards. Businesses of all sizes from small online shops, to large retail chains, and non-profit organizations must comply with these standards.
Failure to comply can result in steep consequences for businesses including but not limited to hefty fines, increased transaction fees, termination or suspension of accounts, and most importantly, a loss of consumer trust.
Magento 1’s end-of-life status means that the platform now lacks the critical PCI compliance features necessary to keep consumer information safe. Incidents of credit card theft and fraud are a major problem, with as much as 3% of the user base being hacked on a regular basis. Many stolen credit cards are then used on legitimate e-shops, leading to chargebacks. Chargebacks are estimated to cost a business 2.60-3.20 times the price of products lost, even when the business is not believed to be at fault.
2. Performance concerns
Security is not the only issue with legacy platforms like Magento1 – performance is also a concern. Merchants today are focused on creating improved checkout experiences for their customers, which requires customization to be added to Magento 1. These customizations can degrade M1’s performance significantly leading to slow load times, and frustrated customers. With Magento’s focus now on the M2 platform, merchants are struggling to find updated extensions to improve performance. For every 1 second of improved load time, merchants are seeing, on average, a 2% increase in conversions – performance matters!
3. Legacy platforms are not future-proof
Legacy platforms are not future-proof. Today’s online-shoppers demand easy, seamless checkout experiences, and this demand will only continue to grow. This means that merchants face significant pressure from shoppers to keep their checkout experiences current with the latest functionality or payment methods. All of this can prove to be time-consuming and risky due to the legacy architecture and high number of customizations required on Magento 1.
Modernize your M1 checkout with composable commerce
Most brands are fully aware of the aforementioned challenges and would like to address them, but transformation cost is a barrier. A complete teardown and replacement of your existing commerce platform is an exceptionally complex undertaking. These projects take years to complete and cost a fortune, leaving brands feeling trapped without a clear path forward. This is where composable commerce can help you break free from your constraints and modernize your checkout.
Rather than undergoing a complete replatforming and disrupting business operations, brands on Magento 1 can utilize composable commerce to replace individual pieces of their tech stack. It’s a time and cost-effective way to integrate best-in-class technology with minimal disruption.
Composable commerce achieves this through combining or composing Packaged Business Capabilities (PBCs). Each PBC is a feature or capability of the application and consists of third-party software components.
A composable approach utilizes various vendors who offer robust, comprehensive functionality for a singular function, rather than relying on one vendor to produce standard functionality as a one-size-fits-all offering.
Composable solutions use APIs to integrate modular pieces of technology, such as a checkout, a tax provider, or payment gateway, to a headless backend. According to Emily Pfeiffer, Senior Analyst for Forrester:
“More businesses are utilizing ecommerce migration services to move toward microservices-based, API-first, cloud-native technologies. Modern architecture adds complexity and initially, only the most digitally mature organizations could take advantage of this decoupled tech.”
Brands choosing composable commerce are able to remain competitive with the latest technology while futureproofing their businesses.
Why composable checkout?
If you’re curious about making the switch to composable commerce, checkout is an ideal starting point for a few reasons.
By utilizing a PCI-compliant checkout solution, your business can immediately start minimizing fraud, putting money back in your pocket.
Improved checkout can also meaningfully increase your revenue through improved conversions. According to Bold’s Checkout Benchmark, half of online shoppers abandoned their purchase during the checkout stage of the customer journey, when purchase intent is highest.
The top reasons for checkout abandonment:
- Lack of payment method options at checkout - including absence of Digital Wallet payments, Buy Now Pay Later options, or even a shopper’s preferred credit card
- Lack of preferred delivery methods including BOPIS, curbside pick up, or same-day delivery
- Lack of mobile optimization also remains a major culprit with more than a third of consumers abandoning their carts because of it
- Slow page load speed
Composable checkout directly addresses each of these issues effectively reducing checkout abandonment and converting more customers in more places.
Modernize your M1 checkout with Bold
Bold Checkout allows brands to easily integrate a fully-optimized, customizable checkout experience on top of existing technology, without requiring a costly replatforming. With Bold you also have the option to take that checkout with you to another platform or technology stack, allowing you to create high-converting checkout experiences, anywhere.
See how Cup of Arms integrated Bold’s checkout solution to their Magento 1 site.
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