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eCommerce in the Netherlands: Be Aware of Local Laws and Offer Prevailing Dutch Payment Solution

This is is a re-publication of the article/interview with me that was published on the aheadWorks blog on Februari 21st, 2013.

Since 2003 I was involved in several open source projects, doing mainly consultancy and some project management besides my Psychology studies. I started the online Dutch Joomla! community in 2004 and also organized national events for that community. In 2008 I came into contact with Magento and was really enthusiastic about it right from the start. Since people with webshops on Magento purposefully earn money with it (which is not always the case with a regular Joomla! website), budgets for developing Magento webshops are much higher, and thus, it is more interesting market.

I copied the Joomla! model to Magento and started a local online community, organizing national events and doing consultancy work.

Magento position in the Netherlands

Despite the economy being at a low point, eCommerce is still growing in the Netherlands. There’s a great interest in the Netherlands for Magento and related services. For instance, if you use Google Insights to track interest for “Magento” in the last 12 months, you’ll see the Netherlands on top.

Google Insights1 eCommerce in the Netherlands: Be Aware of Local Laws and Offer Prevailing Dutch Payment Solution

The difficulty in our region is to sell outside the boarders of the Netherlands. International legislation, logistics and customers are often focused on buying from within their own country, and that can be a challenge for foreign eCommerce companies.

The great thing about the Netherlands is that the average wages are high and many people have access to 3 or more internet-enabled devices. Shopping online is a regular thing to do for a large percentage of the population. 

If you want to open eCommerce business here, you’ll need to get into some local laws (for instance, currently our cookie law is much more strict than anywhere else in Europe) and offer the predominant local iDeal payment solution.

You also need to keep in mind that we only have around 16.7M residents, so if your business model requires scaling beyond that, you should be active in other countries.

Dutchento basis: people like to do business with people they’ve met in real life

Dutchento is Magento fraternity in the Netherlands. It feels like a natural extension of the online community we have. Once a year we bring together the brightest minds on eCommerce and Magento and show the greatest showcases. But more importantly people like to do business with people they’ve met in a real life. Dutchento is a catalyst of Magento business in our country.

magento kitchen11 eCommerce in the Netherlands: Be Aware of Local Laws and Offer Prevailing Dutch Payment Solution

We have been organizing events like Meet Magento NL for a couple of years and the organizational part is worked out well. The most difficult thing here is to battle rising costs on the one side and getting sponsors on the other. Despite eCommerce being on the rise, we do notice that sponsors are on a tighter budget than before.

Dutchento helps us connecting people. The most important part is to link the people who want to build a new webshop (or build upon their current shop) with the right Magento partners and third party service providers like e-mail marketing, payment providers, logistics, etc. The sessions we have during the day (around 25) and business marketplace are also meant to show visitors which party has the right credentials for their needs, and what are the best showcases in their branch.

 

My Life with Magento

My Life with Magento

First steps

first steps My Life with Magento

How the first project 5 years ago felt like

first project My Life with Magento

When I try an extension, without reading the reviews first

dog lemon1 My Life with Magento

What happens when you install default Magento on a shared hosting environment and leave all caches off

code 12 My Life with Magento

What happens when you put Magento on a decent server, and let a professional tune it’s performance

fast magento My Life with Magento

When a developer touches the Magento core

core My Life with Magento

When they ask me to install a list of 20 extensions

install extensions My Life with Magento

When I did a Linux Siege performance test on several client sites that crashed the servers

run My Life with Magento

How clients feel when I take them through the System > Configuration options

code 14 My Life with Magento

When I tell a marketeer about visitor and customer segmentation

ooooh My Life with Magento

 

When I get a new feature request on the day of launch

baby elefant My Life with Magento

When clients say they’ll stick to using osCommerce

lama My Life with Magento

 

When I show webmasters to-be the posibillities of Magento’s pricerules

wow My Life with Magento

My response to a 50+ page RFQ combined with a 10K budget

jennifer lawrence My Life with Magento

When I’m asked a simple question and ask about what part of the manual they didn’t understand.

didnotread My Life with Magento

When I ask the developer if this feature was tested

tested My Life with Magento

When you buy an encrypted extension and trying to contact that developer to fix some bugs

code 15 My Life with Magento

When I heard Yoav left

yoav My Life with Magento

Every developers reaction when looking at another developers code

developer My Life with Magento

When the frontend designer didn’t read Magento’s Design Guide

design My Life with Magento

When taking over a shop from another company and making the client a happy client again

takeover My Life with Magento

What it feels like working in e-commerce with Magento despite the current economy

ecommerce My Life with Magento

When the RFQ states that “the website must work with IE6″

IE6 My Life with Magento

When they want to use Prestashop

prestashop My Life with Magento

When they say 15K for Enterprise is way to much and they can easily develop all that functionality themselves within that budget

jennifer lawrence 2 My Life with Magento

What #Magerun looks like

magento imagine My Life with Magento

When I got my ticket to Magento Imagine 2013

dj My Life with Magento

Share if you like,

I hope to see you next month at Imagine!

 

 

Improved Magento partner program: levels now (actually) based on quality!

Magento just announced a new partner program, which I think is great for the ecosystem! I previously spoke about the limitations of the old program and Magento has made some improvements since that. After the partner shakeout last October (around 100 partners were removed from the partner listing) Magento is taking it to the next level with a completely new partner program.

magento partner program Improved Magento partner program: levels now (actually) based on quality!

I won’t repeat the reasons and the details of the change from Magento itself, you can read that in their announcement.

For me the highlights are:

  • No more Bronze partners. Levels now are Gold, Silver and Associate
  • Previously the main thing determining your partner level (Gold, Silver, Bronze) was the monetary partner fee you were willing to pay to Magento, supplemented with a required numer of certified developers and a yearly revenue target (# of sold Enterprise licenses). In the new system, you won’t be able to just pay to get to a higher level. Every new partner starts as an Associate and has to earn it’s way to the top by meeting several requirements. Number of sold licences and certified developers are still part of that, but now also customer satisfaction and a “health check” by the ECG of already deployed webshops will be part of the requirements to level up.
  • If you don’t sell Enterprise licenses, you cannot become a Silver or Gold partner.
  • This only accounts for Solution partners / integrators. Industry / Hosting partner program isn’t changed (for now).

So the levels will become dependant on the actual work a partner has done with Magento and how good that work is. From my experience, this is what most (potential) Magento customers that look at the partner listing already asume from the different levels so it’s great to have that aligned again. I also hope that the different statistics from each partner will become public so customers can use that information in choosing a partner. This also prevents a rich company without Magento experience to buy itself a Gold partner status and making very experienced (but not Gold level) partners look bad.

So I think this is a great improvement over the old system. Bet me being me I still see some areas of improvement :)

Uneven local distribution of partner levels

I think most clients are choosing a partner within their own country. The requirements per partner level seem to be global, while there are large local differences.

For instance: the annual revenue target is fixed per level, for everyone worldwide. In a country where Magento Enterprise adoption is high and there aren’t that much partners, you might see only Gold partners. In a country where there are lot’s of partners and a low or medium number of Enterprise users, you might see only silver or associate partners. The problem with this is that the partner level doesn’t differentiate partners so in those cases this doesn’t help (potential) customers to make a decision.

Possible solution: Per area (country or group of countries) you can create a maximum number of partners per level. This can be a fixed amount (say, max 5 gold and max 10 silver partners) or a percentage (20% of the total number of partners can be gold level, 40% silver). That way, you get a more even distribution of partners over the different levels and the different levels will make sense in every country. In this case it might be good to only update partner level only a few times a year, it might be confusing is levels are switching with every purchase of an enterprise level.

No stimulation for good (but non-EE) partners

I get that eBay wants Magento to sell as many EE licenses as possible, but some countries are just not ready for that (yet). IMHO the power of Magento is that it started with the free Community edition, took care of broad adoption of that version, and then started upselling to Enterprise. I don’t think Magento could have sold so many Enterprise licenses if it would have started with just the Enterprise edition. Community users are the ones upgrading to Enterprise or Community user are proving to potential clients what a great system Magento is and they directly buy Enterprise. Whichever way: broad adoption of Community is the basis of the succes of Enterprise

So there are a lot of countries where Community is just starting out, or already getting a lot of attention, but where Enterprise adoption is low. In some countries, paying $14,420 yearly for a software license isn’t something that many webshops do. With the new program, you’ll see only associate partners in those countries. Not only does that not differentiate the good partners from the others, but that’s also not very stimulating for those Magento companies. It’s not their fault they’re in a country where there are no Enterprise licenses being sold (yet), but these might very well be able to create a broad Community base that Magento can use in a few years to sell Enterprise licenses to.

Possible solution: I’d say: reward those great Community partners with Gold and Silver levels (if they meet the other requirements) but be (very) gentle with anual revenue targets. Again, I get that money has to be made, but in those countries you can start with no or low revenue targets and gently increase them in the next few years.

Of course the above solutions will make comparing partners between countries a bit harder but I don’t think many clients do that anyway and Magento has the statistics so it could still be done.

 

So these are my thoughts about the new partner program. What are your feelings about this, good or bad?

Back from São Paulo and San José, CA !

Last week I returned from a small world tour to São Paulo and San José, California! I was invited to speak at the Meet Magento Brazil and Joomla World Conference events, both times talking about Online Persuasion. And had a great time doing so!

8227246200 e6787a0531 z Back from São Paulo and San José, CA !

Guido at Meet Magento Brazil. Photo courtesy of Netresearch

The first event was Meet Magento Brazil in São Paulo. It was the first Meet Magento event in Brazil, but organized by the experienced event team of Netresearch that also organizes the Magento events in Germany and Developers Paradise in Spain. I had a great time getting to know the local community and the Brazilian e-commerce ecosystem, so a big thanks to Netresearch for inviting me!

Guido Brazilie Back from São Paulo and San José, CA !

Guido at the Joomla World Conference in San José

The second event was in San José California and another ‘first’ event: after many years of many local and international events this was the first Joomla! event organized by the Joomla! organization itself. Before I started with Magento 4,5 years ago, I did a lot with Joomla! and know a lot of people in the community so it was great to see everyone again in San José!

If you’re interested in my session, you can find the Prezi and many additional resources over at gui.do/onpersuasion.

I also want to thank my employer ISM eCompany for letting me go for 2 weeks to attend these events abroad. I also did a small crowdfunding campaign to get the travel expenses covered so I want to thank everyone who contributed to that, especially the Dutch (Joomla! + Magento) hosting company Byte Internet that was the main sponsor for my trip.

By the way: Byte is also launching a revolutionary new hosting product next year. I’m not allowed to tell you much about it, but it will be a huge timesaver for developers in the implementation and developing proces of Joomla and Magento sites. So my advice to you would be to go over to hypernode.com and subscribe to their newsletter to stay informed when they go live.

Hypernode.com  1024x776 Back from São Paulo and San José, CA !

Availability cascade

Psychological Theory:
When something is being repeated over and over again, it must be true. Right?

Application idea(s) for E-commerce websites:
When you need to convince customers of something, repeating your point (possibly from different angles and different media) will help you make the customer believe it’s true. What will be even more powerful is having multiple sources confirming or repeating you claims. Of course it also helps if the claims are… you know, actually true :).


4570275327 fbc2fa388a t Availability cascadeThis post is part of my Psychology of E-commerce tips series where I present you with a psychological theory and suggest how you can apply this within your e-commerce website.

Magento Partner shakeout: around 100 partners removed from partner listings

Last month there were around 386 official solution partners listed on magento.com. Today, only 281 are left.

What happened? Well, Magento kicked them out (gently :)).

Last year at the Innovate conference the Magento Developer certification was introduced to give developers a chance to prove their Magento skills. This also gave Magento partner companies a way to differentiate themselves from other companies with the number of certified developers working for them.

magento partner Magento Partner shakeout: around 100 partners removed from partner listings

In Q1 of 2012, Magento announced that partners were required to have a certain amount of certified developers on their payroll in order to stay in the partner program. The numbers depends on the partner level: if you’re a Gold partner you need 4 certified developers, a Silver partner 2 and bronze partners have no certification requirements.

I think this is a well needed requirement as I also pointed out in my post ‘Magento Partnership Improvements‘ in Februari 2011. I also think Magento did it’s best to gradually introduce this requirement to their partners and they’ve all been notified about this before the removal. I actually think the number of required developers per partner is still a bit low. I do expect that requirement to be raised further in the coming years.

So the result is that around 100 worldwide partners (27%) are now removed from the partner listing on magento.com because of this requirement. This doesn’t mean that the removed partners are now not a partner anymore (I think) but ‘only’ that they’re not visible anymore in the listing. But I’ve heard from several new partners that being listed on magento.com gave them a really nice boost in sales leads so being removed can be a big disadvantage for the removed companies. Also: if a partner claims on their own website that they’re a Magento partner but they don’t show up on the official list than potential customer might skip calling them altogether.

What do you think? An outrageous act by Magento or a logical step in Magento becoming more and more professional?

Magento Community versus Enterprise

I created a presentation to explain some similarities and differences between the Magento community and enterprise editions. If you’re looking into using Magento but having doubt about the version, I hope this can help to make than decision.

Prezi:

Slideshare:

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Psychological Theory

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Maarssenbroeksedijk 6,
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Phone: +31 6 420 939 76
Website: http://www.gxjansen.com
Email: guido@gxjansen.com

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