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eBay's Magento to Shut Down Small-Business E-Commerce Product

eBay found a home for its customers in Bigcommerce.

Jason Del Rey has been a business journalist for 15 years and has covered Amazon, Walmart, and the e-commerce industry for the last decade. He was a senior correspondent at Vox.

eBay’s e-commerce software business Magento is killing off its Go product aimed at small-business owners and has inked a deal to move those customers over to competitor Bigcommerce’s service, a source familiar with the deal told Re/code. eBay is also shutting down its ProStores e-commerce software offering, according to this source, a service that targeted similar sized businesses as Go.

eBay spokeswoman Amanda Miller declined to comment. A Bigcommerce spokeswoman didn’t immediately respond to a request for comment.

Magento, which eBay acquired three years ago, has been offering three tiers of software products to power e-commerce sites. Two of them targeted mid-size and large brands and retailers, while Go was aimed at small businesses.

But according to several sources, Go never gained traction against competitors that included Bigcommerce and Shopify. In March, Magento cut dozens of employees in a move the company said was aimed at realigning the business to “focus more deeply” on its two products aimed at bigger businesses. It wouldn’t say at the time what that meant for its Go offering.

ProStores was an older service that hosted e-commerce shops for sole proprietors and other types of small businesses. Over the past two years, eBay attempted to move ProStores customers over to the newer Magento Go product.

Bigcommerce, which has its main offices in Austin, Texas, and Australia, was founded in 2009 and has taken on $75 million in venture capital. It’s not clear if money is changing hands in the deal or how many customers are being transitioned over to Bigcommerce.

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