Monthly: May 2011

09 May


Work-From-Home Market Trends Report Q1 / 2011



DoNanza is happy to present you Its freelance quarterly report. This time we chose to check the trends on the fascinating and fast growing E-Commerce market, and guess what?... We have some very interesting insights to share with you. Enjoy!

Most New E-Commerce Projects for Small to Mid-Sized Businesses are Magento-based, but in terms of Budget, the Highest Budgets go to X-Cart Developers

DoNanza data shows that during the first quarter there was a 27% increase in the total number of E-Commerce freelance projects. E-Commerce platforms are used to develop and support the E-Commerce needs of online retailers.

"In the Freelance world, most projects are for the Small and Mid-Sized Segment, where we've seen significant growth in demand" said Liran Kotzer, DoNanza's CEO.

DoNanza's report reveals several interesting facts about how the rivaling SMB E-Commerce platforms fared in the first quarter of 2011.

The Top E-Commerce Platforms by Number of Freelance Projects

As measured by new E-Commerce freelance projects, Magento leads the market with 43% of freelance projects, with osCommerce a distant number 2 with a 20% share. The Top 7 E-Commerce Platforms by Number of Projects are Magento, osCommerce, Virtuemart, zen cart, PrestaShop, Volusion and X-cart; in terms of demand for professionals, Magento is peerless.

"Based on our online freelance project data, both Magento and osCommerce lead the market due to being php-based, and increasingly, their open environment. When there are many third party developer solutions, projects are simpler since they can address most customer requirements without a need to develop elements from scratch", said Kotzer. "Third party development can allow connecting the shopping cart to ERP, CRM, payment gateways etc. E-Commerce platforms that are open-source based can create a critical mass of extensions and plugins that make it easy to use, leveraging the power of many developers worldwide to offer solutions and plug-ins that were developed and tested but still meet the specific requirements of the customer", he added.

E-Commerce Developer Demand Keeps Growing

Looking at growth in terms of number of projects compared to the previous quarter, Volusion, which has a fairly small market share, is experiencing explosive growth compared to the previous quarter, at 70%. Prestashop and Virtuemart also experienced high growth rates, at 53% and 41%.

"During the last year, we’ve seen project demand expanding from US-based projects to Europe and Japan", said Kotzer. "In Europe, the United Kingdom has the most E-Commerce projects and Germany has the highest growth rate for E-Commerce projects", he added.

X-cart Professionals are the Highest Earners per Project

Looking at the average project budget, opportunities for X-cart consistently came in with an average project budget that was much higher than the average Magento or osCommerce project. This makes X-cart a winner in terms of freelance revenue opportunity per project.

"Magneto project budgets are stable, growing by 12% as the market seems to meet demand for Magento development. On the other hand, X-cart project budgets have doubled, as apparently there are less X-cart developers than required. We see more X-cart demand than available experts", said Kotzer. On average, Magento projects are 19% higher than osCommerce projects.

Discussing SMB E-Commerce platforms, Arie Shpanya, CEO of imOnline, an E-Commerce Consultancy, said:

"The E-Commerce platform market is typically divided into three: enterprise level solutions, which cost several hundreds of thousands of dollars per site, typically used by sites that have annual sales above $10M, "No touch" platforms used for small retailers, typically sites that sell less than several thousand dollars a year and are based on solutions such as Amazon Webstores, yahoo stores and other. The third platform category is the Small to Mid-Sized Segment, generally considered as retailers selling anything between several hundreds of thousands of dollars and $5M per year".

Q1/2011 - The top 50 Requested Skills

Changes in Top 50 Requested Work-from-Home Skills Show Growing Demand for Administrative Assistance and Social Media

Top 50 Requested Skills Q1/2011
#Rank Skill Rank Change #Rank Skill Rank Change
#1 PHP - #26 E-Commerce +2
#2 Graphic Design +2 #27 Sales +4
#3 Translation -1 #28 JAVA -1
#4 WordPress +1 #29 Lead Generation +3
#5 HTML -2 #30 Creative Writing +12
#6 Website Design - #31 Link Building -8
#7 MySQL - #32 Social Networking -3
#8 SEO - #33 Social Media +13
#9 CSS - #34 Advertising -1
#10 Photoshop - #35 jQuery +3
#11 Article Writing +1 #36 Excel -1
#12 JavaScript -1 #37 iPad -7
#13 Data Entry +1 #38 Ghostwriting -4
#14 Logo Design +2 #39 Andriod -3
#15 Internet Marketing - #40 Magento -3
#16 Flash -3 #41 Admin Assistant +8
#17 Joomla - #42 Animation -1
#18 Content Writing +4 #43 Academic Writing -4
#19 iPhone - #44 Telemarketing +11
#20 AJAX +1 #45 Video Service +3
#21 Copywriting -1 #46 XML -6
#22 Facebook -4 #47 Drupal -3
#23 Illustration +1 #48 Email Marketing +13
#24 Research +1 #49 Technical Writing -2
#25 .NET +1 #50 SQL -5

Administrative Assistance Projects grew by 8 ranks, reflecting demand for projects ranging from customer support, to technical support, data entry, web research etc.

Demand for social media grew considerably, going up 13 places on the list. However, despite the impressive project count growth, the average budget for social media projects dropped by 36%, reflecting a commoditizing market.

Perl development also showed a 35% growth in number of projects and 115% growth in average budget per project, showing healthy demand and lack of available freelancers. Since Perl is suitable for both rapid prototyping and large scale development projects, freelancers might find it profitable to invest in acquiring a Perl skill-set.

iPhone vs Android

According to the DoNanza Universe, iPhone Application development project counts are 33% higher than android, keeping its rank on the most requested skills list, while android development moved down three ranks. However, according to project budgets, iPhone projects came in at $1490 for the average projects with Android projects are $1910. iPad projects dropped by 7 place in the list, compared to the fourth quarter of 2010.


Filed Under: eCommerce platforms, Trends