My client was having an issue on his Godaddy shared hosting account with his Magento product image uploads. I went through a dozen or more troubleshooting steps to determine the cause of the issue. After careful comparison with a Magento instance just like it hosted on another hosting company server I determined Magento was not at fault! Magento tries to write to a tmp directory on your server when it uploads and if it doesn’t have the privileges to do so will fail on image upload everytime.

My solution on Godaddy shared hosting is to create a php5.ini in the root of your Magento installation. Inside the php5.ini file add the following line:

upload_tmp_dir = var/tmp

Then under your Magento var directory create a directory named “tmp” with 755 permissions.

If this does not resolve your issue please contact me as anyone of the other troubleshooting steps could resolve your issue!

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