This document provides a history and overview of Magento, an open-source e-commerce platform. It discusses Magento's key milestones since 2008 and its growth to becoming the #1 e-commerce platform worldwide. The document also summarizes Magento's advantages like flexibility, low total cost of ownership, and ability to future-proof businesses. Case studies are presented on large retailers that successfully migrated to Magento, like Dick Smith and Harvey Nichols.

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Ryan Scott
Head of Emerging Markets
Magento at eBay Enterprise

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Magento Company History Key Milestones
’08
Version 1.0
Launched
Open source
platform
’09
Enterprise
Edition
Support the
needs of larger
merchants
’11
Acquired by
eBay Inc.
Accelerated
development
of the platform
’13
#1 Platform
Worldwide
Adding more
customers in one
month and all
competitors in 1 year
combined
#3 IR500
Platform
3rd most used
platform on IR 500,
Fastest Growing
’14

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LEADING PROVIDER
TO MID-MARKET
Tied
with IBM
#2
Europe
Mid-Market
IR 500
#1
North America

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INDUSTRY ANALYST VALIDATION
OF OPEN SOURCE
Gartner Magic Quadrant for Digital Commerce Published: 29 September 2014
•Magento & eBay Enterprise are among the top 11 solution providers in this market
•Magento Enterprise Edition secured the largest gain relative to the last Magic Quadrant – jumping from Niche Players to Challengers.
CHALLENGERS
LEADERS
NICHE PLAYERS
VISONARIES
Demandware
Digital River
Micro Systems
Magento Enterprise Edition
SAP (Hybris)
Oracle
IBM
NetSuite
Volusion
Intershop
Completeness of Vision
Ability to Execute

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Top provider to mid-market merchants on the 2014 IR Top 500

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Magento – the fastest growing platform provider on the 2014 IR Top 500
Demandware Magento IBM Oracle
10
20
30
40
50
60
70
2013 2014

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GERMANY
26%
AUSTRALIA
45%
SHARE OF TOP 100K SITES IN ALEXA 1M
WORLDWIDE
30%
UK
42%
FRANCE
30%

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34%
APAC Overall
Established Countries 43%
•Australia 45%
•New Zealand 45%
•Singapore 40%
Emerging Countries 23%
•India
•China
•Vietnam
•Thailand

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$5M
$10M
$20M

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$5M
$10M
$20M
$50M
$100M +

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$5M
$10M
$20M
$50M
$100M +
Magento: eBay’s de facto
eCommerce Platform

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Magento Scalability
15M+
Highest number of SKUs reported by
Doug Russell Marine in 2014
2,800
Highest Orders per
Minute Reported by
Magento Merchant
in 2013 (168k per
hour)
100
Concurrent Admin users
$800M
Highest Annual
Online Volume
Reported by
Magento Merchant
in 2013
1M
Highest unique visitors per day,
reported by Rovio (Angry Birds)
in 2013

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THE WORLD’S MOST INNOVATIVE
RETAILERS RUN ON MAGENTO

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NOTABLE APAC CUSTOMERS
ON MAGENTO

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Why is Magento
winning?

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Flexibility
Time to Market
Cost of Ownership
Vibrant Global Ecosystem
Low Risk, Future Ready

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Flexibility
Open
Extensible
Integration = Choice
Having access to source code means you can modify the software in any way you want
Extend Magento via API to anything that talks means Magento is infinitely extensible: integration, customization, etc.
Choose what backend technologies are best for your business rather than being locked in by a single vendor

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Vibrant, Global Ecosystem
MagentoConnect
Extensions
Largest e-commerce marketplace in the world – not left to develop everything on your own
7,000+ Extensions
Living Ecosystem
Continues to grow and adapt as ecommerce and the world change

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Time to Market
OOTB Feature Rich
7,000+ Extensions
Easily Extensible
100% Open
40-50%
Faster to market than all our competitors

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Total Cost of Ownership
40-50%
Less overall cost than competition
(both licensing AND implementation)

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Total Cost of Ownership
Licensing Cost
Tier 1 Solution for Mid-Market Price

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Enterprise
Solutions
Magento Enterprise
Enterprise Functionality at a Mid-Market Price
$
$$
$$$
Mid-Market
Solutions
SMB
Solutions
Great Value
High level functionality at a mid-market price
FUNCTIONALITY & PERFORMANCE
Low
High
Mid

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Low Cost of Ownership
Licensing Cost
OOTB Solutions
Ecosystem
Tier 1 Solution for Mid-Market Price (and licensed per instance, not CPU)
You’re not starting from scratch
Project requirements partially or largely fulfilled by current 3rd-party extensions
Development
Magento easier to develop in

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Low Cost of Ownership
Forrester Study, The Total Economic Impact Of The Magento Enterprise eCommerce Platform
Based on 5 Magento merchants with average of $40M online revenues yearly who migrated from other platforms to Magento.

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Low Cost of Ownership
Forrester Study, The Total Economic Impact Of The Magento Enterprise eCommerce Platform
“The composite merchant experiences an average revenue uplift of 17.3%. Of this, 20% is attributed directly to the Magento platform. We note that the interviewed merchants attributed between 10% and 80% of their revenue uplift to the Magento platform. For the interviewed merchants, revenue uplift was driven by more frequent marketing activities, sales events, and site optimization, which are enabled by Magento’s features and scalability.”

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Low Cost of Ownership
Forrester Study, The Total Economic Impact Of The Magento Enterprise eCommerce Platform
“The interviewed merchants experienced a variety of qualitative benefits that were considered to be of high value and contributed to the overall success of their Magento deployments. These benefits include:
•Scalability and Stability to Meet Traffic Volume
•Flexibility to Enable a Broad Range of Functional Requirements
•Rapid Time-to-Market
•Increased Levels of Marketing Activities For the full study go to www.magento.com/TEI

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Low Risk of Bad of Failed Implementation
Works OOTB
Countless Examples
Magento has the majority of e-commerce features out of the box
Implementations of 1-2 years in development coming to Magento to start over

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Future Ready
•Rapidly changing ecommerce market
•Ecommerce platform/implementation in 6 months will likely be much different 6-12 months later
•Many different and diverse business units, brands and product lines with diverse and ever-changing needs

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Future Ready
Magento’s DNA is built for future readiness. Here’s why:
•Rapidly and inexpensively make changes to platform with Magento’s flexibility
•Rapidly add capabilities to platform via extensions
•Quickly deploy new sites by borrowing from existing implementation and adapting based on market and business needs

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Create seamless retail experiences.
A Leading Australian electronics merchant and iconic brand.

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Top 10
Online Retailer in AU
Top 20
Retailer in AU
1.3 Billion
Revenue in 2013
400 Stores in AU and NZ

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Dick Smith – Story
•Ownership change, had to move off current infrastructure
•Were currently paying 100k/month AUS for licensing
•Evaluated platforms, narrowed down to Hybris and Magento
•Highly valued Magento’s flexibility, ecosystem, low risk and rapid time to market (only had 6 months to have new platform fully in place)
• Were concerned Magento couldn’t scale for their traffic (at the time they had 3.5M unique visitors per month, lots of promotions, high transaction volume

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Dick Smith – Success
•Fully deployed in 5 months (one month ahead of schedule)
•In testing, Magento was handling 3-4x the current traffic and transactions
•Many of the former owner Woolworth’s ecommerce sites crashed on “Click Frenzy” (Cyber Monday) day; Dick Smith’s had zero issues
• Platform support costs much less, conversion rates increased significantly

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Dick Smith – Omnichannel Success
•Click and Collect from all stores
•Shipping direct from store
•Just launched mobile version (responsive design)
•Moving into social commerce with Magento (see what friends have bought, dynamic integration with catalogue)
• Using “scan to buy” technology integrated with Magento (scan QR code and purchase on the fly with mobile payment – purchase from advertising, printed catalogues, weekly print advertising)
• Real-time integration with stock database, two-way communication with orders, customer information and catalogue management

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Get to market faster.
8 Regions
8 Months
Regional BUs
Empowered
25% Reduction in
Support Costs

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Harvey Nichols
2014 Site Launch
On Magento as part of a larger multi-channel solution
Physical Stores
8 Large Format stores in Europe, 8 additional large stores internationally
UK’s premier fashion retailer, renowned for breadth and depth of exclusive merchandise.

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Harvey Nichols
- Mobile and Tablet optimized
Through Magento’s responsive design template
- Multiple delivery methods
including “click and try”
- Real-time stock information
- Dynamic account area called MY HN
Features shortlisting, personalized content and preferences, accessible by customer, agents and in-store Style Advisors
- Leveraging online to bring customers into stores and vice versa
Giving customers the same experience online and in-store
Multi-channel Features on Magento

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Livraria Saraiva
Large Catalogue
More than 10M SKUs currently, growing to 21M with partners (ingrams)
Significant traffic/transaction metrics
Heavy Promotions
Aggressive Business plan – need scalability
Currently doing $350M/year USD online
Omnichannel with current 150 stores and growing business plan
Brazil’s 3rd largest ecommerce company, largest bookseller, also sells electronics, largest Apple retailer in Brazil.

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