2013 Page 2. Ryan Scott Head of Emerging Markets Magento at ebay Enterprise
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1 2013 Page 1
2 2013 Page 2 Ryan Scott Head of Emerging Markets Magento at ebay Enterprise
3 Magento Company History Key Milestones Version 1.0 Launched Enterprise Edition Acquired by ebay Inc. #1 Platform Worldwide #3 IR500 Platform Open source platform 08 Support the needs of larger merchants 09 Accelerated development of the platform 11 Adding more customers in one month and all competitors in 1 year combined 13 3 rd most used platform on IR 500, Fastest Growing Page 3
4 LEADING PROVIDER TO MID-MARKET North America # 1 Europe # 2 Mid-Market IR 500 Tied with IBM 2013 Page 4
5 Ability to Execute INDUSTRY ANALYST VALIDATION OF OPEN SOURCE CHALLENGERS Demandware Digital River NICHE PLAYERS NetSuite Intershop Micro Magento Systems Enterprise Edition Volusion LEADERS SAP (Hybris) Oracle IBM VISONARIES 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. Completeness of Vision 2013 Page 5
6 Top provider to mid-market merchants on the 2014 IR Top Page 6
7 Magento the fastest growing platform provider on the 2014 IR Top Demandware Magento IBM Oracle Page 7
8 SHARE OF TOP 100K SITES IN ALEXA 1M WORLDWIDE 45 % 42 % 30 % AUSTRALIA UK 30 % 26 % FRANCE GERMANY 2013 Page 8
9 APAC Overall 34% Established Countries 43% Australia 45% New Zealand 45% Singapore 40% Emerging Countries 23% India China Vietnam Thailand 2013 Page 9
10 $20M $10M $5M 2013 Page 10
11 $100M + $50M $20M $5M $10M 2013 Page 11
12 $100M + Magento: ebay s de facto ecommerce Platform $50M $20M $5M $10M 2013 Page 12
13 Magento Scalability 1M Highest unique visitors per day, reported by Rovio (Angry Birds) in Concurrent Admin users 15M+ Highest number of SKUs reported by Doug Russell Marine in 2014 $800M Highest Annual Online Volume Reported by Magento Merchant in ,800 Highest Orders per Minute Reported by Magento Merchant in 2013 (168k per hour) 2013 Page 13
14 2013 Page 14 THE WORLD S MOST INNOVATIVE RETAILERS RUN ON MAGENTO
15 2013 Page 15 NOTABLE APAC CUSTOMERS ON MAGENTO
16 Why is Magento winning? 2013 Page 16
17 2013 Page 17
18 Flexibility Vibrant Global Ecosystem Time to Market Cost of Ownership Low Risk, Future Ready 2013 Page 18
19 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 2013 Page 19
20 Vibrant, Global Ecosystem MagentoConnect Extensions Living Ecosystem Largest e-commerce marketplace in the world not left to develop everything on your own 7,000+ Extensions Continues to grow and adapt as ecommerce and the world change 2013 Page 20
21 Time to Market OOTB Feature Rich 7,000+ Extensions Easily Extensible 100% Open % Faster to market than all our competitors 2013 Page 21
22 Total Cost of Ownership % Less overall cost than competition (both licensing AND implementation) 2013 Page 22
23 Total Cost of Ownership Licensing Cost Tier 1 Solution for Mid-Market Price 2013 Page 23
24 FUNCTIONALITY & PERFORMANCE Enterprise Functionality at a Mid-Market Price High Great Value High level functionality at a mid-market price Magento Enterprise Enterprise Solutions Mid Low Mid-Market Solutions SMB Solutions $ $$ $$$ 2013 Page 24
25 Low Cost of Ownership Licensing Cost OOTB Solutions Ecosystem Development 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 3 rd -party extensions Magento easier to develop in 2013 Page 25
26 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 Page 26
27 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 Page 27
28 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 Page 28
29 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 2013 Page 29
30 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 2013 Page 30
31 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 2013 Page 31
32 Create seamless retail experiences. A Leading Australian electronics merchant and iconic brand Page 32
33 Top 10 Online Retailer in AU Top 20 Retailer in AU 1.3 Billion Revenue in Stores in AU and NZ 2013 Page 33
34 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 2013 Page 34
35 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 2013 Page 35
36 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 2013 Page 36
37 Get to market faster. 8 Regions Regional BUs 8 Months Empowered 25% Reduction in Support Costs 2013 Page 37
38 2013 Page 38
39 Harvey Nichols UK s premier fashion retailer, renowned for breadth and depth of exclusive merchandise 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 2013 Page 39
40 Harvey Nichols Multi-channel Features on Magento - 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 2013 Page 40
41 Livraria Saraiva Brazil s 3 rd largest ecommerce company, largest bookseller, also sells electronics, largest Apple retailer in Brazil. 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 2013 Page 41
42 2013 Page 42
43 Let us help you get started See a Product Demo Hear from our Customers Connect with a Partner 2013 Page 43
44 2013 Page 44 Thank You
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