eBay acquires Magento for e-commerce tools

eBay acquires Magento for e-commerce tools

Summary: Online auction site eBay has purchased Magento, creators of the open-source e-commerce platform of the same name.The Magento platform allows online merchants a feature-rich, open-source enterprise e-commerce product that offers users a high degree of flexibility and control over the content and functionality of their online store, eBay said in a statement on Monday.

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TOPICS: Mobility
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Online auction site eBay has purchased Magento, creators of the open-source e-commerce platform of the same name.

The Magento platform allows online merchants a feature-rich, open-source enterprise e-commerce product that offers users a high degree of flexibility and control over the content and functionality of their online store, eBay said in a statement on Monday.

"The feedback we've heard from external developers has been clear — they don't just want payments or an e-commerce site; they want access to a full set of commerce capabilities to build complete shopping experiences for merchants," John Donahoe, chief executive of eBay said.

Magento also offers a software-as-a-service (SaaS) version of its platform, called Magento Go, which also provides smaller vendors with online e-tailing tools, such as payments and inventory management options.

A FAQ (PDF) page on the purchase reveals that eBay plans to integrate the Magento platform into its newly created X.commerce platform but will run it as a standalone product until it works out the best way to integrate it.

X.commerce is eBay's cloud-based, open-source e-commerce platform which aims to provide a one-stop-shop for online retailers, for example, by integrating shopping cart, payment services, inventory management, marketplace integration, search engine optimisation and tax guidance.

In 2010 eBay purchased a minority stake in Magento. Following the acquisition it will own all shares in the company and will retain Magento's approximately 290 employees. Financial terms of the deal — which is expected to close in Q3 2011 — were not disclosed.

Topic: Mobility

Ben Woods

About Ben Woods

With several years' experience covering everything in the world of telecoms and mobility, Ben's your man if it involves a smartphone, tablet, laptop, or any other piece of tech small enough to carry around with you.

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  • It’s very interesting – but not altogether surprising – to see that eBay is acquiring Magento. Magento is known for its strengths in mobile, social and local commerce. These three areas are broadly considered to be the future of e-commerce and where eBay goes, the rest of the market will surely follow. As such, we can expect to see a concerted effort by retailers of all sizes, spanning all market sectors, to begin harnessing mobile shopping, trusted recommendations and local knowledge – far beyond simply comparing prices on your smartphone while out on the high street.

    In fact just as we saw the smartphone mark the end of discussion around the ‘Mobile Internet’ and reaffirming the notion that there is only one Internet, this announcement is the strongest indicator yet that we’re heading towards a converged landscape when it comes to retailing too. There is only one ‘commerce’ – and this is what eBay is hinting at with its recent adoption the phrase ‘x-commerce.’ Platform and channel are largely going to become irrelevant to the buyer. It doesn’t matter whether it’s e, m, s or f commerce, what the consumer wants is selection, value and accessibility – which for retailers means ensuring that your products are available when, where how the customer wants them.
    Keith Bird, eSellerPro
    KeithBird