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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

Abili

ty t

o E

xecute

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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 funct ional i ty

at a mid-market pr ice

FU

NC

TIO

NA

LIT

Y &

PE

RF

OR

MA

NC

E

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 3 rd-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 3 rd largest ecommerce company, largest bookseller, also sells

electronics, largest Apple retailer in Brazil.

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