NEW YORK, NY--(Marketwired - Jan 16, 2017) - Today, Magento Commerce, the worldwide leader in cloud digital commerce innovation, released IDC research estimating that merchants on the Magento platform sold $101 billion in merchandise to nearly 51 million shoppers in 2016. The new data underscores strong momentum from the community of merchants, system integrators and technology partners who power the expansive Magento economy.
"Demand for digital commerce is transforming growth strategies for companies across every industry, driving investment, generating jobs and igniting new markets around the world," said Mark Lavelle, CEO at Magento. "This report confirms the leadership role Magento and our partners play in equipping customers to not only compete, but thrive, in this rapidly evolving new era."
IDC Study: Magento's Growing Economic Footprint
The IDC "Magento Economic Footprint" study revealed several key findings that demonstrate the global growth and innovation generated by the Magento ecosystem of customers, partners and developers. Highlights from the report include:
- Global transaction volume - Merchants using the Magento platform sold more than $101 billion in 2016 to nearly 51 million customers.
- Expansive economy - The Magento platform engenders a diversified market that spans verticals and business models. Merchants sell a wide range of products, from IT and business services to clothing and electronics. More than 60% of Magento merchants sell to both businesses and consumers, compared to one-third of merchants who sell to consumers only.
- Worldwide jobs - Developers, merchants and partners on the Magento platform represent more than 280,000 Magento-specific jobs.
- Outpacing digital commerce - The Magento economy is projected to grow faster than online commerce as a whole. In 2016, the ecosystem collectively generated $4.2 billion in revenue and is expected to grow to $14.2 billion by 2020. Ecosystem partners benefit from every dollar of Magento software sold. The majority of merchants supplement their Magento subscriptions with professional services and applications built by developer partners to extend core functionality.
Magento Commerce Forecast Reveals Accelerating Demand for Digital Innovation
The new IDC data parallels a heightening market need for digital innovation. This year, brands across industries will double down on digital strategies to stay ahead of customer demand, according to the inaugural Magento Commerce Forecast, a survey of 2,200 branded manufacturers, multichannel and web merchants from over 15 vertical segments on planned investments and key initiatives for 2017. Additional findings from the Magento Commerce Forecast include:
- Digital: from checkbox to maturity - By the end of 2017, 60% of omnichannel retailers expect to make their inventory visible online, 57% will have a cross-channel return program and 46% will enable ship-to-store.
- Heavy investment in mobile - Three-quarters of Magento merchants expect mobile transactions to total more than 20% of their total online revenues, while two-thirds expect mobile revenues to exceed 40% this year.
- Focus on differentiated experiences - Only 25% of merchants cited competition from Amazon as a primary obstacle, compared to 40% who indicated differentiation from other independent brands as the largest challenge they anticipate for 2017.
"Digital commerce strategy has evolved from a competitive advantage to a strategic business imperative across all industries, geographies and company sizes," said Peter Sheldon, VP Strategy at Magento. "In 2017 and beyond, expect the big winners to be fully integrated merchants who own their brands from beginning to end in order to deliver world-class experiences to customers."
Magento announced the results of the research today at the 2017 NRF Annual Convention and Expo in New York City. To learn more about the IDC and Magento research, please visit our booth # 3375. For additional information on the IDC "Magento Economic Footprint" study, please visit: https://magento.com/blog/magento-news/101-billion-digital-commerce-sold-merchants-using-magento-2016. Read more about the 2017 Magento Commerce Forecast at: https://magento.com/blog/best-practices/2017-predictions-part-1-rethinking-retail-b2b-mobile-international-digital.
About Magento Commerce
Trusted by more than 250,000 businesses worldwide, Magento Commerce is the leading provider of cloud commerce innovation to merchants and brands across B2C and B2B industries. In addition to its flagship open source digital commerce platform, Magento Commerce boasts a strong portfolio of cloud-based omni-channel solutions empowering merchants to successfully integrate digital and physical shopping experiences. With over $101 billion in gross merchandise volume transacted on the platform annually, Magento Commerce is the #1 provider to the Internet Retailer Top 1000, counting more than double the clients to the next closest competitor, the B2B 300, and the Top 500 Guides for Europe and Latin America. Magento Commerce is supported by a vast global network of solution and technology partners, a highly active global developer community and the largest eCommerce marketplace for extensions available for download on the Magento Marketplace. More information can be found at www.magento.com.