Magento announced early last year that it received investment to the tune of $22.5 million. Only now, has it been revealed that eBay were behind the deal which sees them take a 49% stake in the eCommerce platform.
Magento is an open source eCommerce platform, which works with over 90,000 merchants worldwide. The solution is fairly comprehensive, with developers being able to manipulate code to tailor the soultion to best suit their needs. eBay’s interest in the company will surely raise questions for both Magento developers and merchants alike.
The move in many ways sees eBay admit defeat in its attempt to broaden its eBay marketplace to satisfy the requirements of major brands and stores. Fr many years, major brands have struggled with the concept of placing their product next to second hand and auctioned goods. The partnership with Magento will instead see eBay move towards eCommerce stores; effectively catering for companies who do not wish to sell through eBay.
eBay already offer Prostores, which essentially offer a start up service for those looking to retail through their own websites. The Magento platform will be a more comprehensive offering for established businesses, however, it still remains unknown as to whether the highly criticised pricing of the Prostores will continue onto the Magento solution. The eBay integration opportunities will also be highly scrutinised by its users, with concerns over the amount of control the Auction giant will have over multi channel businesses.
Magento insist that the deal with eBay will not distract against their mission of providing innovation in eCommerce; “What they see in Magento is a passion for innovation,” he adds. “They are careful about getting too far inside and exerting influence that is inorganic to what we’re doing.”
