Big Retailers Moving To Magento eCommerce Platform
Australian retailers are adopting a new generation of online platform technology faster than Countries like Germany, the UK and the USA according to the executives at Magento a subsidiary eBay Company.
At a conference in Sydney yesterday Companies like Harvey Norman and Dick Smith were praised with Harvey Norman singled out for the introduction of new cross platform technology that lets consumers order from either a tablet or smartphone.
It was also revealed that Harvey Norman is now fulfilling customer orders direct from a local Harvey Norman store a move that allows franchisees to benefit from a local sale.
According to Magento executives Australia is one of their fastest growing markets with Companies like Woolworths, Dick Smith, Harvey Norman and Bing Lee investing in Magento technology in an effort to attract local online sales.
Also running on the Magento platform is DoorBusters an online operation that is owned by Woolworths.
Roy Rubin the CEO of Magento said that Australian retailers who are moving to new online platform technology after the Click Frenzy debacle late last year will benefit from new systems that allow for the integration of smartphone and tablet ordering that has changed consumer behaviour.
He said “Consumer behaviour is changing content is king and the more content there is the better experience a retailer is able to deliver.
Consumers are now using a multitude of devices to go online to shop and it is critical that retailers are able to deliver a good experience”.
Magento executives acknowledged that moving a website from one platform to another, particularly a large site, such as Dick Smith which had resided on the Woolworth online infrastructure, is no mean feat and it can be a very daunting undertaking, however once it is completed retailers reap the benefits of improved sales and happier customers.
Rubin claims that both big and small retailers are now adopting the Magento platform over the IBM Websphere offering which both David Jones and Myer are currently moving to, he said that Magento has 29% of the ecommerce platform market.
One retail attendee said “After working on a Websphere roll out and then a Magento roll out you realise that there is a big difference. Websphere is expensive and there are layers of costs every time you ask a question or scope an issue you get charged” they said.
Magento who witnessed 80% growth in 2012 see Australia as a key market. A recent Forrester report reveals that retailers who move to a Magento platform get a 159% return on investment within five to eight months.
Forrester researchers said that a merchant can experiences an average revenue uplift of 17.3% by rolling out new eCommerce technology.
One retailer who moved to the Magento patform claimed that up to 80% of their revenue uplift was due to the Magento platform.
They said that this achieved because they were able to drive by more frequent marketing activities and sales events.
Retail executives attending the Sydney Live event said that a Magento platform delivered them the scalability and stability to meet traffic volume demand that was not there when they took part in last years Clik Frenzy event.
Several retailers said that prior to the Clik Frenzy debacle when most retailer web sites crashed they did not realise the importance of having a platform that scaled to meet business demand. “We thought we were investing in a web site that delivered everything what we got was a facade that crashed when we needed to scale up to meet demand”.