Merchants using Magento to generate over $224 billion by 2020
Internet Retailer’s 2016 report proves that Magento merchants grow sales three times faster than their Top 1000 ecommerce merchants on average – the fastest growth on the market.
It is no surprise that Magento is the world’s number one ecommerce platform and its growth is only expected to climb further and influence the market with impressive results for those choosing Magento, with experts predicting that Magento merchants can expect to generate over $224 billion by 2020.
Magento is the undisputed leader when it comes to ecommerce software among the biggest websites, however it is important to note that there are new platforms emerging that are growing quickly which only helps the market.
Looking at the figures, Magento continues to outgrow the likes of Amazon, Microsoft and DemandWare for Merchant Growth year on year. Magento continues to increase in popularity and according to Ecommerce platform migration statistics, it is the top pick for existing businesses wanting to migrate to a new platform. More businesses are choosing Magento and it is easy to understand why.
Magento is the largest open source ecommerce platform on the market and according to the official Magento website, 1 out of 4 businesses choose Magento as their ecommerce platform with over 250,000 merchants worldwide.
Magento attributes this success to the platform’s high level of usability and customization. The platform grew from 34 of the top 500 merchants in 2014 to 47 in 2015 and its growth has rocketed and is expected to continue its trajectory for years to come.
Magento Commerce released IDC research estimating that merchants on the Magento platform sold $101 billion in merchandise to nearly 51 million shoppers in 2016. Magento’s various extensions and plugins, for example, it’s one page checkout page, enhance sales and prove to be a successful feature for merchants using the platform.
Compared to their ecommerce rivals their is nothing that compares to their customisation. Magento allows for multiple sites to host within a single installment, is SEO friendly and also has a free version (Magento Community) for merchants looking to keep within a budget.
More and more businesses are choose Magento over other platforms such as Woocommerce, the e-commerce tool powered by WordPress. The company has over 300 technology partners, which indicates the platform popularity.
Magneto is trusted by some of the biggest companies in the world and businesses continue to choose Magento over other options available. The versatility and performance of the platform is a particular highlight.
It’s website responsiveness is better than anyone both online and on mobile devices. Screenpages.com shows that server response time is less than 100 milliseconds half the time. The industry norm is about 2 seconds. 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 – by 2020 this should be even higher.
An expansive economy is another particular reason for the expected trajectory. 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 with more than 60% of Magento merchants selling to both businesses and consumers, compared to one-third of merchants who sell to consumers only.
The Magento economy is projected to grow faster than online commerce as a whole and is expected to outpace the digital commerce. In 2016, the ecosystem collectively generated $4.2 billion in revenue and is expected to grow to $14.2 billion by 2020.
Magento continues to be a major player among merchants and its reputation is only going from strength to strength in the coming years. New and emerging platforms is only healthy for the market. New and upcoming platforms will be able to freshen up the industry, but Magento will always have the upper hand and are expected to generate billions for those using their platform.