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Ebay E-Commerce Sale: The Separation of Ebay Enterprise and Rise of Magento

Ebay e-commerce had a lot of promise back in 2012 when the company bought GSI Commerce to improve the buying experience for users. In the corporate world, though, things can change on a dime. Just three years ago, those in the business world thought eBay’s purchase of this new e-commerce platform would improve and simplify how businesses and people sold products. It was even thought it would rival Amazon’s e-commerce process.

Back in July, eBay ended up selling their e-commerce system (known as eBay Enterprise) for only $925 million. This is a major loss for the company since they paid $2.4 billion to acquire GSI Commerce above.

What this does now is change the ballgame in the competitive process of creating superior mass market online retailing. Because eBay Enterprise comprised a number of parts, one piece of their e-commerce platform (Magento) may ultimately thrive.

In the meantime, eBay Enterprise now has a new commitment toward staying in the game and re-committing itself to its customers. With this development and separating Magento from the eBay Enterprise fold, it’s worth looking at what this could mean for the future of e-commerce on all websites.

What eBay Enterprise Plans to Do

PayPal was also once part of the eBay e-commerce suite, and it’s already been spun off into a separate company this last fall. These sales and spin-offs were the result of eBay losing massive market share over the last couple of years. They were able to get by for a while, but they couldn’t keep losing as much as they did without eventually doing a sale.

Now it leaves eBay with just one small part of their e-commerce marketplace. Their eBay Enterprise is getting stronger attention now from eBay CEO Devin Wenig. With the latter CEO’s focus now going toward how people find products on eBay, their eBay Enterprise only brings in about half of the revenue for the company.

This places eBay on a more precarious path in revamping their e-commerce dominance. Nevertheless, their plan to connect the user experience with their e-commerce system gives hope toward making things run more efficiently.

There isn’t a doubt that web design and e-commerce work in tandem with one another. How easy it is to find something and buy it needs as much simplicity as possible, whether in the corporate or small business world.

While eBay Enterprise and their fortunes are up in the air, the other piece of their sale (Magento) already has a glowing future based on current statistics.

The Continued Rise of Magento

When Magento was part of the eBay e-commerce platform, many of the top online retailers in the world used the system. As a stand-alone company, however, Magento is now used by just as many top retailers, including Nike, and Vizio as just two.

Now that Magento has broken free of the eBay wings, it’s expected to become even more of a powerhouse in the e-commerce industry. The new owners have already revamped the company and recently launched more services for B2B companies.

Use for the latter above is a new feather in the cap for Magento since the B2B industry continually tries to find ways to make buyer experiences easier and more personalized.

Even better is that Magento supports responsive design, which makes them ready for the continued rise of mobile e-commerce. It means they’re also ready for the wearables market as well where e-commerce may soon take off.

With Magento continually getting rave reviews as the best e-commerce platform out there (while staying open-source), the company may easily beat eBay Enterprise in the coming year.

Those of us here at Absolute Web Services will keep our eyes on this development throughout 2016. Until then, contact us so we can help you with your SEO and web design challenges.