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Mon June 6 2011 13:56:15

eBay Acquires Magento as It Continues Open Platform Push

By: Ina Steiner

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eBay announced today it would acquire the remaining shares of Magento, an open-source company that helps merchants set up their own websites online. AuctionBytes was one of the first to report on eBay's quiet 49% acquisition of Magento last year.

eBay also announced today a new brand for third-party developers that integrates its three units, called X.Commerce. PayPal had successfully opened its payments platform to developers and has seen the rewards, particularly as entrepreneurs launch businesses PayPal would never have been able to do all on its own in areas such as social networking (Payvment's ecommerce solution for Facebook, for example).

X.Commerce is not exactly a surprise since eBay had already announced that Matthew Mengerink would head up a new open platform business for third-party developers made up of the assets of both eBay and PayPal platforms.

At the recent Wall Street Journal D conference, Marc Andreessen sad, "A platform is a foundation on top of which other people can build businesses." eBay was always a platform upon which other people tried to build businesses, but its culture was anything but open - the industry is littered with companies that tried to be a part of eBay's ecosystem but got little in the way of support from the company (Mpire comes to mind). One wonders how successful eBay would be today if it had embraced an open platform in 2005.

An open, integrated ecommerce platform sounds like a positive development, but questions remain. Will Magento merchants benefit from tighter integration with PayPal and eBay, or could sellers run into potential roadblocks? Will eBay's culture have an influence on Magento? And what will happen to eBay's own web-hosting solution ProStores about which it has always seemed ambivalent?




Comments (14) | Permalink

Readers Comments

eBay Acquires Magento as It Continues Open Platform Push   eBay Acquires Magento as It Continues Open Platform Push

by: Kevin

Mon Jun 6 14:04:19 2011

Goodbye Magento, Hello OSCommerce...

eBay Acquires Magento as It Continues Open Platform Push   eBay Acquires Magento as It Continues Open Platform Push

by: MoveOn

Mon Jun 6 14:16:36 2011

"Goodbye Magento, Hello OSCommerce"

Ditto

eBay Acquires Magento as It Continues Open Platform Push   eBay Acquires Magento as It Continues Open Platform Push

by: buck efay

Mon Jun 6 14:24:51 2011

Yeah, brilliant. Every open platform is subject to glitches, data theft & viruses. Look at Facebook. Ebay FIRED all their software developers to boost the bottom line.

eBay Acquires Magento as It Continues Open Platform Push   eBay Acquires Magento as It Continues Open Platform Push

by: AC_in_mich

Mon Jun 6 15:04:15 2011

"Goodbye Magento, Hello OSCommerce"

    Thirdo

    Just canceled my Magento Go

eBay Acquires Magento as It Continues Open Platform Push   eBay Acquires Magento as It Continues Open Platform Push

This user has validated their user name. by: Ric

Mon Jun 6 15:10:41 2011

Anything that falls under the control of eBay instantly becomes the opposite of an open platform.

Once under the eBay umbrella, transparency, efficiency, vision and success become strangled under the weight of eBay's counter intuitive, self defeating, non productive cultures.

Sellers already know that eBay & PayPal are front loaded with choke points that only become obstacles to ecommerce success.

eBay is riddled with self defeating cultures that eventually permeate any company unfortunate enough to be acquired by a company which is blind to it's many shortcomings.

Someone on another thread made a statement that is worth repeating... eBay can not acquire it's way out of it's self created problems.

eBay Acquires Magento as It Continues Open Platform Push   eBay Acquires Magento as It Continues Open Platform Push

by: Wounds my heart with a monotonous languor

Mon Jun 6 15:35:22 2011

Ebay says, Hello Magneto

Say good night Prostores
Say good night ChannelAdvisor

eBay Acquires Magento as It Continues Open Platform Push   eBay Acquires Magento as It Continues Open Platform Push

by: Randy S.

Mon Jun 6 16:00:24 2011

Yep, if I were Scott Wingo I'd be blowing out my Depends right now. Within a year, eBay will have half of Channel Advisor's clients on the Magento platform.

eBay Acquires Magento as It Continues Open Platform Push   eBay Acquires Magento as It Continues Open Platform Push

by: Rich

Mon Jun 6 17:29:41 2011

This is a great move by eBay. Magento is an excellent platform, has a huge number of developers developing for it, and will likely supplant ProStores as vehicle for large sellers. Looks like eBay is spending their Skype money wisely.

eBay Acquires Magento as It Continues Open Platform Push   eBay Acquires Magento as It Continues Open Platform Push

by: Average Bowler

Mon Jun 6 17:31:03 2011

MY NEW CHECKLIST of self-hosted shopping cart options:

M̶a̶g̶e̶n̶t̶o̶
CS-Cart
Squirrelcart
I
n̶t̶e̶r̶s̶p̶i̶r̶e̶
Viartcart

eBay Acquires Magento as It Continues Open Platform Push   eBay Acquires Magento as It Continues Open Platform Push

by: Another one bites the dust

Mon Jun 6 18:00:14 2011

I will jump on the Magento bandwagon as soon as the eBay marketplace becomes transparent.

And Magento had so much promise too but now it will become tainted.

eBay Acquires Magento as It Continues Open Platform Push   eBay Acquires Magento as It Continues Open Platform Push

by: Barmasay

Tue Jun 7 07:21:35 2011

X.Commerce ?

X-Cart comes up 1st in Google + they use their colors :D

eBay Acquires Magento as It Continues Open Platform Push   eBay Acquires Magento as It Continues Open Platform Push

by: Randy S.

Tue Jun 7 12:05:12 2011

This is the other Randy S. I don't think Scot wears Depends :)

eBay Acquires Magento as It Continues Open Platform Push   eBay Acquires Magento as It Continues Open Platform Push

by: Another powerseller

Tue Jun 7 14:56:30 2011

I never liked Magento anyway..it was kind of a scam where it *seemed* like a shopping cart platform full of great features until you realised that it wouldn't run at an acceptable speed unless you purchased one of their $400 +  monthly hosting plans from Magento's partners'. The kind of slowness I'm referring to is making a customer wait 2-3 minutes just to place an item in the shopping cart. Basic operation of the cart was slower than anything I've ever seen or heard of.  It is also full of bugs that makes administrations uneccessarily difficult and expensive to run.

It doesn't surprise me at all that Ebay chose this platform- they have made so many bad decisions in recent years and this is just another one.  

eBay Acquires Magento as It Continues Open Platform Push   eBay Acquires Magento as It Continues Open Platform Push

This user has validated their user name. by: Philip Cohen

Wed Jun 8 01:10:23 2011

Well, you can be sure of one thing, if the Chief Headless Turkey had anything to do with the deal, it will likely be another catastrophe for eBay and everyone else concerned.

Enron / eBay / PayPal / Donahoe: Dead Men Walking.



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