May 21, 2020 by Sujay Seetharaman

It is said that Magento drew inspiration for its logo from Dungeons and Dragons. If you’re anything like me, you thought of Danaerys and Dracarys.

While Magento is not as popular as say Shopify – which houses 22% of the eCommerce universe and most of the DTC brands – it is a force to be reckoned with much like the mythical beast it attempts to invoke.

There are an estimated 190,000 merchants using Magento worldwide, of which some 78,000 stores are in the US. PipeCandy picked a random sample of 10,000 merchants in the US, to analyze how they’re distributed by Web Sales, Web Traffic and Product Categories.

Distribution of Magento Stores in the USA by Product Category

Magento Stores by product category in USA

Apparel companies account for the lion’s share of Magento users while Florists, Business & Industrial, and Food & Beverage merchants follow closely. About 34% of the merchant base belongs to categories such as Gift & Novelty, Pets & Pet Supplies, Stationery Products, etc, that aren’t significantly large enough to be called out separately.

 

Distribution of Magento stores by product categories in USA
Distribution of Magento web stores in the USA by Web Traffic

 

Web traffic distribution of Magento Stores in USA

About 89% of the merchants drive less than 100K visitors to their sites, showing that the majority of Magento’s user base is composed of long-tail merchants. However, what’s noteworthy is that there are more Magento companies with over 100,000 unique visitors than there are Shopify companies. Numerically speaking, this means that Magento hosts 10% more significant businesses than Shopify does, although Shopify’s merchant-base is 6X bigger!

Distribution of Magento stores by web traffic in USA

Stores using Magento, like its contemporaries, exudes a similar distribution in terms of web sales and product category but has a different story to tell when it comes to web traffic. It has 10% more high-traffic businesses than its peers. What this seems to indicate is that Magento is serious in its efforts to attract and retain enterprise clients. Leading brands such as Nike, Samsung, Ford, Albertsons, Omega Watches and many more have chosen Magento to help manage their eCommerce needs.

Distribution of  Magento stores in the USA by Annual Web Sales 

Web sales distribution of Magento Stores in USA

Annual Websales Distribution of Magento Stores in USA

As is the case with eCommerce in general, the small fish greatly outnumber big fish, but just by how much is worthy of note in the case of Magento. Although Magento is used by fewer companies than Shopify, it has around 5% more merchants making >$1M in Web Sales. Considering that Magento’s contemporaries have more small entrepreneurs, this could indicate that Magento has a higher number of business savvy merchants.

Conclusion

Recently, Blueshift – the customer data activation platform, announced the integration of Magento stores with Blueshift. The synchronization of data directly from your Magento digital stores will make it easier than ever to deliver tailored, 1:1 customer experiences that drive user engagement, growth, and loyalty. The company announced that those merchants operating on version 1, will reach their ‘end of life’ in June 2020, and will have to upgrade to version 2 before it gets too late.

Sujay Seetharaman

Market Analyst @ PipeCandy

Currently donning the Researcher's hat. Talks to himself.