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Magic Quadrant for E-Commerce

Magic Quadrant for E-Commerce
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Magic Quadrant for E-Commerce

Globalization; social and mobile commerce; and site replacements, upgrades and new launches are driving e-commerce product evaluation and selection. Use this Magic Quadrant as a guide during the vendor evaluation and selection process.

What You Need to Know

E-commerce sales continue to grow. Sales of the top 500 North American retailers grew by 18% to $150 billion in 2010, from $127 billion in 2009 (according to "Internet Retailer Magazine's Top 500 Guide," 2011 Edition) .This has piqued interest in many of Gartner's clients who want to increase their overall sales revenue. Additionally, business executives are more familiar with the benefits of online selling, and are seeking to grow revenue via e-commerce, social and mobile commerce channels. This interest has spread to many industries outside traditional online retailing, as the competition for customer attention and mind share demands strong online sales capabilities. Similarly, interest in online shopping has expanded from the consumer world to B2B sectors.

Customers have become familiar with online shopping in the consumer space, and they desire equally strong online capabilities for their B2B purchases. E-commerce continues to gain visibility with sales and marketing professionals, CIOs, and other IT professionals as a way to improve sales operations, increase revenue, boost profits, better engage new and prospective customers, and reduce staffing expenses. However, just as some enterprises are breaking new ground in this area, some traditional organizations are struggling to implement critical e-commerce capabilities that could enrich the online customer experience in multiple industries. Additionally, organizations of all sizes are moving online, and the number of vendors offering e-commerce solutions and the number of ownership options (e.g., build, license, host, software as a service [SaaS] and outsource) is continuing to grow. These market factors are driving new investment in e-commerce, as well as the creation of new e-commerce vendors with offerings targeted at taking advantage of this market.

Market acquisitions are also expanding the amount of e-commerce capabilities being offered by a single vendor, as clients desire more and more new e-commerce capabilities, such as social and mobile commerce, Web analytics, email campaign management, aspects of customer service, distributed order management, warehouse management, and other fulfillment capabilities. This client desire is driving more partnering agreements, because organizations need to assemble all these capabilities to complete their online customer experience and integrate that experience with all the other customer channels.

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