In its second-largest acquisition, Amazon buys the company for $970 million.
E-commerce software firm Magento strikes a deal designed to boost Facebook shopping.
Virtual herds of merchants could soon find it easier to sell via Facebook thanks to an agreement announced today by Magento. The e-commerce platform provider says it has struck a deal with social commerce services provider Zibaba to enable tens of thousands of merchants to replicate their e-commerce sites on Facebook.
The agreement came about because many of the 100,000 brands and merchants served worldwide by Magento—the client list includes Golfsmith, OfficeMax and The North Face—wanted a simple way to launch storefronts on Facebook, says Ronen Shlomo, CEO of Zibaba. “We live in an age where people need technical solutions that provide the fastest and easiest way to achieve their goals,” he says. “Now that we have developed this bridge between Magento stores and Facebook, store owners can easily cross that bridge and launch a Facebook store directly from their own Facebook fan page.”
In addition to featuring all of a retailer’s products on the social network, the Zibaba platform enables merchants to launch group offers on their Facebook storefronts that mirror Groupon’s basic daily-deal model—if a predetermined number of people agree to buy an item for a discounted price, the retailer will reduce the item for a specific time period. For instance, a retailer can post that it will sell a $25 T-shirt for $10 if 50 people agree to buy it. “Facebook is the ideal destination for these kinds of group-buy offers,” says Zibaba’s web site.
Magento is the second e-commerce technology provider to form such an agreement with Zibaba. Earlier this year Shopify announced a similar deal.
In other Magento news, eBay Inc. today completed its acquisition of Magento. The deal follows eBay’s acquisition of a minority stake in the company last year. EBay did not say how much it paid for Magento.
EBay says it will roll Magento into the suite of software and services that it is calling X.Commerce.