Magento Blog


Boost Sales by Reducing your Risk of Fraud

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Online retailers know that fraudulent activity has many long-lasting repercussions beyond the immediate financial hit. Certainly fraud is an inherent risk of doing business, even more so in the card-not-present world of eCommerce. But retailers who are hit hardest by fraud also face a more serious financial risk that could have dire consequences for their business – and it all starts with the chargeback.

The merchant is typically out the cost of the product or service and any related distribution costs when a fraudulent transaction happens. This impact is compounded by the bank or processor that assesses fees on the merchant for chargebacks. These fees often increase as more fraudulent activity occurs. If the problem is rampant enough the merchant could lose its ability to accept credit cards altogether – essentially putting them out of business. As we enter the holiday shopping season, minimizing chargebacks becomes even more critical.

Kount, a Magento Gold Industry Partner, specializes in helping merchants reduce fraud. One of Kount’s clients, CD Baby, a large online retailer of independent music, experienced a dramatic impact from chargebacks as they were seeing fraudulent activity from both ends of their business model, artists and affiliates. Artists get paid royalties when their music sells and affiliates get paid commissions when they sell music to a consumer. Cyber criminals were using fake identities, stolen music and stolen credit card information to post music on the site as an artist, and then posing as an affiliate selling music. The sophistication of the fraud made it difficult to detect which resulted in a chargeback rate that was costing too much in time, money and effort from the CD Baby team.

Kount has worked closely with their team to dramatically decrease fraud’s impact on their overall business, not to mention the considerable time their Controller, Christine Barnum, spent on investigating fraudulent transactions each week. Today CD Baby’s chargeback rate is at .07% - considerably below the Merchant Risk Council’s recommended rate of 0.1% and well under the 2.5% CD Baby was experiencing prior to implementing Kount Complete™. Christine also estimates she spends about an hour a week working on fraud-related tasks, a far cry from 40% of her workweek before Kount’s solution was in place. For the in depth story, visit Integrated Solutions for Retailers Online.

While a certain level of fraud comes with the territory of being an online retailer, Kount can help you establish a tolerable threshold for chargebacks so that your business is not crippled by chargeback fees and can maintain a variety of payment options. More importantly, their solution makes it so that fraud does not dictate your future.

Got a story about fraud and chargebacks? Contact Kount for more information here.

Precision Dialogue, wins a 2012 Gold Stevie® Award for Akron Brass site

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We’d like to congratulate our Gold Solutions Partner, Precision Dialogue, for winning a Gold Stevie® Award at the 10th Annual American Business Awards for its work on the Akron Brass website redesign.

Precision Dialogue leveraged Magento’s platform to build a complete end-to-end redesign that gave Akron Brass the ability to highlight their products and allow visitors to easily search, filter for products and request a quote from distributors. The website was designed to allow individual products to be sent to multiple vendors who would then fulfill their specific portion of the order. In addition, the website is now able to keep customers updated on the overall status and shipment of the order.

Take a tour of the Akron Brass site or view the other successful Magento stores Precision Dialogue has built.

Hats off to the entire Precision Dialogue team for this fantastic accomplishment.

Magento Gathers Momentum

Thanks to the exceptional dedication and support of the Magento community of 800,000+ members and over 400 solution partners worldwide, Magento is enjoying tremendous market momentum -- adding over 100 new enterprise retailers a month and 1000s a month on Magento Community Edition and Go.

  • A recent comparison of the over 20 platforms found that “Magento continues its rise and dominance as the industry’s most popular platform” with a 31.4% share of the market across all versions of Magento. (Source: aheadWorks blog post, Sept. 11, 2012)
  • 20% of all eCommerce Sites in the Alexa Top 1 Million Sites Use Magento – that’s more than any other eCommerce platform. (Source: Tom Robertshaw eCommerce Survey, February 21, 2012).

To date, more than 125,000 businesses worldwide have chosen Magento as their eCommerce platform. Our customers range from trail-blazing start-ups and fast-growing eCommerce innovators to some of the largest and most respected global brands spanning a number of industries. For a view into how merchants large and small grew customer acquisition and conversion rates, expanded to new markets and were fast afoot to take advantage of new opportunities, check out their stories.

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These businesses have found that Magento’s open source approach provides some unique advantages:

1) Unrivaled flexibility to express their brands and deliver exceptional customer service

2) Tremendous breadth of out-of-the-box features

3) The lowest total cost of ownership and time to market whether you’re start-up launching your first eCommerce store or a multi-national brand popping up a test site in a new market

4) World-class performance and scalability

Our customers and partners believe the real disruptive power of our strategy is in the combination of the capabilities provided by our partners (6,400 extensions and growing), and those provided by eBay and GSI Commerce.

Magento is an entry point into eBay Inc.’s world-class multi-channel commerce solutions including eBay Marketplaces, PayPal, RedLaser, Milo, Vendornet, eDialog, Clearsaleing, PepperJam, FetchBack, Where and Shopping.com with more capabilities quickly coming online. Magento is also the best way to take advantage of all the capabilities available through the X.commerce platform.

We look forward to giving our customers, partners and developers ever better tools to take advantage of the tremendous commerce opportunities before us!

Social Sharing ROI: How to Measure the Value of Sharing Buttons with Magento

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AddShoppers, a Magento Silver Industry Partner, has released their free social commerce extension for Magento and X.commerce allowing Magento merchants to easily add sharing buttons from Pinterest, Facebook, Twitter, and more to their storefront. With ROI tracking and apps to increase sharing, retailers can also identify social orders and the influencers who made them happen.

“With AddShoppers.com, retailers will be able to determine who among its customers are sharing the most often and having the highest impact on sales.” - Internet Retailer Magazine

Download the free AddShoppers extension.

Most store owners don’t know what social sharing is worth to their store. Other sharing solutions were built for sharing blog posts and articles, not products, and don’t track shares to sales. The AddShoppers social sharing platform is self-serve and free with sharing buttons and analytics built for eCommerce. Adding product-optimized sharing to your store along with analytics to track ROI has never been easier.

Using AddShoppers, ROI is tracked on 3 levels: the single product or SKU level, the influencer level, and the storewide level. Store owners can see the ROI of each social network per product, which influencers are driving the most revenue, and which social networks are sending the most revenue overall.

In addition to enabling ROI-focused social analytics for eCommerce, AddShoppers helps increase sharing and decrease shopping cart abandonment with its Social Rewards app. Using Social Rewards, store owners can incentivize and increase sharing by offering a coupon to their customers in return for sharing a product over a social network. After sharing a product and receiving a coupon, customers will have no need to abandon the checkout process upon reaching the “Enter coupon code” box.

AddShoppers also offers a complete white-label sharing solution for Enterprise-level stores requiring a seamless brand experience. Brands interested should contact AddShoppers for more information: http://www.addshoppers.com/enterprise/.

Magento Merchants Now Have Access to i-parcel’s Cross Border Logistics and Technology Solutions

Magento US and UK merchants can sell to cross border consumers in 92 countries with the unique advantages of i-parcel’s logistics and technology platforms.

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Magento Silver Industry Partner, i-parcel, LLC, has just released its Magento i-parcel Logistics Extension, allowing American and British ecommerce merchants the ability to increase their sales to 92 countries by offering a unique combination of logistics and value added technology services that are extremely attractive to consumers buying online.

Selling online to other countries is an exciting but daunting and difficult proposition, with markets outside of a merchant’s home country being exponentially larger than the merchant’s home market. Different availability levels of the home merchant’s products and prices outside of their home country create interesting and potentially lucrative opportunities. However, merchants are encumbered by a number of obstacles including resistance to and rejection of duty and tax COD fees at destination as well as high logistics prices (the biggest reason for abandonment-at-checkout for cross border purchases).

i-parcel operates a proprietary logistics and technology network which greatly reduces these barriers. i-parcel’s delivery network competes directly with the large, established parcel delivery companies on the simple concept that ecommerce merchants have their own commercial demands, which are not tailored for delivery companies that operate their networks based on B2B, 2-3 day DDU (Deliver Duty Unpaid) business capabilities. i-parcel offers fully landed costs (DDP) at checkout accompanied by rich, event based tracking and tracing options, and a 24/7/365 US based customer service team. All of this comes with ground breaking prices for the deliveries themselves, which stimulate checkouts instead of inhibiting them.

Download the new extension now available in Magento Connect.

Visit i-parcel’s website for more information (www.i-parcel.com)

Survey Says: Magento Gets a 3rd Slice of Pie

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A recent study by Magento Silver Industry Partner aheadWorks found that Magento continues to be the industry’s most popular platform with over 31% of the current market share.

Our thanks to aheadWorks for initiating this research, and most of all, we thank all the merchants, developers, partners and community members whose rapid adoption of our platform has taken Magento to the top of the eCommerce world.


Magento has solutions for businesses of all sizes.

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New Magento Study Points to Optimal Configuration for Exceptional Performance

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For years, many of our customers have raved about the performance they’ve been able to achieve with Magento Enterprise Edition. Our goal is to help all of our customers get the best possible performance from our platform.

With that goal in mind, we recently conducted testing to help us determine the optimal configuration for achieving exceptional performance with Magento Enterprise Edition.

The testing we conducted was designed to show what strategies work best for optimizing Magento. The results—detailed in our latest white paper, Optimizing Magento for Peak Performance—provide a powerful reminder that a fully optimized platform will deliver better performance while also maximizing hardware efficiency.

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Here are a few highlights from our testing, as outlined in our white paper:

  • Configuration counts. Our testing results demonstrate that a standard configuration of two web nodes and one database server, properly configured and optimized, can lead to a significant increase in performance.

  • Caching is key. An optimized Magento Enterprise Edition configuration, coupled with appropriate software accelerators, such as Varnish and Nginx, can support more than 350 million catalog views and 487,000 orders per day. This exceptional performance is the result of improved server response times and greater data processing capacity.

  • Save your servers. To grow and scale, more servers aren’t always the answer. With proper server configuration and enhanced caching, businesses can save on hardware costs while supporting more customers and transactions.

To learn more about how you can get maximum performance from Magento Enterprise Edition, download our white paper now.


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Special thanks to Peer 1 Hosting for providing us with the servers we used for our testing.

i95Dev Becomes Part of the Partner Family!

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From integrating the front and back-end systems for seamless operations to creating customized features that are unique to your store, Magento and i95Dev have created a partnership that is sure to help your store go above and beyond your greatest expectations.

i95Dev is a full service eCommerce company to help you build an online store from scratch or increase the effectiveness of a store that already exists.

The experts at i95Dev allow Magento merchants to receive customized development of their Magento store. The dedicated designers and developers of i95Dev will create a store that fits the exact needs of your business.

i95Dev offers clients an amazing array of over 70 different extensions. Two of the most popular extensions include
GP Connect (ERP) and RMS Connect (POS). Additionally, i95Dev will customize Magento extensions to help make your store more user-friendly and improve customer loyalty. With i95Dev and Magento your store will stand apart from the competition.

For more information about how i95Dev can help your company reach the next level, attend their webinar on Sept 12th to learn how to integrate your Magento store and ERP systems in real-time.

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