Spotlight

Report:

Magic Quadrant for Digital Commerce

How does Gartner define the Digital Commerce market in 2024?

Gartner defines digital commerce as the technology that enables customers to purchase goods and services through an interactive and self-service or assisted experience. The platform provides necessary information for customers to make their buying decisions and uses rules and data to present fully priced orders for payment. The commerce product must support interoperability with customer data, product content (e.g., price, availability) and order functionality and data via APIs. Digital commerce is commonly delivered as single or multitenant SaaS, or as single-tenant hosted or managed hosted (PaaS) applications. It could be offered for on-premises implementations in some circumstances.

Key Facts for Magic Quadrant for Digital Commerce in 2024

Strategic Planning Assumptions

How was the Digital Commerce market evolved in 2024?

What product features are required to be included in this year's evaluation?

What are the common features of top products in the Digital Commerce space?

Scope Exclusions

Inclusion Criteria

Vendors must, among other requirements:

Ability to Execute — Relative Weighting

Completeness of Vision — Relative Weighting

FAQs

Q: What does this research cover?

A: This research covers the digital commerce platform market, evaluating 19 vendors based on their ability to execute and completeness of vision. It assesses vendors' capabilities across multiple dimensions including product functionality, market viability, sales execution, innovation, and strategic positioning. The research examines platforms that enable customers to purchase goods and services through interactive and self-service experiences, supporting various business models (B2B, B2C, B2B2X, marketplace operations) across multiple industries and geographies. It covers deployment models including SaaS, PaaS, and on-premises implementations, and evaluates both mandatory features (storefront, catalog, pricing, promotions, APIs) and common features (personalization, unified retail commerce, marketplace operations).

Q: Who should use this research?

A: This research should be used by application leaders, IT decision-makers, and digital commerce technology buyers who are evaluating or selecting digital commerce platforms. It is particularly valuable for organizations that need to: assess vendor capabilities and market positioning; understand vendor strengths and cautions; match their specific requirements (industry, geography, business model, company size, GMV) to appropriate vendors; evaluate vendors' ability to support their digital commerce strategy; understand market trends and the shift toward composable commerce; and make informed decisions about platform selection based on their organization's digital maturity, technical capabilities, and business needs. The companion Critical Capabilities research should be used to evaluate vendors by specific functional and nonfunctional criteria.

Q: What are the mandatory features of vendors included in this market?

A: Vendors must provide out-of-the-box capability or APIs to support: (1) A self-service, interactive commerce experience including storefronts, catalog navigation, search, product pages, promotions, shopping carts, checkout and customer accounts; (2) Product discovery, cart functionality and full order pricing with discounts at product, customer and order levels; (3) Business tooling for merchandising, catalog/content management, user access, promotions and site operations; (4) API-based interoperability with customer, product content and order data; (5) Front-end as a service; (6) Personalization, testing and optimization; (7) Product information, pricing and inventory management/integration.

Q: What are some reasons for not being included in this report?

A:

  • Insufficient number of production customers (less than 60)
  • Serving only one industry vertical or less than 5% of customers in multiple industries
  • Operating in only one geographic region or less than 5% revenue from multiple regions
  • Customer concentration risk with one customer representing more than 10% of revenue
  • Insufficient revenue growth (below 5-10% depending on revenue tier)
  • Insufficient total annual revenue (below $20M-$70M depending on growth scenario)
  • Insufficient net new customer additions (five or fewer in 2023)
  • Product does not match Gartner's digital commerce platform definition
  • Missing mandatory functional requirements

Q: What differentiates Ability to Execute vs. Completeness of Vision?

A: Ability to Execute focuses on current market performance and operational capabilities - measuring how well vendors deliver their products/services today through product quality, viability, sales effectiveness, market responsiveness and customer experience. It emphasizes present-day execution and delivery capabilities. Completeness of Vision focuses on future market direction and strategic positioning - assessing vendors' understanding of market evolution, product strategy, innovation capability, and ability to anticipate and shape future market needs. It emphasizes forward-looking vision and strategic differentiation rather than current operational performance.

Reference

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