When it comes to online sales, marketplaces are the rule of the day, creating a one-stop-shop for buyers and retailers to target as many potential buyers as possible, while also providing great economies of scale in fulfillment and delivery. Amazon has become synonymous with sales in the marketplace, but it’s far from the only player in town. Startup ChannelEngine, which helps retailers connect and sell in more than 200 markets, is today announcing a funding round to grow its business amid strong demand. The Leiden, Netherlands-based startup has raised $50 million to fund the number of marketplaces it works with, the number of retailers it connects with, and funding work to build the next generation of e-commerce. both. It will look like everything.
Atomico Leads With New Investor common triggerplus previous donors squid As well as Airbridge Equity Partners, also participating; Demandware becomes an angel investor with Intershop and Newstore founder Steven Schumbach.
Estimates will not be released, but as an indicator of how the company has increased earnings so far, it was founded in 2013 and raised just $7 million prior to this round, doubling its earnings in the recent past. The list of 450 retailers includes Bugaboo, Staples, JBL, Polaroid, Hankemolar, Brabantia, Reckitt Benckiser, Bosch, JDE, Electrolux, Philips Domestic Appliances, Signify, Deidora, Glenbia, Vanill and Safavieh. (He did not disclose any earnings or estimates associated with this round.)
The rise of ChannelEngine comes not only at a time when e-commerce is really starting to take off – the pandemic has forced many companies and people to sell and buy online – but a significant part of it, online in particular. the market is rising. Amazon has rocked the e-commerce world with its Marketplace: brought together millions of retailers to create a one-stop shop for people looking for products and the retailer thanks to Amazon’s economies of scale. Not only can you trust the buyers who sell, but you can also ship and deliver those products.
But Amazon is just the tip of the iceberg in the market. eBay, Walmart, Zalando, Mercado Libre, AliExpress, Back Market, Shopee, Lazada, Mirakl, Bol.com, Allegro, CDON, Cdiscount, Catch are examples of the many more mainstream and more localized storefronts that retailers use to target consumers. . Even Macy’s fell into the market model.
“They all become markets,” said Yorit Steinz, founder and CEO of ChannelEngine.
So far, the challenge has been to build relationships with each market, and this is what ChannelEngine is addressing on its platform by providing a set of tools that allow retailers to adjust prices based on site and audience and what is being sold. for what (automatic meaning) modification of the language); Manage their materials, inventory and orders; and engage third parties for further analysis and dissemination.
The company currently manages the distribution of about 6 million products under 8,100 brands through more than 200 sales channels.
There are other approaches in the world of e-commerce to help small retailers navigate the turbulent waters of the marketplace. In any case, one of the most prevalent in terms of funding is the rise of Thresio-style aggregators, cumulative e-commerce games that promise smaller brands better economies of scale, and with them a more cohesive, expanding form. -Up group to make better use of sales data and production and distribution networks. Interestingly, Steinz told me that some of them are actually ChannelEngine customers: many promise to help their brands sell better in the market, but in many cases their experience is enough to identify the most successful retailers, and that’s not all to help. them to grow. What doesn’t really work on many platforms is a technology that they often buy, for example in partnership with ChannelEngine, to take advantage of this business opportunity.
Interestingly, this, combined with other tools like headless commerce builders and tools that help companies design and manage their stores, makes a company like ChannelEngine an opportunity to sell to big brands.
In the long term, according to Steinz, other opportunities on the horizon will likely include not only more marketplaces, but more non-profit selling platforms that will become real marketplaces like Instagram and TikTok as they have more tools for direct sales. ways to find out what’s going on. Algorithmic embedded advertising as well as sold on their platform. Overall, the e-commerce market is expected to reach $5.9 trillion by 2023.
“The COVID-19 pandemic has dramatically accelerated the adoption of e-commerce, which now accounts for 20% of all global retail sales. The global e-commerce market alone is expected to grow by more than $500 billion between 2022 and 2023,” said Atomico CEO Luca Eisenstaken. “By building the largest e-commerce management platform, ChannelEngine is ready to realize this opportunity. Providing direct access to the global market for brands and retailers. She joins the board with this round.
“As the use of e-commerce accelerates, retailers and brands need to meet with consumers about where and how they shop. ChannelEngine has created a complete, high-tech platform that is reliable and global. General Catalyst is excited to invest in ChannelEngine as it helps leading e-commerce companies sell on marketplaces around the world,” said General Catalyst CEO Larry Bohn, who also joined Max on the board. Wrinkle GC.