ChannelEngine, an e-commerce marketplace integrator, raises $50 million
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ChannelEngine, a platform that helps brands manage their products and inventory across multiple third-party marketplaces, raised $50 million in a round B funding round.
The increase comes as countless retailers have moved to the marketplace model, including Macys which recently expanded its online properties to support third-party merchants, while Bed Bath & Beyond and Decathlon recently adopted a strategy of similar market. Elsewhere, established regional e-commerce players such as Zalando and Bol.com, and even social networks like Instagram and TikTok, are now all serving to connect buyers to sellers around the world.
And it’s in this context that ChannelEngine makes its mark, helping companies like Staples, Bosch and JBL manage sales across a myriad of marketplaces – from eBay, Walmart and Amazon, via Wish, Zalando, Bol.com and beyond.
“We are in the midst of a sea change in e-commerce as brands increasingly sell directly to consumers through open online marketplaces such as Amazon, Walmart and Zalando,” said the CEO and Founder of ChannelEngine. , Jorrit Steinz.
It is important to understand the magnitude of the problem that ChannelEngine is trying to solve. Managing multiple marketplaces individually is a resource-intensive endeavor, which could otherwise involve lots of repetitive actions across different channels, such as managing inventory or tracking and adjusting prices to stay competitive. The bigger the merchant, the bigger the job, and that’s where ChannelEngine comes into the mix.
“The number one problem ChannelEngine solves is the complexity of connecting, updating, and managing product sales across multiple sales channels, both locally and globally,” Steinz explained. “There’s always a gap to be bridged between a seller’s internal systems and what’s needed for a marketplace or e-commerce store to actually connect and manage them all effectively.”
At the top level, businesses use ChannelEngine to create a single, unified channel to list and sell products, manage inventory, update assets, and more. Everything is synced across the board, so if a customer buys the latest of a specific product through Amazon, it will also show up as out of stock on eBay and Walmart. In addition to this, ChannelEngine offers tools such as automated repricing, so that if a competitor’s stock runs out, ChannelEngine can immediately increase their merchant client’s prices and take advantage of product scarcity.
ChannelEngine supports a variety of out-of-the-box integrations, from e-commerce platforms such as Shopify and Magento, to enterprise software spanning warehouse management systems (WMS), product information management ( PIM) and enterprise resource planning.
With all their data sources connected, the trader can then access over 200 marketplaces, e-commerce platforms and other sales channels.
At the heart of the ChannelEngine product is data and analytics, which gives traders insight into all their markets – this includes WHO sells its products (i.e. resellers), which products are most active in these markets, average delivery times, etc.
“Based on this, a brand owner can take control, not only of what they or they sell, but also to their resellers,” Steinz said. “In addition to this, ChannelEngine collects and unifies many data points from all different sales channels, ranging from sales performance, orders, returns and associated charges, to comprehensive pricing information and dynamics. of their products, including the prices and availability of their direct competitors. [in] these markets.
All of this data is displayed in ChannelEngine dashboards or the dedicated ChannelEngine app, while it can also be viewed in custom business intelligence via Google Data Studio and Power BI.
Founded in the Netherlands in 2015, ChannelEngine previously raised approximately $7 million, and with an additional $50 million in the bank, the company will double down on its mission to become “the largest e-commerce network and platform for exploitation in the world”.
Indeed, since its Series A raise just 14 months ago, ChannelEngine says its revenue has more than doubled, while its internal headcount has tripled across offices in Europe, the Middle East, Asia and in North America.
ChannelEngine’s Series B was led by Atomico, with participation from General Catalyst, Inkef Capital and Airbridge Equity Partners.
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