We are a leading provider of software-as-a-service, or SaaS, solutions and
our mission is to connect and optimize the worlds commerce. Our e-commerce
cloud platform helps retailers and branded manufacturers worldwide improve their
online performance by expanding sales channels, connecting with consumers around
the world, optimizing their operations for peak performance and providing actionable
analytics to improve competitiveness. Through our platform, we enable our customers
to connect with new and existing sources of demand for their products, including
e-commerce marketplaces, such as Amazon, eBay, Jet.com, Newegg, Sears and Walmart,
search engines and comparison shopping websites, such as Google, Microsoft’s
Bing and Shopzilla, and social channels, such as Facebook, Instagram and Pinterest.
Our fulfillment solution makes it easier for customers to connect to their supply
chain, which could include distributors, manufacturers and third-party logistic
providers. Our suite of solutions, accessed through a standard web browser,
provides our customers with a single, integrated user interface to manage their
product listings, inventory availability, pricing optimization, search terms,
data analytics and other critical functions across these channels. We also offer
solutions that allow branded manufacturers to send their web visitors or digital
marketing audiences directly to authorized resellers and to gain insight into
consumer behavior. Our proprietary cloud-based technology platform delivers
significant breadth, scalability and flexibility. In 2017, our customers processed
approximately $8.9 billion in gross merchandise value ("GMV") through
our platform.
We serve customers across a wide range of industries and geographies. Our customers
include the online businesses of traditional retailers, online retailers and
branded manufacturers (manufacturers that market the products they produce under
their own name), as well as advertising agencies that use our solutions on behalf
of their clients.
E-commerce has grown significantly over the last several years, as consumers
have increasingly shifted their retail purchases from traditional brick-and-mortar
stores to online stores and marketplaces. This growth has been due to a number
of factors, including:
availability of a broader selection of merchandise online;
consumer convenience and ease of use;
more competitive and transparent pricing;
increased functionality and reliability of e-commerce websites;
convenience and speed of order fulfillment;
broad use of mobile connected devices for e-commerce; and
proliferation of specialized websites and online distribution channels.
As a result of these factors, consumers today have more options than ever before
to discover, research and purchase products online.
While these e-commerce growth drivers create significant opportunity for retailers
and branded manufacturers, they also create additional complexity and challenges.
Retailers and branded manufacturers seeking new avenues to expand their online
sales must manage product data and transactions across hundreds of highly fragmented
online channels where data attributes vary, requirements change frequently and
the pace of innovation is rapid and increasing. Speed of order fulfillment is
becoming increasingly strategic to winning consumers business. There are a
significant number of possible fulfillment locations around the world, each
with different technological capability and communication requirements.
We address these challenges by offering retailers and branded manufacturers
SaaS solutions that enable them to integrate, manage and optimize their merchandise
sales across these disparate online channels. In addition, we facilitate improved
collaboration between branded manufacturers and their authorized resellers through
solutions that deliver high value leads from branded manufacturers to those
resellers. We generate the majority of our revenue from our customers access
to and usage of our SaaS solutions, which are organized into modules. Each module
integrates with a particular type of channel, such as third-party marketplaces,
digital marketing websites and authorized reseller websites. Using our solutions,
customers can:
connect with new channels and more easily integrate with channels they already
use;
access emerging online sources of consumer demand, such as social networks and
mobile devices;
adapt to the frequently changing policies and requirements of each channel;
manage real-time inventory allocation and availability across channels;
implement dynamic pricing and promotion strategies across channels;
efficiently manage, evaluate and optimize customer traffic to their own e-commerce
websites;
connect to fulfillment and logistics providers on a global scale;
more easily sell into new geographic territories worldwide;
provide a seamless consumer journey from branded manufacturer websites and digital
marketing campaigns to the e-commerce sites and physical stores of authorized
resellers;
reduce dependence on in-house information technology staff and avoid significant
up-front capital expenses; and
access in real-time the latest product and software upgrades that we regularly
release on our SaaS platform to keep up with the rapid pace of change and innovation
in the market.
We derive our revenue primarily from subscription fees paid to us by our customers
for access to and usage of our SaaS solutions for a specified contract term,
which is usually one year. The majority of our subscription fee is based on
the amount of a customers GMV processed on our platform. Our subscription fee
may also be based on the amount of advertising spend processed on our platform.
A portion of the GMV-based or advertising spend-based subscription fee is typically
fixed and is based on a specified minimum amount of GMV or advertising spend
that a customer expects to process through our platform. The remaining portion
of GMV-based or advertising spend-based subscription fee is typically variable
and is based on a specified percentage of GMV or advertising spend processed
through our platform that exceeded the customer’s specified minimum GMV
or advertising spend amount. We believe that our subscription fee pricing model
aligns our interests with those of our customers. We also receive implementation
fees, which may include fees for providing launch assistance and training.
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