A Deep Dive on Checkout ChallengersRead more
Today, Deliverr announced their $40MM Series C financing to offer a world-class turnkey e-commerce fulfillment platform to retailers. We at Activant Capital led the round and are excited to be working alongside fellow investors GLP and 8VC.
At Activant, we have been on the front lines of investing in the infrastructure of global commerce for the best part of the last decade. Software and the internet have fundamentally changed the way that goods are made, moved and sold. The biggest tectonic shifts of commerce has naturally been the growth of e-commerce, expected to top over a $3 trillion of spend globally this year.
While e-commerce has traditionally been dominated by a few leading-edge online retailers, the last decade saw incredible democratization of selling online. Today, there are an estimated 3 million e-commerce merchants competing to sell everything from fashion to pharmaceuticals globally (excluding China!). These sellers will make up an important share of the nearly 100 billion parcels sent globally.
Despite all of these independent merchants, just a few platforms are still capturing the lion’s share of e-commerce spend and have won by offering frictionless checkout and fast shipping. As a result, they have conditioned consumers to expect this kind of shopping experience: nearly 30% of consumers consider delivery speed when making a decision to purchase something online. The reality is, however, that most companies simply do not have the scale to compete.
To keep up in today’s environment, online retailers have been forced to rely on air freight, both driving up the environmental cost of moving their products and cutting into their bottom line. More and more companies are now looking to outsource their fulfillment to outside parties as the pace of change and investment costs become unsustainable for organizations not set up to operate an increasingly complex supply chain.
Deliverr’s world-class team is using technology to solve this fulfillment problem once and for all for these online merchants by taking the entire process off their customers’ hands. Deliverr enables every company to offer fast, affordable, and reliable fulfillment with their completely turnkey and self-service platform. Deliverr can do this by building data-driven and personalized fulfillment plans for every one of their merchant customers while partnering with a vast network of warehouses and logistics service providers to orchestrate the fulfillment journey from end-to-end.
Deliverr’s technology allows merchants to do what was, in the past, mutually exclusive: they can increase sales by up to 30% while improving delivery times. At the same time, they reduce their fulfillment cost and the amount of operational work they need to devote to managing their shipping. No surprise, then, that Deliverr grew over 1000% last year… and it doesn’t look like they’re slowing down.
We are incredibly proud to be working alongside Harish, Michael, and the entire Deliverr team to help them build out the future of commerce.