Tradeshift Accelerates Market Growth and Leadership with $30 million acquisition of Merchantry
Best-In-Class Product Information Management (PIM) Boosts Value of the Tradesh...
Best-In-Class Product Information Management (PIM) Boosts Value of the Tradeshift Network
Tradeshift, the fastest growing supplier collaboration platform, today announced that it has acquired Merchantry, a leading cloud-based product information management (PIM) provider for $30 million in cash and stock.
“Merchantry’s industry leading innovation in PIM and its e-commerce domain expertise will extend the power and value of the Tradeshift platform for our customers and their suppliers globally.” said Jigish Avalani, President and COO of Tradeshift. “This acquisition, on top of our successful strategy to add the richest best-in-class third-party supply chain apps on a single integrated platform, will boost our growth trajectory.”
This acquisition plays an important role advancing Tradeshift’s vision to help companies transform and digitise their supply chain relationships and processes. Merchantry’s technology will allow suppliers of all sizes to upload and manage their product, inventory and pricing information on the Tradeshift platform. This is expected to significantly increase the value of the Tradeshift network to suppliers because they can be found and get more business. The acquisition will also help increase monthly transactions on the platform, which grew 200% in the last month alone.
Merchantry helps large organisations successfully grow their e-commerce businesses by building, scaling and streamlining online marketplaces. Their PIM technology enables organisations to quickly connect to their suppliers, allowing them to manage millions of product SKUs and ensure consistent, accurate product information across multiple online channels. Some of Merchantry’s customers include PacSun, La Redoute, Modell’s and LivingSocial.
“Merchantry was founded to solve the connectivity, complexities and business challenges that buyers and suppliers faced in maintaining consistency and accuracy across vast amounts of product data.” said Rick Watson, CEO, Merchantry. “The success of our vision will now make even greater impact through the Tradeshift platform and its ability to transform how businesses transact globally.”
Merchantry was founded in 2004 to provide e-commerce integration technology to large retailers such as Amazon.com, Marks & Spencer, bebe, and others. The company’s major investors were Kite Ventures, Greycroft Partners, and e.ventures, with the first outside investment received in 2010.
Cainiao Network Launches Customer-Centric Logistics
As the logistics division of the Alibaba Group, Cainiao Smart Logistics Network has decided to provide its Southeast Asian customers with unsurpassed service during its annual shopping festival. Based on customer feedback surveys, the company will expand its real-time customer service support and speed up delivery times. ‘By expanding and deepening our services, we aim to provide a stronger logistics infrastructure that can bolster the booming eCommerce sector, support merchants’ expansion into new markets and diversify retail options for consumers’, said Chris Fan, Head of Cross-Border, Singapore, Cainiao Network.
Who Is Cainiao?
According to TIME Magazine, Cainiao ‘is far from a typical logistics firm’. The company controls an open platform that allows it to collaborate with 3,000 logistics partners and 3 million couriers. This means that merchants can choose the least expensive and most efficient shipping options, based on Cainiao’s real-time logistics analytics. The company’s goal is to ship packages anywhere in the world in under 72 hours—and for less than US$3.00.
For countless small business owners around the world, from coffee-growers to textile-weavers, this could change everything. Usually, it costs about US$100 to ship a DHL envelope from Shanghai to London in five days. Cainiao aims to change that. Said its CEO Wan Lin: ‘The biggest barrier to globalisation is logistics’.
What’s Part of the Upgrade?
Throughout the Tmall festival, Cainiao’s logistics upgrade will be divided into four critical segments:
- Real-time customer service support. Cainiao has launched a direct WhatsApp channel for customers to receive logistics updates and ask questions.
- Expansion of air freight parcel size and weight limits. Packages can now be up to 30 kilograms or 1-metre x 1.6 meters to help ship large items such as furniture.
- Daily air and sea freight connections. Shipping frequency will almost double to seven times weekly to maintain resilience and efficiency.
- Compensation for lost or damaged packages. Customers will be reimbursed up to RMB 2,000 (US$311).
Where is the Company Headed?
From June 1st to June 20th, the finale of Tmall, Cainiao will ensure that its customers feel confident in the company’s ability to deliver their packages. Despite global shipping delays due to COVID, the show will go on. Said Fan: ‘This series of customer-centric logistics upgrades reaffirms our goal of pursuing value-added services to enhance customers’ shopping experience while mitigating challenges posed by external factors’.
Furthermore, Cainiao has recently expanded its Southeast Asian operations, achieving revenue growth of 68% year-over-year. In Malaysia, the logistics operation has partnered with BEST Inc. and Yunda; in Singapore, the company has partnered with Roadbull, Park & Parcel, and the Singapore Post. And if its recent measures help retain and grow its customer base, the company will be well-poised to lead the industry in resilient and customer-centric global logistics. ‘COVID-19 made everyone realise how important the logistics infrastructure backbone is’, said Wan. ‘And it gave us a peek at what Cainiao should look like in three years’.