ChannelEngine, an ecommerce 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, has raised $50 million in a Series B funding round.

The increase comes as numerous retailers have moved to the marketplace model, including Macys who recently expanded its online properties to support third-party sellers, while Bed Bath & Beyond and Decathlon have recently adopted a similar market strategy. Elsewhere, established regional e-commerce players like Zalando and Bol.com, and even social networks like Instagram and TikTok all now serve to connect buyers with sellers from around the world.

And it’s against this backdrop that ChannelEngine is making its mark, helping companies like Staples, Bosch and JBL manage sales across countless marketplaces — from eBay, Walmart and Amazon, through Wish, Zalando, Bol.com and beyond.

“We are in the midst of a profound shift in e-commerce as brands increasingly sell directly to consumers through open online marketplaces such as Amazon, Walmart and Zalando,” said Jorrit Steinz, CEO and founder of ChannelEngine.

It is important to understand the magnitude of the problem ChannelEngine wants to solve. Managing multiple marketplaces separately is a labor-intensive undertaking that could otherwise involve a lot of repetitive operations across different channels, such as managing inventory or tracking and adjusting prices to stay competitive. The bigger the trader, the bigger the job, which is where ChannelEngine comes into the mix.

“The biggest problem ChannelEngine solves is the complexity of connecting, updating and managing product sales across many sales channels, both locally and globally,” explains Steinz. “There is always a gap to bridge between a merchant’s internal systems and what is needed for a marketplace or ecommerce store to connect and manage them all effectively.”

At the highest level, companies 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, ChannelEngine provides tools such as automated price review so that if a competitor’s inventory runs out, ChannelEngine can immediately raise its merchant customer’s prices and take advantage of product scarcity.

Integrated

ChannelEngine supports a variety of integrations out of the box, from ecommerce platforms such as Shopify and Magento to enterprise software for warehouse management systems (WMS), product information management (PIM), and enterprise resource planning.

With all their data sources connected, the merchant has access to more than 200 marketplaces, ecommerce platforms and other sales channels.

ChannelEngine: how it works

At the heart of the ChannelEngine product is data and analytics, which gives merchants insight into all of their marketplaces – this includes who is selling their products (i.e. resellers), which products are most active in those marketplaces, average shipping times and more.

“Based on this, a brand owner can take control of not just what they sell, but their resellers as well,” Steinz said. “In addition, ChannelEngine collects and unifies many data points from all different sales channels, ranging from sales performance, orders, returns and associated reimbursements, to complete pricing insights and dynamics of their products, including pricing and availability of their direct competition. [in] those marketplaces.”

All this data is displayed in ChannelEngine dashboards or dedicated ChannelEngine app, while it can also be displayed in custom business intelligence via Google Data Studio and Power BI.

ChannelEngine dashboard

ChannelEngine, founded in the Netherlands in 2015, had previously raised approximately $7 million, and with another $50 million in the bank, the company will redouble its mission to become “the world’s largest e-commerce network and operating platform.”

Indeed, since the Series A raise just 14 months ago, ChannelEngine claims its sales have more than doubled, while its internal workforce has tripled in offices in Europe, the Middle East, Asia and North America.

ChannelEngine’s series B round was led by Atomico, with participation from General Catalyst, Inkef Capital and Airbridge Equity Partners.

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This post ChannelEngine, an ecommerce marketplace integrator, raises $50 million

was original published at “https://venturebeat.com/2022/03/15/channelengine-an-ecommerce-marketplace-integrator-raises-50m/”