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Farmstead comes with secured funding to grow its grocery eCommerce platform

Farmstead comes with secured funding to grow its grocery eCommerce platform

Farmstead, the US online grocery eCommerce platform, raised $7.9 million in a Series A funding round for accelerating the national expansion. Aidenlair Capital led this latest round and brought total funding to $14.5 million. There are also other participants like Maple VC, Duro, Y Combinator, Red Dog Capital, and Heron Rock.

As Farmstead explained, they made the growth “swiftly” during this pandemic. Therefore, with the raise, Farmstead is focusing on securing partnerships with the grocery chain to increase the delivery capacity. It will also expand the national brand.

Farmstead is popular for using AI technology along with a dark store model for the delivery-centric warehouses to serve within the 50-mile radius, to enhance the efficiency with reduced cost.

Farmstead further claims that they provide the consumer prices, which is comparatively lower than the supermarkets yet comes with the doorstep delivery option. Therefore, Farmstead also says that its dark grocery eCommerce platform strategy is effective for easy entry into the new geographies with reduced food waste.

In October, Farmstead announced that they are going to open their first expansion market in the Charlotte of North Carolina. The news also reported about the company’s Grocery OS launch in September to help the grocers take house-step delivery.

Tim Reynders of the Aidenlair Capital said, “In order to fix grocery delivery and make it profitable Farmstead took the bold approach of breaking the traditional model and starting completely from scratch while opening up Grocery OS to other retailers.”

Pradeep Elankumaran, who is the co-founder and CEO of Farmstead, on this matter, said that the Farmstead team has worked hard in 2020 for the perfect dark store model and the related proprietary technology. This has made the company more efficient.

He further added that “This industry has been stagnant for long enough – customers demand change, and we are building the foundation for sustained e-commerce growth in grocery while exceeding their expectations.”

TJX is going to add eCommerce to HomeGoods.com due to the falling physical sales

TJX is going to add eCommerce to HomeGoods.com due to the falling physical sales

TJX Cos., the retail giant, is going to eCommerce to their HomeGood.com site in the upcoming year. As the Marshalls and the T.J. Maxx Brick and mortar stores continue due to the pandemic, they opt for the same-store physical sales.

TJX said that as a part of their fiscal Q3 earnings release, the company’s sales fell down up to 5% due to the pandemic situation. Therefore, the TJX CEO and the President, Ernie Herrman, said in their announcement that this step would add up to their strength and with better growth opportunities.

Though he didn’t go into much detailing, he added that HomeGoods.com currently comes with their gift card buying options, not the actual merchandise. The Management also said that during the pandemic, when the 470 stores were closed, the tkmaxx.com remained open in the U.K.

Along with HomeGoods.com, TJX reported a 15% gain in the year-over-year sales at the HomeGoods stores, not closed by the pandemic during the fiscal Q3, that ended on Oct 31. Herrman further added that the pullbacks in the same-store sales at the TJX flagship U.S, T.J. Maxx, and the Marshall stores, and the other sector proved smaller than the expectation.

The company further said that their comp sales at the stores remained open, fell to the 10% to $5.8 billion the TJX Canada and 6% at the TJX Europe and $1.4 billion in Australia. Hermann said that their third-quarter results exceeded significantly on both the top and bottom lines due to their brand value. He also added that all the other divisions also drove sales above their plans; home, beauty, and activewear outperformed at TJX Canada and TJX international.

The company also said that though the stores closed temporarily, they still managed to have 17 new locations during this time.

Though TJX said that their consolidated pretax profit margin reduced to 10% from 10.7%, in Q3 2019, the Management said that

the company’s “very strong merchandise margin increase was more than offset by significant operating costs related to COVID-19 and expense deleverage on the year-over-year sales decline.”

TJX’s net physical sales fell to 3.2 % to $10.1 billion from $10.5 billion. However, the net income rose to 4.6% to $867 million from $828.2 million in Q3 2019. The Management said that it would not provide future guidance beyond the uncertainty of the situation, and it is hard to forecast the situation.

Kohl’s Comp sales drop by 13.3 Pct due to the pandemic cut on apparel and footwear sales

Kohl’s Comp sales drop by 13.3 Pct due to the pandemic cut on apparel and footwear sales

As per Kohl’s report on Tuesday, it said that the pandemic has cut down on their footwear and apparel sales with the slashing comparable sales drop by 13.3% in the Q3.

Kohl’s CEO Michelle Gass said that the pandemic had significantly impacted the school sales, which heavily affected their August’s sales performance. However, the sales trend rebounded appropriately in September and October.

Gass further said this trend is encouraging them to know about the important categories to focus on over the holiday seasons. And they are going to use it as a key part of their strategy to move forward. According to Gass, the company is prepared for the holiday season.

“Given the heightened role of digital this year, it will be more important for us to further drive awareness of our store and curbside pickup services,” Gass noted further.

Gass also said that the Ship from the store would continue as an essential support for the omnichannel network. According to her, the company is about to double the number of stores to carry the incremental inventory and fulfill all online orders of this season.

Gass further said that the company is operating everything safely with the expectations that they will drive more customers to their brick-and-mortar retailers.

Therefore, the executive said that Kohl’s have also focused on the extensive health and safety measures in the earlier 2020 to ensure further cleaning measurements. It is also to support social distancing.

On the matter of the Merchandise selection, Cass said that the company has entered into the season with the collection of items based on the shopper’s interest. And Kohl is focusing on Active, cozy, home, comfort, and toys.

As Gass further said that “We also expect to see more practical gifting and a continued focus on the value this holiday, which Kohl’s is known for.”

Gass has also outlined the new strategic framework for the four key areas. These areas include expanding operating margin, driving top-line growth, accountable and inclusive culture, and disciplined capital management with agile.

As per the overall results, Kohl’s has reported with 1 cent in the adjusted diluted earnings on the share of the $3.78 net sales drop amount. The result has exceeded the loss per share estimation of 43 cents on the $3.86 billion in net sales.

American Express augments Early Pay for easing out the B2B Supply Chain Payments

American Express augments Early Pay for easing out the B2B Supply Chain Payments

American Express enhanced its Early Pay system along with the digital payment feature as they want to give the large business the supreme control on the operating of B2B payments.

Daniel Brachfeld, the vice president for the supply chain solutions of American Express, said that they aim to focus on enabling digital payments beyond the traditional corporate cards. That’s why they are investing in the solution to improve the experience of the buyers and suppliers with the common pain points related to B2B.

He further added that the latest evolution of Early Pay would provide a supply chain solution to the businesses for more flexibility with easy and effective cash flow during the payments. This comes when businesses seek a simple digital solution among the fast-evolving payment landscape of the suppliers.

To the buyers and suppliers, this Early Pay system is going to help with the automated transitions for the early payments. Moreover, it will help the buyers generate extra cash using these early payment discounts along with finance payments to benefit them with more working capital.  Early Pay will allow the suppliers to optimize more cash flow in exchange for early payments with more discounts.

As per American Express, this early payment with the payment automation will allow the buyers to realize around $.84 billion in savings through the discounts. Therefore, the buyer cash flow can be optimized by the early payments with the funds of American Express.

For the suppliers, this early payment is going to help in reducing the risk regarding the late payments, which squeezes the cash flow. Dan Puleri, the vice president of the B2B supplier strategy and the enablement of the American Express, said that the invoicing and the payments are automation ready.

During September, the company unveiled its Pay Over Time Option for the small and medium-sized business along with its Gold, Platinum, and green cards. His is to help the business customers to manage the cash flow during crucial times.

Brett Sussman, the vice president of the global commercial card leading at American Express, said that “While American Express is known for our no pre-set spending limit, pay-in-full charge card model with our iconic Green, Gold and Platinum Cards, we’ve long heard from our card members who are small business owners that increased payment flexibility is important to them.”

Interview with Chris Shipferling from Global Wired Advisors

Team eCommerce Next interviewed Mr.Chris Shipferling from Global Wired Advisors to get more insights on M&A Industry and trends. Following is our interview with him:

What is the current M&A environment for e-commerce?

While the M&A sector is mostly holding their purse strings for most investments as they wait to see how the Pandemic unfolds, e-Commerce is booming right now and this is where investors are investing the most right now. They are looking for strong e-commerce brands with consistent revenue, year on year growth. Also, SaaS vendors helping e-commerce companies perform better and are also growing rapidly have their attention. 

Who are the buyers for these companies?

Private Equity, Family Offices, and Corporate/Strategics looking for roll-up opportunities.

What are the current valuations?

Buy-out valuation multiples of EBITDA have remained steady to marginally positive throughout the COVID-19 pandemic. Recent trends are showing more upward pressure on valuations as more private equity funds and corporate acquirers are turning their attention to being opportunistic instead of defensive. Global Wired Advisors sees valuation multiples moving materially higher over the next 6-12 months as the macro-economic headwinds from the pandemic (and response to it) subside. The holiday shopping season for 2020 will likely be a very impactful datapoint for e-commerce valuation multiples as future forecasts from acquirers will use it as a baseline to adjust from.

What are 3 things I can do now to prepare for an eventual exit?

  1. Organize your books and hire a professional CPA. Get your financial statements cleaned up. This would include your monthly P&L statements as well as an updated Balance Sheet. This will properly reflect the financial health of the business.
  2. By cleaning up your financials you are able to properly understand where you can hire to alleviate any current bottlenecks in any given function to create better throughput. EG: You have identified your weakness is Inventory Management. You can hire someone part-time or on a fractional basis, full time, or deploy software to automate this function for you.
  3. As a Consumer Products company, product road maps are crucial to painting the future. These need to be thorough and detailed so a potential acquirer fully sees the product vision for the business. Mature CPG businesses live and die by the product road map and a proper channel strategy.

What is the difference between an Investment Banking/M&A Advisors versus a conventional business broker?

Your business is one of the most valuable assets you will ever sell, so it’s critical to get it right the first time and retain the absolute best intermediary to represent you in the transaction. While brokers and advisors can act as intermediaries, their strategy often involves generating sales volume through fast, lower-value transactions. This results in a cookie-cutter process that leaves a lot of the work up to you, the Seller, and does not always end with a satisfactory transaction.

By contrast, an experienced Investment Banking professional can draw on a deeper level of expertise to provide a more sophisticated approach. From conducting an exhaustive review of every aspect of your business and calculating its true value with pinpoint accuracy to developing high-caliber marketing materials and shopping the deal with a shortlist of vetted, pre-qualified buyers, they are personally involved in guiding you through each phase of the sale. With an experienced Investment Banker in your corner, you can trust that you will get the best deal possible.

Exceptional Representation for the Optimal Outcome

The hard part is over; you’ve put in the work to transform your business into an extremely desirable asset. You owe it to yourself to work with an intermediary who appreciates the effort you’ve put into each and every aspect of your business, who will not settle for anything less than what you deserve, and who can draw on their wealth of professional knowledge and experience to earn you the maximum value in a sale. 

The right intermediary can help you achieve most of, if not all, your goals in an exit. Perhaps you’re planning to follow the sale of your first successful business by launching a new venture, or maybe you want to retire and spend more time with friends and family. Whatever your long-term goals may be, no matter what comes next for you, if selling your business is the first step towards achieving them, then you deserve the very best representation you can find to help secure your personal and professional future.

What does the process look like?

Selling a business is a multi-stage process that begins with understanding your business and its operating environment. This allows an experienced Investment Banker to optimally position your listing and highlight its full potential, ensuring the best strategic fit. Upon taking your business to market, your Investment Banker can leverage this information to launch a highly effective marketing campaign across the full buy-side space, matching you with the ideal buyer and deal structure.

The goal is to guide you through a more sophisticated M&A process that yields the maximum value in a sale transaction. As your business represents a tremendous financial opportunity, it is crucial to fully capitalize on that opportunity and secure your financial future. 

About Chris Shipferling

As the first point of contact for our clients, Chris offers invaluable insight to help sellers and buyers reach their full potential before and during, and after the sale of their business. Chris also serves as the Head of Business Development for Global Wired Advisors, leveraging his background in sales and digital marketing to grow our brand. For the past seven years, he has focused exclusively on high-level consulting for multi-million-dollar omnichannel, digitally native, and Amazon-based private label and re-seller brands.

Chris is especially adept at finding Client Companies that are poised for sale, guiding them through the initial steps, and preparing them to make the best possible first impression. Chris enjoys working closely with owners throughout the process of selling their business, getting to know them on a personal level so that we can better assist them in realizing their goals.

About Global Wired Advisors

With over 20 years of experience working for household investment banks — such as, Citibank, Wells Fargo, Bank of America, and Deutsche Bank — in addition to various hedge funds, Global Wired is uniquely equipped to be your trusted guide, whether you are looking to scale or an eventual exit. Global Wired has over 70 years and hundreds of billions of dollars of investment banking, e-commerce platform building, and M&A experience, and have brought their Wall Street experience to small business America.

Grocers set limits of purchase, Walmart opted for restrictions for in-store customers due to the COVID case rise

Grocers set limits of purchase, Walmart opted for restrictions for in-store customers due to the COVID case rise

Retailers worldwide are adopting the new measurements to avoid the spreading of the COVID -19, as the CNBC report states. As the report says, Walmart store employees are keeping track of the number of shoppers entering at the same time.

As a Walmart spokesman said, “We know from months of metering data in our stores that the vast majority of the time our stores didn’t reach our self-imposed 20 percent metering capacity.”

Besides, he said that out of an abundance of caution, Walmart decided to keep track of the number of customers getting into and coming out of the store. In the earlier period of this month, as per a CNBC report, the grocers Kroger and Publix have set limits on purchasing goods like paper towels and toilet papers.

Also, Wegmans is following this path of limiting the purchase of paper towels, toilet paper, and other cleaning goods. During October, the retailers emphasized the stocking of goods like masks, household items, and paper goods, on which the customer relies upon most.

Some of the major retailers also reported in early November that they are limiting the purchase to present the shortage in advance. With their announcement on Twitter in October, Walmart disclosed its anti-COVID 19 efforts. These efforts are also going to include the extended hours for the stores in the Neighbourhood market.

In the Tweet, Walmart expressed that this measurement will let the customers shop for more time to avoid traffic during the day. Also, Walmart will spread its Black Friday deals to prevent the congestions, as the executives said.

Scott McCall, the executive vice president and the Chief Merchandising Officer for Walmart, said that “Customers trust Walmart to deliver an amazing Black Friday year after year.”

He further said that these different measurements of this year are not at all going to change Walmart’s commitment towards the customers. Customers are still going to get the seasonal best price hot gifts of the top brands during this time.

Shopify’s new initiative will allow people Gift A Business to the upcoming entrepreneurs

Shopify’s new initiative will allow people Gift A Business to the upcoming entrepreneurs

According to the Small Business Trends report on Friday, Shopify’s new marketplace tends to connect with businesses for selling purposes with the entrepreneur. It also comes with a feature that will let people offer Gift A Business to aspiring business persons.

Gift A Business is for encouraging people to make a purchase of the established eCommerce shop for gifting to small business-minded people. Shopify runs an exchange marketplace portal as a digital bazaar, connecting business sellers with aspiring entrepreneurs.

The Gift A Business will start on Monday, Nov 16, and is going to be available across the holiday seasons. Businesses at the exchange can even start at a low rate of $50.

On this matter, Nicole Martins Ferreira, the Marketing Manager of the Exchange Marketplace, said, “Every person who’s always dreamed of starting a business needed their first push. Maybe it’s a friend who believes in them or a parent who supports their dream.”

“We’re launching Gift A Business to encourage friends and family of potential entrepreneurs to support a person’s desire to pursue something bigger than themselves,” she added.

Shopify’s Exchange Market made its first launch in 2017 and has an inventory above 10000 Shopify stores with a range of domains like health, beauty, fashion, home, etc.

Whoever receives a shop through this Gift A Business program will be provided with a complimentary starter pack along with a business certificate and required tools.

Many current businesses come with a sale that includes a German cosmetic shop with the asking price worth $500 and reported with the $700/month of profit range on the sales volume of $2400/month.

Shopify’s recent partnership with Affirm is to offer the customers a Buy Now Pay Later (BNPL) choice. Shopify’s products for BNPL, Shop Pay Installment, aspire to capitalize on the increasing popularity of the installment credits that have achieved more tractions for the pandemic situation.

D2C or Direct-to-customer is another popular trend ongoing during this digital shopping shifting period in this situation. With the starting of the pandemic situation in March, the need for the channels to purchase the consumer packaged reached around 50.1%.

Carlyle made an investment of $250 million in Pharmapacks, the U.S. eCommerce firm

Carlyle made an investment of $250 million in Pharmapacks, the U.S. based eCommerce firm

Carlyle has invested around $250 million in the U.S. eCommerce firm to get more advanced profit along with to assure a better supply of products to the consumers in this COVID-affected situation.

Reuters, the private equity firm of Carlyle Group Inc, declared on Thursday that they had made an investment of more than $250 million in Pharmapacks. Pharmapacks is a U.S. eCommerce firm who center their business around personal care, health, and other beauty products.

This investment of Carlyle with the value of $1.1 billion for the Pharmapacks, during this COVID-19 affected situation, has made more consumers lean on online shopping.

Began as a brick-and-mortar company for the pharmacy shop in 2010, Pharmapacks has developed more like an online retailer for health and personal care products leaders like L’Oreal SA and Reckitt Benckiser Group, Bayer AG (DE: BAYGN).

Hauppauge, a New York-based Pharmapacks, has made near about $250 million in sales in the last year. They basically dealt with products through the large e-commerce marketplaces, which also includes Amazon, Google, Facebook, eBay, Target, and Walmart.

Pharmapacks are willing to use this investment for opening a new supply chain hub on the West Coast of the U.S. This is very likely going to expand the technologies and capabilities for more product categories, like food and pets, as the Chief Executive Andre Vagenas announced in his recent interviews.

This investment by the Pharmapacks was made out by the Carlyle Partners VII, which is worth $18.5 billion of buying our fund for the firm. This is to be used for acquiring a $175 million stake in the digital healthcare firm for Ground Round Inc.

The authorities are optimistic about this investment as they are thinking of reaching a better growth rate with this investment in e-commerce marketing. Also, this will invite better possibilities in the future as the better leveraging for the e-commerce firm to help it stay ahead of the competition in a more strategically efficient way.

US parcel delivery firms are prepping up for the upcoming record eCommerce peak season

US parcel delivery firms are prepping up for the upcoming record eCommerce peak season

The US eCommerce logistic providers are preparing for what is going to be the next expected strongest peak season, as online purchasing has made an entry into the mainstream. Shippers are thinking of organizing their capacity to guarantee the parcel delivery for the coming Christmas.

As per the views of Craig Morris, the Chief information officer at the DHL eCommerce Solutions America, this division has experienced a 50% year-on-year growth in volume. And he is expecting this growth is going to get increased further.

He further said, “We expect to surge over 50% more during the busiest peak week.” “We have a very busy peak season ahead of us.”

Mr. Craig Morris further added that this holiday shopping for the Christmas season would bring unprecedented volume as of earlier March. With the progress of the volumes’ continuous increase, the DHL has decided to suspend all the shipper customers in August. He said that they usually do it in October.

But they have done this year earlier in August to be prepared for the coming enhancement of the volume to offer convenient delivery to their trusted customers.

He also acknowledged the securing capacity of the upcoming peak is on the top list of their priorities. It gives an insight into how costly the transport for the supply of the e-commerce market has become.

He further added that customers have become more concerned now. They are concerned about the capacity of the parcel delivery and cost. That’s why they are working with the prime focus on keeping the commitments for better performance.

“We are all positioned for that. Some customers in the market might be vulnerable from a capacity perspective,” he said on this matter.

As the president of the eCommerce for the DHL Supply Chain North America, Kraig Foreman has faith in the majority of shippers and retailers’ capacity for the peak season. He also admits the threat related to it if there is any further surge that appears in demand.

According to him, all the retailers and shippers are aware of this situation at this time, as they did a good business during summer and autumn based on the forecast.  That’s why many retailers have achieved their promotions early by encouraging the customers more.

He also believes that if everything happens as per the plans, then there are possibilities for their capacities to meet the demand, which is a great challenge for them as of now.

Verishop has added more social features to its official app

Verishop has added more social features to its official app

Verishop commerce, the social commerce platform, is doing some inclusion of new features to its app. These features will allow the other users to share their content for better interaction with other brands and shoppers.

In a press release, the company announced that it started as an e-commerce site and grew to a socially active platform with certain elements. The platform allows its users to upload photos and videos, follow brands and other users, tag products, etc., just like a social media platform. Verishop’s view on this inclusion of apps is proof that they believe in the power of social elements that are required for a successful e-commerce platform.

Verishop said in its latest release that- “Based on what we’ve seen from others who have tried to combine social and shopping, we thought we needed to nail an amazing commerce experience first before layering on the social elements.”

Users can also create their “collections” where they will be able to add their favorite products either in private or on the public boards. Verishop also allows its users to have a profile where others can see their contents, collection of brands, and followers.

In the latest release, Verishop has said that they believe in people’s ability to act as an everyday stylist, and browsing photos and videos online in the form of window shopping is going to help people more.

There are almost 1000 direct-to-consumer digital brands added to the app, with the Verishop’s verification.

The pandemic affected situation has shifted the consumers’ interest to more on digital shopping. And it is acting as the fuel to the growing interest of blending social media and the e-commerce platform. The Instagram community has a large influence on this progress with an effective social media presence.

Also, Facebook has launched the Instagram shop in the U.S. in July. Additionally, they are planning to taste the shopping with the reel feature later this year, according to the reports.

The Verishop differs from the other platforms in this place. As people visit Verishop to do shopping, while they get access to social activities, on the other hand, social sites use shopping as an additional offer.

Nestle has acquired the deal for buying the US eCommerce meals firm Freshly

Nestle

Nestle just acquired Freshly, the eCommerce meal delivery firm of the USA, where the Swiss Giant made their investment in 2017. The hold of 16% stake for three years, the worlds’ largest food maker, has finally made up their mind to snap up the remainder of Freshly, to evaluate the NewYork based company at the US $ 950 m.

On 30th October, Nestle said about this deal- ” potential earn-outs” worth $550 m, which is based on the “successful growth of the business”. This direct-to-consumer subscription firm has delivered meals directly to the customers since 2015, post it set up.

On this matter, the chairman and the CEO of Nestle’s US division Steven Presley has said the “Consumers are embracing eCommerce and eating at home like never before. It’s an evaluation brought on by the pandemic but taking hold for the long term.”

Nestle, the home of the US brands like Stouffer’s meals, said that Freshly has grown every year since it started the business. Freshly ships more than one million meals every week to the customers in 48 states of the US. Nestle further added that the forecasted sales of the Freshly in 2020 could reach $430m.

Earlier this month, Freshly announced its plans to start a new manufacturing facility in California. The company has taken this decision to meet the growing demands. Moreover, the factory is going to start operations in December, which will boost the production capacity by 20%. They also operate their facilities in Arizona, Maryland, and New Jersey.

On this matter, the co-founder and the CEO of the Freshly Michale Wystrach said the driving forces of the future food are convenience and nutrition, and Freshly being successful and art of the world’s largest food company are the evidence. He has further expressed his optimistic view as with Nestle; they will be able to reach every household of America with their better access to resources, research, and growth.

Lightspeed to acquire the Shopeep for accelerating the Digital Transformation of the SMB’s across the U.S.

Digital Transformation

Lightspeed POS Inc., the leading provider of cloud-based omnichannel commerce platforms, announced that they have entered into the definitive agreement to acquire ShopKeep Inc. ShopKeep. Inc is a NewYork based leading cloud commerce platform provider. This acquisition makes Lightspeed’s status much stronger as the category leader for the complex retailers and restaurateurs. They are looking for the modernization of the operations due to the unbelievable acceleration of digital transformation for platforms.

The ongoing situation due to the COVID 19 is making the independent businesses to change their legacy point of sale system to understand the changing behavior of the consumers. Lightspeed and ShopKeep have achieved a scale that presents the retailer and the restaurant business owners of the United States who have enhanced their resources to lead their operations in the market.

This acquiring program between Lightspeed and ShopKeep will help ShopKeep’s customers to grow their capabilities using Lightspeed’s loyalty, analytics, and eCommerce. Moreover, Lightspeed’s payment modules, along with the multi-location solution, will also help ShopKeep’s opportunity to enhance its chances.

This acquisition has expanded Lightspeed’s U.S. market share, along with enhances an investment in marketing, sales, and research development to capitalize on the increasing demand for cloud-based omnichannel solutions. The closing of the acquisition will help Lightspeed to serve more ht 100000 customers and locations on the worldwide platform. And this will generate an approx of USD 33 billion of GTV.

As per the Founder and CEO of Lightspeed, Dax Dasilva, ShopKeep’s goal is to help the independent businesses to dream big with enhanced opportunities through the economic challenges and with their power.

The CEO of ShopKeep, Michael DeSimone, expressed his optimistic view about this unity to create more industry-leading commerce for small and medium-sized businesses. He further said that this partnership for digital transformation would help the business owners navigate through the challenging times to keep up with the changing demand of the customers.

Interview w/ Diony McPherson, Co-Founder of Paperform

Team eCommerce Next interviewed Ms.Diony McPherson, co-founder of Paperform to get more insights on its operations and COVID impact. Following is our interview with her:

Tell us about the genesis of Paperform.

We launched Paperform in 2016 because there was a glaring gap in the market for forms that are powerful, can take payments, and represent the owner’s brand. Our family and friends came to Dean frequently to have forms built, and they were missing these capabilities, so the problem we were solving was clear from the start. We launched with an MVP late 2016 and got a high quality but simple core product into users’ hands as soon as we had a chance. From there we’ve worked closely with our customers to build out the product into something that is much more powerful but retains the clean, easy-use feel that we started out with.

We have customers from a wide range of industries, many of whom need to sell products or services. We enable them to let their brand shine through on their forms so they can engage their customers and sales live, on the spot. Our Calculation, Pricing, and Appointment fields mean you can calculate how many hours or how much of something you’ll need to get the job done, instantly generate a total price based on the selection, and immediately take payment. We also allow for Products with rich images and stock management on the form. We’ve now facilitated over $30M USD worth of sales for our customers, and we’re proud of it.

What makes Paperform different from other No-Code and form-building platforms?

Paperform is first and foremost a form builder, so we stand apart from other popular no-code platforms that are aiming at different problems like Notion, Airtable, or Bubble. But we are also more than a form builder – we allow customers to create landing pages that include rich content and capture rich data. If you need to blazon large stunning images on your form, you can. If you need to add a video, no problem. If you need to write a pitch or narrative, that’s fine too.

No-Code platforms are software that’s designed to make it possible for non-technical people to build their own technical solutions with no or very minimal code. We view ourselves as a no-code platform because we have gone the extra step to give our users as much control as possible to be able to build a wide range of solutions with our software. So while the primary use case of Paperform is to make forms, we see a wide variety in the kinds of forms that are made and other clever solutions created using Paperform.

How has COVID-19 affected Paperform and its clients?

For Paperform, we’ve seen accelerated growth because everyone is moving their operations online – sometimes up to 3 X more than we had anticipated. We’ve always been an excellent tool not just for newer tech-savvy companies, but also for some of the more traditional industries such as restaurants, photography, fitness, etc. We do a great job of facilitating businesses in moving their operations into the digital realm. As a result, we’ve seen even more traditional industries start using the product.

Most of our customers have done really well despite the global recession. However, we have seen a number of customers from industries like hospitality and travel suffer. They’ve had to essentially pause their operations for anywhere from 3 to 9 months. It’s been heartbreaking to watch. However, there is a lot of resilience in the face of all this; we’ve also seen a lot of these customers pivot their business to be primarily online in creative and clever ways!

What Paperform offerings have helped your clients quickly adjust to the new reality of the pandemic?

The beauty in Paperform is not just in the many powerful features we provide, but also in the way these can be used together to solve an infinite number of problems. This has helped because businesses can quickly translate their physical operations into an online flow that achieves the same result with ease and without physical contact.

In particular, our payment features are extremely versatile. We don’t just support taking simple payments, we also support recurring payments (including subscriptions), donations, product sales, quotes, and custom pricing rules. These can be used with Appointments (connect your calendar and book in time!), and Calculations which are basically Excel-style functions that can do crazy powerful stuff with payments.

One fantastic use-case I recently encountered was a New York-based butcher selling his entire offering using a Paperform form, complete with product images, with the optional charge of butchering certain cuts, and then booking a delivery date before taking payment. He then auto-sent a confirmation email upon submission, including a receipt and order summary. That’s what we do – we facilitate entire business flows online that simplify trade.

Tell us about your COVID-19 financial relief program.

We struggled watching some of our customers take a severe hit when COVID first shut everything down, and we knew we had to do something to help out. We started a COVID-19 Relief program which provides 3 months free use of Paperform to those who apply for assistance and are from heavily impacted industries.

We’re still a small company, so we can’t help everyone, but we’ll do our darndest to assist those who need it most. It’s important for us to give back, and also as a Team to be reminded that increased growth and sales are a privilege that our industry has benefited from. We want to remain grateful for what we have, and we do that by helping others. We’ve been blown away by people’s resilience, and their sheer will in pushing through this time.

How does Paperform help its clients both large and small pivot to online sales?

In the past, most traditional businesses literally built their brand with physical stores or offices – visitors would see your offering and brand through window displays or neon signs before stepping in, engaging, and offering up their information or making a purchase. As more businesses move their presence online, that process is switched on its head. There’s no guarantee someone will land on your website homepage and fully engage with your brand before they encounter your form.

This means that forms can’t be purely administrational – they must be placed within a context; and not just the immediate context of the form’s purpose, but also a brand’s general context. If you want people to trust you enough to engage, to give up information, to believe in the quality of your product and buy it, you have to let your brand shine through. When you create forms that are part of your wider narrative and that are compelling, you’ll see results. That’s our mission at Paperform, to democratize digital creation, and to help businesses of any size pivot to online sales.

What guidance does Paperform provide its clients when using its product?

We’re a product-led, bootstrapped company. We wouldn’t be where we are today unless we prioritised high-quality support alongside our product, so we offer live support for most of the day and an extremely fast response when we’re not live. Our support team is trained to be concierges of sorts that will make an effort to understand your use-case and advise on the best solution you can create using Paperform.

We’ve also just launched a new help centre which is extremely helpful and provides resources such as templates, complete apps for key industry use-cases (these are entire flows of actions: forms, suggested integrations, payment advice, etc.), tutorial videos, and more.

What was behind the decision to bootstrap vs seeking outside funding?

For us, a key validation that the business was succeeding was the ability to be financially self-sufficient. We fronted a small amount of cash ourselves (approx $5K), and then we worked hard to generate revenue and then progressively built a budget as we grew. A sustainable business is very important to us, it’s a measure of success.

I was adamant from day one that we weren’t going to delude ourselves into thinking that everything was going well simply because we raised. When starting a business like ours (almost zero overheads to start), raised capital only validates that your idea is a good one in theory with no guarantee that you’ll see a return; cash from customers validates not only that your product is solving a real problem, but more importantly, forces you to get into the rhythm of running a business very early on. Having revenue from when we launched means we have insights into trends from day dot. That’s invaluable.

We also didn’t want the weight of numerous stakeholders on our decision making. Once you raise, you feel the pressure of making someone else happy. They could be incredibly overbearing or super low-maintenance, but either way, it’s an ever-present consideration in decision making. We wanted to back ourselves in vision, and we felt we needed to bootstrap to do that. Now that we are established, it’s something that we might consider, but we have no current plans to raise. We’d need a clear idea of how to spend it and build sustainability into long-term growth.

About Diony

Husband-and-wife duo Dean & Diony McPherson launched the first version of the Paperform product in December 2016. At the time, they were thinking of starting a family and wanted it all: A satisfying career while working from home, to be able to see their kids more than a few hours a day, and to afford a place to live in Sydney. While Paperform was meant to remain a humble lifestyle business, three years, two babies, and eight hires later, Paperform is growing from strength to strength.

About Paperform

Paperform is a creation tool that allows anyone to create branded online forms, landing pages, applications, registrations, e-commerce stores and more. It is used by over 6000 businesses worldwide, including Zapier, The World Bank, AppSumo & WooRank.

ChannelAdvisor beats the expectation of Wall Street with the growth in eCommerce due to pandemic

Wall Street

ChannelAdvisor has continued with its growth of the e-commerce service business as due to the Global Pandemic, customers tend to become more dependent upon e-commerce shopping.

The ChannelAdvisor Corp. (ECOM) reported their third quartered of profit worth $3.7 million, this Thursday. The company said that they had their net income of 12 cents/ share this year. Along with the earnings which were adjusted due to the stock option expense and the cost of merging and acquisitions, has becomes 20 cents/ share.

The results have exceeded the expectations of Wall Street. The three analysts of the Zacks Investment Research made their average estimation, was the earnings for the 18 cents/ share. David Spitz, the CEO expressed his joy regarding this success of his company.

In his statement Spitz said, “We delivered strong financial results again in the third quarter, with revenue and adjusted EBITDA [Earnings Before Interest, Taxes, Depreciation, and Amortization] that both exceeded our guidance for the quarter.”

On this matter, he further said that their strong performance in sales excites him with the performance. This outstanding growth in its revenue retention has helped their company to accelerate more revenue this year. This strategic shift of the company towards the brand has helped it to make a 29% growth this quarter year. And the solid overall performance in the quarter has continued to make a strong and significant performance this year.

ChannelAdvisor has posted its revenue of $35.3 million this year, which is also exceeding the expectations of Wall Street. The forecast made on this was $ 34.7 million this year, by the three analysts of Zacks.

ChannelAdvisor is expecting their further revenue to reach $37.3- $38.3 million in the current quarter ending of December. The shares have increased more than double since the beginning of this financial year. The stock increase for ChannelAdvisor was almost 91% in the last 12 months.

Bookshop.org don’t want to go with Amazon

Amazon

Bookshop.org has appeared as a new initiative that aims to support the local and independent booksellers. With its successful launch in the US, early this year, Bookshop.org has also made its launch now in the United Kingdom. The founder of Bookshop.org Andy Hunter is a writer himself. In this ongoing tend where Amazon is working as a giant seller and grabbing all the market share, Andy wanted to help the local booksellers to survive. The website made its first appearance in the US in January of this year.

In the first weeks of its launch, Bookshop.org’s goal was to improve, refine, and make some small yet significant changes to the e-commerce website in the first 6 months. Also, in The Guardian Andy has expressed how Cvid19 affected their plan for this.

With its launch of the online platform in the United Kingdom, Bookshop.org went live with its partnership with 130 local and independent bookstores. Bookshop.org helps these bookstores to have their shopfront for the virtual world Bookshop.org. Along with this alliance, the store owners will get the full profit margin, which is given from 30% of the cover price of every sale. As Andy said: “Stores get the full profit margin from each sale.”

Bookshop.org and their distributor partners are handling all the customer service and shipping across the US and the United Kingdom.

Moreover, the Bookshop has made its profit in the US with their selling of books 50000 dollars in February. The growth of this sale was evident, as they sold the same amount of books a day in March, which was followed by 150000/ day in April. The Bookshop has made their highest margin with the sale of 1 million dollars in a day in June.

The Bookshop.org is now in the process of applying for the B Corporation Certification in the United Kingdom. The rule which is set by Andy for his Bookshop is, it will never be sold itself to a major US-based retailer like Amazon- “Bookshop can never be sold to Amazon.”

US B2B marketplaces are becoming the next billionaire eCommerce startups

B2B eCommerce

Startups of B2B marketplaces in the USA, like Faire and Mirakl, have become the limelight of gossip in 2020. Overnight, these startups have transformed into consequential platforms by incoming billions of dollars. These B2B eCommerce industries have a complete package of commerce infrastructure, payment systems, and supply-chain solutions. But this B2B eCommerce is outsized only in one sector, i.e., Marketplaces.

B2B startups consist of better infrastructure, payments, and security. So, they are hugely in demand regarding the business of buyers and sellers. Even the pandemic situation going on now also ignited the popularity of them. Reports say that before the pandemic, B2B companies were expected to produce $3.6 trillion in sales by 2024. Payments research firm iBe TSD estimated that they could generate $680 billion in 2018.

The B2B marketplaces are already ahead of B2C marketplaces with respect to growth. And when the COVID stops hit, many companies began to open their online stores. Digital Commerce 360 conducted a survey of business buyers. The main surveyor said, “20% of purchasing managers spend more on marketplaces, and 22% spend significantly more during the pandemic.” Many B2B entrepreneurs gained a lot due to the pandemic.

But B2B marketplaces cannot be fixed to simple transaction platforms. But the businesses which will make a permanent transference to online purchasing are yet to convince that. The businesses which are innovating now to introduce adjacent services will become billion-dollar companies in a few years. A venture capital investor in B2B eCommerce companies said, “I’m carefully watching the industry and have seen several future-thinking business models emerge for B2B marketplaces.”

The prevailing revenue model of the B2C marketplace, Gross Merchandise Value (GMV), takes the rate or percentage of each transaction. But it does not affect well in the B2B industry. Well, in the meantime, B2B startups are producing new and creative ways to monetize their networks. They also assured that their approach would be confined to the world of B2B eCommerce.

JetSense.ai has launched TextChat, the only eCommerce sales tool to turn live chats into texts

tool

JetSense.ai, the live chat, and AI-driven chatbots leader, announced the advent of the TextChat, the new sales enabling tool for the Shopify merchants, for receiving the live chat for their store through text messaging. This thought of TextChat to ensure that the merchants never fail to meet any opportunity of sale due to the lack of communication through live chat will lead to a high conversion rate.

71% of consumers have disagreed to deal with a brand that does not have human customer service representatives to solve their queries. The Merchants connected with the TextChat can easily get closed with the customers with the use of real-time live chat responses for a better experience.

On this matter, Adam Tessier, the owner of the jewelry boutique Taylor & Tessier, said- “TextChat is exactly what our small business needed,”

His speech expresses his concern as a struggle against the big giant eCommerce businesses, as a small businessman. He also said that relying upon so many live-chat platforms, failed to give him the expected result, and also those are expensive and hard enough to accelerate. According to him, getting the live chats into the text message format has worked as a life-changer for his business. It has given him the ease of converting sales from any place anywhere now. ” We close sales on at least 50% of our conversations that come through TextChat.”- is evidence of his satisfaction with the TextChat, eCommerce sales tool.

“At JetSense.ai, we understand the value of time to small business owners and their customers,” Eric Kades, the CEO and founder, said.

He further expressed his concern for the small business persons who face a lot of frustration. On an optimistic side, TextChat will help those with easy notifications on the desktop to enhance their sales to make life easier. He also said that the clients who have used TextChat, the eCommerce sales tool, have witnessed a jump in their profit and sales.

Max Weiner, owner of Max Weiner Jewelers rather expressed his doubt about investing in the pandemic at the beginning. But using TextChat has made him believe in its performance, which made him express his wish to become an investor in the company.

The eCommerce dramatically accelerated up to 5+years due to coronavirus: Gass, Kohl’s CEO

coronavirus

Anthony Fauci, one of the top U.S. infectious disease experts, warned last week that the coronavirus situation could worsen more in the winter months. This is enough to dampen the spirits of Americans, who are already suffering in the quarantine while promising a rise in e-commerce.

In a recent interview Michelle Gass, the CEO of Kohl (KSS), told Yahoo Finance on this matter of the coronavirus outbreak that it has “dramatically accelerated” online shopping. It has shifted the behavior of the customer, for 5 or more years earlier than expected.

But the department head of the store giant emphasized the “confidence” that the brick-and-mortar stores will always play a role in retail, which is citing the heightened demand of the online stores from the customers who live near the physical store.

Kohl, with its temporary closing of nearly 1200 stores nationwide at the beginning of this fiscal year due to the coronavirus outbreak, has faced a 33% loss in their sales. However, it witnessed an increase in digital sales by 58% of a spike in the second quarter, which is almost the same as compared to the last year.

“An important factor that I think isn’t spoken enough about is that where we have a store, our digital sales around the store increase,” Gass says. He also stated, “I have complete confidence and conviction that even in this digital acceleration, there’s going to be a role for stores.”

Consumer spending by the U.S has risen by 1.4% in September, which is a more modest jump if compared to last year’s increases. Kohl is expecting to release its quarterly earnings later this month.

Due to the coronavirus outbreak, the e-commerce rise has impacted a toll on the major departmental store brands, causing bankruptcy. Also, it has raised the increase of sales for big-box retailers like Walmart, TGT, with significant growth in their business.

Gass, on their further talk with Yahoo Finance editor-in-chief Andy Serwer said that the stock of the company has dropped by 59% this year. But it has witnessed a rise of 7% in October, along with Kohl’s announcement of their shift towards activewear from fashion.

Sealed Air transforms to serve the eCommerce

transforms

Ecommerce is becoming a blooming marketing trend. Logistics companies and Packaging companies are experiencing a boost in their business, along with retailers like Amazon, Walmart, etc. Sealed Air is a packaging company in the USA. It transforms into a better version of its kind to serve the growing eCommerce and cope with it. Sealed Air has also seen its business increase from 13% in the 1st quarter to 14% in the 3rd quarter.

Sealed Air CEO Edward Doheny said, “We continue to shift our portfolio to address the ever-changing needs of the eCommerce channel, which will be a key element of our protective growth strategy.” Executives of retailers confirmed that the growth in eCommerce and their business is majorly credited to packaging and shipping companies. Its incomes and urge to shift to eCommerce highlight many partners that will get a package from seller to buyer as digital sales are growing.

The company’s spokesperson said that eCommerce customers are interested in the company’s mailers and automated solutions for mailer packing. The fact is that companies are not just packing products. To increase their businesses, they create better visibility of the packages. Avery Dennison CEO Mitch Butier said, “Similar to apparel, the migration to eCommerce for food delivery is strengthening the use for RFID in this market.”

With the heightened focus on eCommerce, Sealed Air is confirming sticky eCommerce sales in the expected future. International Paper Company CEO Mark Sutton said that the eCommerce channel had been an order of magnitude different than it had been. Reports reveal that trend toward eCommerce transforms across Sealed Air’s verticals. Based on this fact, many other packaging companies are targeting eCommerce as one of their growth areas.

Smurfit Kappa Group CEO Anthony Smurfit referred to eCommerce as a ‘mega trend’. On the company’s earnings call, Smurfit commented, “eBay needed rapidly 5 million boxes in the UK within 10 days to meet their surge in demand.”

Epos Now goes for an alliance with BigCommerce for a fruitful partnership

partnership

The global software and the payment technology company Epos Now is now supporting more than 30000 retails along with hospitality locations. It’s the launch of the major partnership with Bigcommerce, the US e-commerce giant, which is the hot talk of the town.

The partnership ties up the world’s most leading e-commerce platform with one of the leading cloud POS system service providers in the world. This is more advantageous for the customers of the Epos Now retail, along with its global surge in demand for online sales. This will also help in diversifying the sales channels of the customers at crucial times.

This will open new possibilities for the brick and mortar stores with new opportunities to compete with the other leading online providers at this hard time due to the Pandemic situation. As a part of this alliance, the customers of Epos Now are going to receive the free BigCommerce for the first three months, at the end of this year.

This unique step by Epos Now is important for the proper optimization of the playing field among the leading multinational giants and independent retailers. With this partnership the BigCommerce, Epos Now has the power now to make its customers able to develop the propositions with the omnichannel retail, in the field of eCommerce and in the pickup program along with the click and collect.

It has also enabled the customers to have a more centralized operation, along with organized sales, customers, inventory management with proper staff employment. The partnership will also enable the Bigcommerce customers with a  premium quality POs retail provider, which will help them to grow their community and customers.

On this matter, the Chief Growth Officer of the Epos Now, Barbara Staruk, said:

“Consumer habits are shifting on an unprecedented scale. Our customers must move to capitalize on the growing demand for online retail. Through this partnership, online retail is made simple, ensuring our valued customers can remain truly competitive in the changing landscape. The real beauty of this partnership is that our customers will now be able to leverage the power of cloud technology to drive both the online and offline elements of their business.”