What do some of the largest eCommerce brands and online retailers have in common? They’ve all been backed by venture capitalists. Recently, more and more VCs have been investing in eCommerce, putting their dollars behind retailers who offer a variety of products to global markets.
Investing in eCommerce might seem like a departure from more traditional investments, like technology startups. But the eCommerce industry is booming. As small, private retailers grow, so do their sales numbers. Eventually, these private companies move to become publicly traded or are acquired by larger companies, making your investment worthwhile in the long run.
Venture capital firms invested over $1 billion dollars in the retail and distribution sector last year. That’s five times greater than investments made in 2013*. Small to mid-size eCommerce brands are constantly looking for VC-backed funding to get their businesses off the ground. If you’re on the fence about investing in eCommerce, here are a few things to reconsider:
At Dotcom Distribution, we believe that VCs and eCommerce brands have strong, mutual interests. We also believe that eCommerce brands should be ready for growth when VCs step in to provide funding. That’s why we have dedicated ourselves to helping online retailers strategically manage fulfillment and logistics strategies.
When you choose a Dotcom Distribution client, you know you’re investing in an eCommerce brand that has the tools and procedures in place to succeed.
Still have questions about investing in eCommerce? Contact Dotcom Distribution today to learn more.
*David Pierson, “Why Silicon Valley venture capital firms are funding online retailers like Dollar Shave Club.” Los Angeles Times, 2016