Merchandising brings trade networks up to 50% of their profits. In online trade, merchandising is possible only for large stores with revenue of $30M a year. With less revenue, the product manufacturer will bear disproportionately high costs for negotiating and agreeing to a program promoting its product on the pages of the online store.
Our client managed to solve this problem by aggregating to a large number of medium and small online stores, thanks to the free provision of a personalized customer SAAS-service that increases the conversion from traffic to the store for purchase.
In exchange of the free provision of the personalization service, the company has the right to target the offers in the personalized units, placing them at the higher positions paid by the advertiser. This generates an additional sales volume for the manufacturer without reducing the sales volume of the online store.
By ranking the ads for the right product on the sites of many online stores, the company provides significant sales growth for the manufacturer.
Business: More than 1,300 connected online stores and over 40 million ad unit impressions per month.
Deal: $1M cash-in for growth in Russia, improvement of the product and testing of access to foreign markets.
Deal Industry: Internet
Deal Type: Venture investment