Government Increases B2B Marketplace Spending, Amazon Sellers Hit $160B and Edgewell’s $1.37B Acquisition
Government Increases B2B Marketplace Spending
The federal government has increased online spending in the last four years with sales doubling. The amount of goods and services the government purchases through online portals is small in comparison to the grand total the government spends monthly. In fiscal 2018, about $250 million worth GSA Smart Pay transactions occurred through ecommerce portals, compared to $135 million in 2014. The General Services Administration is looking at ecommerce and online portals as an alternative to older procurement programs, in turn making it easier for companies to do business with the government. “Analysis of the government purchase card program found a significant and growing portion of federal spending is taking place via commercial ecommerce portals,” a GSA spokesman says.
What stood out to us? If only Uncle Sam were this savvy with Facebook and elections.
Amazon Marketplace Sellers Reach $160 Billion
Amazon marketplace sellers generated 5.8% of sales on Amazon and its stores and U.S. Amazon sellers generated an average of $90,000 in sales in 2018. The ecommerce giant sold $160 million worth of goods in 2018, approximately 58% of global sales on Amazon.com, up 30% from 10 years ago. More than 25,000 global merchants generated over $1 million in sales on Amazon, over 50,000 global merchants generated over $500,000 in sales and nearly 200,000 global merchants had over $100,000 in sales. “With its infinite digital shelf space, marketing capabilities, FBA program and customer service support, Amazon provides the opportunity for small- and medium-sized businesses to reach a massive audience while having the ability to distribute products to customers all over the world,” says Drew Kraemer, CEO of Consultancy Marketplace Strategy.
What stood out to us? Will Amazon eventually source and sell these products under the Amazon brand?
Edgewell To Acquire Harry’s for $1.37 Billion
Edgewell Personal Care Company, parent company to razor-giant Schick, announced it will acquire razor startup Harry’s Inc. for $1.37 billion. The move will provide Edgewell access to Harry’s ecommerce intelligence and a more diverse group of consumers, while Harry’s will gain access to Edgewell’s research and development, global scale and supply chain. The acquisition is slated to close by the end of Q1 in 2022. “Building on Edgewell’s and Harry’s complementary strengths, our combined company will have leading brands and omnichannel capabilities that are essential to meet the needs of the modern consumer and win in today’s market environment,” says Edgewell CEO Rod Little.
What stood out to us? That is one expensive shave.
In the headlines
- Print it: The 80 person startup Printify raises $3M to expand marketplace for custom printing.
- Be happy: Return management vendor Happy Returns raised $11 million to expand return locations.
- Just do it: Nike rolls out a mobile app to scan customers’ feet and give them their perfect shoe fit.
- Chat me: Chatbots are forecasted to drive $112B in retail sales by 2023.
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