The future is multi-channel
In the US alone, there are ~2 million (and growing) independent ecommerce merchants, accounting for over half of all ecommerce sales.
A generation of entrepreneurs and small- and medium-sized businesses has been spawned because the likes of Amazon and Shopify have brought to market comprehensive seller tools and services that significantly reduce costs and complexities of operating a brand and retail business. In the next decade, being multi-channel will be imperative to the growth and success of merchants. However, going multi-channel both unlocks greater business opportunity and introduces significant operational complexity.
Since c.2000: Rise of the Marketplace
Amazon enabled SMB entrepreneurs to build meaningful retail businesses by providing *most* of the traditional ecommerce functions (tech, marketing, logistics, financing, etc.).
Hero solution: Amazon Seller Central (3P), FBA
Merchant challenges:
Beholden to marketplace rules and whimsies
Lack of direct access to, and ownership of, the customer
Chart: Amazon GMV, 2011-2021
Source: Statista, Morgan Stanley, Finextra
Since c. 2010: Direct-to-consumer
Ecommerce platforms like Shopify and BigCommerce, etc. empower merchants and brands to engage with customers directly, and provides the ecommerce infrastructure through an ecosystem of apps and partners.
Hero solution: Shopify + ecosystem of apps and services
Merchant challenges:
Need to stich together own solution
Beholden to Shopify partnerships
Not enough demand
Chart: Amazon + Shopify GMV, 2011-2021
Source: Statista, Morgan Stanley, Finextra
Starting c.2020: Multi-channel selling
Multi-channel selling unlocks a much larger customer base opportunity and de-risks the businesses. Selling on 3+ channels increases SMB revenue by 2x – 4x.
Hero solution: None so far
Merchant challenges:
Operational complexity
Personal capital risks
Paradox of choice
Inefficiencies and problems with point solutions operating in silos
Chart: Total ecommerce GMV, 2011-2021
Source: Statista, Morgan Stanley, Finextra
“I work 70+ hours a week.... I get hundreds of emails and calls from capital and software providers. I don’t have the time. There is a ton of great business tools; however, they can get overwhelming. One of my tenets is using a “hub” for as many tools, notifications, and apps as possible”
Propel exists to answer the real needs of merchants that operate across different channels, and to create a better way for software and service providers to deliver value.
Benefit to merchants: Bundled software and outsourced, tech enabled services from a trusted brand with a compelling customer experience
Benefit to software and service providers: A more holistic view of the customer and expanded opportunity to create and deliver more relevant and differentiated products and experiences
