Aug 1, 2011
As the economy continues its slow recovery, venture capitalists, investors, and acquisition specialists are taking a new look at ecommerce companies. According to CBInsights.com, venture money is flowing into ecommerce at the fastest clip since the turn of the century. "Ecommerce dealflow may have had its biggest year to date [in 2010], since the apex seen in 1999-2000," according to Josh Kopelman of First Round Capital. In the Huffington Post, business expert Danny Wong confirms the trend. Wong has several examples to back up the case. "Ecommerce is booming, there is no doubt about that," he writes, "and clearly investors want a piece of the action and want to support its growth."
Ecommerce merchants may want to position themselves to take advantage of the trend, and according to InternetRetailer.com, there are several techniques that web merchants can use to make themselves more attractive. "Online retailers can still pull off a good deal, if they have the right combination of ingredients buyers are looking for," says Mark Brohan, a research director. "Buyers seek companies on a fast track with an excellent growth opportunity, good cross-selling potential, and established customers. More importantly, potential buyers of an online retail organization want to know that the company has a unique value proposition that sets it apart from other competitors." The most important way to do that is to raise the company profile, making the company, "look sexy to draw attention." An online merchant also needs to get its finances in order, and make sure to put good numbers out there for the world to see, especially positive financial results such as growing sales and profits. For some etailers, the time to cash out is at hand.
Topic: Wholesale News
Related Articles: merchants ecommerce
Article ID: 1474
Entire contents ©2019, Sumner Communications, Inc. (203) 748-2050. All rights reserved. No part of this service may be reproduced in any form without the express written permission of Sumner Communications, Inc. except that an individual may download and/or forward articles via e-mail to a reasonable number of recipients for personal, non-commercial purposes.