Amazon eye new markets with Veeqo purchase
Amazon has bought UK-based company Veeqo, which helps Seller manage their online businesses on several platforms.
The deal actually took place last November, but went under the radar until this month, when it was first confirmed by investors Octopus and then by Amazon itself.
A spokeswoman said: “We’re excited Veeqo has joined Amazon. We plan to continue investing in new features and improvements to help Veeqo serve sellers globally from its home in Wales, facilitate growth for sellers’ multichannel businesses and enhance the experience of their customers.”
Veeqo added: “We look forward to discovering all the ways we can work with Amazon to build on our existing tools, develop new services and, ultimately, serve you better.”
So what does Veeqo do and what does the purchase mean for Amazon’s future plans? Thompson and Holt managing partner Craig Gedey, who has vast experience on Amazon, looks at the agreement.
Gedey said: “This isn’t a new move by Amazon, they have long shown an in interest in expanding its already vast share of the e-commerce market by claiming a share of sales on the likes of Shopify, Easy, eBay and Walmart. For a number of years, Amazon has offered a program called Multi-Channel Fulfilment, which allows sellers to store and ship products using Amazon’s services regardless of whether they’re selling on the home site.
“Veeqo is a company that make tools to help online businesses both on and off Amazon. It was formed in 2013 by chief executive Matt Warren, it has between 60 and 70 employees with its revenues estimated to be ‘in the mid single digit millions’ by industry insiders.
“That might seem almost like a drop in the ocean for a company of Amazon’s size, but there will be sound reasons behind the move.By purchasing Veeqo, Amazon could potentially integrate more robust tools for sellers into that Multi-Channel Fulfilment program, which could then lure them away from other providers.
“Shopify, UPS and FedEx have all launched their own fulfilment programmes that saw Amazon respond by cutting their rates. It has become a marketplace in itself.
“It will certainly be interest to monitor in coming months and see how the partnership between Amazon and Veeqo works in practise.”
If you have found yourself suspended while selling on Amazon, contact Thompson and Holt for a free LiveChat to get your Seller business back online as quickly as possible.