With global e-commerce revenue of $ 5.5 billion this year, e-commerce startups are starting to create a loophole in this huge market.
One of them is Because, a startup developing software without code combining various data sources in order to automate large volumes of website updates.
Founder and CEO Ashland Stansbury explained that e-commerce companies spend $ 1.3 trillion collectively to increase traffic to their websites, but only 3% of that leads to customer purchases. In addition, the average business owner at Shopify manages a large product catalog, often with more than 50 products.
Usually, the content is updated so that the manager has to go to each website and change anything manually, which often leads to misinformation and errors.
Instead, Tampa-based Why, launched in November 2020, launches “Canva” customization options, where e-commerce managers can design and publish reports such as delivery and availability, promotions, and shipping costs. , aimed at increasing conversion rates.
“We estimate that using the program will save us tens to hundreds of hours a month,” Stansbury told TechCrunch. “It also saves developers hours.”
Although some companies use the phrase “no code,” they still require some coding capabilities, but Stansbury says that because they didn’t. There is a campaign dashboard with different types of content and templates to draw from, very similar to Canva, and the manager can automatically fit into the brand and colors of the store and then change the font, text or colors and drag to see how it would look live.
Because the “sweet spot”, so to speak, is the engine of inventory rules. Instead of having to browse product by product, the engine only displays products with a large amount of inventory or only a few remaining.
Within the e-commerce industry, the e-commerce software and platform market is expected to reach nearly $ 4 billion by 2022 and triple by 2032. Companies such as Melonn, CommerceIQ, CJ Dropshipping, Gelato and Moonshot Brands also operate in this area.
Because it raised $ 650,000 in angelic investments last year, the company has grown to more than 900 merchants and 150 paying customers.
Now armed with a new capital infusion, initially around $ 3 million, as it plans to grow its product and team; build integration with other c-commerce platforms such as Klaviyo, Smile.io and ShipBob; and use artificial intelligence to predict the exact messages that web users need to make a purchase, and to compare their results with other stores in similar industries and geographies.
Harlem Capital led the round and this is the third investment from them that we reported in a month that includes Drip and Glow Labs. Studio VC, North Coast Ventures, Gaingels and angel investors, including some former Shopify managers, are joining Harlem in the investment.
Meanwhile, Stansbury says that because it can cause an average 38% increase in the purchase rate, usually during the first 90 days of integration. Its address market is already quite large – it is currently on Shopify, where there are more than 700,000 merchants with 50 or more products that can be managed, she added.
“Growth has hit a real hockey stick and I’ve been a team of me and two engineers over the last year,” she added. “We will now invest in sales and marketing and add a product manager and a sales manager to the management team.”