Last July, Revolution Growth made a $40 million funding – our largest ever – in Bigcommerce. Why?For three causes:
1. Internet sales now exceed $250 billion, and growth will proceed to be very strong. Indeed, we think e-commerce to double over a better five years, to $500 billion.
2. After a period of consolidation, with the massive getting bigger, we think e-trade to start to fragment, permitting hundreds of thousands of independent retailers to create a success online agencies.3. We concluded Bigcommerce was well positioned to be the company that empowered these impartial merchants to be a hit, by offering the tools, marketing components, and community outcomes to enable these "little guys" to compete with the "big boys. "
It wasn't that in the past that e-trade was widely viewed as an idea that will never catch on. I be aware attending industry meetings in the late 1980s and early 1990s where industry "specialists" estimated e-commerce would never be a hit, in large part as a result of most people would never be comfortable coming into their bank card counsel online.Just two decades later, people not just willingly enter their billing assistance, they now ask retailers to save it so that they don't have to re-enter it later and allow those retailers to trace their purchases so that they can recommend other items that may be of interest.We've come a good distance, baby!Frankly, it is spectacular to see how simply e-trade has come of age. But the dirty little secret is this first wave of e-commerce has been dominated by a handful of giants — and, up previously, they have got crowded out lots of the unbiased merchants. Many of the "big box" bricks-and-mortar retail giants have become competitive gamers in the e-commerce space. And a few new entrants, particularly Amazon, have also emerged as major forces. But the dynamic thus far has been the large are becoming bigger while most others were marginalized.
The giants will proceed to grow and be a success, but a big trend over a better decade will be the emergence of a network of independent retailers. We've seen this happen in media, as big aggregator brands have given way to upstart independent bloggers. Now we're on the verge of seeing it happen in e-trade.There's a circulate afoot to empower small- and medium-sized agencies — a class that includes mom-and-pop stores, online-only operations, moonlighters and native retailers. They all are looking to expand their reach.Now, they can.The bar has been decreased, and now basically anyone can jump over it.
In essence, we're seeing the democratization of e-commerce.
Consumers want decisions and have niche interests. And the entrepreneurial-minded want to cater to that market.Technology has now reached some extent where it's super easy to setup a web store. Processes that used to be difficult, like transactional capabilities, order fulfillment and custom-made buyer carrier capability, all just work. Online stores that used to take months and a whole bunch of thousands of dollars to establish can be created in just hours, at a cost of as low as a dollar a day. The bar has been reduced, and now nearly anyone can hop over it. In essence, we're seeing the democratization of e-trade.
And Bigcommerce is top-rated the charge. To date, Bigcommerce has facilitated $2. 75 billion in online sales. And in the course of the five days from Thanksgiving to Cyber Monday, Bigcommerce clients saw a 200 apps (from businesses like MailChimp, HubSpot and SumAll) being optimized for the Bigcommerce platform. This robust environment permits even a corporation of one to compete with large online businesses, and to be up and running in hours, not months.We love backing companies that try to level the gambling field and alter the game. And we also love empowering entrepreneurs, to get started and to problem the incumbents.
Bigcommerce is the embodiment of that philosophy. That's why it was Revolution's biggest investment so far — and that's the reason why we're enthusiastic about its customers, not simply to be a a hit funding for us, but to empower millions of impartial merchants across the area to compete and be a success in the all of a sudden-increasing electronic world.
So fasten your seat belts, and prepare for a higher wave of e-commerce.