Investments in China and new software added to its platform, such as integrations with Amazon Marketing Services and eBay's Guaranteed Delivery, are giving the company a boost.

Revenue for e-commerce vendor ChannelAdvisor Corp. increased 7.5% to $30.1 million in the third quarter ended Sept. 30, up from $28.0 million in the same quarter a year ago.

ChannelAdvisor, which offers a number of retail services including helping retailers sell on online marketplaces, works with more than 200 retailers in the Internet Retailer Top 1000, such as Office Depot Inc. (No. 13), Lenovo Group Ltd. (No. 15) and Bedding Pros LLC (No. 433). 127 retailers in the Top 1000 use ChannelAdvisor to manage marketplace sales.

Average revenue per customer increased 8.7% to $41,748 for the 12 months ended Sept. 30, compared with $38,400 in the same period a year ago. ChannelAdvisor had 2,902 customers at the end of Q3, up from 2,880 customers at the end of 2016’s third quarter. New customers added include Radioshack, Stanley Black & Decker, Gildan and Edgewell Personal Care Oceania. These metrics do not include the approximately 50 new customers acquired with the company’s acquisition of fulfillment and logistics vendor HubLogix Commerce Corp. during the second quarter.

The company’s investments in China are paying off, CEO David Spitz said on an earnings call with investors discussing third quarter results. China represented 4% of revenue in third quarter, up from 2% in the third quarter of 2016, Spitz said on the call, according to a transcript from SeekingAlpha. The company plans to increase its investments in China in 2018 as well. One reason contributing to the company’s increased focus on China is an increasing mix of Chinese sellers on Amazon’s marketplace, which is creating pressure on domestic sellers, Spitz said. Overall international revenue grew 16% year over year to $6.9 million, Spitz said. That represents 23% of total revenue, up from 21% in the third quarter of 2016.

ChannelAdvisor’s performance on Amazon’s annual holiday Prime Day, which fell on July 11, was an improvement from last year, Spitz said. “Prime Day performance on a same-store sales basis with Amazon sellers was significantly better than what we saw last year,” Spitz said. “If that is an indicator of what’s to come in Q4 than that makes me incrementally more confident that the things that we’ve done around algorithmic repricing, a lot of the other capabilities around FBA optimization, etc. is creating an improved advantage for our sellers.”

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New software features added in the quarter include integration with Amazon Marketing Services, a new price manager and demand forecaster and support for eBay’s Guaranteed Delivery and Amazon Seller-Fulfilled Prime in the United Kingdom and Germany.

“We believe advertising on marketplaces is becoming table stakes and anticipate that renewed growth in digital marketing will ultimately be driven by Amazon Marketing Services, where we have seen strong pipeline growth,” Spitz said. “Most brands I speak to are reallocating a meaningful portion of their ad spend budgets toward Amazon and we are well positioned to help them manage this.”

For the third quarter ended Sept. 30, ChannelAdvisor Corp. also reports:

  • A net loss of $4.0 million compared with $2.6 million in Q3 2016.

For the nine months ended Sept. 30, ChannelAdvisor Corp. reports:

  • Revenue of $88.4 million, up 8.6% from $81.4 million in 2016.
  • A net loss of $16.1 million compared with $13.8 million a year ago.

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