Another big indicator of how and why B2B marketplaces are emerging as a mainstream digital commerce channel is the number of marketplace companies going public. The latest example is GigaCloud Technology Inc., a large parcel merchandise marketplace.
GigaCloud launched its marketplace in January 2019 by focusing on the global furniture market. It has since expanded into additional categories such as home appliances and fitness equipment. GigaCloud Marketplace claims to be one of the fastest-growing large-parcel B2B marketplaces. It touts over $190.5 million, $414.2 million, and $438.1 million of gross merchandise value (GMV) in January/December 2020, January/December 2021 and the 12 months ended March 31, 2022, respectively.
The marketplace company operates warehouses in four countries across North America, Europe, and Asia. The U.S. is GigaCloud’s largest
market. It operates 21 warehouses around the world. They total over 4 million square feet of storage space and cover 11 ports of destination, with over 10,000 annual containers. GigaCloud says it utilizes artificial intelligence software to generate seller ratings and credit profiles through volume data. The artificial intelligence (AI) software optimizes routing by organizing incoming orders and rebalancing inventory levels within the warehousing network, the company says.
And the GigaCloud Marketplace software platform includes flexible trading tools. With them, sellers can set prices based on quantities, delivery dates and fulfillment methods. Buyers have the option to purchase merchandise individually or in bulk, the company says. The Hong Kong-based company plans to raise $39 million by offering 3.5 million shares at a price range of $10.25 to $12.25 on the U.S. stock market.
Sign up for a complimentary subscription to Digital Commerce 360 B2B News, published 4x/week. It covers technology and business trends in the growing B2B ecommerce industry. Contact Mark Brohan, senior vice president of B2B and Market Research, at [email protected]. Follow him on Twitter @markbrohan.
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