Business couldn’t be much better for GigaCloud Technology Inc., which specializes in online B2B sales of furniture and other large-parcel products between manufacturers and retailers.

Just consider its recent third-quarter numbers for the period ended Sept. 30:

⦁ Total revenue grew 70.2% year over year to $303.3 million

⦁ Gross profit increased 58.1% to $48.9 million as net income grew 68.% to $24.2 million.

Giga Marketplace GMV surges 80.2%

And for the trailing 12 months leading up to Sept. 30, gross merchandise volume on the GigaCloud Marketplace surged 80.2% year over year to $1.23 billion.

And there’s more: Over that same 12-month period, the number of active third-party marketplace sellers increased 41.8% to 1,051, the number of active buyers 85.5% to 8,535. And though the average spend-per-buyer slipped 2.9%, it was still a hefty $144,534.

Larry Wu, chairman and CEO, GigaCloud Technology Inc.

In the 2024 Global Ecommerce Industry Awards put on by the B2B Ecommerce Association and Digital Commerce 360, GigaCloud founder, chairman and CEO Larry Wu was named B2B Ecommerce Leader of the Year and the Giga Marketplace was cited as the B2B Marketplace of the Year.

To keep the good times rolling, GigaCloud is continuing to look for ways to upgrade its ecommerce technology and expand its base of buyers and sellers.

“We are extremely proud of what we have been able to accomplish this year to date and will continue driving progress as a leader and innovator of B2B commerce — ecommerce technology solutions … allowing us to fund future profitable growth,” Wu said on the company’s Q3 earnings call, according to a Seeking Alpha transcript.

Iman Schrock, president, said GigaCloud plans to significantly increase its number of third-party marketplace sellers through geographical expansion and enhanced outreach and marketing initiatives. He said Europe has been growing as a particularly strong market, noting that Q3 revenue from Europe grew 140% year over year.

GigaCloud’s various growth strategies

To increase the number of Giga Marketplace buyers from the retail industry, Schrock said GigaCloud will use a combination of strategies, including onboarding to the marketplace more of the retailers who have signed onto Wondersign, the cloud-based interactive digital signage and e-catalog management system GigaCloud acquired for $10 million a year ago.

For long-term growth, GigaCloud chief financial officer Erica Wei said the company will focus on three buckets of potential merger-and-acquisition activity:

⦁ Product brands, such as GigaCloud’s recently acquired Noble House and Christopher Knight home furnishing brands.

⦁ Digital technology providers like Wondersign.

⦁ A Europe-based organization.

GigaCloud targets more business in Europe

In Europe, GigaCloud’s fastest-growing market, “We’re looking for a target that will help us accelerate our growth a little more in terms of infrastructure and connections locally,” Wei said.

For the nine months ended Sept. 30, GigaCloud reported:

⦁ Revenue increase 95% year over year to $253.17 million.
⦁ Gross profit rose 85.4% to $220.25 million.
⦁ Net income increased 62.0% to $94.85 million.

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. [email protected].

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