GigaCloud Technology Inc., a large-parcel merchandise B2B marketplace, ended 2023 with a big jump in its core ecommerce metrics.
GigaCloud launched its B2B marketplace in January 2019 by focusing on the global furniture market. It has since expanded into such additional categories as home appliances and fitness equipment. The GigaCloud B2B marketplace debuted as a public company in the U.S. in 2022. It first became profitable in 2023.
For the year ended Dec. 31, GigaCloud reported:
- Total 2023 revenue of $703.8 million, an increase of 43.6% from $490.1 million for 2022.
- 2023 net income was $94.1 million compared to $24.0 million in 2022.
- GigaCloud marketplace gross merchandise volume in 2023 totaled $794.4 million, up 53.3% from $518.2 million in the prior year.
- Active third-party (3P) sellers totaled 815 last year, an increase of 45.5% from 560 in 2022.
- The number of active buyers grew year over year to 5,010, up 20% from 4,156 in 2022.
- The spending per active buyer was $158,569 compared to $124,692 in 2022.
- Third-party marketplace gross merchandise value (GMV) was $426.3 up 65.4% from $257.7 million in the prior year.
“On the seller side, the platform saw an approximately 46% increase in active 3P sellers, which ended at 815 for the quarter,” CEO Larry Wu told analysts on a recent year-end earnings call. “As I’ve mentioned in the past, we see the expansion of our 3P ecosystems as a crucial aspect of our platform expansion and achieving scale in our supplier-fulfilled retailing model,” he added.
GigaCloud’s expansion plans
In February, the marketplace also announced more international expansion with the introduction of new third-party suppliers in Colombia, Mexico and Turkey that have joined its B2B ecommerce platform, GigaCloud Marketplace.
As GigaCloud broadens its reach, Wu points to challenges stemming from “shifts in the evolving global supply chain” a motivator for resellers to become buyers on its marketplace, which he says is adapting to supply chain conditions, listing products from various regions.
“This strategic move positions GigaCloud as a key player in global trade, offering diverse supply chain solutions that empower resellers to source products globally, supported by comprehensive logistics and fulfillment services to optimize their procurement efficiency and overall supply chain performance — all at their fingertips,” Wu stated.
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