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Amazon acquires Veeqo, a start-up that helps sellers manage their online businesses

Amazon acquires Veeqo, a start-up that helps sellers manage their online businesses
10 Mar 2022

Amazon has purchased Veeqo, a company that makes tools to help online businesses sell products on and off Amazon.

The Big Tech company quietly acquired the e-commerce software start-up last November, but it didn’t publicize the acquisition. Veeqo announced the deal in a company blog post, and Octopus Ventures, one of the firm’s investor, confirmed the deal on Monday.

Amazon is estimated to claim about 40% of the nation’s e-commerce sales, but has long been interested in claiming a share of sales on other digital platforms like eBay, Etsy, Shopify and Walmart.

For example, Amazon — through charging sellers for services that help them fulfill orders on Walmart’s site — would indirectly get a cut of those sales.

For several years, Amazon has offered a program called Multi-Channel Fulfillment, which lets sellers store and ship products using Amazon’s services regardless of whether they’re selling on the home site.

Meanwhile, third-party logistics providers and companies like Shopify, UPS and FedEx have all launched their own fulfillment services — and Amazon has sought to attract and keep sellers on MCF by cutting its rates.

By acquiring Veeqo, Amazon could integrate more robust tools for sellers into its MCF program, potentially luring them away from other providers.

“We look forward to discovering all the ways we can work with Amazon to build on our existing tools, develop new services and, ultimately, serve you better,” Veeqo wrote.

An Amazon spokeswoman confirmed the acquisition but declined to disclose the terms.

“We’re excited Veeqo has joined Amazon,” the spokeswoman said. “We plan to continue investing in new features and improvements to help Veeqo serve sellers globally from its home in Wales, facilitate growth for sellers’ multichannel businesses and enhance the experience of their customers.”

Representatives from Veeqo didn’t immediately respond to a request for comment.

Founded in 2013, Veeqo is based in Swansea, Wales, and provides software that helps retailers manage their online businesses across e-commerce platforms, including Amazon, eBay, Shopify and Walmart, ranging from order shipping and returns, to keeping track of what products are in stock. The company employs roughly 60 people, according to LinkedIn.

By Annie Palmer

Source: CNBC

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