BigCommerce is Going Public
BigCommerce recently filed their S-1 for an initial public offering. While their competitor, Shopify, is often in the limelight, BigCommerce has more quietly yet effectively grown as one of the most successful SaaS e-commerce platforms. Their IPO is another proof point in the proliferation of e-commerce SaaS and its adoption across all business segments (SMBs, Enterprise, and B2B). Per their S-1, BigCommerce is “the world’s second most-used SaaS e-commerce platform and top five overall among the top one million sites globally by traffic.”
Punchline
BigCommerce’s S-1 provides some interesting insights into how they see the future. It also reinforces some important e-commerce trends worth noting:
- E-commerce growth. Abundant opportunity continues to exist in e-commerce, which has seen at least 20% growth annually every year for the past decade.
- Open SaaS. In numerous places throughout their registration statement, BigCommerce speaks to the opportunity of embracing “Open SaaS.” In short, they are speaking to the power of APIs across software services.
- B2B & Enterprise. In 2020, B2B e-commerce sales are expected to eclipse $1T. That’s more than 3x e-commerce retail sales. Furthermore, enterprises (exceeding $50M in annual revenue) are increasingly adopting SaaS.
- International. As of January 2020, 58% of e-commerce websites are outside of the US. Opportunity is abundant for international expansion.
E-commerce is still in its infancy.
It is easy to forget that just 10 years ago e-commerce only accounted for 3% of total retail sales. Purchasing goods online has become commonplace for consumers around the globe. Yet, it has only just begun. In 2020, less than 20% of retail sales will be attributable to e-commerce. This proportion of retail sales will continue to grow alongside evolving experiences through which consumers purchase goods online.
APIs will drive innovation and e-commerce growth.
Every business and e-commerce experience is unique, thus making it difficult for a single SaaS application to meet all requirements using basic “out of the box” functionality. By leveraging a platform’s APIs, you can extend the functionality of your e-commerce platform to any other applications or proprietary technologies that aid in the experience. As stated by BigCommerce, “APIs enable our customers to access a wide variety of third-party applications, integrate with legacy systems, and customize when required.” Each gray box in the diagram below speaks to an API that can be integrated with external applications or services.
B2B companies and enterprises are increasingly adopting SaaS.
International Data Corporation predicts that by 2023, digital transformation and innovation will account for more than 50% of all IT spending. That compares to 36% of IT budget in 2018. With more commerce moving online, organizations are recognizing the importance of leveraging technology in the entire customer journey (from product discovery to engagement to purchase to delivery and returns). BigCommerce cites that 10% of their revenue today is attributable to B2B customers and 52% of revenue is attributable to enterprise accounts (with 40% annualized growth). These are both massive growth drivers for the company.
E-commerce growth is an international conversation.
Internet users in the Americas are not the only consumers buying online; international growth of e-commerce remains consistent across other international markets. Becoming a multinational business does not happen overnight, but considering e-commerce strategically on a global scale more than doubles the addressable market in play. Supply chain complexities and fulfillment timelines add challenges to international expansion, but the technology barriers have never been lower.
We are excited to see how e-commerce SaaS technology will continue to lower the barriers of doing business at scale for companies of all sizes. Business teams are increasingly able to push IT teams to the limit of possibilities in driving growth through e-commerce channels. Everyday Aloi’s customers are finding new ways to extend functionality across their tech stacks.
As always, thanks for reading. We would love your feedback, so don’t hesitate to reach out.
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Verishop Bets on Social Shopping
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