Spokane, Wash. e-commerce company etailz, which helps brands sell on huge platforms run by companies such as Amazon, Walmart and eBay, just raised $25 million.
The cash infusion comes in the form of debt financing from Encina Business Credit. CEO Kunal Chopra told GeekWire that etailz opted for debt over equity because it wanted to hit its next growth milestone without giving up any stake in the company.
Chopra said etailz has generated more than $800 million in lifetime sales, and it will use the extra cash to expand its platform to work with more e-commerce marketplaces. The latest round brings the company to $100 million in lifetime funding.
Josh Neblett founded etailz in 2008 as a 21-year-old senior at Gonzaga University in Spokane. Publicly-traded Trans World Entertainment acquired etailz in 2016 for $75 million in cash and stock.
The company started as a third-party seller, but it has evolved to focus on helping other brands sell online. Etailz has served more than 4,000 brands, and its customer base includes companies such as 3M, Strider and Bumbo. Etailz offers a variety of services, including advertising management, digital marketing, price tracking and inventory management.
Neblett continued to lead the company for a few years after the acquisition before leaving in 2019. Chopra, whose resume includes stints at Microsoft, Google, Amazon, Groupon and esports betting startup Unikrn, became CEO this past July.
Third-party sales are becoming huge slices of revenue for big retailers, Chopra said, notably making up a majority of e-commerce sales for Amazon. Chopra sees this trend continuing, and he thinks it will be a boon for etailz as more brands get involved with Amazon’s third-party marketplace and other e-commerce platforms.
“Amazon’s economics are more favorable on third-party sales relative to first-party,” Chopra said. “We also foresee the convergence of both platforms, where all the tools available to first-party vendors will be available to third-party sellers.”
Today, etailz has a headcount of 160 people. In 2018, the company moved to a new Spokane office with room for 250. In January 2019, etailz cut 20 percent of its staff after Trans World reported significant losses.
Trans World also today announced the sale of its FYE pop culture retail stores to a subsidiary of Sunrise Records and Entertainment.
“With respect to etailz, we believe marketplace selling, technology, and advertising have never been more important to global retailing,” Trans World CEO Michael Feurer said in a statement. “The securing of the credit facility for etailz is a positive and important first step to support the growth of etailz, which will remain our focus for the future.”
Source: Geek Wire
