As 2018 winds down, one can look back and easily realize that no previous year has seen as much growth in the e-commerce sector as this one. Ready-to-go platforms such as Shopify, BigCommerce and Volusion have primed the landscape for prospective entrepreneurs to make the jump from idea to materialization (or, digitalization) of their business projects with minimal effort.
The numbers back the trend – B2C e-commerce sales are on course to reach an incredible $4.5 trillion in 2021. To put that in perspective, 2017 registered $2.3 trillion in sales. Impressive, for sure – but these numbers are dwarfed by B2B sales. In 2017, this model tallied an insane $7.7 trillion in sales. That‘s 234.78% more than B2C channels.
As for customers - they are becoming more and more comfortable with the idea of buying most of their purchases online. On average, 54% of purchases made by millennials happen online – versus a 49% of non-millennials‘. A grand total of 98% of US citizens revealed that they have made at least one online purchase in their lifetime – and 80% of them made one just over the last month.
Having all this information at hand, investors must be on the lookout for opportunities that get them involved in the various ancillary services that these entrepreneurs need in order to sustain the growing demand for reliable shopping experiences. Those services range from proper billing, to bookkeeping traceability, to CRM tools that allow the development of satisfying customer-vendor relationships.
While multiple software companies are developing software-as-a-service solutions that cater to these needs, very few of them are in the public market at a price point that allows the small investor to obtain a good position in them. Even less of them are able to boast involvement in not just one, but several diverse software projects with major growth and revenue-generating potential.
An unique opportunity in the sector.
Subscribe Technologies (CSE: SAAS) is a one-of-a-kind project in the market of e-commerce support platforms. The incubator/accelerator scouts out and boosts, develops , or acquires software assets and companies with products that its team believes can reach new heights with the right push and capital investment.
Its portfolio is already stacked with promising projects such as FileQ - its own cloud-storage service that allows for massive uploads and fast downloads for its premium members, and Gingerly - their flagship, scalable customer relations management (CRM) tool. Other notables in its deck include Lendertech, ServerHawk and SiteSafe.IO. Once development is completed, the company itself commercializes the platforms.
What makes this considerably undervalued enterprise a true standout is the fact that it‘s public, unlike other companies with similar business models. This creates an unique opportunity for investors that decide to place capital in this booming sector – putting a company that is developing several high-growth ancillary e-commerce services at the same time, within their reach.
A solid team that includes veterans of the sector as well as outstanding startup accelerators, provides the company with the vision necessary to identify and negotiate with promising developers that can provide value to a wide range of end customers. From solopreneurs, to SMEs, to public companies, SAAS has products that can be tailored for everyone.
In the middle of a shift from traditional to digital shopping channels, investors will be wise to learn about companies such as SAAS. The innovative business model allows them to get involved in a number of support services that are indispensable for growing businesses, thus benefiting from the multiple revenue streams that each one of them has, while reducing the risk that would come from investing in a single platform.
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