E-commerce Marketplaces

Tap into the e-commerce marketplaces space—the engine of today’s digital shopping revolution.

Global reach within one platform

The e-commerce marketplace industry is on the rocket ride today. Driven by easy online access, diverse products, and consumer convenience, it’s a magnet for investors. Plus, funding is set to hit over $7B by 2027.

Why it matters:

The industry is brimming with various opportunities for esports startups to seize:

  • Global reach: developing a user-friendly interface, multilingual support, or diverse payment options
  • Mobile shopping: developing mobile-friendly websites or apps
  • Social commerce: integrating e-commerce into social media platforms
  • Delivery: streamlining logistics or offering fast shipping options

Between the lines:

Yes, the possibilities really impress as well as the funding potential of the industry. Yet, the sector is occupied by top players like Amazon, Alibaba, eBay, and it is attracting more and more newcomers every year (over 22K startups globally). Thus, operating in this space comes with its challenges.

We’ve worked with multiple e-commerce marketplaces and know how to build successful businesses that grab investor attention

$2B+
Secured in funding
600+
Startups boosted
80+
Industries spanned

What we do:

We streamline fundraising, handle M&A transactions, and conduct robust go-to-market strategies and compelling pitch decks.

Go deeper:

Check our e-commerce marketplace market research to know more about the current situation in the market and what it takes to attract funding.

3x growth
The e-commerce industry is forecast to grow triple by 2032, hitting a whooping $47.1T.

 

60%
60% of global digital sales was done through online marketplace platforms.

Driven by the increasing convenience of online shopping and growing popularity of m-commerce
20%

Global e-commerce sales account for over 20% of retail sales.

32

Is the average number of online orders placed per person worldwide.

50%

M-commerce sales account for over 50% of all e-commerce sales globally.

VENTURE LANDSCAPE

In 2022, the e-commerce marketplace venture capital soared to $3.60B

Key verticals funding flows to:

  • Fashion & Apparel Marketplaces
  • D2C Brands
  • Grocery & Food Delivery Platforms
  • B2B E-commerce Platforms

Leading e-commerce marketplace investors

Write to us to know more

Challenges of e-commerce marketplace startups

The abundance of opportunities comes with its hurdles.

Acquiring new customers:

Stats: around 80% of e-commerce startups fail. Many fall flat due to costly building out both demand and supply sides and inability to attract enough customers.

A case in point:

Hopscotch—a once-promising social commerce platform—faced stiff competition from top dogs like Amazon and eBay, failed to attract customers, and bit the dust in 2023.

What it takes:

  • Race against established brands, like Amazon, eBay, and Alibaba
  • Educate potential customers through educational content (blog posts, video, articles, etc.), free trials or demos, and customer support
  • Develop creative marketing strategies.

Building trust:

Stats: over 70% of individuals abandon their online shopping carts due to a lack of trust.

Why it matters:

  • Such drifting off before or during checkout results in over $1T loss in revenue for e-commerce retailers
  • A complex buying process deters customers from completing their purchases and thus undermines their trust

What it takes:

  • Poor customer exposure
  • Diminishing brand loyalty
  • A market share downturn

Raising service stakes:

Stats: over 88% of individuals would become return customers after having a positive customer experience.

A case in point:

Wish—a mobile-based e-commerce platform, was sued in 2022 by the FTC for misleading customers about its products’ origin and shipping times. Drawing in bad press and criticism, the company threw a towel after paying a $4M settlement.

What it takes:

  • Resolving disputes within three-six days
  • Providing support for product returns and refunds
  • Ensuring a seamless checkout experience

Securing funds:

Lack of funding is one more reason that leads to almost 90% of e-commerce startups shutting down.

Why it happens:

  • Competition is tough. There are numerous established players (Amazon, eBay, Alibaba, etc.) and a constantly growing number of new entrants (more than 22K)
  • Startups need to show not only strong results but also clear growth plans and big market potential
  • Managing unit economics is tricky. High CAC and marketing costs (companies need to build both demand and supply sides), operational expenses, and the need for competitive pricing

What it takes:

If you want to raise necessary funds, focus on:

  • Developing a strong business and financial models
  • Networking actively
  • Pitching to e-commerce marketplace VCs
  • Creating compelling and visually attractive pitch deck
  • Strategic partnerships
  • Social media and content marketing

FAQs

How attractive is the industry to potential e-commerce marketplace investors?

The e-commerce marketplace industry, with its rapid growth and high profitability, is very appealing to investors.

If you are an e-commerce marketplace startup, how easy is it to raise funding today?

It may be rather challenging to secure funding nowadays. Yet with increased investor interest and growing popularity of e-commerce marketplaces, it becomes more possible.

How long does it take to create a pitch deck and financial model for an e-commerce marketplace startup?

Our standard timeline for documentation is two to three weeks, but depending on project nuances and our current workload, it could take as long as a month. Feel free to get in touch for detailed insights.

What are the key mistakes e-commerce marketplace startups make in their pitch decks?

Most e-commerce marketplace startup pitch decks lack a persuasive investment storyline and a clear market decision. Plus, the absence of a robust business strategy and proof of progress. Like this, e-commerce marketplace venture capitalists don’t get the full picture and may shift their focus to a more promising and urgent project.

How competitive is the e-commerce marketplace market?

The e-commerce marketplace market is highly competitive, characterized by strong competition from established giants like Amazon, Alibaba, eBay, as well as constant innovation from emerging startups.

What services do you provide for investors looking to invest or already investing in e-commerce marketplaces?

We help investors evaluate e-commerce marketplace investment opportunities by conducting in-depth research and presenting valuable insights in a clear, visual format. Plus, we offer comprehensive fundraising services to e-commerce marketplaces and related companies in our portfolio.

Do you provide e-commerce marketplace M&A support?

Yes, we do! Our team assists with e-commerce marketplace M&A by scouting for promising opportunities, evaluating them for potential success, and facilitating smooth partnerships that continue well after the deal is closed.

Do you make intros to e-commerce marketplace VCs?

Of course! We help link you up with the right venture capitalists in the e-commerce marketplace space. By assessing your project’s team setup, round size, and product, we’ll guide you in partnering with investors throughout the entire deal and beyond.

Do you have available data or research to purchase on the e-commerce marketplace market?

Yes, we do! Our analysts ensure customized e-commerce marketplace market research. As this segment is multifaceted, we pay attention to every detail, including competitive analysis and industry reports. Plus, we utilize reliable proprietary data sources to help you wrap your head around the e-commerce marketplace scene.

Which growth stage of companies have you worked with in the past?

Our experts provide growth and fundraising support for e-commerce marketplace startups, guiding them from their initial Pre-Seed phase right up to Series C and further.

Building a solution in the e-commerce marketplace industry? Get in touch with us

Fuel your next stage of growth with Waveup—your one-stop shop for fundraising support, outsourced M&A advisory, growth strategy consulting, and presentation design. Leave your email, and let’s chat!

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