Online sales climbed 24% year over year, while Best Buy’s overall sales were flat.
The three-year-old company last week received $3.5 million in funding to improve engineering and marketing of its technology for managing inventory across multiple e-commerce sites.
Stitch Labs Inc. received $3.5 million in venture capital last week to expand the engineering and marketing behind its technology and services for managing inventory sold by small and midsized businesses across multiple wholesale and retail e-commerce sites, CEO and founder Brandon Levey says. That brings its total venture capital to more than $8 million since the company’s launch in 2011, he adds.
The company provides Internet-based software that lets its clients monitor, analyze and update inventory records as sales of their products occur across multiple e-commerce sites, including their own sites and third-party e-marketplaces, including Amazon.com, Etsy.com and eBay.com. It also integrates with the Square payment processing system, e-commerce platforms including Bigcommerce, Shopify and eBay Inc.’s Magento, and accounting applications QuickBooks from Intuit Inc. and Xero Ltd.’s Xero.
As wholesalers and retailers sell products through multiple e-commerce sites, they can log into their Stich Labs software for a single view of updated inventory records across all sites and make any necessary adjustments in pricing and stock levels. After they order and receive new inventory from supplies, Stitch Labs automatically updates the client company’s inventory availability across all of its online selling channels. The technology also works with Amazon.com Inc.’s Fulfillment by Amazon service, to update inventory levels as products are shipped by FBA, a service that holds inventory for online merchants and delivers orders on their behalf.
Levey founded Stitch Labs after developing technology to help sell his own clothing and mobile accessories products across both wholesale and retail e-commerce sites. He adds that he now sees more wholesalers and distributors starting to sell online, as well as more retailers launching online wholesale sites.
Going forward, Stitch Labs will improve its technology’s ability to let client companies automatically generate purchase orders based on minimum inventory levels across all selling channels, Levey says. “It can be automated, for example to say if this product goes below 50 items, order more,” he says.
Stitch Labs says it manages inventory of more than $100 million in monthly online sales transactions. It provides its technology under a software-as-a-service model, which enables users to access its technology via a web browser without having to run it on their own web servers. The company charges monthly fees ranging from $29 to $449 per month based on volume; it also offers an “enterprise” version for larger companies with additional integration with business software applications for an undisclosed price that varies with each client.
Stitch Labs has received its venture capital from investment firms True Ventures and Costanoa Ventures, and from individual investor Greg Waldorf, who is also CEO of investment firm Accel Partners and the founder and former CEO of online dating site eHarmony.
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