eBay Enterprise and Demandware form an alliance
January 21, 2016 01:10 PM
EBay Enterprise, formerly eBay Inc.’s commerce services division, and e-commerce platform vendor Demandware have agreed to integrate their technologies and services to better serve online and multichannel retailers.
“If you’re an existing eBay Enterprise back-end customer, in the future, it will be easier than it is today to move to Demandware for your e-commerce platform,” says Tom Griffin, senior vice president of corporate development for Demandware. He says that will reduce retailers’ expense and the risk inherent in building technology from scratch or cobbling together systems from various providers.
EBay Enterprise operates 27 distribution centers and six customer-service sites in North America and Europe, and offers services including enabling retailers to ship online orders from stores or to offer buy online, pick up from store.
Retailers already working with Demandware or eBay Enterprise will have access to the technologies when they’re integrated, although no date has been set, Griffin says.
The two companies share a number of customers, including arts and crafts retailer Michaels Stores Inc., and the new alliance can increase that number, says Marty Armstrong, head of strategic development and new ventures at eBay Enterprise. Neither company disclosed the number of common customers, but eBay Enterprise and Demandware share 25 e-retail clients ranked in the Internet Retailer Top 1000, according to an analysis of vendor data on Top500Guide.com. Those clients include L Brands Inc., No. 28 in the Top 500 Guide, Dick’s Sporting Goods (No. 70) and Kate Spade (No. 178).
Armstrong says, “eBay Enterprise aims to allow retailers on Demandware’s e-commerce platform to accept and process a higher percentage of orders, while eliminating fraud liability and providing greater flexibility to fulfill those orders across an expanded omnichannel supply chain.” EBay Enterprise’s inventory-management technology enables retailers to fulfill online orders from stores, distribution centers or directly from suppliers, the company says.
In November, Permira Funds, a London-based private equity investment group, and Sterling Partners, a Chicago-based private equity firm, spun off the assets of eBay Enterprise. The private equity firms had acquired eBay Enterprise for $925 million in July 2015 from eBay Inc.
At the time of the spinoff, Sterling Partners said it had acquired the former eBay Enterprise services division and would combine it with eBay’s former competitor, Atlanta-based Innotrac Corp., to create what’s now eBay Enterprise. The newly combined company offers services in logistics; order management; omnichannel software; store fulfillment, and payments, tax and fraud management, company President Tobias Hartmann said.
“We’ll become the largest independent player—we think we are three to four times bigger than the next-largest rival—in omnichannel commerce, direct-to-consumer logistics and operations,” Hartmann said.
The rest of what had been the eBay Enterprise unit of eBay Inc. has been separated into three companies: Magento, the e-commerce platform provider; eBay Enterprise Marketing Solutions, and the customer relationship management portion of the business, which Permira Funds purchased and then sold to Zeta Interactive, a marketing technology company.