Pricing specialist Boomerang Commerce raises $12 million
January 14, 2016 01:44 PM
Boomerang Commerce, a provider of software retailers use to optimize online pricing in comparison with competitors, has raised $12 million in Series B funding to develop technology to help retailers better compete with Amazon, the company says.
The funding round is led by Shasta Ventures. Existing investors Madrona Venture Group and Trinity Ventures also participated. The funding brings the total venture capital raised to $20.5 million, a spokeswoman says.
The money will be used to enhance and combine two existing products—Dynamic Price Optimizer and Dynamic Marketing Optimizer, Boomerang says.
The Dynamic Price Optimizer crawls the e-commerce sites of a retailer’s competitors as well as other sites to compile product-pricing data. It then helps the retailer re-price its own online products to remain competitive and hit targeted profit margins, the vendor says. The Dynamic Marketing Optimizer crawls the web for data related to search marketing terms and click rates to help clients manage bidding on search keywords.
The combination of the two products results in a product now available to help retailers more quickly post prices competitive with Amazon’s discounts, Boomerang says. The software, called the Boomerang Commerce Retail Solutions Suite, checks competitors’ product pricing online and changes the retail client’s prices accordingly, a spokeswoman says.
Boomerang provides its software through a software-as-a-service model, which lets clients access it through the Internet without having to run the software on their own web servers. The cost to clients is related to their sales volume, and generally runs above $1 million per year for a one- to three-year contract, the company says.
Boomerang’s customers include Groupon Inc., whose Groupon Goods business unit is No.30 in the Internet Retailer 2015 Top 500 Guide; Office Depot Inc. (No. 8), Staples Inc. (No. 4) and U.S. Auto Parts Network Inc. (No. 136).