What Are Some Examples Of E-commerce Acquisitions?
As the internet continues to evolve and become more accessible to consumers, there are many businesses looking to buy into online marketplaces to gain a competitive edge. These companies may include eCommerce companies, technology platforms, ad agencies, and more.
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Some e-commerce acquisitions are intended to increase brand exposure, while others are more strategic. These types of transactions require a thorough due diligence process, which can be difficult to navigate without a solid understanding of what the business is doing and how it will help the buyer reach its goals.
Amazon acquired Whole Foods for $13.7 billion in 2013 to fuel its expansion into online grocery shopping, and now it’s attempting to do the same thing with its recently announced acquisition of Lore. Derek Thompson, an e-commerce analyst with Forrester Research, believes that Lore will use the data it’s collecting from Whole Foods to fuel new services that will combine a traditional grocery store with an online shopping experience. This will give Amazon a new way to target the highly sought-after and increasingly upscale grocery market, and it could also fuel something else entirely. Located in the same city as its headquarters, Harvest Group has a good understanding of the retail space and ties to brands that have a presence on the company’s platform, according to an industry source.
The digital advertising and merchandising agency Button is a potential target for Walmart, based on its close relationships with big names in consumer packaged goods (CPG). It also offers a wide variety of marketing and merchandising services, and its acquisition would give the retailer another monetization avenue to drive customer loyalty, said one technology, media, and telecom investment banker.
The button is one of the more expensive digital agencies in the world, but it’s worth a look because it has access to a massive audience and is able to monetize its clients in ways that aren’t possible with other digital marketing agencies. Moreover, its technology is particularly well-suited to e-commerce campaigns because it integrates with the Walmart app and can drive purchases on other retailers’ sites as a result.