Amazon acquires e-commerce software start-up Veeqo
A fast-moving conveyor belt moves a package through a scanning machine on its way to a delivery truck during operations on Cyber Monday at Amazon’s fulfillment center in Robbinsville, New Jersey, U.S., November 29, 2021.
Mike Segar | Reuters
Amazon has bought Veeqo, a company that makes tools to help online businesses sell products on and off Amazon.
Amazon quietly acquired the e-commerce software company last November, but it didn’t publicize the acquisition. Veeqo announced the deal in a company blog post, and Octopus Ventures, an investor in Veeqo, confirmed the deal on Monday.
Amazon is estimated to claim about 40% of the nation’s e-commerce sales, but there’s still a significant chunk of online purchasing that takes place elsewhere on the web. Amazon has long been interested in claiming a share of sales on other platforms like eBay, Etsy, Shopify and Walmart.
For several years, Amazon has offered a program called Multi-Channel Fulfillment, which lets sellers store and ship products using Amazon’s services regardless of whether they’re selling on Amazon. Amazon has sought to attract sellers to the program by cutting rates, as third-party logistics providers and companies like Shopify, UPS and FedEx have all launched their own fulfillment services.
By acquiring Veeqo, Amazon could integrate more robust tools for sellers into its MCF program, potentially luring them away from other third-party logistics providers.
“We look forward to discovering all the ways we can work with Amazon to build on our existing tools, develop new services and, ultimately, serve you better,” Veeqo wrote.
An Amazon spokeswoman confirmed the acquisition. The spokeswoman declined to disclose the terms of the deal.
“We’re excited Veeqo has joined Amazon,” the spokeswoman said. “We plan to continue investing in new features and improvements to help Veeqo serve sellers globally from its home in Wales, facilitate growth for sellers’ multi-channel businesses, and enhance the experience of their customers.”
Representatives from Veeqo didn’t immediately respond to a request for comment.
Founded in 2013, Veeqo is based in Swansea, Wales, and provides software that helps retailers manage their online businesses across e-commerce platforms, including Amazon, eBay, Shopify and Walmart, ranging from order shipping and returns, to keeping track of what products are in stock. The company employs roughly 60 people, according to LinkedIn.
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