Of global e-commerce sales poised to be a $5.5 billion industry this year, startups in the ecommerce software space are trying to carve a niche in this massive market.
One is Because, a startup that develops no-code software that connects different data sources to automate large amounts of website updates.
Founder and CEO Ashland Stansbury explained that e-commerce companies collectively spend $1.3 trillion driving traffic to their websites, but only 3% of that leads to a customer purchase. In addition, the average business owner on Shopify manages a large product catalog, often containing more than 50 products.
How content is typically updated is that a manager has to go to every web page and change everything manually, often leading to misinformation and errors.
Instead, the Tampa-based Because, which launched in November 2020, is coming in to provide a “Canva-like” editing experience where ecommerce executives can design and publish messages, for example about delivery and availability, promotions and shipping costs, aimed at boosting conversion rates.
“We estimate that tens to hundreds of hours are saved per month with Because,” Stansbury told businesstraverse.com. “It also saves developer hours.”
While some companies use the phrase “no code” they still require some programming skills, but Stansbury says because it doesn’t. There’s a campaign dashboard with different types of content and templates to pick from, similar to Canva, and the manager can automatically fit the store’s brand and colors, then change font, text, or colors, and drag and drop to see how it would look like live.
Because the sweet spot is, so to speak, the inventory control engine. Instead of having to look product by product, the engine only shows products with an abundance of stock or only a few left.
Within the e-commerce industry, the e-commerce software and platform market is expected to be valued at nearly $4 billion in 2022 and triple by 2032. Companies like Melonn, CommerceIQ, CJ Dropshipping, Gelato, and Moonshot Brands also operate in this space.
As $650,000 in angel investment was raised last year, growing the business to over 900 merchants and 150 paying customers.
Now armed with a new capital injection, a $3 million seed round, as plans to grow its product and team; build integrations with additional c-commerce platforms such as Klaviyo, Smile.io, and ShipBob; and use artificial intelligence to predict the exact messages users should buy from the site and to compare their results with other stores in similar industries and geographies.
Harlem Capital led the round and this is the third investment from them we’ve reported on in a month, including Drip and Glow Labs. Joining Harlem in the investment are Studio VC, North Coast Ventures, Gaingels and angel investors, including certain former Shopify executives.
Meanwhile, Stansbury says, because the shopping cart is up 38% on average, usually in the first 90 days of integration. Its addressable market is already quite large — it’s currently on Shopify, where there are more than 700,000 merchants with 50 products or more to manage, she added.
“The growth has hit a real hockey stick and for the past year it has been a team of myself and two engineers,” she added. “Now we are going to invest in sales and marketing and complete the leadership team with a head of product and head of sales.”