Online shoppers expect to find products from all of their favorite brands on Amazon — whether it's headphones from Bose, toilet bowl cleaner from Clorox or a Dutch oven from Le Creuset. Sure, most of these products can also be found in stores or on the brand’s own website, but sometimes the convenience of two-day shipping — or a discounted price — drives shoppers to buy through Amazon.
Giant e-commerce marketplaces like Amazon rely on individual sellers to independently list their goods on the platform. Often, these sellers are brands that list their own products, with these third-party marketplaces acting like the middleman. And while there are certainly benefits to selling your products through the Amazons of the world, it’s up to these businesses to decide whether it's worth giving up a cut of their sales.
Boston-based startup Teikametrics launched to give brands more insight into how to grow revenue and increase profitability on online marketplaces. On Thursday, the company announced the completion of a $15 million strategic funding round.
Teikametrics has created software that allows brands to track revenue and ad spending on sites like Amazon, Walmart and others. It provides a platform to track multiple metrics and uses AI in an effort to help brands feel confident they’re maximizing earnings.
The company says its software has already shown its worth. In one example Teikametrics cites on its website, PC gaming company Razer was able to use the platform to increase its ad-generated sales tenfold on Walmart through sponsored product campaigns. In another, electric lighter and battery pack maker Power Practical reportedly used the platform to increase their monthly ad sales by 203 percent on Amazon.
Teikametrics’ software helps over 3,000 brands with their e-commerce decision making, generating billions of dollars of sales.
The company plans to use the new funding to build upon its AI technology, develop more products, expand into new online marketplace channels and provide more SaaS solutions beyond advertising. It also plans to hire aggressively for product development, sales, marketing and support roles. The company will be growing the team at its Boston headquarters, as well as at its offices in Seattle and India.
Jump Capital led the $15 million round.
“We’re thrilled to lead this new round of capital in Teikametrics,” Michael McMahon, founding partner of Jump Capital, said in a statement. “The company has grown rapidly, and the success of its proprietary AI technology for Amazon is a strong proof point for a broader e-commerce platform opportunity. The partnership with Walmart is a landmark event and we are excited to fund the expansion of the Teikametrics platform across multiple e-commerce channels.”
