Amazon could substantially expand their dominance over the ecommerce market, as the Seattle-based tech giant has announced the acquisition of Veeqo, a UK-based ecommerce startup.
Everyone knows that Amazon has been pretty acquisition happy over the last few years. From Whole Foods to MGM Studios, the ecommerce behemoth has been snatching up as many verticals as possible to make itself even more competitive in as many industries as possible.
Now, it seems to be expanding one of its core functionalities, online shopping, even further with the acquisition of Veeqo.
Amazon Acquires Veeqo
Announced last November, news of the deal was somehow lost amongst the Black Friday deals and holiday insanity with few, if any, news outlets covering the acquisition. Fortunately, an investor in Veeqo confirmed the deal earlier this week, and now we've got a bit more information about what the deal entails.
For one, Veeqo is an ecommerce service company that provides tools to sellers, not only on Amazon, but on other platforms like Walmart, eBay, Etsy, and Shopify. Subsequently, Amazon is likely trying to get a piece of the pie when it comes to purchases made on its competitors.
“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,” said the Veeqo Team in a statement.
The overall plan for Amazon is likely to add Veeqo to its Multi-Channel Fulfillment program, which allows sellers to sell via Amazon services, even if they aren't on the actual Amazon page.
What does this mean for the ecommerce market?
Let's be honest, Amazon already has a strangle hold on the ecommerce market, so this acquisition isn't going to be a tipping point for major competitors or small businesses moving forward. Amazon already represents 40% of the US ecommerce sales, so there's only so much further they can establish themselves in the industry.
Still, the fact that Amazon will be better set up to not only earn from its own platform, but also from its competitors' platforms isn't nothing. Whether it gives them an even stronger edge over everyone or facilitates a more communal industry remains to be seen, but it's Amazon, so the former makes more sense.
Either way, your own small ecommerce business efforts shouldn't be largely affected. In fact, this likely means that you'll be able to set up an online store even easier, whether you use Amazon's services or not.