Digital procurement and e-invoicing provider Tradeshift has launched what its President and COO Jigish Avalani calls a “trajectory” to new growth. The start of that trajectory is a $30 million acquisition of product information management firm Merchantry, a deal announced publicly on Wednesday (Aug. 12).
The buyout of a cloud-based PIM firm, Tradeshift said, will help to strengthen the company’s procurement platform and make it easier for businesses to launch a digital procurement strategy. Suppliers using Tradeshift will now be able to access Merchantry’s support to upload information on their products, including pricing.
“This is expected to significantly increase the value of the Tradeshift network to suppliers because they can be found and get more business,” the company said in its announcement. “The acquisition will also help increase monthly transactions on the platform, which grew 200 percent in the last month alone.”
For Merchantry CEO Rick Watson, the merge with Tradeshift provides a new avenue to simplify the business operations of suppliers looking to go digital. “The success of our vision will now make even greater impact through the Tradeshift platform and its ability to transform how businesses transact globally,” he said in a statement.
According to reports, Merchantry was launched more than a decade ago to help companies initiate their eCommerce strategies. Its technology has provided services to some of the largest digital merchants, including Amazon.
Tradeshift’s decision to boost its PIM ability follows research released earlier this year that highlighted the importance of accurate, sufficient product information on a B2B merchant’s site. A study conducted by Acquity Group found that nearly 70 percent of B2B online shoppers have abandoned their shopping carts in the last year because a supplier website was not user-friendly enough.
Analysts have found that a seller’s focus on the ordering experience – which includes accurate, up-to-date product information – can reduce cart abandonment rates.