To accelerate its eCommerce “Factory Floor to Front Door” platform, automation and fulfillment technology firm Whitebox has closed a TDF Ventures-led $5 million Series A funding round. New investor David Williams, who is Merkle’s chairman and CEO, joined existing major investors who are increasing their support, including Millennial Media Co-Founder and CTO Chris Brandenburg, according to an announcement from the company.
Whitebox CEO Marcus Startzel said in the announcement that shoppers have almost limitless options with online shopping, creating challenges for brands. “Consumers can choose to buy a single product, a multi-pack, a variety pack, same-day shipping, two-day shipping, whatever they want. Brands, on the other hand, must battle through the selling and fulfillment challenges left by this explosion of consumer choice,” Startzel noted. “This is exactly the problem Whitebox is solving: brands can now offer these options with all-in-one technology-enabled eCommerce outsourcing, from the factory floor to the consumer’s front door, all while reducing time from sale to delivery as cost effectively as possible.”
The company says it will use the funding to invest in marketing as well as sales, accelerate customer segment growth, refine its technology solutions, hire key experts and open additional U.S. fulfillment centers. As it stands, Whitebox created its technology platform for brands to deliver a true logistics solution for eCommerce and capitalize on direct-to-consumer trends. The company’s clients range from large brands like KitchenAid and Starbucks to challenger brands like Bare Bones and Kitu. Startzel said in the announcement, “We will be the technology partner of choice so DTC companies of all sizes can focus on building best-of-breed products.”
The funding comes as the company said consumers spent $517 billion online with U.S. merchants last year, marking an increase of 15 percent from $450 billion in 2017 per U.S. Commerce Department data and an analysis by a media outlet. Citing CPC Strategy, the company noted that Amazon “remains the titan” but that Alibaba, Etsy, Walmart, eBay and Overstock.com round out the U.S.’s top seven eCommerce marketplaces.