Retail Technology Provider Narvar Raises $30 Million in New Funding
August 28 2018 - 6:30AM
Dow Jones News
By Erica E. Phillips
Retail logistics software specialist Narvar has raised $30
million in new funding to back what the company says will be
aggressive expansion of a business that supports e-commerce
platforms for companies including Costco Wholesale Corp., Gap Inc.
and Levi Strauss & Co.
The new funding round, led by venture capital firm Accel with
Battery Ventures, Salesforce Ventures and Scale Venture Partners,
brings the company's total raised to $64 million since the business
launched in Silicon Valley in 2012. Narvar said the funding will
support refining its technology, which is helping retailers manage
deliveries and returns for online orders, and an expansion into
Asia and Europe.
The company says its technology supports 500 retailers, helping
their online sales platforms offer services similar to those at
Amazon.com Inc. Narvar Chief Executive Amit Sharma said it handles
"all aspects of post-purchase customer engagement and messaging,"
and that demand for its technology has increased, particularly on
the returns side, as digital commerce has grown.
"As consumers shop more and more online, free returns is part
and parcel of their expectations," Mr. Sharma said. "Both for
consumer experience and operational efficiencies, this part of the
business needs be able to be solved pretty quickly."
The growth of Narvar and other e-commerce tracking and returns
technologies highlights how deliveries and reverse logistics have
become more important to retailers' customer service strategy.
Surveys have found customers are more likely to shop again at an
online retailer after an initial purchase if it's easy for them to
track shipments and return purchases.
According to a Forrester research report, U.S. internet retail
sales are expected to reach almost $540 billion this year and grow
11% annually over the next five years to account for one-fifth of
all retail sales by 2023.
Dale Rogers, a logistics and supply chain professor at Arizona
State University, said Narvar's software improves the online
shopping experience while providing retailers with better
information about their customers. For example, Narvar's software
could catch shoppers who return items frequently, highlighting
potentially fraudulent behavior, Mr. Rogers said.
"It's clever," he said. "You can really track what your
customers are doing."
Software startups aiming to solve common logistics problems have
drawn millions of dollars of venture-capital funding as e-commerce
has ballooned. According to industry tracker PitchBook Data Inc.,
logistics startups drew $404 million in new funding last year, more
than twice the previous peak of $185 million in 2015.
Several third-party software and logistics companies are
targeting the costly returns process. Optoro Inc. recently raised
$75 million to expand its development and sales in services known
as reverse logistics. Optoro estimates the annual U.S. market for
customer returns is $380 billion and growing.
Charlie Cole, chief digital officer for luggage brand Tumi, a
Narvar customer, said shipment tracking and better communication
after an online sale can help inspire confidence in a brand.
"Customer expectations have fundamentally changed, driven in no
small part by Amazon," Mr. Cole said, and brands have to do
"anything they can to, at the very least, level the playing field
for after-sales service."
Write to Erica E. Phillips at erica.phillips@wsj.com
(END) Dow Jones Newswires
August 28, 2018 06:15 ET (10:15 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Gap (NYSE:GPS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Gap (NYSE:GPS)
Historical Stock Chart
From Sep 2023 to Sep 2024